Beijing (China): countries launched in June 2022 a new program – Partnership for Global Infrastructure and Investment (PGII) to meet the financial and technical needs for the construction of quality infrastructure in low-income countries and intermediary in order to end the dominance of China’s Belt and Road Initiative (BRI).
Valerio Fabbri, writing in Geopolitica.info, said that unlike Chinese projects plagued by low costs, loose standards and fast timelines, the PGII initiative can be a major victory for global well-being and development. sustainable development, with a focus on human infrastructure at the heart of global development ambitions.
As the experiences of Sri Lanka and Pakistan have shown, building infrastructure with BRI loans has plunged recipient countries into a debt trap. Colombo and Islamabad are now burdened with high debt.
In the worst-case scenario, Sri Lanka experienced political upheaval due to the debt burden, failed to import its food and fuel needs, and eventually defaulted on debt repayments, leading to collapse. of the government.
BRI loans are wrapped in opaque conditionalities. Beijing often interferes with the internal governance of recipient countries, there are still such cases in Sri Lanka and Pakistan.
Instead of empowering workers in recipient countries, the projects are carried out by Chinese companies with imported Chinese workers, Fabbri said.
BRI projects are also very exploitative in nature. An ongoing project to build a port in Peru, the Chancay Multipurpose Port Terminal, is set to destroy local flora and fauna, emit significant toxic pollutants and displace local communities.
The International Monetary Fund has also issued a warning to other nations of the danger posed by indebtedness, citing the example of the unprecedented economic crisis in Sri Lanka.
Meanwhile, the PGII aims to build projects through grants and investments, while under the BRI, China provides large amounts of loans that usually have to be repaid over 10 years.
The G7 has pledged to disburse USD 600 billion by 2027 under the PGII, but the actual amount available could be much higher, as under the PGII significant private capital could also be mobilised.
Moreover, the infrastructure that the G7 countries plan to build is technically superior and of higher quality than the infrastructure China is building in different countries under the BRI financing, Fabbri said.
The PGII focuses on building human infrastructure in the developing world and improving the quality of education and health care facilities, Geopolitica.info reported.
Unlike Chinese projects plagued by low costs, lax standards and tight deadlines, the PGII initiative can be a major win for global welfare and sustainable development, with a focus on infrastructure at the heart of global development ambitions.
The G7 countries are emphasizing the promotion of health security, digital technology, but also gender equality. The PGII is, in fact, a program aimed at providing sustainable and quality infrastructure that will make a difference in the lives of people around the world.
It also aims to strengthen and diversify supply chains, breaking China’s stranglehold on the supply of critical inputs like semiconductors that are used to control the flow of current in everyday electrical devices. .