Overview
- The joint declaration, issued Tuesday, June 16 at the Evian summit, commits G7 leaders and guest partners to reshape development finance toward “mutually beneficial partnerships” that reduce long-term dependency on aid.
- The statement directs Development Finance Institutions and Multilateral Development Banks to scale up derisking tools such as guarantees, blended finance, co-financing and risk-sharing to attract private investors to large projects.
- Leaders pledged stepped-up work on sovereign debt, including support for pre-emptive and more predictable restructuring for vulnerable middle-income countries that fall outside the G20 Common Framework.
- The G7 said concessional resources will be targeted to least-developed and most vulnerable countries and to basic services like health, education and nutrition while also pushing partner countries to strengthen tax systems and raise domestic revenue.
- The plan responds to a sharp 2025 fall in official development assistance and longstanding criticism of slow debt tools, but it has drawn sharp NGO criticism over risks that divert funding from life-saving public services and raised questions about creditor participation and safeguards.