The G7 aims to raise $ 600 billion to counter China’s belt and road

US President Joe Biden attends a working lunch with other G7 leaders to discuss the design of the global economy at the Yoga Pavilion, Schloss Elmau in Kuren, Germany, June 26, 2022. Kenny Holston / Pool via REUTERS

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SCHLOSS ELMAU, Germany, June 26, Reuters dollars.

US President Joe Biden and other G7 leaders relaunched the recently renamed “Partnership for Global Infrastructure and Investment” at their annual gathering held this year at Schloss Elmau in southern Germany.

Biden said the United States will mobilize $ 200 billion in grants, federal funds and private investment over five years to support projects in low- and middle-income countries that help tackle climate change and improve global health, gender equality and digital infrastructure.

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“I want to be clear. This is not aid or charity. It is an investment that will pay off for everyone,” Biden said, adding that it would allow countries to “see the tangible benefits of working with democracies.”

Biden said that hundreds of billions of extra dollars could come from multilateral development banks, development finance institutions, sovereign wealth funds and others.

Europe will mobilize 300 billion euros for the initiative in the same period to build a sustainable alternative to China’s belt and road initiative scheme, launched by Chinese President Xi Jinping in 2013, EU Commission President Ursula von der Leyen said at the rally.

The leaders of Italy, Canada and Japan also talked about their plans, some of which have already been announced separately. French President Emmanuel Macron and British Prime Minister Boris Johnson were not present, but their country is also participating.

China’s investment scheme involves development and programs in over 100 countries with a view to creating a modern version of the ancient Silk Road trade route from Asia to Europe.

White House officials said the plan has provided little tangible benefit to many developing countries.

Biden highlighted several flagship projects, including a $ 2 billion solar energy development project in Angola with support from the Department of Commerce, the US Export-Import Bank, the US firm AfricaGlobal Schaffer and the US project developer Sun Africa.

Together with G7 members and the EU, Washington will also provide $ 3.3 million in technical assistance to the Institut Pasteur de Dakar in Senegal, as it develops a flexible industrial-scale multi-vaccine production facility in the country that can eventually produce COVID-19 and other vaccines. , a project that also involves the EU.

The US International Development Agency (USAID) will also commit up to $ 50 million over five years to the World Bank’s Global Child Care Incentive Fund.

Friederike Roder, vice president of the non-profit group Global Citizen, said that the promises of investment could be a “good start” towards greater engagement from G7 countries in developing countries and could underpin stronger global growth for all.

G7 countries provide on average only 0.32% of gross national income, less than half of the 0.7% promised, in development aid, she said.

“Without developing countries, there will be no sustainable recovery of the world economy,” she said.

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Reporting by Andrea Shalal; Edited by Mark Porter and Lisa Shumaker

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