Seven priorities for the G7

From June 26 to 28, the German Chancellor, Olaf Scholzwill receive his counterparts from the group of seven industrialized countries (Canada, France, Italy, Japan, the United Kingdom and the United States) in the Bavarian castle of Schloss Elmau to celebrate their annual summit. Two coincident challenges will dominate the G7 debates. The first is what to do about Russia’s war in the Ukraine. The second refers to the gloomy situation of the World economy, shaken not only by the war but also by the Covid-19 pandemic. Escalating food and fuel costs threaten to aggravate the humanitarian situation of people caught up in existing crises, trigger unrest and instability in other poorer nations, and provoke political turmoil in the G7 countries themselves.

Challenges beyond Ukraine

Although the leaders of G7 they will certainly take action against Russia for their aggression in Ukraine, they must also signal to the rest of the world that they are concerned about other crises, especially widespread economic problems. Many governments in Africa, Asia and Latin America have condemned Russia’s assault on Ukraine. But they also express concern about the fact that USA and its allies are aggravating the economic crisis by using sanctions against Moscow. Western officials deny such accusations, and certainly Russia, through its invasion and occupation of part of the Ukraine, bears the main responsibility for the ramifications of the war. But the sanctions have contributed to the cascade of global shocks. The G7 leaders must demonstrate that they listen to the concerns of other states and that they can respond effectively. They must also make it clear that while Ukraine is consuming the attention of Western capitals, efforts to resolve other conflicts and mitigate the suffering they cause, especially through the financial muscle of the G7, remain high on their agendas.

«G7 leaders must show that they listen to the concerns of other states and that they can respond effectively»

Although there is no doubt that the G7 has lost some of its ability to shape world economic affairs in recent decades, it remains influential. Its members’ share of global GDP has lost ground from 44% in 2000, but they still controlled 31% in 2020. G7 members also hold more than two-fifths of the voting rights in the world Bank and the International Monetary Fund (IMF), and play an even greater role in financing international humanitarian operations. The members of the group and the European Comission covered 70% of the budget of almost 10,000 million dollars of the World Food Program (LDC) in 2021, while China provided less than 1% of WFP funding.

Taking into account this still important financial and political weight, the G7 should, first, complement its expressions of support for Ukraine and the condemnation of russia with clear signals that they will act to provide essential financial aid to poor and middle-income countries, the most vulnerable to economic shocks, while doing everything possible to bring more grain and other staples, which are in short supply, to world markets.

In Afghanistan, take steps to reverse the country’s economic collapse and alleviate the growing humanitarian disaster, in particular by redoubling efforts to reach an agreement with the Taliban to get the Afghan central bank back on track.

In Lebanonpressure the country’s elites to carry out the necessary reforms so that the IMF can begin to restore a broken financial system and prevent the state from falling apart.

In Ethiopiaoffer economic incentives to push the federal authorities and the tiger rebels towards a sustainable ceasefire.

In Haiti, support the reconstruction of the rule of law by developing new capacities to counter the influence of powerful gangs.

In Sri Lankapressure the government to meet the criteria of an IMF rescue package to prevent the country from suffering further amid an unprecedented economic collapse and severe political crisis.

“Although there is no doubt that the G7 has lost some of its ability to shape global economic affairs in recent decades, it remains influential”

Finally, the G7 should address a global issue championed by Germany, but now overshadowed by the Ukraine crisis: the impact of climate change in international security and peace. G7 leaders have already recognized that changing weather patterns, rising sea levels and other effects of climate change can exacerbate the dangers of conflict, but they must help forge a broader international consensus, including at the summit. COP27 October, on how to manage those risks.

overall role

If the G7 leaders can send a clear message that they have plans to deal with the global economic crisis, as well as to support Ukraine, they could win some international goodwill. Some Western politicians and commentators speculate that the G7 could grow in stature for years to come, providing a platform for USA and its allies solve the problems that a UN and a G20 divided they cannot agree. But it would be a mistake for the group to position itself solely as an anti-Russian (and perhaps anti-Chinese) coalition. Doing so would probably alienate many non-Western countries that are trying to triangulate between the G7, Moscow Y Beijing in a period of geopolitical change. Instead, the G7 should signal that it recognizes and has the means to help the poorest countries overcome the current crisis, and that it will work with other international groups and organizations – such as the UN and the AU– to meet global challenges. This is the kind of leadership that many states around the world are looking for after the tests of Covid-19 and the first months of Russia’s war against Ukraine. The G7 remains well placed to offer it.

This article is an excerpt from a report published by CrisisGroup.