G7 focuses on preventing crises in developing world

G7 Development Meeting - G7 statement¹ - Tackling fragilities and preventing crises in developing countries

Paris, 4 July 2019

Challenges ahead of us regarding the realization of the vision of the 2030 Agenda and the SDGs and the fight against extreme poverty and inequalities, including gender inequality, remain acute. Seven hundred and thirty-six million people still live below the poverty line, earning less than $1.90 a day (World Bank). These challenges are intensified in areas exposed to fragility, conflict and violence that could potentially house nearly half of the world’s poorest people by 2030. These risks are increasing, under the effects of complex and pressing global issues resulting from climate change, environmental degradation, demographic pressures, poor governance and institutional capacities, lack of energy access, and increasing inequalities, as many of today’s violent conflicts are related to grievances arising from inequality of opportunity and territorial inequalities. Strong and inclusive action is needed to provide answers to those who have been left behind, especially women and girls. We, members of the G7, commit to strengthening our collective responses and, as appropriate, our coordination in multilateral forums, particularly in the following areas:

1 - We recognize that improving legitimate, transparent, accountable and inclusive state presence is critical to stability. While reaffirming the primary responsibility of the states facing fragility in implementing reforms, we recognize that the G7 can play a significant role in supporting fragile states’ capacity-building, notably with the goal of strengthening the deployment of public financial and human resources, helping to provide public services and upholding the rule of law and respect of human rights. Citizen participation and engagement, transparency and accountability should also be improved.

2 - We commit to work with development country partners in tackling in priority the main drivers of fragility, in order to prevent the outbreak of new crises. We call upon all stakeholders to implement comprehensive and preventive approaches that align diplomatic, security and stabilization dimensions to humanitarian peace and development dimensions, while upholding principled humanitarian action, in line with the OECD Development Assistance Committee Recommendation on the Humanitarian-Development-Peace Nexus. We underline the need to strengthen sharing of analysis between all stakeholders, in order to provide evidence-based identification of areas at risk on the ground, either within states or across borders, and to produce concrete recommendations for joint or aligned development projects at local, national, regional or continental levels to prevent conflict and violence. We commend the Sahel Risk and Resilience Assessment (RRA) conducted by the World Bank Group within the Sahel Alliance, as well as the UN Support Plan for the Sahel, as the right steps towards a common understanding of risks and resilience factors to inform collective action.

3 - We encourage international organizations and financial institutions to address in priority the main drivers of fragility in developing countries and to align their strategies in order to maintain complementarity and coherence between peace, humanitarian and development dimensions. We fully support the World Bank Group’s endeavour to formulate a strategy on Fragility, Conflict and Violence (FCV). We welcome the African Development Bank’s Strategy for Addressing Fragility and Building Resilience in Africa. We commend the efforts of the UNDSG-led Joint Steering Committee to Advance Humanitarian and Development Collaboration that seeks to pool the strengths of the UN and its partners to achieve a coordinated response to humanitarian-development-peace nexus challenges. We welcome the collaboration of the World Bank and the United Nations for their joint report on “Pathways for Peace”, as well as the work of the OECD International Network on Conflict and Fragility (INCAF) and the Regional Development Banks, such as the AfDB and the ISDB, on that matter.

4 - We commit to promoting local ownership and solutions when tackling the main drivers of fragility. Peer-learning and South-South cooperation are key: in this respect, we support the International Dialogue on Peacebuilding and Statebuilding (IDPS) and recognize the g7+ Fragile-to-Fragile (F2F) Cooperation structure that encourages experience-sharing between fragile countries. We commit to providing locally-owned, harmonized and aligned development assistance in fragile countries, supported by mutual accountability, in line with Paris Declaration on Aid Effectiveness (2005), Accra Agenda for Action (2008), Busan Partnership for Effective Development Co-operation (2011), and New Deal for Engagement in Fragile States (2011).

5 - We encourage further adaptation and innovation in intervention methods in fragile and conflict-affected settings, especially by promoting greater investments in prevention, resilience, preparedness and early action, building early warning-early action mechanisms and accelerating the identification and implementation of projects while improving the accountability and effectiveness of our assistance, including by prearranging finance for disasters through instruments such as insurance from the Africa-owned African Risk Capacity. We highlight the crucial importance of intervening at sub-national level and in the borderlands, especially in the most fragile areas, including by expanding our partnership to include intra-state territorial actors, regional actors and civil society, and making special consideration to promote the rights and protection of members of marginalized groups, including women and girls, persons living with disabilities, refugees, internally displaced persons, crisis-affected individuals and members of host communities.

6 - We commit to supporting developing countries’ efforts to adapt and build resilience to shocks and stresses, including those resulting from climate change, food insecurity, conflicts, health emergencies and lack of access to energy. In that context, we encourage in particular Multilateral Development Banks and the private sector to strengthen investment in climate adaptation and resilience-building activities within developing countries, consistent with country plans.

7 - We support the implementation of effective, legitimate and rights-respecting justice and security services in order to establish an environment conducive to sustainable peace and development. We stress the importance of justice and security sector reform (SSR) to build the capacity of justice and security providers to fulfil their mandates, ensure equal access to justice and security with a particular emphasis on women and girls and with specific attention for the most vulnerable groups, and to guarantee respect of human rights. We commit to increasing emphasis on programmes aimed at strengthening democratic governance in the justice and security sectors, keeping in mind an objective to incorporate the Women, Peace and Security Agenda into our SSR support programmes, building on the efforts started in 2018, notably by the G7 WPS Partnerships Initiative as well as the UN SG’s agenda for sustaining peace.

