Can the G7's B3W Compete with China's Belt and Road in Latin America?
Can the G7's B3W Compete with China's Belt and Road in Latin America?
"The US can try to compete on values–transparency, labour rights, the environment–but it’s not an agenda that’s easy to sell," said AS/COA's Eric Farnsworth to Diálogo Chino.
In September 2021 a US diplomatic delegation headed by Deputy National Security Advisor Daleep Singh visited Colombia, Panama and Ecuador as part of a “global listening tour” aimed at gaining a better understanding of how the Build Back Better World (B3W) initiative can support local infrastructure needs.
Launched last year at the UK-hosted G7 summit in June, the B3W declares itself to be “a values-driven, high-standard, and transparent infrastructure partnership”, with focus in investments in renewable energy, digital technology, healthcare and female-led business…
“América Crece is not a thing anymore,” says Eric Farnsworth, vice-president of the Council of the Americas, a US-based business association. “There was no time for it to be implemented, and the Biden administration was never going to take on anything developed under the Trump government. But the B3W tries to use the same tools, such as the DFC, to mobilise further private investment.”…
“Private sector companies won’t pay over the market price for strategic assets, but China will pay whatever it takes,” says Farnsworth. “The US can try to compete on values – transparency, labour rights, the environment – but it’s not an agenda that’s easy to sell.”…
“We need to put more money forward, the DFC needs to be staffed up and make strategic investments and we need to replenish other institutions such as the Inter-American Development Bank,” says Farnsworth. “We need to show partnership in the key issues in the region, including debt relief, healthcare and education, and we need to redevelop the trade agenda with countries such as Brazil and Ecuador, otherwise all this talk of competing with the BRI is just fantasy.”
