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G7 Seeks to Modernize Infrastructure Finance for Developing Countries

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The G-7 – comprising the United States, Canada, the United Kingdom, France, Italy, Germany and Japan – continued work On the Build Back Better World plan announced in June by American President Joe Biden with a statement setting out the G7’s approach to financing quality and sustainable infrastructure.

The statement emphasizes the role of private finance in the creation of infrastructure in de developing countries promising to “cooperate with multilateral development banks and other international financial institutions to assess and set best conditions for mobilizing private finance, aligned with the objectives of the Paris Agreement.”

The statement follows pledges by G20 leaders in June to free $100 billion for the financing of sustainable infrastructure in developing countries.

“President Biden believes we can offer a better alternative through transparent, sustainable financing that responds to low- and middle-income countries’ needs and upholds high labor and environmental standards, while allowing societies in low- and middle-income countries to prosper and ensure American firms and American workers compete globally on every aspect of infrastructure,” said National Security Adviser Jake Sullivan.

In 2019 and 2020 G7 members provided over $265 billion in official development assistance according to the OECD.

By Feike de Jong

Tags: Developing countriesFedFinanceG/Modernize Infrastructure

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