七国集团普利亚峰会关注哪些发展合作重点？

author:Li Liping

What areas of development cooperation did the G7 Puglia Summit focus on? What thoughts did it trigger?

From June 13 to 15, 2024, the Group of Seven (G7) Summit was held in Fasano, Puglia, Italy. The priorities of Italy, the rotating chair of the G7 this year, include artificial intelligence (AI), Ukraine, the Israeli-Palestinian conflict, immigration and Africa. Italy invited representatives from other countries and international organizations to participate in some working meetings. Leaders of 11 countries including Brazil, India, Argentina and five international organizations including the African Union (AU), the World Bank (WBG) and the African Development Bank (AfDB) attended the meeting. The summit discussed topics such as Africa, climate change and development, the situation in the Middle East, the situation in Russia and Ukraine, immigration, the Indo-Pacific region, artificial intelligence, energy and the Mediterranean. Through the side meeting of the Partnership for Global Infrastructure and Investment (PGII) held during the summit, as well as the commitments and statements made by the leaders of the G7 countries during and before and after the meeting, we may be able to explore the latest trends in the G7's development aid.

(G7italy/Photo)

Strengthening global governance

The Apulia G7 Leaders' Communiqué (hereinafter referred to as the G7 Summit Joint Communiqué) expressed support for more effective, inclusive and fairer global governance to reflect the changing world. It called for action to enable countries to invest in their own future and achieve the Sustainable Development Goals (SDGs), recognizing that poverty reduction and addressing global challenges are mutually reinforcing. It strives to promote the establishment of better, larger and more effective multilateral development banks, making it possible for the World Bank to increase its loans by US$70 billion over the next decade. The communiqué also called on the international community to take action to address the debt problem.

Reaffirming commitment to infrastructure investment

The PGII side event will highlight support for infrastructure.On June 13, G7 leaders, Italian and American business representatives, the President of the World Bank and the President of the African Development Bank attended the PGII side event. This is the third consecutive PGII side event held by the G7 summit since 2022. The G7 reiterated that a total of US$600 billion in investment will be mobilized by 2027 for infrastructure construction with a focus on Africa and the Indo-Pacific region. The US government and private sector investors such as the Global Infrastructure Partnership (GIP), BlackRock Group (BLK) and Brookfield Investments announced a joint implementation of a US$4 billion investment plan for infrastructure construction that meets PGII priorities. In addition, the G7 also proposed to establish a PGII secretariat to promote effective coordination and project implementation among partners.

Support development financing and connectivity infrastructure construction.At the summit, the G7 stated that it will further deepen coordination and financing to promote the construction of economic corridors including the Lobito Corridor, the Luzon Economic Corridor (LEC), the Trans-Caspian East-West-Middle Corridor (Middle Corridor) and the India-Middle East-Europe Economic Corridor (IMEC).

The Italian government's Mattei Plan for Africa will support the construction of the Lobito corridor together with PGII and the EU Global Gateway program. Italy has pledged to mobilize $320 million in investment to support railway and other infrastructure projects and work with the Alliance for Green Infrastructure in Africa (AGIA) to strengthen synergies.

The Government of Canada is providing CAD 720 million (USD 524 million) for a new concessional financing facility of the Canada Development Finance Agency (FinDev Canada) to mobilize additional capital to promote sustainable development.

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Strengthening food security and climate resilience

The G7 Summit officially launched the Apulia Food Systems Initiative, which aims to build a resilient, sustainable and productive agricultural and food system, ensure that all people gradually realize their right to adequate food, and enhance global food security. The initiative will focus on Africa.

At the G7 summit, Canada announced that it would provide 200 million Canadian dollars (about 73 million US dollars, including grants and repayable contributions) to the International Fund for Agricultural Development (IFAD) to promote poverty reduction and food security, enhance climate resilience, and support agricultural financing for low- and middle-income countries in the Americas, sub-Saharan Africa, and Asia; in addition, Canada will subscribe to 274 million Canadian dollars (about 200 million US dollars) of hybrid capital from the International Bank for Reconstruction and Development (IBRD) of the World Bank Group to catalyze an additional 1.8 billion Canadian dollars (about 1.3 billion US dollars) in loans to improve education and health in low- and middle-income countries, promote food security, and reduce carbon emissions.

Canada also provided a repayable contribution of 360 million Canadian dollars (approximately 262 million US dollars) to the Asian Development Bank (ADB) to establish the Canada Climate and Nature Fund to mobilize private capital to participate in inclusive climate change mitigation and adaptation projects; and provided a repayable contribution and technical assistance grant of 510 million Canadian dollars (approximately 371 million US dollars) to the Inter-American Development Bank Group (IDB) to establish the Canada Net Zero and Climate Resilience Acceleration Fund to incentivize private sector investment and help economies in Latin America and the Caribbean reduce carbon emissions and improve climate resilience and inclusiveness.

