The European Commission has recently announced an ambitious project named the Global Gateway, aiming to mobilize EURO 300 billion by 2027 in public and private infrastructure investment worldwide. Even though China is not explicitly mentioned, the plan appears to counter China’s Belt and Road strategy.
Introducing the Global Gateway Plan
Europe’s strategic response to urgent global needs, the Global Gateway project, will employ a Team Europe approach. The endeavor aims to develop sustainable, high-quality infrastructures across multiple fronts, including digital, climate and energy, and transport sectors. It also seeks to fortify world health, education, and research systems.
Funding Approach of Global Gateway
To finance this massive undertaking, the European Union (EU) will rely on its European Fund for Sustainable Development Plus. Under this initiative, a guarantee capacity of 40 billion euros is available, along with grants of up to 18 billion euros from external assistance programs. Regardless, the project necessitates funding from international institutions and the private sector to achieve its target. Financing would be offered under fair and favorable conditions to mitigate risk of debt distress.
Relation to the B3W Project
The Global Gateway plan is a derivative of the Build Back Better World (B3W) Initiative, an international infrastructure investment strategy unveiled by the Group of Seven (G-7) richest democracies in June 2021.
About China’s Belt And Road Initiative
Launched in 2013, the Belt and Road Initiative (BRI) largely facilitates cross-border transportation of goods and access to energy, while absorbing the existing excess capacity in Chinese industries. It officially focuses on developing infrastructure for better land and sea connectivity between China, Asia, Europe, and Africa. However, China’s initiative has been met with criticism, particularly from western countries, who are wary of the country’s debt trap policy and new colonialism.
Criticisms of the BRI Project
The BRI has faced heavy criticism for possible ulterior motives. The project, seen as enabling China’s debt trap policy, has been denounced by western nations for provoking emerging economies into shouldering too much debt. Critics also argue that the secretive tender process is susceptible to corruption. Other points of contention include the initiative being dubbed as new colonialism and concerns over its dual-nature projects like the China-Pakistan Economic Corridor (CPEC) and the Colombo Port City Project in Sri Lanka, which are seen to have both commercial and strategic implications.
India’s Position on BRI
Regarding the BRI, India has maintained a steadfast stance of non-participation, chiefly due to the China-Pakistan Economic Corridor – a key component of the BRI – traversing through the disputed territory of PoK between India and Pakistan. In response to China’s perceived aggression, India has initiated the Act East Policy and SAGAR vision, aside from participating in multilateral projects such as the Asia-Africa Growth Corridor (AAGC), and the “Free and Open Indo Pacific” initiative.