The G7 nations announced the PGII, a $600 billion initiative to fund infrastructure projects in developing and middle-income countries by 2027. This is viewed as a direct counter to China's Belt and Road Initiative (BRI).
The PGII focuses on four key areas:
The US pledged $200 billion, and the European Commission pledged €300 billion over five years. Examples of projects include vaccine manufacturing facilities and investments in agricultural technology.
The BRI, launched in 2013, aims to improve connectivity and trade through infrastructure projects across Asia, Europe, Africa, and Latin America. While the BRI has been criticized for lack of transparency and debt burdens on recipient countries, the PGII emphasizes transparency and values-based development.
Key differences include funding sources (primarily state-funded BRI vs. a mix of public and private funding for PGII), the scale of investment (BRI projected to reach $1.2-1.3 trillion by 2027), and the proportion of Chinese contractors involved (high in BRI, diverse in PGII).
India has opted to participate in a PGII project, having previously declined to join the BRI due to concerns about China's influence in the Indian Ocean Region.