The leaders of the G7 countries called on Tuesday for a reform of the international development aid system, saying it must be updated to meet current challenges and the needs of future generations.
While traditional support and finance strategies had delivered important results, they had "limited impact" in reducing dependence on foreign aid and creating incentives for economic growth, a joint statement issued at the summit of leading industrialized democracies in the French spa town of Évian said.
The system had also become "overly complex," leading to an inefficient use of resources, it added.
Large economic imbalances, crises and conflicts, as well as persistent poverty and high debt levels, were increasing financing needs and disproportionately affecting the world's most vulnerable countries, according to the statement.
Public funding would continue to play a central role but would not be sufficient on its own to meet global development needs, the G7 said.
The group called for greater use of private capital, blended finance and fair and transparent lending.
"We need to catalyse structured reforms to rationalize the development architecture and ensure its efficiency and impact," the statement said.
