G7 leaders pledged today to intensify efforts to address rising debt burdens in developing nations, including vulnerable middle-income countries that are currently not eligible for the Group of 20’s debt relief framework during the COVID-19 pandemic.
In a joint declaration issued after talks with guest nations including Kenya, Egypt, India, Brazil and South Korea, G7 leaders reaffirmed support for international development cooperation while urging reforms and greater private-sector investment. G7 leaders said traditional aid programmes have helped developing countries, but they have not done enough to reduce their reliance on foreign assistance. They noted that government aid from the US and other advanced economies has fallen sharply in recent years. While public funding remains important, they said it is not enough on its own to meet the world’s growing development needs.
The statement also backed progress toward a framework for restructuring debt in vulnerable middle-income countries outside the G20 Common Framework, which was created during the COVID-19 pandemic to help the poorest nations.
