Build Back Better World 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 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.

Why B3W?

The BRI tactics are believed to be debt traps laid by the Chinese Government. The Chinese aim to exert their strategic dominance in foreign policy and trade through these debt traps. The overall objective of BRI is to develop logistics and transportation. This will reduce the transaction cost for Chinese trade. Since the inception of BRI, the outward FDI (Foreign Direct Investment) is growing aggressively. Between 2016 and 2019, this increased from 25 billion USD to 140 billion USD. Thus, B3W was launched to counter the aggressive trade measures of China (in the name of BRI).

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.