Foreign Secretary Ed Miliband urged urgent reform of the global financial system to better support developing countries grappling with mounting debt burdens. Speaking at the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Miliband called for a “new deal” to alleviate the financial pressures on these nations, emphasizing the interconnected nature of today’s global challenges.

Miliband highlighted that the current international financial order is failing developing countries, particularly in areas of debt management, economic resilience, and climate action. He reiterated that this failure runs counter not only to global values but also to the United Kingdom’s national interests. Calling on the World Bank and other multilateral development banks (MDBs) to more effectively deploy their resources, Miliband advocated for extending repayment periods and refinancing loans at more favorable rates to provide fiscal space for struggling governments.

The foreign secretary’s visit to Bangkok also marked a personal commitment, as he assumed the UK’s seat on the World Bank’s board himself, rather than delegating the role to the development minister, Kirsty McNeill. At the event, he presented alongside the Rockefeller Foundation’s report, which calls for a significant increase in affordable financing from the IMF and World Bank to ease the debt crisis in low-income countries.

Miliband referenced the Gleneagles summit of 2005—hosted under the previous Labour government and the culmination of the Make Poverty History campaign—as a historic precedent for international cooperation on debt relief. The summit resulted in substantial debt write-downs for 30 countries, a model he suggested the global community should revisit to address current challenges.

While the Labour Party’s 2024 manifesto committed to restoring the UK’s international standing in development policy, the government later reduced the foreign aid budget, reallocating funds toward defense spending under Leader Keir Starmer. Development advocates have criticized the impact of high-interest debt on public services in developing countries, noting that in sub-Saharan Africa, debt servicing costs exceed education expenditures by more than threefold. Such financial constraints, they argue, hinder efforts to combat poverty and climate change.

Miliband’s call reflects growing concern among international policymakers about the sustainability of current debt frameworks and the need for more coordinated global responses to support vulnerable economies.