West pushes BRI alternative - Build Back Better World (B3W) Initiative

The evolving struggle between the BRI and the West's proposed BBBW

 West pushes BRI alternative - Build Back Better World (B3W) Initiative

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Read more on - Polity | Economy | Schemes | S&T | Environment

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• The story: China's Belt and Road Initiative (BRI) was pushed hard by Xi Jinping, since 2013. It spread its tentacles everywhere in Eurasia, and even upto Africa. For the West, it is a challenge to keep countries aligned with modern values if infrastructurally they are beholden to the Chinese.
• Build Back Better: The B3W is an international infrastructure investment initiative announced by the Group of Seven (G-7) richest democracies in June 2021. The B3W initiative is the US’ initiative to counter China's Belt and Road Initiative (BRI). It's a feeble attempt, admittedly, but some efforts are being made indeed (e.g. US officials visited Latin America to look for possible projects for the Build Back Better World (B3W) Initiative).
• Guiding Principles: The Build Back Better Plan is a Covid-19 relief, future economic, and infrastructure package proposed by G-7 countries for developing and lower-income countries.

1. Four focus areas - Through B3W, the G7 and other like-minded partners will coordinate in mobilizing private-sector capital in four areas of focus: Climate, Health and health security, Digital technology, and Gender equity and equality.
2. Values - Infrastructure development carried out in a transparent and sustainable manner - financially, environmentally, and socially - will lead to a better outcome for recipient countries and communities.
3. Standards - B3W will infuse investment by complying with the standards promoted by the Blue Dot Network, relating to the environment and climate, labor and social safeguards, transparency, financing, construction, anti-corruption, and other areas.
4. Environment sensitive - The investments will be made in a manner consistent with achieving the goals of the Paris Climate Agreement.
5. Partnerships - The B3W will envisage countering the aggressive model of development and establish a more inclusive model of global development.

• BRI & Associated Issues: As said, the BRI was launched in 2013, and facilitates cross-border transportation of goods, access to energy, creating demand for existing excess capacity in Chinese industries. China had an overall exposure of investment of around $750 billion between 2013 to mid-2020. But the BRI was heavily criticized for many reasons -

1. Western critics attacked the initiative as new colonialism, or the Marshall Plan for the 21st century.
2. BRI was seen as a part of China’s debt trap policy, wherein China intentionally extends excessive credit to another country with the intention of extracting economic or political concessions from the debtor country.
3. Projects like China-Pakistan Economic Corridor (CPEC), building of Colombo Port City Project in Sri Lanka are not only commercial in nature but have strategic implications too.

• What steps can West take now:

1. Funding - The Infrastructure Bill (USA) is estimated to cost $1.2 trillion over five years and the Reconciliation Bill, $3.5 trillion over ten years. Both bills form the foundation for US President Biden’s economic agenda and are part of his Build Back Better plan.
2. But these bills were heavily debated in the American Senate and less likely to pass. Thus, there is a need to develop a sustainable funding model for the success of B3W.
3. Capitalis in action - Covid-19 has exposed the fragility and societally negative outcomes of contemporary capitalist economies. To lead to global development as highlighted by the B3W blueprint, it will require fine-tuning of the current model of Capitalism.
4. Building consensus - Any plan formulated by vibrant democracies such as these countries usually takes time and has to go through many diplomatic and bureaucratic twists and turns. The main challenge for G-7 countries is to build global consensus and deliver projects in a time-bound manner.

• EXAM QUESTIONS: (1) Explain the various ways the BRI and BBBW narratives will clash. (2) What is China's ultimate goal with the BRI project? Explain. (3) Can the West succeed in ensuring a viable alternative to the BRI? Explain.

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