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

In order to challenge China's Belt and Road Initiative (BRI) and create high-quality infrastructure in low- and middle-income countries, the Group of Seven (G7) nations unveiled a new program in June 2022 called the Partnership for Global Infrastructure and Investment (PGII). The 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 the centre of the 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 the recipient nations in a debt trap, as the experiences of Sri Lanka and Pakistan have shown. Both Colombo and Islamabad are currently struggling under heavy debt loads. In the worst case, Sri Lanka has seen a political upheaval due to the debt burden, has been unable to import food and fuel and has finally defaulted on debt repayment, which has caused the government to fall. BRI loans are covered in enigmatic conditions. In Pakistan and Sri Lanka, as well as in numerous other instances, Beijing has meddled with the internal affairs of recipient nations. According to the report, projects are carried out by Chinese companies using imported Chinese labourers rather than empowering local people in the destination nations. BRI projects are extremely exploitative The BRI projects are also extremely exploitative, according to the article. The 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. The International Monetary Fund, too, has issued a warning to other countries about the dangers of indebtedness, citing the exceptional economic catastrophe in Sri Lanka as an example. Meanwhile, the PGII attempts to fund projects through grants and investments, and the BRI provides huge loans that must be repaid over a 10-year period. The G7 has pledged USD 600 billion under the PGII by 2027, although the real amount available might be significantly higher, as private capital could also be mobilised under the PGII. Furthermore, the infrastructure that the G7 countries intend to develop is technically superior and of higher quality than the infrastructure that China is building in various countries through BRI funding. According to Geopolitica.info, the PGII focuses on creating human infrastructure in poor countries and enhancing the quality of education and health care services. Image: Shutterstock/AP

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

G7 nations unveiled new program in June 2022 called Partnership for Global Infrastructure and Investment in order to challenge China's Belt and Road Initiative.

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