G7 summit leaders launch infrastructure fund to counter Chinese influence
In a move perceived as a response to China’s Belt and Road initiative, G7 leaders have provided details on their plans to mobilize $600 billion in funding for the poor world. A program unveiled at the G7 summit in England last year is being relaunched by the Partnership for Global Infrastructure and Investment (PGII).
According to US Vice President Joe Biden, the proposal would produce benefits for all. Critics claim that China’s multi-trillion dollar infrastructure program burdens countries with excessive debt.
“I want to be clear. This isn’t aid or charity,” Mr Biden said of the G7’s PGII scheme. “It’s an investment that will deliver returns for everyone.”
According to the US president, the program will enable nations to “understand the actual benefits of working with democracies.” According to the plan, the G7 leaders must generate $600 billion over a five-year period to start infrastructure projects in middle- and low-income nations.
Through grants, federal funds, and private investment, the US has pledged to generate $200 billion (£162 billion) of the total, and the EU has vowed an additional 300 billion euros (£257 billion). The project will focus on combating climate change, enhancing global health, attaining gender equity, and creating digital infrastructure.
A few of the initiatives that are highlighted are a vaccine production plant in Senegal, a solar-powered project in Angola, and a 1,609 km submarine communications line that connects Singapore to France via Egypt and the Horn of Africa.
The proposal has been presented as a means of thwarting China’s vast Belt and Road Initiative (BRI). The BRI, which was introduced by the Chinese president Xi Jinping in 2013, offers finance to developing nations so they may build infrastructure including ports, roads, and bridges.
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