external debt of low & middle-income countries in 2018
Achieving the Sustainable Development Goals requires significant investments—in infrastructure, human capital, and climate change resilience. But many IDA countries are often limited in their ability to mobilize domestic revenues. Debt financing is critical for development, but unsustainable levels harm growth and the poor. It can be a useful tool if it is transparent, well-managed, and used in the context of credible growth policy.