The European Union has unveiled a project called ”Global Gateway” that is worth 300 billion euros ($340 billion) to mobilize by 2027 in public and private infrastructure investment around the world. The project is being seen as a response to China’s Belt and Road strategy.
Context
The European Union has unveiled a project called ”Global Gateway” that is worth 300 billion euros ($340 billion) to mobilize by 2027 in public and private infrastructure investment around the world. The project is being seen as a response to China’s Belt and Road strategy.
About Global Gateway Project
- Simply put, Global Gateway Project is a plan to mobilise investments of up to 300 billion euros between 2021 and 2027 and also bring together resources of the EU, member states, European financial institutions and national development finance institutions
- The bloc will mobilize financial aid in public and private infrastructure investment around the world.
- It is an offshoot of a plan by G7 countries to offer developing countries an alternative to Belt and Road.
- The project will probably extend the remit of the European Fund for Strategic Investment, or create a similar institution, which can act as a guarantor for riskier investments in the ‘Global South’.
About Belt and Road Initiative
- The Belt and Road is a flagship project of China that was launched in 2013 to facilitate cross-border transportation of goods, access to energy, creating demand for existing excess capacity in Chinese industries.
- Beijing has invested $139.8 billion in the project which is the centerpiece of Chinese foreign policy.
- BRI 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.
India’s stand on BRI
- India has repeatedly said it will not join BRI because it’s key component – the China-Pakistan Economic Corridor (CPEC) – passes through PoK, which is disputed territory between India and Pakistan.
- Further, in order to counter China’s aggressiveness, India has initiated Act East Policy, SAGAR vision and is part of multilateral projects like Asia-Africa Growth Corridor (AAGC), and “Free and Open Indo Pacific” initiative.
