// SUSTAINABLE DEVELOPMENT: DEVELOPMENT AND DEBT RELIEF
INTERVIEW
Securing the SDGs: Why the G7 must lead the way
What impacts will recent cutbacks in official development assistance have on achieving the Sustainable Develop- ment Goals? We’re seeing an enormous defunding of international cooperation in 2025. The United States, the United Kingdom, Swit- zerland, Germany and the Netherlands are among the countries that are reduc- ing their aid. The repercussions are severe. Hundreds of millions of people are already affected through drastically reduced humanitarian finance – food rations have been halved or entirely stopped, some ref- ugee camps are no longer being supported, and funding for life-saving AIDS treat- ments is dwindling, putting hundreds of thousands of lives in jeopardy. The ripple effects go beyond immedi- ate humanitarian needs. Approximately 50 developing countries are grappling with a severe debt crisis, diverting resources to debt servicing rather than essential invest- ments in critical areas such as education or health care. These cutbacks also stifle the technolog- ical investments necessary to drive future economic growth. Developing countries – and even G7 members – require significant investment in key areas including digital public infrastructure. Yet, with escalating budget deficits and overextended loans, such forward-looking investments are increasingly unattainable. This reflects a broader reluctance to invest in collective solutions and the institutions designed to enable global cooperation. Indeed, the future of several United Nations agencies is under threat, with thousands of contracts terminated – ultimately halting vital services for mil- lions of people. What we face is not just a crisis of resources but a crisis of institutional and operational capacity. These short-term funding cuts have long-term implications, undermining the resilience of countries and their ability to invest in human capital, stabilise economies and build transparent, accountable governance systems.
As national agendas begin to eclipse global responsibilities, inaction on hunger and poverty comes at a high cost. By mobilising private and public capital, harnessing the benefits of AI, and restoring trust in multilateralism, the G7 can reset the course towards sustainable development
Achim Steiner, administrator, United Nations Development Programme
It’s worth remembering that development has been one of humanity’s greatest success sto- ries: billions of people
lifted out of poverty, rising incomes, dra- matic increases in girls’ educa- tion, improved life
82 // G7 CANADA: THE KANANASKIS SUMMIT 2025
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