China’s Belt and Road Initiative is a global infrastructure development strategy adopted by the Chinese government back in 2013 to invest in nearly 70 countries and international organizations. This gives countries some commitment to China and adds to its global influence.
The Chinese initiative has been criticized by many for putting developing countries too much in debt. It is said to be a means of providing “predatory lending” that forces indebted countries to give up their key assets if they are unable to repay their debts. This new initiative by the G7 members is expected to bring benefits of partnership with democratic countries, according to the US President.
Flags of G7 members
In a similar vein, the leaders of the G7 countries, led by Joe Biden, have now presented their plans for investment of up to $600 billion by 2027. The funds would go towards developing mainly infrastructure projects in developing countries.
On his Twitter account, the US President said.
Today, the nations of the G7 launched the Partnership for Global Infrastructure and Investment.
Collectively, we aim to mobilize nearly $600 billion from the G7 by 2027 to invest in critical infrastructure that improves lives and delivers real gains for all of our people.
— President Biden (@POTUS) June 26, 2022
He further added the information that this is not charity but an investment in the future.
I want to be clear – the G7's announcement of a new global infrastructure partnership isn't aid or charity. It’s an investment that will deliver returns for everyone – including the American people – and boost all of our economies.
— President Biden (@POTUS) June 26, 2022
Where will the money go?
The US is expected to invest $200 billion over the next 5 years. The money will be transferred by the state through grants and the federal funding system, but the private sector should also get involved. Additional funding will come from the other members of the G7, which, in addition to the US, include Germany, the UK, France, Italy, Japan, and Canada.
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The whole initiative will address issues related to climate change, improving global health, achieving gender equality and building digital infrastructure. The aim of the project was commented on in her way by European Commission President Ursula von der Leyen, who said.
“The aim of this latest project is to present the world with a positive strong investment momentum that will show our partners in the developing world that they have a choice.”
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