Belgium, (Brussels Morning Newspaper) G7 announced plans to finance infrastructure projects in developing countries to parry China’s Belt and Road Initiative.
G7 leaders held a meeting in Germany on Sunday, where they announced plans to invest US$ 600 billion over five years, according to Reuters reporting.
Speaking in Germany, US President Joe Biden noted that the group relaunched and renamed its initiative – the Partnership for Global Infrastructure and Investment.
He announced that the US will invest US$ 200 billion in public and private funds over a five-year period, noting that the money will go towards projects in developing countries.
The projects will be aimed at improving digital infrastructure, addressing climate change and more.
“I want to be clear… this isn’t aid or charity… it’s an investment that will deliver returns for everyone,” he stressed and added that G7 wants developing countries to “see the concrete benefits of partnering with democracies.”
EC announces investments
Ursula von der Leyen, President of the European Commission, announced at the meeting that the EU will invest 300 billion euro in the initiative.
She stressed that the move will provide a sustainable alternative to China’s Belt and Road Initiative launched in 2013.
China launched projects in more than 100 countries through the initiative, which Beijing says is aimed at creating a modern Silk Road.
The White House previously pointed out that the initiative did not provide much benefit for many countries.
Biden noted that the US plans to invest US$ 2 billion in a solar power project in Angola, stressing that it will mobilise public and private funds.
The EU and the US will invest in Pasteur Institute of Dakar biomedical research centre to help it develop a large vaccine manufacturing facility, and the US Agency for International Development will provide up to US$ 50 million to the World Bank’s Childcare Incentive Fund.
Friederike Röder of the Global Citizen advocacy group pointed out that G7 countries spend less than half of the promised 0.7% of their GDP on assistance to developing countries.
She expressed belief that G7 should focus more on developing countries to facilitate strong global growth.
