A $40 Trillion Global Infrastructure Plan: G7 Unveils 'Build Back Better World' (B3W) To Challenge China's 'Belt And Road Initiative'(BRI)

The G7 has unveiled a global infrastructure plan called “Build Back Better World (B3W) to counter Beijing's multi-trillion-dollar Belt And Road Initiative(BRI).

“Build Back Better World" (B3W), will be a values-driven, high-standard, and transparent infrastructure partnership led by major democracies and intended to facilitate the building of infrastructure in poorer nations, a US government statement said.

“The adoption of the US-inspired “Build Back Better World” (B3W) project came after President Joe Biden and leaders met to address “strategic competition with China and commit to concrete actions to help meet the tremendous infrastructure need in low- and middle-income countries”, a statement by the White House read.

B3W initiative, will provide a transparent infrastructure partnership to help narrow the $40 trillion needed by developing nations by 2035, the White House said.

“B3W will collectively catalyze hundreds of billions of dollars of infrastructure investment for low- and middle-income countries in the coming years,” said the White House.

It further said, the G-7 is more transparent with respect to its funding as opposed to China. The B3W project plans to put more emphasis on the environment and climate, labor safeguards, transparency, and anti-corruption.

In a veiled criticism of China's approach to financing BRI projects, the White House said B3W investments would be led by “a responsible and market-driven private sector, paired with high standards and transparency in public funding”.

“This is not just about confronting or taking on China,” a senior official in Biden’s administration said. “But until now we haven’t offered a positive alternative that reflects our values, our standards and our way of doing business.” the statement added.

The 47th G7 summit is currently being held in Cornwall in the UK. Participants include the leaders of Canada, France, Germany, Italy, Japan, the UK, and the US and representatives from the European Union.

The new infrastructure plan is recognition of the growing challenge mounted by Beijing's Belt and Road Initiative, a mammoth infrastructure project, with the most ambitious being the China-Pakistan Economic Corridor (CPEC), linking China’s Xinjiang province with the Arabian Sea.

More than 100 countries have signed agreements with China to cooperate in BRI projects like railways, ports, highways and other infrastructure. Given that many BRI projects have led to debt restructurings, it has faced strong domestic opposition in various countries. Chinese has faced accusations of operating as predatory lender.