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UNDP warns of rising poverty and debt in developing nations

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2026-10-16 03:22 UTC → 2026-10-22 19:41 UTC · added ~~removed~~

The United Nations Development Programme (UNDP) has intensified its warnings regarding a “perfect storm” of compounding crises threatening developing nations, driven by energy and food price shocks, the El Niño climate pattern, and rising borrowing costs. Recent projections suggest that if current price shocks are fully passed to consumers, as many as 130 million people could fall into poverty living on less than $6.85 a day, with millions more falling below the $3.65 and $2.15 thresholds. The cost of direct fossil fuel subsidies worldwide is projected to exceed $1 trillion this year. While governments have used these subsidies to shield the poorest, high global interest rates and rising debt burdens are severely limiting fiscal capacity. Speaking at the IMF and World Bank Annual Meetings in Bangkok, UNDP Administrator Alexander De Croo noted that multidimensional poverty has risen for the first time since 2010. He highlighted a significant debt disparity, noting that the median developing country now allocates 9.5 percent of government income to interest payments—three times the share seen in developed nations. De Croo described the fiscal cost of current subsidies as “unsustainable.” Newer assessments indicate that global fuel price surges, following military conflict involving the United States and Iran, have further disrupted oil and natural gas supplies. While the IMF notes that global growth remains stable, it suggests this resilience may be tied to investments in artificial intelligence, which could potentially widen the economic gap between wealthy and developing nations. UN Secretary-General António Guterres has expanded these warnings, cautioning that rising prices for food, fuel, and essential goods, alongside high interest rates, are fueling a wave of global protests. These demonstrations have manifested in violent clashes in France, Albania, and Italy, as well as housing protests in Spain and Portugal.

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