Towards Debt Justice for Girls examines the devastating impacts of debt crises on girls’ education and provides recommendations for reforming the G20 Common Framework for Debt Treatments.
In 2024, the 10 countries with the greatest barriers to girls’ education, home to 32 million out-of-school girls, spent four times more on debt repayments than on education. Nearly 40% of countries classified as ‘developing’ by the U.N. are grappling with crushing debt that diverts critical resources away from public schools and social services.
When budgets are squeezed, students lose access to teachers, learning materials and free school meals. These impacts often hit girls the hardest, leading them to drop out of school early. Austerity conditions deepen gender inequality and perpetuate cycles of poverty. As girls grow up, they face the cascading effects of underfunded education and other social sectors: they get married early, get stuck in low-wage, informal work or take on the unpaid burden of caring for children, the sick and the elderly.
In our new policy brief, Towards debt justice for girls, we highlight the detrimental consequences of sovereign debt crises on girls’ lives and urge G20 leaders to unlock resources for their education through urgent debt reform.
History shows that debt relief can transform girls' educational outcomes. The Heavily Indebted Poor Countries (HIPC) Initiative in the late 1990s forgave $100 billion in debt for the world’s lowest-income nations, enabling significant increases in primary school enrolment rates and improvements in gender parity in education. However, structural flaws in the global financial system have left many lower-income countries vulnerable to recurring debt crises, especially after the COVID-19 pandemic.
Reforming the G20 Common Framework
The G20 Common Framework for Debt Treatments provides a coordinated mechanism for restructuring debt but has proven ineffective in addressing the needs of lower-income countries. Reforming this framework is essential to unlocking resources for girls’ education and breaking the cycle of debt-induced austerity that perpetuates gender inequality.
At the upcoming 2025 G20 Summit, under South Africa’s presidency, governments must prioritise reforms to:
Reduce debt servicing costs to sustainable levels (10-15% of national revenue) to create fiscal space for education and health.
Integrate human rights and gender considerations into debt sustainability assessments.
Protect gender-responsive social spending through mandatory minimum thresholds.
Suspend debt payments during negotiations to prevent cuts in essential services.
Enhance transparency and accountability among creditors while strengthening civil society participation in debt restructuring processes.
Girls deserve an education that provides them with the skills they need to thrive in all areas of their lives. It is one of the highest-return investments societies can make for global stability and prosperity. Girls’ education improves health outcomes, strengthens democracies, boosts economies and supports climate resilience. Governments must act urgently to reform international debt mechanisms, protect social spending and prioritise gender equality in education policies. G20 leaders must take bold action now to deliver on the promise of universal education.
