UNESCO Urges Expanded Debt‑for‑Education Swaps to Boost School Funding

The United Nations Educational, Scientific and Cultural Organization (UNESCO) called on international lenders to broaden the use of debt‑for‑education swaps in a report released on Friday. The organization warned that a growing number of developing nations are allocating a larger share of their budgets to debt servicing than to primary and secondary schooling, jeopardising long‑term human capital development.

UNESCO’s analysis highlights that debt‑for‑education swaps—where creditors agree to reduce a country’s debt in exchange for commitments to invest in education—have proven effective in a handful of cases but remain under‑utilised globally. The report argues that expanding these mechanisms could free up fiscal space for schools, teachers, and educational infrastructure, thereby improving enrolment and learning outcomes in low‑income economies.

The organisation urges donor countries and multilateral financial institutions to adopt more flexible swap arrangements and to monitor their implementation closely. By redirecting debt‑service payments toward education, UNESCO believes that developing states can break the cycle of underinvestment in schooling and better equip their populations for future economic growth.