debt justice to end malnutrition

The state of global nutrition is dire, with 2.8 billion people unable to afford a healthy diet. Extremely cost-effective ways to improve nutrition are well established, yet high levels of public debt owed by many lower-income countries starve them of the resources they need to provide adequate nutrition and basic services such as health and education. Reforms to the global financial system – and UK law – are urgently needed to tackle this debt crisis.

what

reform of the system governing sovereign debt is urgently needed so that poor countries have the resources to fight malnutrition and poverty

who

the UK Government must reform its laws governing poor countries in debt distress and push for a new global framework

how

ask your MP to push the Government to change UK law, and to advocate internationally for a new UN framework on debt restructuring

bad loans are causing malnutrition and poverty

Vulnerable countries are drowning in debt, while malnutrition runs unchecked. The countries most affected by food crises pay just over $40 billion in external debt repayments – on average, almost twice the amount that they spend on health services.

90% of foreign debts owed by the poorest countries are governed by English law, making the UK uniquely placed to ensure that loans to lower-income countries are lawful, transparent and protected from unfair claims. But to date the UK has taken minimal steps to make this a reality.

The UK must also use its influence to push for new UN debt restructuring and debt cancellation mechanisms, as the current ‘Common Framework’ established by the world’s largest economies is not addressing the debt crisis faced by the world’s poorest countries.

how does debt affect poverty and malnutrition?

Good nutrition is essential, yet 2.8 billion people are unable to afford a healthy diet, and global food insecurity has increased, even though extremely cost-effective nutrition interventions such as micronutrient supplements and breastfeeding support are well established. However, high levels of debt owed by low-income countries (alongside low levels of Official Development Assistance (ODA) from wealthy countries) starve these interventions of investment.

Public debt can play a positive role in development. Governments use it to finance their expenditure, paying for priorities such as health or education, but it can also be a heavy burden if it grows too much or too fast. The 16 countries most affected by food crises spent around 16% of government revenue on external public debt service in 2023. On average, these countries spend 1.9 times the amount on servicing their external debt than they spend on health (including nutrition).

While some unsustainable debt was written off in the early 2000s, globally, a debt crisis is once again being experienced by many countries. Debt owed by the poorest countries rose sharply after the 2008 financial crisis and again after the COVID-19 pandemic. High inflation also means that imports such as fuel and food cost more, squeezing the financial capacity of low-income countries to make debt interest payments.

The existing G20 ‘Common Framework’ for debt restructuring was agreed in 2020 to support 73 Global South countries with debt relief and restructuring, so that they could maintain essential spending. But it is not working in practice. For example, in November 2022, Chad became the first country to complete the Common Framework process, but its debts were not reduced at all, and in 2025, the country is scheduled to spend 18% of government revenue on external public debt service. A new, legitimate United Nations-backed system that focuses on reducing poverty and inequality is urgently needed.

what is the UK Government’s role?

The UK Government has recently argued for reform of the global multilateral system. The UK plays a central role in the global debt system, and thus possesses a special responsibility to pursue its positive transformation – a responsibility the UK has not lived up to so far.
The UK should take action domestically and globally. As 90% of foreign currency bonds owed by the poorest countries are governed by English law, the UK occupies a unique role in the global sovereign debt system. To stop creditors from exploiting debt crises by taking legal action against governments in debt distress, UK law should be updated to cover all internationally agreed debt restructuring, and to ensure that loans to low-income countries are transparent and lawful.
The UK should also promote the creation of a UN sovereign debt restructuring mechanism, along with a UN automatic debt cancellation mechanism for low-income countries affected by economic shocks or emergencies.

take action!

Please write to your MP, asking them to urge the UK Government to implement its aspiration to reform the global financial system by reforming UK laws governing debt distress in poor countries, and by pushing for a new UN global framework for debt restructuring and debt cancellation.
Ask your MP to write to the Chancellor of the Exchequer, Rt. Hon. Rachel Reeves MP, and to the Foreign Secretary, Rt. Hon. David Lammy MP, who are responsible for these areas of Government policy.
You can find your MP’s contact details here, and advice on writing your letter here.

take action!

write to your MP about ending the debt crisis

ask them to urge the UK Government to reform UK law on debt relief and push for reform of the global financial system

I took action!

we’re here to support you!

If you have any questions or need support or advice in writing your letter, please contact Naveed Chaudhri, Head of Campaigns, at [email protected].

Zambia: debt relief under the Common Framework as a pyrrhic victory

Zambia represents a classic case of the double burden of malnutrition: 31% of children under five years old are stunted yet 28% of adults are overweight. Yet its health system is under-resourced and overstretched. In November 2020, Zambia became the first African country to default on payments to overseas private creditors during the COVID-19 pandemic. The Government of Zambia was left with no choice as these foreign currency bondholders refused to suspend debt payments. That year, the Zambian Government spent US $747.7 million on external public debt service and just US $652 million on health (including nutrition).

In February 2021, Zambia applied for debt restructuring through the Common Framework. In June 2024, a deal was finally agreed that reduced the country’s debt by around US $900 million and rescheduled future payments. Despite the deal, the country’s debt burden remains deeply onerous. It is also disturbing that, under the deal, Zambia will have to significantly increase debt payments if its economy performs better than expected, though its payments will not be reduced in the event of a shock, such as the severe drought that affected the country earlier this year.

Read more in our report, bad loans, poor nutrition.

Photo: CITAMPlus