The UK has pledged £57 million (about $68 million) to implement the UK Climate Compatible Growth programme, which will help build climate-resilient infrastructure in sub-Saharan Africa and Asia with technical support from UK experts.

Promoting sustainable energy development and increasing support for Africa

The Joint Communiqué of the G7 Summit stated that the G7 will continue to promote the development of clean energy and support the goal set by COP28 to triple the global installed capacity of renewable energy by 2030. During the 2024 G7 Summit, an Africa Working Meeting was held for the first time in history to discuss how to increase support for African countries and emphasize that the G7 and African countries have shifted from official development assistance to an equal strategic partnership. The G7 and African partners adopted a joint statement on promoting energy growth in Africa, expressing support for Africa to develop clean energy projects, attract private capital and concessional financing, and overcome obstacles to clean energy investment in Africa. The two sides jointly launched the Energy for Growth Africa initiative to promote the development of clean energy infrastructure and supply chains in Africa. The G7 also regards the African Green Industrialization Initiative (AGII) as a key platform for cooperation in infrastructure investment in Africa.

(G7italy/Photo)

The G7 will inject $250 billion into Africa through PGII, of which $33 billion has been invested in North Africa and sub-Saharan Africa. In addition, the G7 Summit Joint Communiqué reaffirmed the 2021 Carbis Bay Declaration, stating that the G7 will work with development financial institutions and multilateral partners to invest at least $80 billion in Africa's education and training, agriculture, health, infrastructure and energy and other fields to promote Africa's economic growth.

The Global Energy Alliance for People and Planet (GEAPP) has pledged $100 million in philanthropic catalytic funding to leverage $1 billion in private financing.

In addition, Canada pledged to provide South Africa with a sovereign loan of 120 million Canadian dollars (about 87 million U.S. dollars) and a technical assistance grant of 7 million Canadian dollars (about 5 million U.S. dollars) to support its energy transformation, develop safe and affordable clean energy, and promote inclusive economic development. The United Kingdom will invest 35 million pounds (about 42 million U.S. dollars) to support the African Green Infrastructure Alliance (AGIA) to promote the financing of sustainable infrastructure in Africa. The United Kingdom will also work with the World Bank and the European Union to provide 15 million pounds (about 18 million U.S. dollars) for the Zambia section of the Zambia-Tanzania Interconnector project to support the strengthening of the connectivity of power grids in southern and eastern Africa.

Promoting gender equality

The G7 Summit Joint Communiqué announced that the G7 will work with international financial institutions to mobilize at least $20 billion in investment to promote women's empowerment over the next three years. Canada pledged to provide new funds to advance gender equality and empower women, girls and gender-diverse groups, including: providing a repayable loan of 45 million Canadian dollars (about 33 million U.S. dollars) to the Private Infrastructure Development Group (PIDG) to promote sustainable and gender-inclusive infrastructure financing in Africa and Asia; providing 100 million Canadian dollars (about 73 million U.S. dollars) to the International Finance Corporation (IFC) to mobilize 470 million Canadian dollars (about 342 million U.S. dollars) of private capital to support women's empowerment and promote gender inclusion; and providing 20 million Canadian dollars (about 15 million U.S. dollars) to the Trademark Africa Organization (TMA) and the Center for International Research and Cooperation (CECI) to eliminate gender barriers to women's participation in the activities of the African Continental Free Trade Area.

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Strengthening cooperation on artificial intelligence

Digital economy and artificial intelligence (AI) are important topics of the G7 summit. The G7 said it is establishing a global partnership to ensure that the benefits of AI and other technologies are widely shared while reducing risks.

During the G7 summit, Canada pledged to provide 7 million Canadian dollars (5 million U.S. dollars) to the International Development Research Center (IDRC) to expand the implementation part of IDRC under the framework of the AI for Development Programme to promote responsible AI innovation and capacity building in the Indo-Pacific region. The United Kingdom also announced an additional 20 million pounds (24 million U.S. dollars) for the Asian part of the AI for Development Programme.

Support Ukraine

At the Japan-Ukraine Public-Private Partnership Roundtable held in June, Japan pledged to increase its support for Ukraine by strengthening bilateral cooperation projects, including investing 26 billion yen to implement demonstration projects through the United Nations Industrial Development Organization (UNIDO); sending a joint public-private delegation to the Ukrainian capital of Kyiv, and setting up the Japan External Trade Organization (JETRO) Kyiv Office. During the meeting, Japan and Ukraine signed 23 cooperation documents covering a number of areas including agriculture, infrastructure, energy and manufacturing, aiming to promote Ukraine's reconstruction.

At the June Ukraine Peace Summit, U.S. Vice President Kamala Harris announced a new $1.5 billion aid package to support Ukraine’s energy, humanitarian aid, and civil society. The aid will be channeled through USAID and Congress.

