Jakarta, CNBC Indonesia – Don’t want to lose with China which has pr‘Silk Road’ infrastructure development motorcycle taxi (Belt & Road Initiatives/BRI), rich countries affiliated to the G7 make a rivalry with pra similar object named Build Back Better World (B3W).
The initiative was formed after the state anggThe G7 city consisting of the United States (US), Canada, Britain, Germany, France, Italy and Japan gathered in South West England last week.
Various international mediaonal lappingThe initiative is not only meant to compete with China’s BRI, which is now estimated to have a value of approximately US$ 4 trillion.
The ambitions of the G7 countries are big because the B3W plan is aimed at reducing the infrastructure gap in developing countries worth US$ 40 trillion until 2035.
According to various sources, prThe object will be used to help finance infrastructure and sectorsor others such as climate change, health issues to gender equality.
“It’s not a problem to do konfrontation with China. However, until now we have not provided an alternative offer forositif that demonstrates our values and standards and the way we do business,” the arts official saidor the White House as quoted from Reuters.
It is not clear howbudget allocation and amount. But what is certain from the p point of viewolitik internasionally, the G7 countries don’t seem to want China’s role in the international worldmore visible after the C pandemi pandemicovid-19 happened.
So you could say B3W is a prrival object of BRI China. Then what is theIf this program is implemented, it will be able to match or even stem the growing role of China in the international worldonal?
The answer is not as simple as can or cannot.
BRI itself has been running for approximately eight years under the leadership of Xi-Jinping. However, the infrastructure financing strategy through the scenarioo BRI to developing countries is through debt.
There is a pandemic Covid-19 made outlOok developing country debt which is China’s debtor is getting worse. The ability to pay also decreased.
LOwy Institute in its article mentions that under prBRI object, China’s state bank, namely China Development Bank dan China Export-Import Bank has increased its lending many times over.
The World Bank estimates that in 2019 China accounted for 63% of the poorest countries’ bilateral debt to G20 members. Chinese loans tend to be politically motivated, with unclear financing arrangements tied to broader energy, natural resources or commodity deals.
It is feared that China’s motive to provide debt to poor and developing countries will further worsen the condition of debtor countries because of the mounting debt pile.
Pakistan is China’s biggest debtor, with commitments estimated at US$62 billion for the China-Pakistan Economic Corridor, a major project designed to provide China with an alternative to the Malacca Strait for its energy imports.
Pakistan is seeking to extend payments on China’s $30 billion loan. In Laos, China is financing high-speed rail projects of up to US$6 billion, equivalent to 35% of the country’s GDP. Laos ’credit rating was recently downgraded by Fitch to CCC.
Other Asian countries that have turned to China for financial development assistance are the Maldives and Sri Lanka. Over the past two decades, China has lent African countries nearly $150 billion.
Recently, two of China’s biggest debtors, such as Ethiopia and Zambia, are trying to renegotiate their commitments. Angola has borrowed approximately US$43 billion, mainly for oil-related investments.
“The fragmented nature of China’s financing, from state-owned and commercial sources, makes it difficult to track who owes what to whom.” writes the Lowy Institute.
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