GLOBAL ECONOMY, 17 October 2026 — Developing countries are under growing pressure to rethink their financing strategies as debt-service costs rise and international development assistance declines, according to reporting from the latest global financial meetings.

World Bank President Ajay Banga has urged governments and institutions to mobilise more private investment while coordinating public finance, philanthropy and technology to support long-term development.

Official development assistance from major donor countries fell by 23% in 2025, the largest annual decline recorded, while developing countries’ external debt reached approximately $12.3 trillion, Reuters reported.

The pressures come as a large generation of young people prepares to enter the labour market over the next decade. Without sufficient investment in infrastructure, education, healthcare and productive businesses, many countries could struggle to create enough secure jobs.

Greater use of private capital may help close financing gaps, but it cannot replace all public support. Borrowing terms, currency risks and the expected returns on projects will influence which countries and communities benefit from investment.

Governments and international lenders face calls to pair new financing models with debt sustainability, transparent project selection and stronger domestic revenue systems. The central challenge is to expand investment without leaving already vulnerable countries with debt burdens that undermine essential services.

Featured image is illustrative and does not depict a specific World Bank meeting.

Source: Reuters, “High debt, growing strains put focus on need for new development approaches,” 17 October 2026.