By Sahil Pandey
Evian-les-Bains [France], June 16 : The G7 leaders have called for a major reform of the international development cooperation system, stressing the need for "mutually beneficial partnerships" that reduce dependency on aid, strengthen the economic sovereignty of partner countries and mobilise greater private investment for development.
In a joint declaration adopted at the G7 Summit, the leaders reaffirmed their commitment to international cooperation on development and investment finance as a driver of shared prosperity, while acknowledging that the current development architecture requires significant reforms to address emerging global challenges. Kenya and the Republic of Korea also supported the declaration.
The leaders said that while traditional development policies had achieved important results, they had at times shown limited success in reducing dependence on external assistance, strengthening country ownership and creating incentives for sustainable economic growth.
"We are united in reforming the development cooperation system and shaping mutually beneficial partnerships that take into account our strategic interests and those of our partners," the declaration stated.
The G7 underscored the importance of helping partner nations mobilise domestic resources, improve tax administration and attract private capital to support long-term economic resilience and self-financing capabilities.
Addressing growing debt challenges facing developing nations, the grouping called for further progress within the G20 on debt restructuring mechanisms, particularly for vulnerable middle-income countries not covered under the Common Framework.
The leaders also urged greater transparency in debt data and lending practices and called on all G20 creditors to participate in the World Bank's debt data-sharing exercise.
The declaration placed strong emphasis on leveraging private capital for development through risk-sharing instruments, guarantees, blended finance and co-financing mechanisms.
The G7 said its Development Finance Institutions, along with Multilateral Development Banks, would work to make development projects more attractive to investors.
The leaders also highlighted the importance of resilient supply chains, infrastructure connectivity and critical mineral value chains, pledging support through initiatives such as the G7 Partnership for Global Infrastructure and Investment (PGII).
They stressed that international cooperation in critical minerals should be based on transparency, high standards and local value creation.
The declaration further committed concessional resources to least-developed and vulnerable countries, particularly those facing external shocks, conflicts and limited access to capital markets. Investments in health, education, nutrition and food systems were identified as priority areas.
Calling for a more streamlined development ecosystem, the G7 said it would prioritise strengthening existing financing mechanisms rather than creating new institutions, while also supporting reforms aimed at improving the effectiveness of Multilateral Development Banks and enhancing coordination among development actors.
The leaders said delivering the agenda would require broader cooperation involving emerging donors, the private sector, philanthropic organisations and civil society.
They also welcomed initiatives such as the Africa Forward Summit, the Tokyo International Conference on African Development and the Global Gateway initiative as examples of the renewed partnership approach.