On Sunday, President Joe Biden announced that the U.S. will mobilize around $200 billion dollars of investment for infrastructure projects around the globe over the next half decade. The initiative is part of an effort by the the U.S. and others of the world’s leading democratic economies to offer a counter tothe Belt and Road Initiative of China.
The overall investment aims to hit $600 billion over the next five years between the U.S., private capital investment, and other G7 leaders.
Biden spoke on the issue with other G7 leaders in Germany:
“This isn’t aid or charity. It’s an investment that will deliver returns for everyone, including the American people and the people of all our nations.”
For nearly a decade, China has been focused on bridges, road, mining and other hard infrastructure projects in the developing world, which has been estimated at $1 trillion in total spending, though the true amount could be higher. The G7 initiative is funding projects in four major categories: clean energy, health systems, gender equality and information and communications technology.
Investments include the following:
-$2 billion for a solar project in Angola, including solar mini-grids, home power kits and solar to power telecommunications
-$600 million for a U.S. company to build a submarine telecommunications cable that will connect Singapore to France through Egypt and the Horn of Africa, delivering high speed internet
-Up to $50 million from the U.S. to the World Bank’s Childcare Incentive Fund, which is also getting support from Canada, Australia and numerous foundations
-$3.3 million in technical assistance from the U.S. to the Institut Pasteur de Dakar for development of an industrial-scale, multi-vaccine manufacturing facility in Senegal that could produce COVID-19 vaccines and others, in partnership with other G7 nations and the EU
“We collectively have dozens of projects already underway around the globe. It’s a chance for us to share our positive vision for the future. And let communities around the world see themselves, see for themselves the concrete benefits of partnering with democracies.”