At the meeting organised by the Paris Dialogue on 28 April at the OECD, FERDI reiterated that the allocation of concessional funds among countries to the countries most in need is now a priority and that a clear message from the G7 is expected. It seems that France is supporting this priority by “reaffirming solidarity with the most vulnerable countries to strengthen their resilience”.
In this context, FERDI published in advance a note prepared for the G7 proposing 10 key operational points for the allocation of concessional funds: “Allocation of concessional resources for development and global public goods: ten simple questions and principles for the G7”.
A clear priority: poor and vulnerable countries
Concessional resources must primarily benefit poor and structurally vulnerable countries when it comes to financing development.
It is not just a question of which countries will have access to resources, but also how they will be distributed among them: the allocation between countries matters at least as much as eligibility: it is not just who can access the resources, but how they are distributed.
Furthermore, structural vulnerability (economic, climate-related, institutional) must be better integrated into the allocation criteria, alongside income. Against a backdrop of increasing shocks – climate-related, geopolitical, financial – this approach allows for better targeting of actual needs and enhances the effectiveness of funding.
Clarifying the international rules of the game
Beyond this principle, Ferdi emphasises a key point for the G7 and its partners’ discussions: allocation criteria must vary according to the objectives pursued.
For development, needs-based criteria (poverty, vulnerability) must take precedence.
For global public goods, allocation must better reflect overall effectiveness (for example, in terms of emissions reduction).
For adaptation, the approach mirrors that of development, with an emphasis on vulnerability.
This differentiation is essential to avoid implicit trade-offs and distortions in the use of scarce resources.
A message for the G7… and beyond
Through this note, FERDI aims to contribute to the ongoing international debates. Its work, which forms part of a long-term reflection on the architecture of development finance, seeks to reconcile global effectiveness with equity between countries.
The challenge is clear: without explicit and consistent allocation rules, there is a high risk of diluting concessional resources to the detriment of the countries that need them most.
At a time when the international development finance system is set to undergo transformation, refocusing on poor and vulnerable countries is not merely a matter of justice — it is a prerequisite for effectiveness.
