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Partnership for Global Infrastructure and Investment

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Partnership for Global Infrastructure and Investment
AbbreviationPGII
Formation2022; 2 years ago (2022)
FounderG7
PurposeFund infrastructure projects in developing nations
Location
  • Worldwide

The Partnership for Global Infrastructure and Investment (PGII) is a collaborative effort by Group of Seven (G7) to fund infrastructure projects in developing nations[1] based on the trust principles of the Blue Dot Network. It is intended to be the bloc's counter to China's Belt and Road Initiative[2][3] and a key component of the "Biden Doctrine".[4]

PGII re-brands the Build Back Better World initiative. The re-brand followed difficulties in implementing the Biden administration's similarly named domestic legislative agenda.

As of at least early 2024, few details of the initiative have been announced.

History

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G7 leaders launching the PGII in Schloss Elmau, Germany

The partnership plan was announced for the first time in June 2022 during the 48th G7 summit in Germany.[5] According to an article by Center for Strategic and International Studies, PGII is the repackaged version of the Build Back Better World (B3W) initiative which President Biden announced at the 47th G7 summit in the United Kingdom.[6]

Blue Dot Network

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Japan's Ministry of Economy, Trade and Industry Tatsuo Terzawa (left) and US Undersecretary of State Keith Krach (right) sign $10 billion Blue Dot Network energy agreement during the Indo-Pacific Business Forum in Bangkok on 4 November 2019.
Japan's Ministry of Economy, Trade and Industry Tatsuo Terzawa (left) and US Undersecretary of State Keith Krach (right) sign $10 billion Blue Dot Network energy agreement during the Indo-Pacific Business Forum in Bangkok on 4 November 2019.

The Blue Dot Network (BDN) is a multi-stakeholder initiative formed by the United States, Japan,[7] and Australia to provide assessment and certification of infrastructure development projects worldwide on measures of financial transparency, environmental sustainability, and impact on economic development, with the goal of mobilizing private capital to invest abroad.[8][9] It was initially led by the U.S. International Development Finance Corporation (DFC), Japan Bank for International Cooperation, and Department of Foreign Affairs and Trade of Australia.

On 4 November 2019, U.S Under Secretary of State Keith Krach formally launched the Blue Dot Network with his Australia and Japan counterparts with access to $60 billion of capital from the DFC at the Indo-Pacific Business Forum.[10] Krach made three major related announcements in energy, infrastructure and digital initiatives which consisted of a new multilateral infrastructure initiative unveiled by the U.S., the signing of a $10 billion agreement strengthening the Japan-U.S. Strategic Energy Partnership; and the plan to spur digitally driven economic growth economic in the Indo-Pacific. In all three economic pillars, Under Secretary Krach engaged in US-ASEAN Business Council and U.S. Chamber of Commerce by implementing advanced U.S. efforts in establishing a set of global trust standards.[11]

On 29 January 2020, Blue Dot Network's steering committee holds its first meeting in Washington with US, Australia and Japan. Under Secretary Krach commits $2 million of U.S. State Department seed money for the steering committee and issues a public invitation to all other G-7 members to come on board.[12]

On 25 February 2020, the Blue Dot Network is incorporated in the India-U.S. Comprehensive Global Strategic Partnership Joint Statement.[13]

American Institute in Taiwan managing director Larson, Under Secretary of State Keith Krach, Taiwan's Minister of Economic Affairs Chen Chern-chyi, and Taiwan's de facto ambassador Bi-khim.
American Institute in Taiwan managing director Larson, Under Secretary of State Keith Krach, Taiwan's Minister of Economic Affairs Chen Chern-chyi, and Taiwan's de facto ambassador Bi-khim

On 20 November 2020, Taiwan joins the Blue Dot Network with the signing of the U.S.-Taiwan Economic Prosperity Partnership (EPP) between Taiwan Minister John Deng and Under Secretary of State Keith Krach at the EPP Dialogue's inaugural meeting in Washington.[14]

