More than a third of the world’s children face the double threat of climate disasters and debt
A new World Vision report reveals that more than a third of the world’s children (839 million) live in countries where climate disasters and heavy debt can deprive children of essential health and education services.
The Inheritance Trap details the relationship between climate vulnerability, debt pressure, and childhood development, and explores how this can erode the systems children rely on to survive, learn and thrive.
It is released as world leaders prepare to meet at COP31 in Türkiye next week to discuss global climate solutions, and amid warnings of an impending El Nino of unprecedented strength.
World Vision New Zealand’s Head of Advocacy and Justice Rebekah Armstrong says the report’s findings are particularly relevant for the Pacific.
“Many Pacific countries are highly climate-exposed and operate with limited government revenues, which restrict their ability to invest in the infrastructure to support children if they are constantly responding to repeated climate disasters.
“Add to this the debt that can accumulate through disaster recovery and climate finance loans, and many countries have even less money available for the very things that contribute to children’s health and wellbeing such as schools, hospitals, and water systems,” she says.
The report rates 120 countries on climate, debt, and child-related pressures and places Pacific countries, including Papua New Guinea, Micronesia, Tonga, Tuvalu, and Vanuatu, among those experiencing significant overlapping pressures.
Meanwhile, in countries like Laos, Malawi, Pakistan, Sri Lanka, and Uganda governments spend more on net interest payments than on health, education, and social protection combined.
In Laos, extreme weather events such as floods, landslides, and extreme heat disrupt children’s health and schooling. At the same time, the country is in debt distress, with external debt payments projected to take around 59% of government revenue in 2025. Combined government spending on health and education fell from 4.9% of GDP in 2013 to an estimated 2.3% in 2023.
Armstrong says the situation in Laos demonstrates how children bear the brunt when countries are trapped in a vicious cycle of climate disaster and debt repayment.
“Children cannot delay childhood so when they miss out on essentials such as schooling, healthcare, or adequate nutrition, the entire trajectory of their life can change for the worse. That's the real danger of this trap. Countries can restructure debt or rebuild infrastructure over time, but children can't recover the years of development they've lost while governments struggle to find the money to protect them.”
Armstrong says it’s imperative that at this year’s COP31, countries like New Zealand call for a stronger commitment to climate finance in the form of grants rather than loans which can burden countries already under debt pressure with even greater repayments.
The report finds that more than three-quarters of all climate-related finance commitments recorded for 2021–2024 were provided as loans.
“This is why predictable, grant-based climate finance is so important for countries already struggling with climate disasters and debt. As various New Zealand political parties consider reductions to foreign aid, these findings are a timely reminder of the importance of protecting investment in our Pacific neighbours and other countries which burdened by climate disasters and debt. “Reducing support means children will suffer and makes it harder for countries to build resilience and maintain the essential services children depend on.”
Armstrong says New Zealand should advocate for grant-based climate finance at COP31 and commit to increase climate finance and disaster risk reduction support for the Pacific nations.
New Zealanders wanting to support children and families in the Pacific and South East Asia with disaster risk reduction and malnutrition can give here.
The Inheritance Trap details the relationship between climate vulnerability, debt pressure, and childhood development, and explores how this can erode the systems children rely on to survive, learn and thrive.
It is released as world leaders prepare to meet at COP31 in Türkiye next week to discuss global climate solutions, and amid warnings of an impending El Nino of unprecedented strength.
World Vision New Zealand’s Head of Advocacy and Justice Rebekah Armstrong says the report’s findings are particularly relevant for the Pacific.
“Many Pacific countries are highly climate-exposed and operate with limited government revenues, which restrict their ability to invest in the infrastructure to support children if they are constantly responding to repeated climate disasters.
“Add to this the debt that can accumulate through disaster recovery and climate finance loans, and many countries have even less money available for the very things that contribute to children’s health and wellbeing such as schools, hospitals, and water systems,” she says.
The report rates 120 countries on climate, debt, and child-related pressures and places Pacific countries, including Papua New Guinea, Micronesia, Tonga, Tuvalu, and Vanuatu, among those experiencing significant overlapping pressures.
Meanwhile, in countries like Laos, Malawi, Pakistan, Sri Lanka, and Uganda governments spend more on net interest payments than on health, education, and social protection combined.
In Laos, extreme weather events such as floods, landslides, and extreme heat disrupt children’s health and schooling. At the same time, the country is in debt distress, with external debt payments projected to take around 59% of government revenue in 2025. Combined government spending on health and education fell from 4.9% of GDP in 2013 to an estimated 2.3% in 2023.
Armstrong says the situation in Laos demonstrates how children bear the brunt when countries are trapped in a vicious cycle of climate disaster and debt repayment.
“Children cannot delay childhood so when they miss out on essentials such as schooling, healthcare, or adequate nutrition, the entire trajectory of their life can change for the worse. That's the real danger of this trap. Countries can restructure debt or rebuild infrastructure over time, but children can't recover the years of development they've lost while governments struggle to find the money to protect them.”
Armstrong says it’s imperative that at this year’s COP31, countries like New Zealand call for a stronger commitment to climate finance in the form of grants rather than loans which can burden countries already under debt pressure with even greater repayments.
The report finds that more than three-quarters of all climate-related finance commitments recorded for 2021–2024 were provided as loans.
“This is why predictable, grant-based climate finance is so important for countries already struggling with climate disasters and debt. As various New Zealand political parties consider reductions to foreign aid, these findings are a timely reminder of the importance of protecting investment in our Pacific neighbours and other countries which burdened by climate disasters and debt. “Reducing support means children will suffer and makes it harder for countries to build resilience and maintain the essential services children depend on.”
Armstrong says New Zealand should advocate for grant-based climate finance at COP31 and commit to increase climate finance and disaster risk reduction support for the Pacific nations.
New Zealanders wanting to support children and families in the Pacific and South East Asia with disaster risk reduction and malnutrition can give here.