The White House released their lead initiative for the G7, stating that the “Partnership for Global Infrastructure” will be formally launched there to “deliver quality, sustainable infrastructure that makes a difference in people’s lives around the world” and “strengthens and diversifies our supply chain.” According to John Kirby, NSC Coordinator for Strategic Communications, other G7 leaders will announce projects comparable to the U.S. projects, an “alternative to infrastructure models that sell debt traps to low- and middle-income partner countries.” That is, the projects will be launched to rival China’s Belt and Road Initiative, and will not include any major transportation, water or energy infrastructure. But take heart — the “projects are also supposed to help advance U.S. economic competitiveness and our national security.”
The G7 group is slated to account for $600 billion in investments needed by 2027, with $200 billion coming from the U.S. in grants, federal financing, and leveraging private sector investments. How is this different from the “Build Back Better World” announced by President Biden a year ago? After a year of discussions, there is a new name. And the White House release included some examples of projects finally agreed upon — from which one ascertains that the $200 billion figure is actually hundreds of millions cleverly leveraged. “Build Back Better” is back, but hardly better.
Some examples provided by the White House Fact Sheet: A $2 billion solar project, including “home power kits,” was arranged with two U.S. companies, “AfricaGlobal Schaffer” and “Sun Africa,” with “support” from the Commerce Department and the Export-Import Bank. Cost to the U.S. government: $0. There’s $3.3 million from the U.S. International Development Finance Corporation (DFC) for the “early-stage project development for an industrial-scale” vaccine manufacturing facility in Senegal—not an unworthy project, but also not exactly a crash program. Romania gets a study for a small modular reactor plant with the U.S. and (Tigard, Oregon’s) NuScale Power LLC providing $14 million in support—but this is “meant to mobilize a multi-billion effort.” That is, it is a study with no further commitment—except “multi-billion” dollars is counted toward the supposed $600 billion. Again, USAID will invest $40 million in the Southeast Asia Smart Power Program to decarbonize and deploy clean energy technologies. The $40 million “is expected to mobilize $2 billion in financing.” Finally, another of the larger figures is $30 million from the DFC, invested into Omnivore Agritech and Climate Sustainability Fund 3, an impact venture capital fund, investing in entrepreneurs for “climate resilience and climate adaptation in India, as well as improve the profitability and agricultural productivity of smallholder farms.” (https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/26/fact-sheet-president-biden-and-g7-leaders-formally-launch-the-partnership-for-global-infrastructure-and-investment/)
