Build Back Better World Initiative

In the month of June, 2021, the Build Back Better World Initiative was launched by the G7 countries. This initiative was launched to counter China’s BRI (Belt and Road Initiative).

Highlights

This initiative is also known as B3W and is being led by the United States. The initiative aims to build the 40 trillion infrastructure needed by various developing countries across the globe. This should be achieved by the year 2035. B3W will promote private sector finance and will support investors interested in technology, climate and health. This initiative has been built over the Blue Dot network. B3W aims to promote regional connectivity and economic development.</p> <h4>About Blue Dot Network</h4> <p>The Blue Dot network was formed by the United States, Japan and Australia. The Blue Dot Network provides assessment and certification of infrastructure projects. It was released in the year 2019. It started at the Indo-Pacific Business Forum in Bangkok. It aims to create a network that provides funding for the construction of roads, bridges, airports ports and power plants.</p> <h4>Significance of Build Back Better World Initiative</h4> <p>BRI’s tactics are believed to be a debt trap set by the Chinese government. The Chinese want to exercise strategic control in foreign policy and overcome these debt traps. BRI’s overall goal is the development of logistics and transportation. This will reduce the transaction costs of Chinese trade. Since the introduction of BRI, foreign direct investment (FDI) has been actively increasing. Between 2016 and 2019, this increased from US 25 billion to US $ 140 billion. B3W was created to counter China’s aggressive trade measures.

Importance of Build Back Better World Initiative

In the year 1979, China’s economy was smaller than the country of Italy’s. However, after opening up foreign investment and introducing market reforms, China is the second largest economy in the world and is also a world leader in many new technologies. It is important to limit the negative effects of China’s plans. BRI will lead to China-centric international manufacturing network and China-centric economic integration in the Asia-Pacific region. Therefore, B3W plays a major role in countering China’s dominance in the international market.

Conclusion

B3W’s counter-proposal is a welcome step to contain the negative effects of China’s mega plan. However, B3W lacks consistent thinking and proper planning during this phase. Still, it’s never better than slowing down. Moreover, India is a strong opponent of China’s BRI, so it is not yet known what role India will play in B3W. Counter-strategies are needed to reduce China’s debt. Macro views of BRI projects in all regions clearly reflect China-centric international economic integration, manufacturing networks, hegemony in the Asia-Pacific region, and ultimately the motives of the global economy.