Why do countries pay financial institutions instead of building schools and hospitals?

The document examines the human and economic impact of the African debt crisis, asserting that high debt costs divert critical fiscal resources from public health, education, and industrial policy. It frames the crisis not merely as a result of poor governance, but as a product of a global system based on neo-colonialism. While borrowing is described as a standard tool to bridge revenue gaps for urgent needs, the text notes that Africa collectively owes approximately $746 billion, a burden that hinders job creation and economic growth.

• The African debt crisis is driven by a global system based on neo-colonialism, which compels poor nations to prioritise the payment of creditors over the provision of essential services for their citizens.
• High debt costs divert government fiscal resources away from industrial policy, education, and public health, which in turn obstructs economic growth and the creation of jobs.
• Africa's collective debt is approximately $746 billion, a burden originating in the 1980s from factors including political instability, oil shocks, rising poverty, and inherited colonial debts.

APA

iej_admin (2025). Why do countries pay financial institutions instead of building schools and hospitals? Institute for Economic Justice. https://iej.org.za/resource/factsheet/g20-factsheet-3-why-do-countries-pay-financial-institutions-instead-of-building-schools-and-hospitals/

Chicago

iej_admin. Why do countries pay financial institutions instead of building schools and hospitals? Institute for Economic Justice, 2025. https://iej.org.za/resource/factsheet/g20-factsheet-3-why-do-countries-pay-financial-institutions-instead-of-building-schools-and-hospitals/.

Wikipedia

{{cite report |last1=iej_admin |title=Why do countries pay financial institutions instead of building schools and hospitals? |publisher=Institute for Economic Justice |date=26 August 2025 |url=https://iej.org.za/resource/factsheet/g20-factsheet-3-why-do-countries-pay-financial-institutions-instead-of-building-schools-and-hospitals/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{iejadmin2025why, author = {iej\_admin}, title = {{Why do countries pay financial institutions instead of building schools and hospitals?}}, institution = {Institute for Economic Justice}, year = {2025}, month = aug, url = {https://iej.org.za/resource/factsheet/g20-factsheet-3-why-do-countries-pay-financial-institutions-instead-of-building-schools-and-hospitals/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }