FACT SHEET: President Biden and G7 leaders launch Build Back Better World (B3W) partnership
The United States mobilizes the world’s democracies to act for our people, tackle the world’s greatest challenges and demonstrate our shared values
Today, President Biden met with G7 leaders to discuss strategic competition with China and pledge to take concrete steps to help meet the huge infrastructure needs of low- and middle-income countries.
Rebuilding a Better World: A Positive Initiative to Address the Huge Infrastructure Needs of Low and Middle Income Countries. President Biden and G7 partners agreed to launch the bold new global infrastructure initiative Build Back Better World (B3W), a transparent, high-level, values-driven infrastructure partnership led by major democracies to help reduce infrastructure needs of more than $ 40 trillion in the developing world, which has been exacerbated by the COVID-19 pandemic.
Through B3W, the G7 and other like-minded partners are coordinating to mobilize private sector capital in four areas of focus: climate, health and safety, digital technology and equity, and gender equality, with catalytic investments from our respective development finance institutions. .
B3W will have a global reach, from Latin America and the Caribbean to Africa via the Indo-Pacific. Different G7 partners will have different geographic orientations, but the sum of the initiative will cover low- and middle-income countries around the world.
By announcing this partnership, the United States and its G7 partners express a unified vision for the development of global infrastructure. As a primary partner of B3W, the United States will seek to harness the full potential of our development finance tools, including the Development Finance Corporation, USAID, EXIM, the Millennium Challenge Corporation, and the US Trade and Development. Agency, as well as complementary bodies such as as a Transaction Advisory Fund. In doing so, the Biden administration aims to complement the U.S. Jobs Plan’s domestic infrastructure investments and create new opportunities to demonstrate U.S. competitiveness overseas and create jobs at home.
In addition to the billions of dollars that the United States is mobilizing for infrastructure financing abroad through existing bilateral and multilateral tools, we will work with Congress to enrich our development finance toolbox in the hope with the private sector, other American stakeholders and G7 partners, B3W will collectively catalyze hundreds of billions of dollars in infrastructure investments for low- and middle-income countries in the years to come.
Along with G7 leaders, the Biden administration fully subscribes to the guiding principles of B3W:
- Focused on values. Infrastructure development carried out in a transparent and sustainable manner – financially, environmentally and socially – will lead to better outcomes for recipient countries and communities. We will provide countries with a positive vision and a sustainable and transparent source of funding to meet their infrastructure needs.
- Good governance and strong standards. High standards have become increasingly important at a time when governments grapple with complex decisions about how to tackle climate change, rebuild local economies, direct scarce funding and boost economic growth. inclusive employment. We are committed to providing citizens of recipient communities with the long-term benefits they expect and deserve from infrastructure projects. Our efforts will be guided by high standards and principles, such as those promoted by the updated Blue Dot network, regarding environment and climate, labor and social guarantees, transparency, financing, construction, fight against corruption and other areas.
- Climate friendly. Investments will be made in accordance with the objectives of the Paris Climate Agreement.
- Strong strategic partnerships. Infrastructures developed in partnership with those who benefit from them will last longer and generate more impact on development. The infrastructures created under the B3W will be developed in consultation with the communities and by assessing the local needs as real partners. We will establish a working group together as a G7, and with others, to coordinate, harmonize our efforts and increase our impact and reach..
- Mobilize private capital through development finance. Business-as-usual funding and funding approaches are inadequate to address the huge infrastructure gap in low- and middle-income countries. We commit to increasing the development finance tools at our disposal to support and catalyze a significant increase in private capital to meet infrastructure needs. Investment in infrastructure by a responsible, market-oriented private sector, coupled with high standards and transparent public financing, is crucial for long-term development effectiveness and sustainability.
- Improve the impact of multilateral public finances. Multilateral development banks and other international financial institutions (IFIs) have developed rigorous standards for project planning, implementation, social and environmental safeguards, and analytical capacity. The United States will incorporate these standards and guarantees to help ensure that American taxpayer resources are used appropriately and efficiently. We will work with the IFIs to strengthen their catalytic impact and increase the mobilization of capital, both public and private, needed for impactful and sustainable infrastructure investments.
More details will be included in the G7 Leaders’ Communiqué.