Debt pressure and global tensions are changing development strategies

High debt, rising tensions, and declines in official development assistance have led countries to change their development strategies, while debt restructuring and new approaches came to the forefront at the World Bank and IMF annual meetings.

High debt levels and rising global tensions are increasing the need for new development approaches. World Bank President Ajay Banga stated in his remarks at the annual IMF and World Bank meetings that changes are essential for countries to cope with conflicts, declines in official aid, and debt burdens. Banga noted that approximately 1.2 billion young people are expected to enter the job market over the next 10-15 years, while only 400 million job opportunities are currently available. As a solution, the importance of combining public financing, private investment, philanthropy, and technology was highlighted.

According to UNCTAD data, developing countries' total external debt stock reached $12.3 trillion in 2025. Along with British Foreign Secretary Ed Miliband stating that the UK will prioritize debt restructuring for the poorest countries during its upcoming G20 presidency, it was stated that developing countries are also turning to searches outside the Bretton Woods institutions, feeling disappointed by the responses given to problems such as high debt, climate change, and inequality.