8 - We commit to further exploring linkages between national and international initiatives relating to women, youth, inequality, peace and security: in particular, supporting the implementation of UN Security Council Resolution 1325 and associated resolutions on Women, Peace and Security, as well as and “Youth, Peace and Security” Agendas.

¹ Source of English text: G7 presidency website.

G7 Development Meeting – G7 statement¹ – Financing for sustainable development: improving measurement, mobilizing resources and realizing the vision of the 2030 Agenda and the SDGs

Paris, 4 July 2019

1. We, the G7 ministers responsible for development cooperation and the Commissioner for International Cooperation and Development of the European Union, reiterate our commitment towards financing for sustainable development as endorsed in the Addis Ababa Action Agenda (AAAA) in realizing the vision of 2030 Agenda and the SDGs.

2. As providers of the largest share of official development assistance (ODA) worldwide, accounting for 75% of global net ODA in 2018, we underscore the need to step up collective efforts to concentrate our aid to countries most in need, in particular least developed countries (LDCs), low income and fragile countries, in line with our respective ODA commitments, such as the commitments by some developed countries to achieve the target of 0.7% ODA/GNI, and to provide 0.15 to 0.20% of GNI to ODA to least developed countries. We recognize the need to further improve the effectiveness of our development cooperation efforts to maximize the potential of each dollar spent.

3. We take note that at $153 billion in 2018, global ODA represents an important but small proportion of the financial flows needed to lift all populations out of poverty and address urgent humanitarian crises. Building on G7 discussions in Whistler, we continue to affirm the need to consider financing for sustainable development in a holistic and gender responsive manner, taking into account public and private, domestic and international flows, originating from developed and developing countries. We acknowledge the need to expand the catalytic use of ODA in mobilising and leveraging the impact of additional financial resources, including from the private sector and foundations. We reaffirm our commitment to international cooperation to support efforts to build capacity in developing countries, including through enhanced domestic resource mobilization, which is the primary source of financing for development across all country classifications. We encourage development partners to continue strengthening their coordination in this area.

4. Taking into account the growing complexity of the development landscape, we firmly commit to support initiatives aimed at better measuring and increasing transparency on resources contributing to sustainable development, including quality sex-disaggregated data. In developing countries, better data on the resources contributing to sustainable development will be helpful in developing Integrated National Financing Frameworks in support of national sustainable development strategies.

5. Whilst upholding the central role of ODA as a crucial indicator of donor effort, we highlight the complementary potential of Total Official Support for Sustainable Development (TOSSD) to provide a more comprehensive and recipient-focused view of financing flows that align to sustainable development in partner countries, including private finance mobilized by official interventions, as well as South-South cooperation. Welcoming the engagement and support to TOSSD expressed by many countries across different stages of development including Burkina Faso, Costa Rica and Nigeria, we acknowledge that TOSSD will provide better information about the resources available to partner countries to support sustainable development, increasing transparency and implementing sustainable financing practices.

6. We commend the work of the International Task Force to develop the statistical features of TOSSD and support the open, inclusive and transparent process undertaken to develop this framework in line with the AAAA. We feel encouraged by the recent references to TOSSD at the United Nations, and we look forward to the establishment of an inclusive governance mechanism within the United Nations to oversee TOSSD as a global framework that will transparently present all types of official support for sustainable development.

7. Recalling that global private savings amount to trillions of US dollars per year, we stress the need to catalyze private sector support for the Sustainable Development Goals (SDGs) and to increase transparency on financial flows. In that respect, we commend international initiatives conducted by relevant organizations including the Organization for Economic Cooperation and Development (OECD) and the United Nations Development Programme (UNDP) aimed at promoting SDG-compatible finance. We take note of their efforts to take stock of existing initiatives in view of defining a robust common framework for SDG-compatible finance with all relevant stakeholders, and of their intention to present their findings from 2020 on in Paris.

8. We support the growth of the impact investing market as a meaningful and efficient financing approach which can contribute to the 2030 Agenda. We stress the need to create enabling policy environments in order to help drive impactful investments towards developing countries and fragile economies. We support the ongoing efforts of the international community to define a common framework for measuring impact investing based on the work done by members of the Impact Management Project (IMP).

9. Following the G20 Osaka Leaders’ declaration which recognized the importance of innovative financing mechanisms, we express our support to mobilize additional resources for development and help increase the impact of existing resources. We support the implementation of the OECD DAC Blended Finance Principles for Unlocking Commercial Finance for the SDGs. We welcome the role of the Leading Group on Innovative Financing for Development currently chaired by Japan in sharing good practices and promoting this matter at an international level.

10. We recognize the potential of outcomes-based funding instruments as effective tools to foster a partnership-based approach between donors and partner countries and to mobilize private finance in support of structural development challenges, especially in fragile areas such as the Sahel region. Building on the growing international experience around these instruments, we express our support to Development Impact Bonds (DIB) as one of several promising results-based approaches to improve the performance of international development initiatives. In this regard, we encourage the commission of the design of a results-based partnership structure in the field of health and human development, such as Menstrual Hygiene Management, in pilot countries in Sub-Saharan Africa to empower women and girls by improving their health and education.

¹ Source of English text: G7 presidency.

Published on 16/07/2019

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