At the IMF and World Bank annual meetings in Bangkok, officials and development leaders confronted a widening gap between poorer countries’ needs and the public money available to meet them. Reuters reported that higher debt-service costs, shrinking aid budgets and persistent conflicts are pushing governments and international institutions toward new financing models.
Aid falls as debt climbs
International aid from OECD Development Assistance Committee members and associates fell 23.1% in real terms in 2025, to $174.3 billion, according to preliminary OECD data. It was the largest annual decline in the history of official development assistance. The five biggest donors all reduced aid, accounting for about 96% of the total drop.
At the same time, developing countries’ combined external debt reached $12.3 trillion in 2025, Reuters reported, citing UN Trade and Development. That was roughly $500 billion more than in 2024.
The combination is leaving governments with less room to fund health, education, infrastructure and climate programs. Eric LeCompte of the debt-relief group Jubilee USA Network said the meetings produced little new help for countries already facing steep debt payments and higher borrowing costs. Jean Saldanha of the European Network on Debt and Development called for more climate grants, less debt and faster access to financing for the least-developed countries.
