G7 proposes $600-bn global infra plan to rival China

• G7 group announced an attempt to compete with China’s Belt and Road Initiative by raising $600 billion for global infrastructure programmes in poor countries.

G7

• It is an intergovernmental organisation that was formed in 1975.
• The bloc meets annually to discuss issues of common interest like global economic governance, international security and energy policy.
• The G7 countries are the UK, Canada, France, Germany, Italy, Japan and the US.
• All the G7 countries and India are a part of G20.
• The G7 does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.

Global infrastructure programmes

• Partnership for Global Infrastructure and Investment was unveiled by U.S. President and G7 allies from Canada, Germany, Italy, Japan and EU.
• Aim: Fill huge gap left as communist China uses its economy to stretch diplomatic tentacles into furthest reaches of the world.
• Target was for U.S. to bring $200 billion to table, with rest of the G7 another $400 billion by 2027.

Private firms in key role

• Unlike China’s state-run BRI initiative, proposed G7 funding would depend largely on private companies being willing to commit to massive investments and is therefore not guaranteed.
• Meanwhile, world powers agreed to ban gold exports from Russia, at a G7 meeting designed to take fresh concerted action to deplete Moscow’s war chest.
• They are seeking to close ranks for Ukraine against Russia’s invasion while dealing with global fallout of war.

Prelims take away

• G7