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Global Gateway Plan

3rd December, 2021 International Relations

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Context: EU unveils 'Global Gateway' €300 billion global infrastructure plan.

About 'Global Gateway' plan:

  • The EU has called the plan a "road map for investment" in the developing world.
  • This international infrastructure plan called "Global Gateway," which aims to mobilize €300 billion ($340 billion) in public and private infrastructure investment.
  • The plan is "global in scope, adapting to the needs and strategic interests of different regions”.
  • It is being seen as a European effort to challenge China's Belt and Road Initiative, which was launched in 2013 and funds infrastructure projects in the developing world.
  • It aims to make Global Gateway a trusted brand that stands out because of high quality, reliable standards and high level of transparency and good governance.

How EU's Global Gateway will work?

  • It aims to mobilize the fund between 2021 and 2027 by joining the "resources of the EU, member states, European financial institutions and national development finance institutions."
  • Global Gateway will require buy-ins from international institutions and the private sector as well.
  • The commission acknowledged the trans-Atlantic roots of the plan on its website, noting, "Initiatives such as the Build Back Better World and Global Gateway will mutually reinforce each other."
  • Global Gateway also hopes to spread European technology and expertise out in developing countries.

Build Back Better World (B3W):

  • It is an initiative undertaken by G7 countries.
  • Launched in June 2021, the initiative is designed to provide an alternative to China's Belt and Road Initiative (BRI) for the infrastructure development of low and middle income countries.
  • Led by the United States, the G7 countries will work to address the $40 trillion worth of infrastructure needed by developing countries by 2035.
  • The initiative aims to catalyze funding for quality infrastructure from the private sector and will encourage private-sector investments that support "climate, health and health security, digital technology, and gender equity and equality".
  • The initiative builds on the Blue Dot Network, a collaboration that aims to build a global network through lending-based financing to build roads, bridges, airports, ports, power plants

What is China's Belt and Road Initiative?

  • Launched in 2013, the global investment strategy known as the Belt and Road Initiative is a signature project of Chinese President Xi Jinping.
  • In official literature, the strategy aims to connect China better with the world and Asia, Europe and Africa in particular.
  • By 2020, Beijing had invested nearly $140 billion worldwide, with more than $20 billion of that investment occurring just last year alone.