This is the second post in the four-part Beyond aid: new directions in development finance series on the key debates at the Fourth International Conference on Financing for Development (FfD4), which was held in Seville, Spain during June 2025.
One of the central issues at FfD4 was the mounting international debt crisis. The OECD estimates that more than 50 countries are either already in debt distress or at high risk, including 36 low-income countries and a growing number of middle-income economies such as Sri Lanka, Ghana and Egypt. This problem is broader and more global than in the past. Many governments now spend more than 20% to 30% of revenue on debt service, often outstripping expenditures on health and education. In Sri…