Global debt: The G7 promises to strengthen the response to the financial fragility of developing countries

Meeting in Évian-les-Bains, France, G7 leaders pledged to intensify their efforts to address debt vulnerabilities in developing countries. This issue, considered increasingly urgent, particularly affects several middle-income countries that do not benefit from current debt relief mechanisms.

In a joint statement issued at the conclusion of the discussions, the G7 members affirmed their commitment to strengthening international cooperation on development. They also stressed the need for structural reforms and a greater role for private investment in supporting the most fragile economies.

The leaders discussed the worrying situation of many heavily indebted countries, some of which are not eligible for the debt relief initiatives put in place by the G20 during the COVID-19 pandemic. These countries, often classified as middle-income, remain exposed to significant financial pressures.

The G7 acknowledged, however, that traditional aid policies, while useful, have had only a limited impact on reducing dependence on external aid. Available public resources, already reduced by several major advanced economies, notably the United States, are no longer sufficient to meet the scale of global needs.

The declaration thus highlights a shift in international strategy, increasingly focused on mobilizing private capital and creating favorable conditions for investment in developing countries. This approach aims to complement, rather than replace, traditional public aid mechanisms.

The meeting also brought together several invited countries, including Kenya, Egypt, India, Brazil and South Korea, illustrating the G7's willingness to broaden the dialogue to emerging economies in the face of increasingly complex global economic challenges.

In a global context marked by geopolitical tensions and increasing budgetary constraints, this commitment from the G7 reflects the desire of the major powers to rethink development financing tools in order to better respond to the debt crisis affecting many countries.