Canadian Prime Minister Trudeau announced aid commitments of 5 billion Canadian dollars (about 3.6 billion US dollars) and 52 million Canadian dollars (about 38 million US dollars) at the G7 Summit and the Ukraine Peace Summit, respectively, to support Ukraine's recovery and reconstruction.

The then British Prime Minister Rishi Sunak announced at the G7 summit that the UK would provide Ukraine with approximately 242 million pounds (about 290 million US dollars) in bilateral aid to support humanitarian, energy and stability needs.

Reflections on the G7's development commitments

G7Can the promises be fulfilled?This G7 summit discussed the same topics as previous G7 summits, such as infrastructure construction, climate change, energy, artificial intelligence, and promoting sustainable development through leveraging financing. Faced with the turbulent international situation, Italy, the rotating chair of the G7, based on its own strategic needs, also included Africa and immigration, the Israeli-Palestinian conflict and Ukraine in the G7's important agenda. In terms of development aid, the G7 not only reiterated existing commitments, but also put forward some new initiatives. Member countries such as Canada, the United Kingdom, and the United States also made some specific financial commitments. However, the following factors may increase the uncertainty of the G7's fulfillment of its commitments.

First, some commitments lack specific action plans and timetables. For example, PGII was announced at the 2022 G7 summit, promising to provide $600 billion in financing for infrastructure construction in low- and middle-income countries by the end of 2027. This commitment was reiterated at the G7 summit, and a PGII secretariat was proposed to enhance coordination among partner institutions. However, it is still unclear how the secretariat will operate, how it will coordinate and promote participation from all parties, and how much role it will play in the implementation process.

Secondly, the uncertain economic outlook increases the risk of the G7 fulfilling its commitments. Due to inflationary pressures and interest rate fluctuations in various countries, it remains to be seen how much spare capacity the member countries have to provide development aid funds. The G7 hopes to catalyze and leverage more private sector capital through development finance, but has not put forward a specific financing plan. Coupled with the ongoing geopolitical conflicts, it is unclear whether the financing can meet expectations.

Furthermore, changes in leadership in some countries have increased uncertainty about the G7 countries' ability to fulfill their commitments. In July, the British Labour Party won the House of Commons election, and Keir Starmer became the new prime minister. French President Macron accepted the collective resignation of Prime Minister Attal and his government, and is facing pressure to rebuild his government; US President Biden announced his withdrawal from the next presidential election. The change of leadership in G7 member countries has made it challenging to maintain policy continuity and complete the core tasks of the G7.

Can the G7 establish new cooperative relationships with Africa and other “global south” countries?Following the 2023 G7 Hiroshima Summit, the Puglia Summit further emphasized the importance of cooperation with the "Global South" countries and invited many leaders of the South countries to attend the meeting. After the African Union officially joined the Group of Twenty (G20) last year, Africa, as an important part of the South, also became the focus of this G7 Summit. The G7 hopes to transform the power relationship with traditional recipient countries, develop an equal strategic partnership, and provide a platform for the participation of a wider range of stakeholders.

However, soon after the launch of the Puglia Food System Initiative, it was criticized by some African agricultural and farmer organizations, who said that their opinions and suggestions were not sought during the formulation of the initiative and that local needs were not fully considered. If the G7 fails to actively invite the full participation of stakeholders from African countries, it may be difficult for the G7 to establish a truly equal partnership with Africa. In addition, the G7 should recognize that the G7 is not in a zero-sum competition with China in terms of development cooperation with southern countries. Southern countries prioritize economic development and therefore do not want to take sides in geopolitical competition. The G7's development initiative can only truly win the trust and support of southern countries if it is based on openness and inclusiveness, gives full play to the advantages of all parties, and avoids being affected by geopolitical factors.

G7What changes have had an impact on the global governance system?With the decline in the share of G7 countries in the world economy and the rise of the G20 and BRICS, the traditional influence of the G7 in the global governance system has been challenged. In the 1970s, the actual influence of the G7 on the global economy was about twice what it is today. Some analysts believe that the G20 member countries are more diverse and can better represent different voices, and have surpassed the G7 in terms of strength and influence. The "Joint Communiqué of the G7 Summit" emphasized strengthening global governance to meet global challenges. The G7 Summit invited global southern countries and international organizations to join, and a lot of new aid funds will also be implemented through UN agencies and multilateral development banks. These measures show that the G7 hopes to enhance its representation and influence in global governance.

The G7 countries are still the world's major political, military and technological powers, and play an important role in global governance. Whether the G7 can continue to play an important role in global governance depends on whether it can maintain policy continuity, take concrete actions to fulfill its commitments, and continue to follow up on implementation; on the other hand, it also depends on whether the G7 can provide a real platform for the broad participation of stakeholders. Exclusive multilateralism can only lead to a significant reduction in the G7's influence.

(The author has worked for UN agencies and international foundations and is currently a philanthropy and international development consulting expert.)