On 19 October 2020, on behalf of the Twelve Three Seas nations, President Kersti Kaljulaid endorses the Blue Dot Network and the Clean Network at the Three Seas Summit in Tallinn, Estonia. U.S. Under Secretary of State Krach commits a $1 billion investment with the initial investment of $300 million in trusted clean infrastructure, as described in the Blue Dot standards for roads, bridges, railways, 5G, ports, and energy projects in the Three Seas region between the Baltic, Adriatic, and Black seas. The goal is to stimulate investments by each member country.[15]

On 14 January 2021, Georgia adopts the Blue Dot Network as part of joining the Clean Network Alliance of Democracies at the signing ceremony between Georgian Minister of Economy and Sustainable Development Natia Turnava and US Under Secretary of State Keith Krach.[16][17]

On 7 June 2021, the OECD commits to supporting the Blue Dot Network at meeting of the Executive Consultation Group in Paris, France.[18]

Build Back Better World

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World leaders at the 2021 G7 Summit in England
World leaders at the 2021 G7 Summit in England

On 12 June 2021, the Group of Seven (G7) announced the adoption of the Build Back Better World (B3W) initiative built off the progress and principles of the Blue Dot Network to counter China's BRI[19] to address the $40 trillion worth of infrastructure needed by developing countries by 2035. The initiative aims to catalyze funding for quality infrastructure for of low- and middle-income countries[1]  from the private sector and will encourage private-sector investments that support "climate, health and health security, digital technology, and gender equity and equality."[20][21]

On 26 June 2022, the initiative was relaunched and renamed as the Partnership for Global Infrastructure and Investment (PGII) at the 48th G7 summit in Germany.[22]

B3W was not ultimately detailed beyond the program's general goals.[23]: 67  Following legislative difficulties in implementing the Build Back Better domestic agenda, B3W was re-branded as the Partnership for Global Infrastructure and Investment.[24]: 5 

G7 2023 Hiroshima Summit

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On 20 May 2023 on occasion of 49th G7 summit, a side event of Partnership for Global Infrastructure and Investment (PGII) was held.[25][26] Three documents including "Factsheet on the G7 Partnership for Global Infrastructure and Investment" were issued.[27]

As of at least early 2024, most of the details of the PGII had not yet emerged.[24]: 5 

G7 2024 Summit

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At the end of the 50th G7 summit, the partners reiterated their commitment to the PGII, with a goal of $600 billion in private investment by 2027.[28]

Standards and principles

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U.S. Under Secretary of State Keith Krach's announcement of Blue Dot Network with OPIC's David Bohigian, Japan's Tadashi Maeda, and Australia's Richard Maude at the Indo-Pacific Business Forum
U.S. Under Secretary of State Keith Krach's announcement of Blue Dot Network with OPIC's David Bohigian, Japan's Tadashi Maeda, and Australia's Richard Maude at the Indo-Pacific Business Forum

The PGII efforts are in line with the standards and trust principles of the Blue Dot Network (BDN), which Under Secretary of State Keith Krach formally launched in 2019 at the Indo-Pacific Business Forum in Bangkok.[29] These global trust standards, which are based on "respect for transparency and accountability, sovereignty of property and resources, local labor and human rights, rule of law, the environment, and sound government practices in procurement and financing."[30]   

On 7 June 2021, the Organisation for Economic Co-operation and Development (OECD) committed to support the BDN at the meeting of the latter's executive consultation group in Paris, France.[31] On 16 June 2021 Krach was awarded the Westernization Award by StrategEast for his work as Under Secretary of State in the country of Georgia for leading the Clean Network and Clean Infrastructure initiatives, which provide an alternative to the "One Belt One Road" for the countries of Eurasia and is supported by all G7 countries as the Build Back a Better World.[32] In March 2022, Krach was nominated for the 2022 Nobel Peace Prize for developing the 'Trust Principle' doctrine as a peaceful alternative to authoritarian's 'power principle.'[33]

Under Secretary Krach committed $2 million (USD) of U.S. State Department seed money for the steering committee and issued an invitation to other G7 members to join. On 19 October 2020, on behalf of the twelveThree Seas nations, President Kersti Kaljulaid endorsed the BDN and the Three Seas Summit in Tallinn, Estonia.[34]

