Baku:The American Federation of Health (AHF) has announced three key reform measures aimed at addressing the global debt system, urging developing countries to prioritize funding for healthcare and education. The proposals were discussed at a forum organized by the AIDS Healthcare Foundation under the 'Freedom from Debt' campaign, which seeks solutions for public debt issues affecting budget allocations for essential services in developing nations.
According to Thai News Agency, the global debt situation is critical, with around 3.4 billion people living in countries where interest payments on public debt surpass health or education budgets. In 2024, these nations are expected to pay a total of US$921 billion in interest. The AHF suggests three main approaches implementing concrete actions from borrowing countries at the G20 meeting in South Africa, a debt moratorium during crises, and contributions from AI businesses to alleviate fiscal constraints and improve citizens' quality of life.
Mr. Sarach Chim, Director of the AIDS Healthcare Foundation's Asia Regional Office, emphasized the severe impact of the global debt crisis on fundamental rights, forcing countries to choose between debt repayment and investment in health or education. He highlighted the need for significant structural reform in the global financial system, which currently prioritizes resource extraction over development.
Data from the United Nations Conference on Trade and Development reveals that developing countries face a net interest burden totaling US$921 billion in 2024, marking a 10% increase from the previous year. With borrowing costs significantly higher than those of developed countries, these nations struggle to allocate funds for essential public services.
Thailand, along with other Asian countries, faces significant challenges related to debt repayment and budget allocation for public welfare. Thailand ranks 26th globally in terms of public debt, with debt obligations surpassing both education and health budgets multiple times over. These figures underscore the critical need for effective debt management to maintain investment in vital services.
The AHF's seminar, 'Expanding Fiscal Space for Health Development through Debt Justice, AI-Powered Business Support, and Enhancing Leadership in the Global Southern Region,' featured notable panelists discussing the complexities of debt justice. Former Prime Minister Abhisit Vejjajiva warned of potential misuse of debt justice advocacy by governments lacking good governance and stressed the importance of ensuring responsible fiscal management.
The AHF's policy proposals aim to alleviate fiscal constraints and improve life quality in developing countries. They advocate for cooperation among borrowing nations, a crisis-responsive debt moratorium mechanism, and a 1% contribution from AI-related economic activities to support debt relief. The initiative focuses on fair international financial systems and empowering the Global South in shaping global economic policies, without advocating for a cessation of debt payments.