The Challenge
Developing countries spent years repaying billions of dollars in loans, most of which had been accumulated under corrupt regimes during the Cold War and had collected interest. These debts undermined the ability of many countries to invest in their people and make progress fighting poverty, and many countries ended up spending more each year paying back old debts than they did on health and education combined.

The Opportunity
Beginning in 1996, wealthy countries took steps to cancel debts owed by the world’s poorest countries. In total, nearly $110 billion worth of debt has been canceled. This relief has helped free up scarce resources for poor governments to invest in their people.

To replicate these successes and protect them, wealthy countries need to fully deliver upon their financial commitments to cancel debts, extend debt relief to other poor countries in need, and take immediate steps to help countries avoid accumulating new debts.