Debt can sound like a distant problem, something discussed by finance officials, economists and creditors. But its consequences eventually reach much closer to home.
That was one of the main messages raised during a “Freedom from Debt” press conference organized by the AIDS Healthcare Foundation in Manila, where health advocates called for changes in how developing countries manage debt.
“Debt is not an abstract economic issue,” said Dr. Ryan Guinaran, AHF Philippines country program manager. “It affects the services people receive, the opportunities available to communities, and the government’s ability to respond during times of crisis.”
A country’s debt may be recorded in billions or trillions of pesos, but its effects are felt in ordinary ways. A health center may have a building but lack enough personnel. Prevention programs may struggle for supplies. During emergencies or natural disasters, governments must stretch limited resources even further.
The Freedom from Debt Coalition Philippines is pushing for reforms including a Borrowers’ Forum, automatic pauses on debt payments during health and climate emergencies, and a proposed 1% levy on artificial intelligence investments to help fund debt relief and public services.
Not every proposal will be easy to implement—stronger public services require better systems and accountability. But how governments borrow, repay and spend public money affects the services available to the people they serve.
“Every budget season, Filipinos hear promises of better healthcare, education and social services. But these goals become harder to achieve when a substantial share of public resources is devoted to debt payments,” said Raquel Castillo of the Freedom from Debt Coalition Philippines.
People may never sit at a table where sovereign loans are negotiated. But they can pay attention to where public money goes, how decisions are made and whether spending reaches the communities that need it most.
When public resources are limited, making sure every peso works for people is something we can all take part in.
