Organization:Partnership for Global Infrastructure and Investment

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Short description: International funding project by G7 nations
Partnership for Global Infrastructure and Investment
Partnership for Global Infrastructure and Investment (PGII) Map.png
Map of The Member States of The 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 to fund infrastructure projects in developing nations[1] based on the trust principles of the Blue Dot Network. It is considered to be the bloc's counter to China's Belt and Road Initiative[2][3] and a key component of the "Biden Doctrine".[4]

History

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

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

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]

G7 2023 Hiroshima Summit

On 20 May 2023 on occasion of 49th G7 summit, a side event of Partnership for Global Infrastructure and Investment (PGII) was held.[23][24] Three documents including "Factsheet on the G7 Partnership for Global Infrastructure and Investment" were issued.[25]

Standards and principles

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 StateKeith 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.[26] 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."[27]   

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.[28] 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.[29] 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.'[30]

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.[31]

Objectives

Over the next five years, the G7 governments and its private business sector will invest $600 billion.[32] It aims to offer an alternative to China's estimated $1 trillion infrastructure investments worldwide over the past decade.[33]

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.".

Member states

See also

References

  1. ↑ "Memorandum on the Partnership for Global Infrastructure and Investment" (in en-US). 26 June 2022. https://www.whitehouse.gov/briefing-room/presidential-actions/2022/06/26/memorandum-on-the-partnership-for-global-infrastructure-and-investment/. 
  2. ↑ "Explained: The G7's infrastructure investment plan to counter China's Belt and Road Initiative" (in en). 29 June 2022. https://indianexpress.com/article/explained/g7-infrastructure-investment-plan-china-belt-and-road-initiative-explained-7996374/. 
  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'" (in en). https://www.cnbc.com/2022/06/28/new-g-7-infrastructure-plan-offers-alternative-to-china-belt-road-.html. 
  4. ↑ Firzli, Nicolas (19 April 2021). "ESG, Green Growth and Employee Capitalism: G7 Roadmap for the Fifth Industrial Revolution" (in en). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3826505. 
  5. ↑ Keith, Tamara (26 June 2022). "Biden announced a $600 billion global infrastructure program to counter China's clout" (in en). NPR. https://www.npr.org/2022/06/26/1107701371/biden-announced-a-600-billion-global-infrastructure-program-to-counter-chinas-cl. 
  6. ↑ "Future Considerations for the Partnership on Global Infrastructure and Investment" (in en). https://www.csis.org/analysis/future-considerations-partnership-global-infrastructure-and-investment. 
  7. ↑ P, Jagannath; a (31 July 2020). "Shinzo Abe's infrastructure diplomacy" (in en-US). https://asiatimes.com/2020/07/shinzo-abes-infrastructure-diplomacy/. 
  8. ↑ "Explained: What is the Blue Dot network, on the table during Trump visit to India" (in en). 25 February 2020. https://indianexpress.com/article/explained/explained-what-is-the-blue-dot-network-on-the-table-during-trump-visit-to-india-6286524/. 
  9. ↑ Kuo, Mercy A.. "Blue Dot Network: The Belt and Road Alternative" (in en-US). https://thediplomat.com/2020/04/blue-dot-network-the-belt-and-road-alternative/. 
  10. ↑ "The Launch of Multi-Stakeholder Blue Dot Network | DFC". https://www.dfc.gov/media/opic-press-releases/launch-multi-stakeholder-blue-dot-network. 
  11. ↑ "Under Secretary Krach Advances Global Economic Security at Indo-Pacific Business Forum" (in en-US). https://2017-2021.state.gov/under-secretary-krach-advances-global-economic-security-at-indo-pacific-business-forum/. 
  12. ↑ "US-Led Initiative Aims to Make Mark on Global Infrastructure Development" (in en). https://www.voanews.com/a/economy-business_us-led-initiative-aims-make-mark-global-infrastructure-development/6183503.html. 
  13. ↑ "Joint Statement: Vision and Principles for India-U.S. Comprehensive Global Strategic Partnership" (in english). https://www.mea.gov.in/bilateral-documents.htm?dtl/32421/Joint_Statement_Vision_and_Principles_for_IndiaUS_Comprehensive_Global_Strategic_Partnership. 
  14. ↑ AIT (21 November 2020). "Fact Sheet To be Released by AIT and TECRO on U.S.-Taiwan Economic Prosperity Partnership Dialogue" (in en-US). https://www.ait.org.tw/fact-sheet-by-ait-tecro-us-taiwan-eppd/. 
  15. ↑ Wemer, David (15 February 2020). "US commits $1 billion dollars to develop Central European infrastructure" (in en-US). https://www.atlanticcouncil.org/news/press-releases/us-commits-1-billion-dollars-to-develop-central-european-infrastructure/. 
