G7 Announces A $600B Investment In Global Infrastructure

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US President Joe Biden and other G7 leaders announced a bid to rival China with global infrastructure projects to poor countries
US President Joe Biden and other G7 leaders announced a bid to rival China with global infrastructure projects to poor countries

The Group of Seven on Sunday announced a plan that would help build global infrastructure in middle-income countries.

The plan, called "The Partnership For Global Infrastructure and Investment (PGII)," will provide $600 billion in infrastructure investments by 2027. The U.S. will contribute $200 billion over the next five years, President Joe Biden announced at the G7 meeting in Germany.

The capital will come from "like-minded partners, multilateral development banks, development finance institutions, sovereign wealth funds, and more," according to Biden.

These investments will help middle-income countries grapple with the COVID-19 pandemic and human-made climate change. The investments will also help countries cope with the energy shortages caused by the Russian invasion of Ukraine.

The PGII “​​will demonstrate how millions of dollars can mobilize tens or hundreds of millions in further investments and tens or hundreds of millions can mobilize billions.”

The Biden administration noted that infrastructure has long been underfunded and there is "over $40 trillion in estimated need in the developing world."

Biden said that this investment in infrastructure will help shape global stability. It will ensure health and health security, digital connectivity, gender equality and equity, and climate and energy security.

He also clarified that the investment will “deliver returns for everyone, including the American people and people of all” nations, and was not “aid or charity.” 

“It’s a chance for us to share our positive vision of the future,” Biden said.


G7 leaders summit
German Chancellor Olaf Scholz welcomes U.S. President Joe Biden ahead of their meeting on the day of G7 leaders summit at Bavaria's Schloss Elmau castle, near Garmisch-Partenkirchen, June 26, 2022.
Photo: Reuters / LEONHARD FOEGER

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