Space Industry and Business News  
TRADE WARS
G7 global infrastructure plan faces obstacles as Chinese alternative
By Delphine TOUITOU
Washington (AFP) June 16, 2021

The global infrastructure plan announced by G7 leaders aims to offer developing nations a credible alternative to China's much-criticized Belt and Road Initiative -- but it faces major hurdles on the ground, especially if Beijing's hiccups are any indication.

US President Joe Biden was able to convince the G7 to sign onto the initiative, drawing allies into Washington's strategic rivalry with Beijing, under a plan titled "Build Back Better World" (B3W) that aims to provide hundreds of billions in infrastructure investment to developing nations.

It is a project that takes a page from China's book, with Beijing already attempting to wield influence and make friends with billions of dollars through its Belt and Road Initiative, albeit sometimes without great success.

The Beijing plan "has under-delivered on many of its promises and generated pushback against China from many countries, creating an opening for the B3W initiative," said Eswar Prasad, a China specialist at Cornell University.

China launched the project in 2013, aiming to develop land and sea infrastructure that would link Asia, Europe and Africa to China.

Eight years later, the complaints abound: allegations of non-transparency, corrupt contracts and even human rights and environmental degradation.

One such example centers on a hydropower plant constructed on the island of Sumatra in Indonesia, which has been widely criticized for damaging a rainforest that is home to the critically endangered Tapanuli orangutan, the world's rarest great ape.

The West also accuses Beijing of encouraging emerging economies to assume more debt than they can afford, for flashy projects which are not always entirely utilitarian.

"The risks for both the United States and recipient countries raised by BRI's implementation considerably outweigh its benefits," said a task force from the Council on Foreign Relations (CFR), which has scrutinized hundreds of projects and their implications.

- Bridges and villas -

In Africa in particular, China has succeeded in obtaining contracts by pricing its projects much cheaper than competitors.

"Little by little, the Chinese have eliminated competition from local businesses," a development specialist in Africa told AFP, on condition of anonymity.

"In Mali, there was only one bridge over the Niger River in Bamako, there are now three, soon to be four," he said, stressing that the projects were accompanied by gifts for local political leaders, such as the construction of villas.

- Prestige -

The G7 project is touted by the White House as a "high-standard and transparent infrastructure partnership led by major democracies to help narrow the $40+ trillion infrastructure need in the developing world."

G7 leaders hope to act as catalysts to attract private finance.

But according to the Africa development specialist "it is not so much a question of capital as it is of how to use large sums of money" due to complications from technical difficulties and endemic insecurity.

How can companies be convinced to set up projects in the Sahel in the face of terrorist threats? Once a project is carried out, such as a school, how could it be guaranteed that a teacher would want to settle in a remote region? Why build infrastructure which after completion is likely to be destroyed by local militias?

"The B3W needs to resonate with leaders in developing countries," said Matthew Goodman and Jonathan Hillman, experts at the Center for Strategic International Studies, adding that "many will be eager to expand their options, and the B3W brand could carry prestige as a high-quality effort."

In return, however, the countries will have to accept more control, higher costs and longer lead times.

Finally, the big question remains what role the IMF and World Bank, institutions historically at the heart of development, will take.

In order to remain relevant, they will have to be involved, while simultaneously managing the competing interests of their donors.

The IMF and World Bank, which did not respond for a request for comment, could become "a battleground for influence, as the G7 and China try to mold these institutions' lending patterns in alignment with their own economic and geopolitical interests," Prasad said.


Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
Biden seeks EU support on China, but trade battles persist
Brussels (AFP) June 15, 2021
US President Joe Biden will seek the EU's backing on Tuesday to face the rise of China, but Brussels wants a swift end to lingering trade rows and a clean break from Donald Trump. After the European enthusiasm that followed Biden's election, the president of the European Council Charles Michel, representing the 27 EU leaders, and the head of the European Commission, Ursula von der Leyen, will sound out Biden for more detail on his "America is back" pledge. Biden's two-hour stopover at EU headqua ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
Compact quantum computer for server centers

Juice moves into Large Space Simulator

G7 nations commit to the safe and sustainable use of space

Rare earth metals at the heart of China's rivalry with US, Europe

TRADE WARS
Filtering out interference for next-generation wideband arrays

ESA helps Europe boost secure connectivity

Isotropic Systems and SES GS complete trials for of new connectivity for US Military

Quantum communication in space moves ahead

TRADE WARS
TRADE WARS
GMV at the core of the Galileo High Accuracy Service

Galileo satellites' last step before launch

UK space sector targets positioning navigation and timing sub systems

ESA signs contract for new generation of Galileo

TRADE WARS
Company to build electric seaglider for UK-France trips

A Probing Question: How Do You Fly the X-59 Accurately?

Development of warfighter decision-making program centers on Nellis AFB, Nev.

US, EU strike Airbus-Boeing deal to better target China

TRADE WARS
Clearing the way toward robust quantum computing

Physicists uncover secrets of world's thinnest superconductor

Germany eyes technological leap with first quantum computer

Researchers tame silicon to interact with light for next-generation microelectronics

TRADE WARS
Earth from Space: Chongqing, China

Four mission ideas to compete for Earth Explorer 11

UP42 Expands Optical and SAR Data Offering with SI Imaging Services of Korea

NASA Collaboration Using Harvard Technology Could Advance Earth Science from Orbit

TRADE WARS
Sri Lanka arrests captain over ship fire pollution

Ocean microplastics: First global view shows seasonal changes and sources

Sri Lanka probes possible oil slick off sinking ship

Indonesian women take on plastic waste brick by brick









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.