Build Back Better World Initiative

Context

  • Recently, Build Back Better World Initiative or B3W is an initiative has been undertaken by G7 countries.

About Build Back Better World Initiative

  • The Build Back Better World Initiative initiative is designed to counter China’s strategic influence by providing an alternative to the Belt and Road Initiative for the infrastructural development of the low and middle income countries.
  • Led by the United States, the G7 countries will provide around $40 trillion to the developing countries by 2035 under the plan.
  • The B3W blueprint envisages actions in four key areas: climate, health and health security, digital technology, and gender equity and equality.
  • However, additional details as to what the plan entails and what is the funding that developing countries can count on were not immediately available.
  • The new infrastructure plan is recognition of the growing challenge mounted by Beijing’s Belt and Road Initiative, a mammoth infrastructure project, with the most ambitious being the China-Pakistan Economic Corridor (CPEC), linking China’s Xinjiang province with the Arabian Sea.
  • B3W will be global in scope, from Latin America and the Caribbean to Africa to the Indo-Pacific. Different G7 partners will have different geographic orientations, but the sum of the initiative will cover low- and middle-income countries across the world.
  • As a lead partner in B3W, the United States will seek to mobilize the full potential of our development finance tools, including the Development Finance Corporation, USAID, EXIM, the Millennium Challenge Corporation, and the U.S. Trade and Development Agency, and complementary bodies such as the Transaction Advisory Fund.
  • Guiding principles of Build Back Better World Initiative:
    • Values-Driven
    • Good Governance and Strong Standards
    • Climate-Friendly
    • Strong Strategic Partnerships
    • Mobilize Private Capital Through Development Finance
    • Enhancing the Impact of Multilateral Public Finance

Back to Basics

Group of Seven (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.

Source: WhiteHouse

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