Group of Seven (G7) leaders announced a new initiative called Build Back Better World (B3W) this week to better compete with China when it comes to funding the world’s infrastructure needs.
China’s Belt and Road Initiative (BRI), envisioned as the revival of an ancient trading route between Asia and Europe, has been plugging away since 2013. Through various infrastructure projects like ports and highways, the multi-trillion-dollar initiative is a key way that China is asserting itself on the world stage.
The West, led by the U.S., wants to counter China’s colossal geopolitical project.
“There is a tremendous demand for infrastructure globally, as countries are moving from lower middle-income to middle-income countries,” Kaush Arha, senior fellow at the Atlantic Council’s Scowcroft Center for Strategy and Security, told Yahoo Finance. “There is a tremendous desire or hunger for an alternative to totalitarian state capitalist funding for infrastructure.”
That demand hasn’t been met, added Arha, and there hasn’t been an “adequate alternative to meet the infrastructure aspirations” of these countries.