United Nations Warns Developing Nations of Triple Crisis
The UN development agency stated that developing countries are facing an energy crisis, El Nino, and high borrowing costs, and called for support.
The development arm of the United Nations announced that developing countries are facing a triple shock consisting of an energy crisis, climate events, and rising borrowing costs, calling on the international community for urgent support.
Urgent Call for Solidarity from the International Community
Making statements ahead of the annual IMF and World Bank meetings held in Bangkok, officials emphasized that emergency action plans must be activated on a global scale.
In the evaluations made, it was requested to increase access to affordable financing in order to protect vulnerable households and provide necessary liquidity.
Risk Factors in the Published Report
A report published by the UNDP revealed the dimensions of the dangers created by the combination of energy, climate, and debt crises, and drew attention to the depleted resources of governments.
The rise of crude oil prices above $100 per barrel following the resumed conflicts in the Middle East further strained global economic balances.
El Nino and the Increase in Borrowing Costs
While the severe El Nino climate pattern is expected to cause crop failures and extreme weather conditions worldwide, global bond sales pushed borrowing costs up to the 9 percent level.
It was revealed that low-income countries in debt crisis have cut their education budgets by an average of 8 percent since 2019.