G-7 Countries Seek to Counter China's Growing Influence in the Developing World
The United States has stated that the G-7 initiative aims to leverage USD 200 billion in American investment over the next five years, as well as an equivalent amount from G-7 allies, to improve infrastructure development in low-and middle-income nations.
At its annual summit, the Group of Seven major democratic economies formally created a global infrastructure and investment partnership to counter China's influence in the developing world.
The G-7 programme is a response to China's so-called Belt and Road Initiative, which Western officials have said for years traps receiving nations in debt and with investments that benefit China more than their hosts.
The majority of funding will come from the private sector, sovereign wealth funds, and global development institutions.
The United States asserts that the G-7 initiative promotes responsible investments that aim to help the areas where they are made.
Among the initial projects are a USD 2 billion investment in a solar farm in Angola, Southwest Africa, USD 320 million for the development of hospitals in Ivory Coast, West Africa, and USD 40 million to enhance regional energy trade in Southeast Asia.
European Commission President Ursula von der Leyen said the G-7 is offering “sustainable, quality infrastructure” and will be “listening closely to the recipient countries.”
Source: Outlook
For more social and governance news
