The United States is promising $ 200 billion for a G7 infrastructure project aimed at countering it The Chinese Belt and Road Initiative worth trillions of dollars.
The “Global Infrastructure and Investment Partnership” was restarted by President Biden and other Group Seven leaders on Sunday at their annual gathering held this year at the Schloss Elmau in southern Germany.
In total, G7 leaders have pledged to raise $ 600 billion in private and public funds over five years to fund needed infrastructure in developing countries.
A share of $ 200 billion will come from grants, federal funds and private investment during that time period to support projects aimed at tackling climate change, improving global health, gender equality and digital infrastructure.
Biden has long insisted that money is not “aid or charity.”
“It is an investment that will bring a return to everyone,” he said, adding that it would allow countries to “see the concrete benefits of partnering with democracies.”
He suggested that additional funds – more than hundreds of billions – could come from multilateral development banks, development finance institutions and state funds.
Chinese President Xi Jinping launched the Chinese Belt and Road Initiative scheme in 2013. Nearly a trillion-dollar multibillion-dollar effort includes development and infrastructure programs in more than 100 countries to create a modern version of the ancient Silk Road trade route from Asia to Europe.
Western officials have long argued that the initiative traps recipient countries in debt investments that benefit China more than hosts.
The G-7 program corresponds to China’s so-called Belt and Road initiative, which Western officials have long claimed traps the recipient country in debt and with investments that benefit China more than their hosts.
The White House says the initiative seeks to leverage $ 200 billion in U.S. investment over the next five years, along with a similar amount from G-7 allies, to boost infrastructure development in low- and middle-income countries.
It is added that most of the funds will come from the private sector, government wealth and global development funds, rather than from direct taxpayer dollars.
The United States says G-7-supported efforts promote responsible investments aimed at benefiting the communities in which they live.
Among the first initiatives are a $ 2 billion investment in a solar farm in Angola in southwest Africa, $ 320 million to build hospitals on Ivory Coast in West Africa and $ 40 million to promote regional energy trade in Southeast Asia.
In the attack on China, European Commission President Ursula von der Leyen said the G-7 offered “sustainable, quality infrastructure” and would “listen carefully to the recipient countries”.
The Associated Press contributed to this report.
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