Objectives

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Over the next five years, the G7 governments and its private business sector will invest $600 billion.[35] It aims to offer an alternative to China's estimated $1 trillion infrastructure investments worldwide over the past decade.[36]

According to Singapore Forum experts, with the advent of the G7-led PGII, notions such as economic development and foreign direct investment could be "merged" with geopolitical and military objectives:

The US-led G7 and Nato bloc [is] accelerating its ‘pivot to Asia’: the perceived enemy being China, and the weapon of choice infrastructure finance, focusing on energy and transport assets, and massive private equity investments in semiconductors, liquified natural gas terminals and agribusiness, etc.".. [Singapore Forum director] Nicolas Firzli notes that the US administration of president Joe Biden has successfully convinced its partners in Paris, Berlin, Rome and Tokyo to ‘develop a values-driven, high-impact and transparent infrastructure partnership’ to counter China's Belt and Road Initiative. "But this plan comes rather late in the game," he adds. "China has already established solid positions, lower costs and superior technical skills, notably in the fields of civil engineering, construction, high-speed rail and renewable energy.".

— Jeremy Weltman, EBRI Q2 2022 results: G7 Competes with China, Euromoney Country Risk (29 Jul 2022)

Member states

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See also

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References

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  1. ^ "Memorandum on the Partnership for Global Infrastructure and Investment". The White House. 26 June 2022. Retrieved 2 July 2022.
  2. ^ "Explained: The G7's infrastructure investment plan to counter China's Belt and Road Initiative". The Indian Express. 29 June 2022. Retrieved 2 July 2022.
  3. ^ Tan, Su-Lin (28 June 2022). "G-7's infrastructure plan offers an alternative to China's Belt and Road Initiative in a 'deliberate way'". CNBC. Retrieved 2 July 2022.
  4. ^ Firzli, Nicolas (19 April 2021). "ESG, Green Growth and Employee Capitalism: G7 Roadmap for the Fifth Industrial Revolution". SSRN. SSRN 3826505. Retrieved 1 January 2023.
  5. ^ Keith, Tamara (26 June 2022). "Biden announced a $600 billion global infrastructure program to counter China's clout". NPR. Retrieved 29 December 2022.
  6. ^ Savoy, Conor M.; McKeown, Shannon (29 June 2022). "Future Considerations for the Partnership on Global Infrastructure and Investment". www.csis.org. Retrieved 29 December 2022.
  7. ^ P, Jagannath; a (31 July 2020). "Shinzo Abe's infrastructure diplomacy". Asia Times. Retrieved 29 December 2022.
  8. ^ "Explained: What is the Blue Dot network, on the table during Trump visit to India". The Indian Express. 25 February 2020. Retrieved 29 December 2022.
  9. ^ Kuo, Mercy A. "Blue Dot Network: The Belt and Road Alternative". thediplomat.com. Retrieved 29 December 2022.
  10. ^ "The Launch of Multi-Stakeholder Blue Dot Network | DFC". www.dfc.gov. Retrieved 29 December 2022.
  11. ^ "Under Secretary Krach Advances Global Economic Security at Indo-Pacific Business Forum". United States Department of State. Retrieved 29 December 2022.
  12. ^ "US-Led Initiative Aims to Make Mark on Global Infrastructure Development". VOA. 31 January 2020. Retrieved 29 December 2022.
  13. ^ "Joint Statement: Vision and Principles for India-U.S. Comprehensive Global Strategic Partnership". www.mea.gov.in. Retrieved 29 December 2022.
  14. ^ AIT (21 November 2020). "Fact Sheet To be Released by AIT and TECRO on U.S.-Taiwan Economic Prosperity Partnership Dialogue". American Institute in Taiwan. Retrieved 29 December 2022.
  15. ^ Wemer, David (15 February 2020). "US commits $1 billion dollars to develop Central European infrastructure". Atlantic Council. Retrieved 29 December 2022.
