Global Gateway Plan: European Commission recently unveiled the Global Gateway initiative, aiming to raise €300 billion by 2027 for infrastructure investment globally, both from public and private sources. While not explicitly mentioning China, many view this initiative as a strategic move in response to China’s Belt and Road strategy.
About Global Gateway Plan
- It is an international infrastructure plan of European Union.
- The plan aims to invest €300 billion ($340 billion) globally in infrastructure, digital and climate projects by 2027.
- The investment will be made in projects that can be delivered with high standards, good governance, transparency while ensuring financial sustainability at the same time.
- The Plan will be implemented in a Team Europe approach that brings together funding by the EU, its Member States and European financial institutions.
- The plan will also require buy-ins from international institutions and the private sector as well.
About China’s Belt And Road Initiative
- The BRI project was launched in 2013, it broadly aims to facilitate cross-border transportation of goods, access to energy, creating demand for existing excess capacity in Chinese industries.
- Officially, it aims to develop land and sea infrastructure to better connect China to Asia, Europe and Africa for trade and development, and it has found many partners around the world.
- China had an overall exposure of investment of around USD 750 billion between 2013 to mid-2020.
- China argues that it respects its partners’ sovereignty while providing loans that benefit joint projects, while critics say Beijing’s contractual terms ignore abuses of human, labour and environmental rights.
Need for the Project
- Debt Challenges: China’s funding for infrastructure like railways, roads, and ports has led to accusations of burdening some nations with excessive debt.
- Sustainable Development: Countries require reliable partners to plan projects that prioritize sustainability and long-term growth.
- Holistic Approach: A democratic and unique strategy could successfully implement projects addressing climate change, global health security, and sustainable development for developing nations.
Significance
- Positive Development: It’s encouraging to see Europe actively asserting its influence in this particular domain. This aligns well with the shared interests of India and its transatlantic allies, the US and UK.
- Independent Approach: The EU has explicitly highlighted its commitment to a “values-based” and “transparent” approach. Their aim is to establish connections without fostering dependencies, signaling a positive and self-reliant strategy.
Conclusion
The alliance plans to channel financial support into both public and private infrastructure projects globally.
Read Also: Advantages of Geography Optional in UPSC
