Partnership for Global Infrastructure and Investment: Goals and Development Prospects

Abstract

The article is devoted to the Partnership for Global Infrastructure and Investment (PGII). This initiative is a part of the common approaches of the United States and its G7 partners. The prerequisite for its creation was implementing the Chinese “Belt and Road Initiative” (B&R), which the U.S. and its allies consider a severe challenge to their interests in the world economy. The PGII will focus on soft infrastructure development in middle- and low-income countries. It will contribute to introducing modern digital technologies and evolution of Industry 4.0 in developing regions. Furthermore, the following priorities are within the framework of the Partnership: climate and energy security, digital communications, healthcare, and social equality. The most important difference from the “Belt and Road” is the model of development and financing of projects. Unlike the Chinese public funding approach, the PGII will attract private investment. However, it requires active work with governments of the recipient countries to adapt their institutions and legislations. It is a prerequisite for reducing sovereign risks and attracting Western investors. At the same time, implementing necessary standards creates the risk of time lags against the backdrop of dynamically developing Chinese projects. The competition between the PGII and B&R can lead to opposing political and economic blocs, negatively manifesting the emerging international relations system. Such a division can take the form of developing incompatible standards and requirements of political loyalty in exchange for access to goods, services, and technologies for the PGII recipient countries.