  16. ^ "Under Secretary Keith Krach Remarks on U.S.-Georgia 5G MOU". United States Department of State. Retrieved 29 December 2022.
  17. ^ "Economy Minister: US-Georgia relations to be at high level". 1TV. Retrieved 29 December 2022.
  18. ^ "Inaugural Meeting of the Blue Dot Network's Executive Consultation Group, 7 June 2021 – OECD". www.oecd.org. Retrieved 29 December 2022.
  19. ^ Holland, Steve; Faulconbridge, Guy (13 June 2021). "G7 rivals China with grand infrastructure plan". Reuters. Retrieved 29 December 2022.
  20. ^ House, The White (12 June 2021). "FACT SHEET: President Biden and G7 Leaders Launch Build Back Better World (B3W) Partnership". The White House. Retrieved 29 December 2022.
  21. ^ "G7 adopts infrastructure plan to rival China's belt and road strategy". South China Morning Post. 12 June 2021. Retrieved 29 December 2022.
  22. ^ Keith, Tamara (26 June 2022). "Biden announced a $600 billion global infrastructure program to counter China's clout". NPR. Retrieved 29 December 2022.
  23. ^ Garlick, Jeremy (2024). Advantage China: Agent of Change in an Era of Global Disruption. Bloomsbury Academic. ISBN 978-1-350-25231-8.
  24. ^ a b Curtis, Simon; Klaus, Ian (2024). The Belt and Road City: Geopolitics, Urbanization, and China's Search for a New International Order. New Haven and London: Yale University Press. ISBN 9780300266900.
  25. ^ "Side-event on the Partnership for Global Infrastructure and Investment at G7 Hiroshima Summit". Ministry of Foreign Affairs, Japan. 20 May 2023. Retrieved 21 May 2023.
  26. ^ "Remarks by World Bank Group President David Malpass at the G7 Hiroshima Summit Side Event on the Partnership for Global Infrastructure and Investment". World Bank. 20 May 2023. Archived from the original on 21 May 2023. Retrieved 22 May 2023.
  27. ^ "Factsheet on the G7 Partnership for Global Infrastructure and Investment" (PDF). Ministry of Foreign Affairs, Japan. 20 May 2023. Retrieved 20 May 2023.
  28. ^ Widakuswara, Patsy (14 June 2024). "G7 leaders end summit with warning to China, commitment to manage AI". Voice of America. Retrieved 16 June 2024.
  29. ^ "Under Secretary Krach Advances Global Economic Security at Indo-Pacific Business Forum". United States Department of State. Retrieved 29 December 2022.
  30. ^ "US-Led Initiative Aims to Make Mark on Global Infrastructure Development". VOA. 31 January 2020. Retrieved 29 December 2022.
  31. ^ "Inaugural Meeting of the Blue Dot Network's Executive Consultation Group, 7 June 2021 – OECD". www.oecd.org. Retrieved 29 December 2022.
  32. ^ "Keith Krach awarded a Lifestyle Westernization Award for the Clean Network Initiative". Strategeast. 16 June 2021. Retrieved 29 December 2022.
  33. ^ Layton, Roslyn. "2022 Nobel Peace Prize Nominee Keith Krach's "Trust Principle" Is Antidote To Authoritarianism". Forbes. Retrieved 29 December 2022.
  34. ^ Tallinn, U. S. Embassy (21 October 2020). "Under Secretary Krach: Clean Vision for Three Seas". U.S. Embassy in Estonia. Retrieved 29 December 2022.
  35. ^ Keith, Tamara (26 June 2022). "Biden announced a $600 billion global infrastructure program to counter China's clout". NPR. Retrieved 2 July 2022.
  36. ^ M. Savoy, Connor; McKeown, Shannon (29 June 2022). "Future Considerations for the Partnership on Global Infrastructure and Investment". Center for Strategic and International Studies. Retrieved 2 July 2022.
  37. ^ a b c "US and EU set to back new India-Middle East transport corridor". Financial Times. Retrieved 10 March 2024.
  38. ^ a b c Hannah Ellis-Petersen (9 September 2023). "G20: EU and US back trade corridor linking Europe, Middle East and India". The Guardian. Retrieved 10 March 2024.
  39. ^ a b "FACT SHEET: President Biden and Prime Minister Modi Host Leaders on the Partnership for Global Infrastructure and Investment". Whitehouse.gov. 9 September 2023. Retrieved 10 March 2024.
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