SCHLOSS ELMAU (Munich) In an important step to provide a democratic alternative to counter China’s Belt and Road initiative, the G7 leaders have unveiled $600 billion plan to fund infrastructure projects in low income and middle income countries.
The Partnership for Global Infrastructure and Investment (PGII) will deliver returns for everyone, said US President Joe Biden at the G7 summit meeting at Schloss Elmau, the luxury Alpine resort in Bavaria that is hosting the summit of the world’s wealthiest nations.
“I want to be clear. This isn’t aid or charity. It’s an investment that will deliver returns for everyone,” he said. Mr Biden touted the G7 infrastructure scheme as a showcase “the concrete benefits of partnering with democracies.” The plan envisages raising $600bn over five years to fund the launch of infrastructure projects in middle and low-income countries.
The US has decided to raise $200bn (£162bn) of the amount through grants, federal funds and private investment. The EU has announced a further 300bn euros (£257bn).
The initiative, designed to counter China’s predatory financing, will help tackle tackling climate change, improving global health, achieving gender equity and building digital infrastructure.
The new project seeks to present a “positive powerful investment impulse to the world to show our partners in the developing world that they have a choice,” said European Commission President Ursula von der Leyen.
Author Profile
![Manish Chand](https://www.indiawrites.org/wp-content/uploads/2018/09/manish-profile-pix-2018-200-109x150.jpg)
- Manish Chand is Founder-CEO and Editor-in-Chief of India Writes Network (www.indiawrites.org) and India and World, a pioneering magazine focused on international affairs. He is CEO/Director of TGII Media Private Limited, an India-based media, publishing, research and consultancy company.
Latest entries
India and the WorldJuly 9, 2024Defying West, India sets $100 billion trade target with Russia
India and the WorldJuly 5, 2024India at SCO: Takes swipe at Pakistan for cross-border terror, pushes alternative to BRI
India and the WorldJune 14, 2024Modi’s Day 1 in Italy: Bonding with Britain, France
India and the WorldJune 13, 2024G7 summit in Italy: Modi to showcase India as leader of Global South