Leaders of the Group of Seven (G7) have called for 600 billion in private and public funding over the next five years to compete with China’s Belt and Road project and finance infrastructure needed in developing countries. What is the covenant?
According to British media, US President Joe Biden and other G7 leaders on Sunday re-launched a new plan called “Partnership for Global Infrastructure and Investment” at their annual meeting in Germany this year.
Joe Biden said the United States will support projects in low- and middle-income countries to tackle climate change as well as help improve global health, gender equality and digital infrastructure through grants, federal funds and private funds. The investment will cost 200 billion over five years.
“I want to make it clear,” he said. This is not aid or charity. It is an investment that will pay off for everyone (in the form of profits). This will allow countries to see the tangible benefits of partnering with democracies.
The president said hundreds of billions of dollars could be raised from multilateral development banks, development financial institutions, sovereign wealth funds and others.
European Commission President Arsala van der Leyen said European countries would spend 300 billion euros over the same period on a sustainable alternative to China’s Belt and Road Initiative, which the Chinese president launched in 2013.
Leaders from Italy, Canada and Japan also spoke about their plans, some of which have been announced separately.
French President Emmanuel McKeown and British Prime Minister Boris Johnson were not present at the meeting, but representatives from both countries attended.
It should be noted that China’s investment scheme includes development and programs in more than 100 countries with the aim of creating a modern version of the ancient Silk Road trade route from Asia to Europe.