G7 nations launch new infrastructure and investment program to challenge China's BRI

In order to challenge China's Belt and Ro Initiative (BRI) and create high-quality infrastructure in low- and middle-income countries, Group of Seven (G7) nations unveiled a new program in June 2022 called Partnership for Global Infrastructure and Investment (PGII).

PGII initiative, according to an article in Geopolitica.info, can be a significant victory for global welfare and sustainable development because it places human infrastructure at centre of aspirations for global development, unlike Chinese projects that are hampered by low cost, lax standards, and hurried timelines.

Building infrastructure with BRI financing has put recipient nations in a debt trap, as experiences of Sri Lanka and Pakistan have shown. Both Colombo and Islamab are currently struggling under heavy debt los. In worst case, Sri Lanka has seen a political upheaval due to debt burden, has been unable to import food and fuel and has finally defaulted on debt repayment, which has caused government to fall.

BRI loans are covered in enigmatic conditions. In Pakistan and Sri Lanka, as well as in numerous or instances, Beijing has meddled with internal affairs of recipient nations. According to report, projects are carried out by Chinese companies using imported Chinese labourers rar than empowering local people in destination nations.

BRI projects are extremely exploitative

BRI projects are also extremely exploitative, according to article. Chancay Multipurpose Port Terminal, an ongoing port building project in Peru, is set to harm native flora and fauna, release significant toxic pollutants, and displace local populations. International Monetary Fund, too, has issued a warning to or countries about dangers of indebtedness, citing exceptional ecomic catastrophe in Sri Lanka as an example.

Meanwhile, PGII attempts to fund projects through grants and investments, and BRI provides huge loans that must be repaid over a 10-year period. G7 has pledged USD 600 billion under PGII by 2027, although real amount available might be significantly higher, as private capital could also be mobilised under PGII.

Furrmore, infrastructure that G7 countries intend to develop is technically superior and of higher quality than infrastructure that China is building in various countries through BRI funding. According to Geopolitica.info, PGII focuses on creating human infrastructure in poor countries and enhancing quality of education and health care services.

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