Developing nations face a triple economic shock

Developing countries are being squeezed from three directions: soaring energy prices, climate disruption and rising borrowing costs. Oil has climbed above $100 a barrel, while a potentially devastating El Niño threatens crop failures and food insecurity. Meanwhile, borrowing costs for developing nations have reached 9%, leaving governments with less money for essential services. The UN warns that millions could fall back into poverty as countries lose the financial capacity to protect vulnerable households. With education budgets already falling in heavily indebted countries, the crisis threatens not just current living standards but also long-term economic development.

Developing nations face triple shock from energy crisis, El Niño and borrowing costs, UN warns | Economics | The Guardian

1. Explain how high government debt servicing costs could hinder economic development in developing countries.

2. Discuss how crop failures caused by El Niño could affect economic development in developing countries.

3. Discuss whether debt cancellation is the best way to support economic development in heavily indebted developing countries.