Global Gateway Plan

Description

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.