The food price crisis is entering a dangerous new phase – a debt crisis that is plunging millions more into hunger. IPES-Food’s new special report urges decision-makers to act on comprehensive debt relief and food system transformation, before it’s too late. 

Although food prices have receded from 2022’s record highs, public finances in low-income countries are being buffeted by sky-high import costs for food, fertilizers, and energy, and rapidly-rising interest rates. 60% of low-income countries and 30% of middle-income countries are now considered at high risk of, or already in, debt distress; while some 21 countries are nearing catastrophic levels of both debt distress and food insecurity.

Our unsustainable food systems are a major driver of the debt crisis. Import dependencies, extractive financial flows, boom-bust commodity cycles, and climate-vulnerable food systems are combining to destabilize the finances of the world's poorest countries.

In turn, unsustainable debt leaves countries critically exposed to shocks and undermines their ability to make urgently-needed investments in climate-resilient food production and food security.

The expert panel calls for urgent action to:

• Provide debt relief and development finance on a scale for COVID-19 recovery, climate action, resilient food systems, and the Sustainable Development Goals. 
• Repair historical food system injustices and return resources to the Global South.
• Democratize financial and food systems governance to put the interests of the world’s poorest countries and marginalized populations first.