The G7 (Group of Seven) countries have recently proposed a ‘Build Back Better World (B3W) initiative’ at the 47th G7 summit, aimed to rival China’s prominent Belt and Road Initiative (BRI). This new development has drawn attention to the ongoing competition for global influence and authority between G7 nations and China.
The Genesis of the G7
The G7 is an intergovernmental organization that was established in 1975. It comprises seven countries: the UK, Canada, France, Germany, Italy, Japan and the U.S. The group meets annually to discuss issues of mutual concern, such as global economic governance, international security, and energy policy. Notably, there is no formal constitution or a fixed headquarters for the G7. Decisions taken during annual summits are non-binding, yet carry significant diplomatic weight.
Introducing the Build Back Better World (B3W) Initiative
The newly proposed B3W aims to bridge the infrastructure investment gap in developing and low-income countries, a space increasingly dominated by China through roughly 2,600 BRI projects involving trillions of dollars in investment. Led by the U.S., the B3W initiative pledges to provide transparent infrastructure partnerships. The goal would be to fill around $40 trillion in need by developing nations by 2035. The plan invites extensive spending in conjunction with the private sector while maintaining climate standards and labor practices.
China’s Belt and Road Initiative
Introduced in 2013, the BRI involves development and investment initiatives stretching from Asia to Europe and beyond. Over 100 countries have partnered with China on BRI projects like railways, ports, highways, and other infrastructure initiatives. Since its commencement, China’s outward investment activities have been aggressive, with its Foreign Direct Investment (FDI) outflow to inflow ratio increasing significantly between 2001 and 2010.
Key BRI Projects
Prominent BRI projects include the China-Pakistan Economic Corridor (CPEC), the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor, and the Colombo Port City Project in Sri Lanka. China also plans to construct 4,000 km of railways and 10,000 km of highways within the Central Asian region as part of the BRI.
India’s Stance on China’s BRI
India has expressed concerns about the CPEC, as it traverses through Pakistan-occupied Kashmir. India declined to join China’s initiative previously and has voiced opposition to the BRI due to perceived adverse trade impacts, lack of market access, and excessive competition from China.
The Importance of the B3W Initiative
China’s ascendance as a global power is viewed as one of the most crucial geopolitical events of recent times, paralleling the 1991 collapse of the Soviet Union that marked the end of the Cold War. The B3W symbolizes the West’s attempt to offer a positive alternative to the “lack of transparency, poor environmental and labor standards, and coercive approach” of the Chinese government.
Challenges and Predictions
Although the counter proposal of the B3W is a timely response to China’s mega plan, it still lacks coherent vision and proper planning at this stage. Despite these shortcomings, it shows promise and indicates international commitment to challenge China’s dominance. It remains to be seen how India will participate in the B3W, given its strong opposition to China’s BRI. A closer look at the pattern and scale of BRI projects across geographies reveals China’s ambitions for international economic integration, production networks, hegemony in the Asia-Pacific region, and ultimately, the global economy.
