(Daily News Scan - DNS English) Blue Dot Network
On the occasion of first visit of the U.S President India, expectations are there for both the countries to have discussion regarding Blue Dot Network. It is a new proposal covering infrastructure and development projects across the region and other countries. Some of the observers refer to this project as a means of countering China’s Belt and Road initiative, which was launched 6 years ago.
In this DNS we will be talk about the Blue Dot Network and its importance for both the countries.
about the concept of Blue Dot Network
The Blue Dot Network is a multi-stake holder initiative with the objective of bringing together governments, private sector and civil society to promote the high quality, trusted standards for global infrastructure development. The Blue Dot network is led by US International Development Finance Corporation (DFC), jointly launched by US, Japan (Japanese Bank for International Cooperation) and Australia (Department of Foreign Affairs and Trade) in November 2019 on the sidelines of the 35th ASEAN Summit in Thailand.
As per the US officials, Blue Dot Network is like a Michelin Guide for infrastructure projects. Within this project, as a part of this initiative, infrastructure projects will be evaluated and approved by the network depending on standards. The projects should meet certain infrastructure principles. All the projects approved will get a “Blue Dot”, setting universal standards of excellence. It will attract private funding making it less dependent on state funding alone.
The proposal of the Blue Dot Network is part of the US’s Indo- Pacific Strategy. It aims to counter the China’s Belt and Road Initiative. Blue Dot will be about “supporting alternatives to predatory lending” by facilitating foreign investment in projects that come under its network.
Within BRI, China’s government and state owned enterprises finance international projects by providing logistics support.
Blue Dot Network may seem as a counter to BRI but it does need a lot of work depending on two reasons. The first reason is on the basis of fundamental difference between BRI and Blue Dot. BRI involves direct financing, giving countries in need immediate short-term relief, whereas, Blue Dot is not a direct financing initiative and therefore it may not be what some developing countries need. The second difference comes in terms that Blue Dot will require coordination among multiple stakeholders when it comes to grading projects.
Prior to 2001, US foreign policy was focused on merging China into its plan. But later on it changed when China emerged as a global super power. From the perspective of the US, the Indo-Pacific region, stretching from India’s west coast to the west coast of the US, is the most economically dynamic and populous part of the world. Moreover, the US sees China’s infrastructure investments and trade strategies as reinforcing its geopolitical aspirations, including efforts to build and militarize outposts in the South China Sea, which as per the US, restricts the free movement of trade and undermines regional stability.
