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Economy and Work: Pressures on Developing Economies October 12, 2026 · 5:22 · With Maya and Omar
This is Economy and Work, an interview about a major issue in the world economy.
Transcript Maya Welcome to Slow English FM. This is Economy and Work, an interview about a major issue in the world economy. I’m Maya, and Omar covers the economy and work. Thanks for joining us. Maya The United Nations Development Programme, or UNDP, warns that developing countries face pressure from high energy costs, El Niño, and rising borrowing costs. The Guardian reports that UNDP is calling for urgent international support. Omar, how do these pressures come together? Omar They can add to each other. The United Nations describes an energy shock making existing crises harder to manage. The UN event page says El Niño-related droughts, floods, and extreme heat can damage harvests, water supplies, and hydropower systems. The page also says pressures linked to the Middle East can affect fuel and food prices, trade, and financing. Maya So the issue is not only that energy gets more expensive. A country may also face damage to food and water systems. Is that the main point of the warning? Omar Yes. The UN Sustainable Development Group describes a policy brief by UNDP and the UN Development Coordination Office. It says the energy shock compounds existing crises, including El Niño. In simple terms, one problem can make it harder to respond to another. The United Nations also says limited public finances and limited access to international support can constrain what governments are able to do. Maya Let’s look at the government finances. The Guardian reports that borrowing costs are also rising. What does that mean for a country already facing higher import costs? Omar It can make it harder to manage several demands at once. A United Nations event page says countries with debt pressures and limited fiscal space may face higher import costs while also needing more support for people and livelihoods. Fiscal space means the money a government can use for public needs without putting its finances under too much strain. Maya When you say debt pressures, are we talking about the cost of paying back loans, as well as the cost of new borrowing? Omar Both can matter. The World Bank says earlier crises had depleted fiscal buffers in many emerging and developing economies. It also says rising global interest rates were making debt more expensive to refinance and service. Refinancing means replacing an existing loan with new borrowing. So rising rates can make refinancing and servicing debt more expensive. Maya The Guardian also reports that oil prices had risen above one hundred dollars a barrel amid renewed conflict in the Middle East. How does that connect to the wider warning? Omar The Guardian says higher oil prices add to the pressure on countries already facing high costs. The United Nations event page describes possible effects on fuel and food prices, trade, and financing. It also says countries with limited fiscal space and debt pressures may face higher import costs. Maya And governments may try to protect people from those higher prices. What does the reporting say about that support? Omar The Guardian reports that UNDP said emergency measures had shielded up to 130 million of the world’s poorest people from the full impact of high prices. But UNDP also warned that some governments were running out of resources to continue that support. That points to a difficult choice: people need help with costs, while governments themselves face tighter finances. Maya The warning brings energy, climate, and debt pressures into one picture. What is the key point for listeners trying to understand the economic risk? Omar The key point is that these pressures may arrive together. The United Nations describes countries facing higher import costs and greater needs for social protection and livelihood support, while having limited public finances and access to outside support. My reading is that this combination can make it harder for governments to protect people and respond to shocks. The sources describe the pressure; they do not show one outcome for every country. Maya That distinction matters. Countries can face similar pressures but have different resources and needs. The immediate warning is about how energy costs, El Niño, and borrowing costs can compound existing challenges. That’s Economy and Work. Thanks for listening, and stay with us on Slow English FM.
