SOURCE: TIMES NOW
Speaking on the second day of his visit following high-level talks with Prime Minister Narendra Modi, US President Donald Trump, interestingly, brought up the Blue Dot Network, leading some to wonder whether the recent meet between the leaders of the two largest democracies, may have also functioned as a primer for India’s participation in the initiative, launched as recently November 2019.
The US State Department website states that the Blue Dot Network “will bring together governments, the private sector, and civil society under shared standards for global infrastructure development.” Currently, the three primary member states of the initiative include the US, Japan and Australia, however, any country can become a member as long as they subscribe to the principles that govern its functioning.
While it is still unclear what the full scope of the initiative is, the US State Department’s mention that it will “certify infrastructure projects that demonstrate and uphold global infrastructure principles,” suggest that it may, in some sense, work as a rating apparatus, capable of evaluating and vetting global infrastructural projects. Some have speculated that the initiative will work toward bringing investors closer to premium, fully-vetted infrastructure opportunities across the world, by acting as a guarantor of sorts, ensuring that risk is mitigated and that investors are compensated for projects that do not work out.
However, there are still questions over how the certification criteria will be developed, and who will be going about the certification. Analysts have stated that a certification process agreed upon by just the three-member countries can hardly be classified as meeting “global standards.”
Analysts have also suggested that the Blue Dot Network might be Washington’s response to Beijing’s Belt & Road Initiative. Following the launch of the programme, US Commerce Secretary Wilbur Ross was quick to point out that American investment into Asia had reached $1.6 trillion, stating it was only likely to increase in the coming year. The initiative itself is expected to be funded by the US’ newly founded International Development Finance Corporation, Japan’s Japan International Cooperation Agency, and Australia’s AusAID.
Experts have also drawn attention to the growing apprehension among recipient countries of China’s overseas projects, around the potential debt obligations that these projects may place upon them in the coming years. As such, for countries like India, the Blue Dot Network may provide a solution to its current financial funds’ crunch, while also allowing it to compete with China’s high levels of construction efficiency.
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