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EVIAN: G7 leaders on Tuesday pledged to step up efforts to address high debt burdens among developing countries, including middle-income countries not currently eligible for a debt relief initiative launched by the broader Group of 20 large economies during the Covid-19 pandemic.
In a joint declaration issued after a session that included guest countries Kenya, Egypt, India, Brazil and South Korea, the G7 leaders affirmed their commitment to international cooperation on development while urging reforms and a greater emphasis on private investment.
They said traditional development policies had produced results, but had only “limited impact in reducing financial dependency on external assistance.” Public resources, curtailed sharply by the US and other advanced economies in recent years, would continue to play a key role, but were insufficient to meet global development needs, the leaders meeting in the French lakeside resort of Evian-les-Bains said.
“We will enhance efforts to address escalating global debt vulnerabilities that threaten economic stability and constrain fiscal space for essential public service interventions,” the statement, backed by South Korea and Kenya, said.