  16. ↑ "Under Secretary Keith Krach Remarks on U.S.-Georgia 5G MOU" (in en-US). https://2017-2021.state.gov/under-secretary-keith-krach-remarks-on-u-s-georgia-5g-mou/. 
  17. ↑ "Economy Minister: US-Georgia relations to be at high level" (in en-US). https://1tv.ge/lang/en/news/economy-minister-us-georgia-relations-to-be-at-high-level/. 
  18. ↑ "Inaugural Meeting of the Blue Dot Network's Executive Consultation Group, 7 June 2021 – OECD". https://www.oecd.org/about/secretary-general/oecd-sg-remarks-at-blue-dot-network-meeting-7-june-2021.htm. 
  19. ↑ Holland, Steve; Faulconbridge, Guy (13 June 2021). "G7 rivals China with grand infrastructure plan" (in en). Reuters. https://www.reuters.com/world/g7-counter-chinas-belt-road-with-infrastructure-project-senior-us-official-2021-06-12/. 
  20. ↑ House, The White (12 June 2021). "FACT SHEET: President Biden and G7 Leaders Launch Build Back Better World (B3W) Partnership" (in en-US). https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/12/fact-sheet-president-biden-and-g7-leaders-launch-build-back-better-world-b3w-partnership/. 
  21. ↑ "G7 adopts infrastructure plan to rival China's belt and road strategy" (in en). 12 June 2021. https://www.scmp.com/news/world/europe/article/3137097/g7-leaders-adopt-build-back-better-world-plan-rival-chinas-belt. 
  22. ↑ Keith, Tamara (26 June 2022). "Biden announced a $600 billion global infrastructure program to counter China's clout" (in en). NPR. https://www.npr.org/2022/06/26/1107701371/biden-announced-a-600-billion-global-infrastructure-program-to-counter-chinas-cl. 
  23. ↑ "Side-event on the Partnership for Global Infrastructure and Investment at G7 Hiroshima Summit". 20 May 2023. https://www.mofa.go.jp/ic/dapc/page4e_001415.html. 
  24. ↑ "Remarks by World Bank Group President David Malpass at the G7 Hiroshima Summit Side Event on the Partnership for Global Infrastructure and Investment". 20 May 2023. https://www.worldbank.org/en/news/speech/2023/05/20/david-malpass-g7-hiroshima-summit-side-event-partnership-global-infrastructure-and-investment. 
  25. ↑ "Factsheet on the G7 Partnership for Global Infrastructure and Investment". 20 May 2023. https://www.mofa.go.jp/mofaj/files/100506916.pdf. 
  26. ↑ "Under Secretary Krach Advances Global Economic Security at Indo-Pacific Business Forum" (in en-US). https://2017-2021.state.gov/under-secretary-krach-advances-global-economic-security-at-indo-pacific-business-forum/. 
  27. ↑ "US-Led Initiative Aims to Make Mark on Global Infrastructure Development" (in en). https://www.voanews.com/a/economy-business_us-led-initiative-aims-make-mark-global-infrastructure-development/6183503.html. 
  28. ↑ "Inaugural Meeting of the Blue Dot Network's Executive Consultation Group, 7 June 2021 – OECD". https://www.oecd.org/about/secretary-general/oecd-sg-remarks-at-blue-dot-network-meeting-7-june-2021.htm. 
  29. ↑ "Keith Krach awarded a Lifestyle Westernization Award for the Clean Network Initiative" (in en-US). 16 June 2021. https://www.strategeast.org/keith-krach-awarded-a-lifestyle-westernization-award-for-the-clean-network-initiative/. 
  30. ↑ Layton, Roslyn. "2022 Nobel Peace Prize Nominee Keith Krach's “Trust Principle” Is Antidote To Authoritarianism" (in en). https://www.forbes.com/sites/roslynlayton/2022/03/23/2022-nobel-peace-prize-nominee-keith-krachs-trust-principle-is--antidote-to-authoritarianism/. 
  31. ↑ Tallinn, U. S. Embassy (21 October 2020). "Under Secretary Krach: Clean Vision for Three Seas" (in en-US). https://ee.usembassy.gov/2020-10-21/. 
  32. ↑ Keith, Tamara (26 June 2022). "Biden announced a $600 billion global infrastructure program to counter China's clout" (in en). NPR. https://www.npr.org/2022/06/26/1107701371/biden-announced-a-600-billion-global-infrastructure-program-to-counter-chinas-cl. 
  33. ↑ M. Savoy, Connor; McKeown, Shannon (29 June 2022). "Future Considerations for the Partnership on Global Infrastructure and Investment" (in en). https://www.csis.org/analysis/future-considerations-partnership-global-infrastructure-and-investment. 
  34. ↑ https://www.ft.com/content/d33883cf-38b4-48e7-ab04-102e4ace7940
  35. ↑ https://www.ft.com/content/d33883cf-38b4-48e7-ab04-102e4ace7940
  36. ↑ https://www.theguardian.com/world/2023/sep/09/g20-eu-and-us-back-trade-corridor-linking-europe-middle-east-and-india
  37. ↑ https://www.whitehouse.gov/briefing-room/statements-releases/2023/09/09/fact-sheet-president-biden-and-prime-minister-modi-host-leaders-on-the-partnership-for-global-infrastructure-and-investment/
  38. ↑ https://www.whitehouse.gov/briefing-room/statements-releases/2023/09/09/fact-sheet-president-biden-and-prime-minister-modi-host-leaders-on-the-partnership-for-global-infrastructure-and-investment/
  39. ↑ https://www.theguardian.com/world/2023/sep/09/g20-eu-and-us-back-trade-corridor-linking-europe-middle-east-and-india
  40. ↑ https://www.theguardian.com/world/2023/sep/09/g20-eu-and-us-back-trade-corridor-linking-europe-middle-east-and-india
  41. ↑ https://www.ft.com/content/d33883cf-38b4-48e7-ab04-102e4ace7940



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