On Sunday, June 26, the G7 group of wealthy countries announced a $600 billion packet plan to compete with China’s immense Belt and Road Initiative for helping to construct developing countries.
‘The Partnership for Global Infrastructure and Investment,’ announced by US President Joe Biden and G7 allies from Canada, Germany, Italy, Japan, and the EU, intends to fill a significant void created as Beijing employs its economic weight to extend diplomatic tentacles throughout the world.
From speaking at Schloss Elmau in southern Germany, President Biden promised to bring $200 billion to the table, while the other G7 will fund another $400 billion in 5 years.
Over the course of five years, Biden said the United States would mobilize $200 billion to support projects in low- and middle-income countries.
In addition to Africa, South America and parts of Asia are also on the US-led projects’ target.
Biden said, “I want to be clear. This isn’t aid or charity. It’s an investment that will deliver returns for everyone”
He added that the program would allow countries to “see the concrete benefits of partnering with democracies.”
According to President Joe Biden, money for the projects might come from multilateral development banks, development finance groups, sovereign wealth funds, and other sources.
As the News.com.au reported, unlike China’s state-funding Belt-and-Road project, the G7 money is not guaranteed because it is heavily reliant on the willingness of private corporations to make big investments.
However, this is a positive thing; according to US officials, recipient nations may escape Beijing’s debt traps and other tactics allegedly used by the Chinese.
Over a hundred countries are involved in China’s influence plan, Beijing’s projects and initiatives aimed at creating a modern version of the old Silk Road trade route between Asia and Europe.
On anonymity, a U.S. official told reporters that “many countries” partnered with China were experiencing remorse; Beijing was more interested in establishing their economic and geostrategic power than benefiting the local population.
In contrast to China’s Belt and Road Initiative, the official said the G7 program aims to “offer to make investments to actually improve your country, to improve the economy and to have lasting effects on GDP and your populations”