The announcement was made at a meeting of the heads of state of some of the world’s largest economies, held in Germany.
The heads of state of the G7 – a group that brings together part of the largest economies in the world – announced a package that aims to raise US$ 600 billion in public and private funds over the next 5 years to finance infrastructure projects in low- and middle-income countries. The idea is to counter the “belt and road initiative”from China.
The G7 is made up of Germany, Canada, France, Italy, Japan, the United Kingdom and the United States. New global powers such as China and India do not participate in the group.
The information was released this Sunday (June 26, 2022) by the White House after a meeting of the heads of state, held in Schlöss Elmau, in southern Germany. The name of the initiative is “Partnership for Global Infrastructure and Investment”, in free translation.
The United States, the world’s main economy, should lead the initiative. According to US President Joe Biden, they will raise $200 billion in donations, federal funds and private investment. The idea is to focus on projects from low- and middle-income countries that help fight climate change, improve global health, improve gender equality and access to digital media.
“I will be clear. This is not help or charity. It’s an investment that will pay off for everyone.,” Biden said during the announcement.
European Commission President Ursula von der Leyen said Europe will raise more than $300 billion.
BELT AND ROUTE
China’s Belt and Road was launched in 2013 and involves development initiatives and investments in more than 100 countries. Includes railways, ports and highways. The reference, in the name, is to the Silk Road, an old trade route that connected the Asian giant to Europe. It was immortalized in Marco Polo’s books.
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