Build Back Better World (B3W) Initiative

The Build Back Better World Initiative was launched in June 2021. It was launched by the G7 countries. The initiative was launched to counter the BRI (Belt and Road Initiative) of China.

About Build Back Better World (B3W) Initiative

The initiative is also called B3W. It is led by the United States. The initiative aims to address 40 trillion USD worth infrastructure that are needed by the developing countries.
This is to be achieved by 2035. The B3W will catalyze funding from private sector. It supports those investors who are interested in climate, digital technology and health. It was built over the Blue Dot Network. The Blue Dot Network was formed by Japan, USA And Australia.
The Blue Dot Network provides assessment and certification of infrastructural projects. It was launched in 2019. It was launched at the Indo-Pacific Business forum held in Bangkok.
It aims to build a network that lends to build bridges, roads, ports, airports and power plants. The B3W aims to promote economic development and regional connectivity.

Key Points

The group has been tasked with turning Build Back Better World (B3W) into reality.
The program is focused on areas including climate, health, digital technology and gender equality.
A formal US B3W launch event is planned for early next year that will include details of some initial projects aimed at narrowing the $40 trillion needed by developing nations by 2035.
It is not yet decided how much capital the program will ultimately allocate.

Importance of B3W

In 1979, the economy of China was smaller than Italy. However, after introducing market reforms and opening the foreign investment, China has become the second largest economy in the world.
It is also the global leader for a range of new technologies. China is re-emerging as a global power. It is important to contain the adverse effects of Chinese plans.
The BRI will lead to China centric international production networks and China centric economic integration in the Asia-Pacific region. Therefore, B3W has a greater significance to counter Chinese rule in the international market.

Way Forward

Mobilising Funding: The Infrastructure Bill is looking at a hefty $1.2 trillion bill over five years, while the Reconciliation Bill is eyeing an even bigger chunk – $3.5 trillion spread across a decade. These two bills are the backbone of President Biden’s Build Back Better plan, but they’re currently caught up in a Senate debate, making their passage uncertain. The challenge now is to figure out a solid funding plan to make Biden’s economic agenda a success.

Reinventing Capitalism: The COVID-19 pandemic laid bare the flaws and not-so-great side effects of our current capitalist systems. If the B3W blueprint, which focuses on global development, is to work, we might need to tweak our current capitalist model. It’s like giving capitalism a fresh coat of paint to make it work better for everyone.

Building Consensus in Democracies: Making plans in big, democratic countries is no walk in the park. It’s a slow and often twisted process, involving a lot of diplomatic and bureaucratic hurdles. So, the real challenge for G-7 nations is to get everyone on the same page globally and still manage to kick off projects in a timely fashion. It’s like herding cats, but with countries.