The 48th G-7 Summit witnessed the ambitious unveiling of the Partnership for Global Infrastructure and Investment (PGII) by the U.S. and its G7 allies. This announcement follows the launch of the Build Back Better World (B3W) in 2021, designed to address a $40 trillion infrastructure gap in the developing world. PGII is essentially a reiteration of the B3W plan and is viewed as G7’s response to China’s multi-trillion dollar Belt and Road Initiative (BRI).
Understanding the Partnership for Global Infrastructure and Investment (PGII)
The PGII is a transparent, high-impact, values-driven infrastructure partnership that targets the vast infrastructure needs of low and middle-income countries while supporting the economic and national security interests of the U.S. and its allies. The initiative plans to mobilize $600 billion by 2027 for transparent, game-changing infrastructure projects in developing and middle-income countries.
Funding Commitments and Pillars of PGII
Major funding pledges have been made by the U.S. and European nations towards this initiative. The focus of the projects under PGII falls into four main pillars: climate crisis addressal, digital ICT network enhancement, gender equality advancement, and global health infrastructure upgrading.
Benefits to India from PGII
India is set to benefit significantly from this initiative, particularly in the sectors of agriculture and climate sustainability. Key investments include up to USD 30 million in Omnivore Agritech and the Climate Sustainability Fund.
BRI Counter by PGII
The PGII places emphasis on clean energy and climate action, contrasting with China’s large coal-fired plants under BRI. Funding and transparency also differentiate PGII from BRI, as the latter has faced criticism for opaque dealings.
Understanding the Belt & Road Initiative (BRI)
China’s ambitious BRI focuses on connectivity and cooperation among multiple countries across Asia, Africa, and Europe. With initiatives that include building networks of roadways, railways, maritime ports, power grids, oil and gas pipelines, and associated infrastructure projects, the BRI is a symbol of China’s economic and industrial might and its global political ambitions.
Criticism of BRI
The BRI has been targeted by western critics as new colonialism, or the Marshal Plan for the 21st century. Accusations of imposing a debt trap policy, where excessive credit is extended with the intent of extracting economic or political concessions from debtor countries, also mar the initiative.
India’s Position on BRI
India has refrained from joining BRI, citing sovereignty infringement as a chief concern. The China Pakistan Economic Corridor (CPEC), a flagship project of BRI, is perceived by India as an affront to its claim in the disputed region of Gilgit-Baltistan. The successful implementation of CPEC could weaken India’s strategic interests in South Asia. Furthermore, China’s increasing influence in the South Asian region, like the construction of Hambantota Port in Sri Lanka, poses concerns for India’s strategic hold.