Joe Biden and other world leaders come up with a brilliant strategy to tackle China’s Belt and Road Initiative
In a move, which is set to counter the new Belt and Road Initiative (BRI) by the Chinese government, Joe Biden and six other leaders from the G7, have come up with an infrastructure project worth $600 billion in funding by 2027. This initiative would mean that developing countries like India will benefit from this and will get the best infrastructure through this. The Partnership for Global Infrastructure and Investment (PGII), which was unveiled on Sunday in Elmau as part of the G7 Summit, is a programme that was first introduced at the G7 meetings in England last year.
The main aim is to tackle the BRI of China which can take money away from developing countries
President Biden announced the Partnership for Global Infrastructure and Investment (PGII) and said that it is just not an expense that they have made towards the developing countries but it is an investment that will yield results for everyone, and even boost the economies of all the countries. It has been praised that the PGII can be used to resist China’s extensive BRI. The BRI, which President Xi founded in 2013, provides funding to poor countries so they may build infrastructure including ports, roads, and bridges. Despite developing economic links, it has drawn criticism for being a source of “predatory loans” that compel overly indebted countries like Sri Lanka to surrender prized assets if they are unable to pay their debts. According to Mr. Biden, the PGII countries will benefit by partnering with other democracies. He added that the US will mobilise hundreds of billions of dollars and deliver quality, sustainable infrastructure that makes a difference in people’s lives around the world, strengthens and diversifies the supply chains.
This is the BRI system that China wants to implement
India would be one of the nations that will be benefiting the most from this new initiative by the G7. A white house fact sheet read that approximately $30 million will be spent in Omnivore Agritech and Climate Sustainability Fund 3, an impact venture capital fund that invests in entrepreneurs building the future of agriculture, food systems, climate, and the rural economy in India by the U.S Development Finance Corporation. This is a great opportunity for not only the G7 countries but also the developing countries and can lead to more employment opportunities for people, will boost the infrastructure in the developing countries as well as boost the economies. Even though it aims to tackle the BRI by China, the amount of success of this initiative will only depend on how smooth and transparent the process is. People of these developing countries hope that this initiative will yield them success in the long run.