G7 Global Infrastructure Plan
The G7 grouping has announced a USD 600 billion global infrastructure programmes for poor countries.
Global Infrastructure and Investment Programme
- This move was aimed at competing with formidable Belt and Road Initiative of China.
- During 2022 and 2027, US government and its allies will shoot for USD 600-billion figure “through federal financing, leveraging private sector investments and grants.
- The Partnership was unveiled by US President Joe Biden and G7 allies from Germany, Canada, Japan, Italy, and the European Union.
- It is aimed at fulfilling a huge gap left because China uses its economic clout for stretching its diplomatic tentacles across the world.
- Target was for US, for bringing USD 200 billion to the table. Rest of G7 would bring USD 400 billion by 2027.
Significant of the project
According to US President, funding such kinds of projects which are currently dominated by China, ranging from roads to harbours in far-flung areas of the world is not aid or charity. These projects will deliver returns for everyone.
How is the project different from BRI initiative?
The proposed G7 funding would depend on private companies largely, as opposed to state-run Belt and Road Initiative of China. Private companies would be willing to commit for massive investments and thus is not guaranteed.
The Belt and Road Initiative (BRI) was formally known as One Belt One Road initiative. It is a global infrastructure development strategy, started by China in 2013. Under it, China planned to invest in around 70 countries and international organizations. This project is the centrepiece of foreign policy of Chinese leader Xi Jinping. As of March 2022, 146 countries have signed up to the BRI.
Who is funding the BRI?
The Asian Infrastructure Investment Bank is dedicated to lend for infrastructure projects. This development bank was first proposed in October 2013.
Group of Seven (G7)
G7 is an inter-governmental political forum, comprising of France, Canada, Japan, Germany, Italy, the United States and the United Kingdom. European Union is its “non-enumerated member”.
Month: Current Affairs - June, 2022
Category: International / World Current Affairs
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