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| Introduction: Contextual introduction. Body: Write some salient provisions of the Partnership for Global Infrastructure and Investment (PGII) initiative by G7. Also write how it is going to counter China’s expansion plans. Conclusion: Write a way forward. |
It is a $600-billion global infrastructure investment partnership aimed at helping developing countries. The initiative was first unveiled at the 2021 G7 summit in Britain, UK. At that time, it was called the Build Back Better Initiative. The PGII is being seen as the G7’s counter to China’s multi-trillion dollar Belt and Road Initiative (BRI) to build connectivity, infrastructure, and trade projects in Asia, Europe, Africa, and Latin America.
Salient provisions:
- G7 members aim to collectively mobilise $600 billion by 2027 to invest in sustainable and quality infrastructure projects in developing countries, including India, and strengthen global supply chains.
- It is a “values-driven, high-impact, and transparent infrastructure partnership to meet the infrastructure needs of low and middle-income countries”. It is also aimed at supporting the economic and national security interests of United States and its allies.
- It aims to tackle the climate crisis and ensure global energy security through clean energy supply chains.
- The projects will focus on bolstering digital information and communications technology (ICT) networks facilitating technologies such as 5G and 6G internet connectivity and cybersecurity.
- The projects aim to advance gender equality and equity, and to build and upgrade global health infrastructure.
How is it going to counter China’s expansion plans?
- BRI suffers from lack of transparency, poor environmental and labour standards, and coercive approach. Whereas, PGII is an investment that will deliver returns for everyone, and the people of all our nations.
- PGII provides for a shared approach and coordinate on supply-chain resilience. On the other hand, BRI companies engage in “non-market economic practices” and human rights abuses.
- This initiative is meant to be transparent, focused on building climate change-resilient infrastructure, and help in achieving objectives of While in BRI, risks include foreign investment restrictions, antitrust regulations, tax, debt-trap.etc.
The PGII could benefit developing countries, and particularly India, by offering finance for decarbonisation efforts. Indian entrepreneurs and companies working to increase food security and improve the rural economy also stand to benefit from this global infrastructure investment partnership.
