Rethinking the role of public development banks through research: a G7 debate

Organized by the Finance in Common System (FiCS), Agence Française de Développement (AFD), the Foundation for Studies and Research on International Development (Ferdi), and the Center for Studies and Research on International Development (Cerdi), this conference organized as part of France’s G7 presidency brought together researchers, practitioners, and policymakers from across the globe from 20 to 22 May. Its aim was to discuss the role of public development banks (PDBs) in addressing today’s major challenges.

The conference took place at a time of growing international attention to the role of PDBs. Following the recognition of their role at the Fourth International Conference on Financing for Development (FfD4) in Seville in 2025, G7 finance ministers also highlighted their importance during their meeting on 18 and 19 May 2026. Amid volatile energy prices, growing threats to food security, rising capital costs, and the demands of the low-carbon transition, PDBs have critical tools to support sustainable development pathways. These tensions, challenges, and opportunities were at the heart of the conference discussions.

Issues at the heart of G7 discussions

“In a context of growing fragility, this type of international gathering, bringing together researchers and practitioners from both the Global South and the Global North, helps strengthen multilateralism through research,” said researcher Stephany Griffith-Jones.

Fifty original research papers were presented at the conference, covering a wide range of topics, including mandates and instruments, governance, coordination among institutions, and the ability of public development banks (PDBs) to act collectively.

The findings highlight the stabilizing role that PDBs can play in a world marked by macroeconomic imbalances. They also underscore the potential contribution of these institutions to supporting strategic sectors, including industrial policy, innovation, and the strengthening of value chains.

Another key finding concerns the importance of coordination. PDBs are most effective when they operate as a system, linking the work of multilateral, regional, and national development banks in close coordination with finance ministries, regulators, and private sector actors.

These conclusions closely align with the priorities of France’s G7 presidency on reforming the international financial architecture.

Informing policymakers

The conference drew on the work of the Global Research Network (GRN) on PDBs, an international network of around 50 researchers that has gradually taken shape since 2020.

Supported by FiCS and coordinated in part by AFD alongside academic and institutional partners, including Stellenbosch University, the Center for Global Development (CGD), the Institute for Climate Economics (I4CE), the Institute of New Structural Economics at Peking University (INSE-PKU), Ferdi, the United Nations Conference on Trade and Development (UNCTAD), and McMaster University, the GRN has helped establish an international research agenda on PDBs.

This work has led to several major outputs, including the publication of "Public Development Banks: A Reference Book" and the creation of a global database on public development banks.

The challenge, however, is to translate research findings into practical guidance for policymakers, finance ministries, central banks, and financial institutions. With this goal in mind, several GRN researchers are involved in international policy forums. Among them are Jiajun Xu of Peking University and Martin Kessler of the Finance for Development Lab, who co-chaired the Think7 working group on public development banks. The group's aim was to develop a set of recommendations to strengthen the role of PDBs, in line with the priorities of the G7 Finance track.

Beyond the G7: a long-term effort

The Clermont-Ferrand conference forms part of AFD Group’s contributions to the development, finance, and trade tracks of France’s G7 presidency.

At the development ministers’ meeting in late April, AFD Group presented the publication "ODA and Beyond: Toward an Integrated Approach to Financing for Development – The Case of AFD Group", which highlights the importance of placing Official Development Assistance (ODA) within a broader framework for development finance.

In early May, the Group also organized a conference on critical minerals, a topic high on the agenda of France’s G7 presidency and discussed during the trade ministers’ meeting.

In early June, AFD hosted the Civil 7 Summit at its headquarters. The Civil 7 is the engagement group representing civil society organizations from G7 countries and was coordinated this year by Coordination SUD.

These discussions should also be viewed in a broader context.

“Global challenges require responses that extend beyond the G7 alone,” said Thomas Melonio, Chief Economist at AFD. The Evian G7 builds on progress made during South Africa’s G20 presidency and at the Fourth International Conference on Financing for Development (FfD4) held in Seville in 2025.

It is also marked by a commitment to inclusiveness. Several emerging economies, including Brazil, India, and South Korea, took part in the discussions, reflecting the same spirit that characterized the Clermont-Ferrand conference, where researchers and practitioners from around the world came together to exchange perspectives.

These discussions will continue in the months ahead. The next Finance in Common Summit, scheduled for 2027, will provide another opportunity for the public development bank (PDB) research community to come together, with a strong focus on generating knowledge, developing operational recommendations, and engaging with policymakers.