Explained | The G7 plan to counter the Belt and Road initiative

What is the News?

U.S President along with his G7 allies have launched the Partnership for Global Infrastructure and Investment(PGII) Initiative.

What is the Partnership for Global Infrastructure and Investment(PGII) Initiative?

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What kind of projects will the PGII undertake?

All PGII projects will be driven by four priority pillars:

First Pillar: It will focus on tackling the climate crisis and ensuring global energy security through clean energy supply chains. 

Second Pillar: It will focus on bolstering digital information and communications technology (ICT) networks facilitating technologies such as 5G and 6G internet connectivity and cybersecurity. 

Third Pillar: It aims to advance gender equality and equity.

Fourth Pillar: It focuses on building and upgrading global health infrastructure.

How is PGII different from China’s BRI?

Firstly, China’s Belt and Road project was started to revive connectivity, trade and infrastructure along what was China’s ancient Silk Road. On the other hand, PGII has been set up to help underfunded low and middle-income countries to meet their infrastructure needs. 

Secondly, PGII has laid focus on climate action and clean energy while China has built large coal-fired plants under BRI along with solar, hydro, and wind energy projects. 

Thirdly, G7 leaders emphasized ‘transparency’ as the cornerstone of PGII projects. On the other hand, BRI has faced criticism for making countries sign confidential tenders for extending massive loans, leaving countries indebted to China. 

Fourthly, a PGII project has been announced in India. On the other hand, India has stayed away from China’s BRI, being wary of China’s aim to increase its influence in the Indian Ocean Region

Source: The post is based on the article “Explained | The G7 plan to counter the Belt and Road initiative” published in The Hindu on 29th June 2022