A new report by the Commonwealth Secretariat warns that rising public debt and tighter budgets are forcing governments to prioritise loan repayments over investment in young people, limiting opportunities for the Commonwealth’s 1.5 billion young people.
The report, Public Debt and Youth Development in Commonwealth Member Countries was launched at the opening of the week-long Commonwealth Public Debt Forum in London, alongside a research paper on the ‘International Monetary Fund’s Resilience and Sustainability Facility – Three Years On’.
Drawing on data from the Commonwealth Youth Development Index, the report highlights both areas of progress and growing gaps.
It finds that as public debt levels reach record highs around the world, pressure on government finances is diverting resources away from essential public services. Alarmingly, national spending on education has steadily declined since 2011 despite a growing youth population.
The report also shows that these financial pressures, often accompanied by austerity measures, are affecting job opportunities for young people. At the same time, young people’s needs remain insufficiently reflected in economic and environmental decision-making, contributing to increased inequality and vulnerability.
Speaking about the report, the Commonwealth Secretary-General, the Hon Shirley Botchwey, said:
“Rising public debt presents a real challenge for many countries, with direct consequences for economic stability and social welfare, especially for our largest constituent, our young people.
“Debt is not just a question of balance sheets. For many countries, it is about difficult choices, between investing in people or servicing the past, between resilience and vulnerability.
“This report offers practical guidance to help countries better understand the links between public debt and youth development, and to take decisions that protect investment in young people and their future.”
The report calls for better integration of youth priorities into economic planning, greater youth representation in decision-making, stronger protection of spending on education, health and skills, and improved transparency in public debt.
Debt managers attending the forum welcomed the report. Vera John-Emmanuel, Deputy Director of Finance in the Debt and Investment Management Unit in Saint Lucia’s Ministry of Finance, said:
“It is imperative that we safeguard the investments that shape the prospects of our young people. This report underscores the need for debt strategies that balance fiscal responsibility with long-term development, ensuring that future generations are not constrained by the decisions of today.”
Reflecting on the impact of intergenerational debt, University of Plymouth student, Dinithi Gunasekara, said:
“The report’s framing of debt not only as an economic issue but also as a social one is extremely insightful. This perspective is not often considered from a youth standpoint, yet it clearly illustrates how far‑reaching the impacts can be. It highlights the importance of responsible financing and policymaking to ensure that future generations are not left carrying unsustainable burdens.”
Against the backdrop of unprecedented global debt levels, the Commonwealth Public Debt Management Forum brings together debt managers from member countries to share experiences and explore the latest thinking on how governments can borrow, manage and repay public debt sustainably.
Insights from the forum – which concludes on 27 March – will inform the delivery of support provided by the Secretariat to help countries strengthen public debt management policies and operations.
The forum is being organised as part of the Commonwealth Year of Resilient, Innovative and Sustainable Debt.