The United States aims to raise $200 billion in private and public funds over five years to fund needed infrastructure in developing countries as part of a G7 initiative aimed at countering China’s Belt and Road project multi-trillion dollars, the White House said Sunday.
US President Joe Biden will unveil the plans, flanked by other G7 leaders, some of whom have already unveiled their own separate initiatives, at their annual meeting to be held this year at Schloss Elmau in southern Germany.
Increasingly concerned about China, G7 leaders first launched plans for the project last year and are now formally launching it under a new title, “Partnership for Global Infrastructure and Investment,” while naming it “Build Back Better World,” first coined by President Biden. during his presidential campaign.
President Joe Biden will unveil several specific projects at a side event of the G7, along with leaders from Britain, Germany, Japan, the European Union and Canada. digital infrastructure. Notably absent is French President Emmanual Macron, who had formally joined China’s infrastructure program.
“The president doesn’t think we should spend dollar for dollar against China… but if you add up what the US and the G7 partners are going to announce, it’s pretty close to the number,” a senior US executive said. officer. reporters.
The funds would be raised through grants and federal funds, and by leveraging private sector investment, the White House said, adding that hundreds of billions of additional dollars could come from multilateral development banks, development finance institutions, sovereign wealth funds and others.
The China Belt and Road Initiative (BRI) program, launched by Chinese President Xi Jinping in 2013, includes development and investment initiatives in more than 100 countries, with a range of projects including railways, ports and highways.
White House officials say Xi’s plan to create a modern version of the ancient Silk Road trade route has yielded little tangible benefit to many developing countries, with top jobs going to Chinese workers, while increasing rates of forced and child labor.
Joe Biden will highlight several flagship projects, including a $2 billion solar development project in Angola with support from the Commerce Department, US Export-Import Bank, US firm AfricaGlobal Schaffer and US property developer Sun Africa.
Washington, together with G7 members and the EU, will also provide $3.3 million in technical assistance to the Institut Pasteur de Dakar in Senegal, as it develops a flexible industrial-scale multi-vaccine plant in that country that will eventually COVID-19 and other vaccines.
The United States Agency for International Development (USAID) will also allocate up to $50 million over five years to the World Bank’s new global Childcare Incentive Fund, a project aimed at closing the gap in suitable childcare infrastructure.
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