Topics Covered: Infrastructure.
Blue dot network
What to study?
For Prelims: Meaning, members and features.
For Mains: Need for and significance.
Context: The first meeting of the Blue Dot Network‘s embryonic steering committee was held recently in Washington, with Australia and Japan as partners.
What is the Blue dot network?
The U.S., Australia and Japan announced the network during the November 4, 2019, Indo-Pacific Business Forum in Bangkok. The initiative aligns with the G20’s Principles for Quality Infrastructure Investment, particularly on governance, environmental standards and transparency.
- It is a new S.-led certification plan.
- A “blue dot” will be awarded to projects the initiative endorses.
- The Network will not itself directly invest in projects.
- At present the project is led by the U.S. International Development Finance Corporation (boasting access to $60 billion in capital), in partnership with the government-owned Japan Bank for International Cooperation and Australia’s Department of Foreign Affairs.
- Once fully up and running, the new network will bring together governments, the private sector and other organizations behind a set of high-quality global infrastructure development standards.
It will act as a globally recognized seal of approval for major infrastructure projects, letting people know the projects are sustainable and not exploitative.
Here’s how the network will work:
- Any country or company can participate in the network, as long as it agrees to adhere to the network’s high standards of promoting quality, private sector-led investment. Projects that seek to be certified by the Blue Dot Network will complete an online application.
- Countries, companies and local communities will all benefit from the Blue Dot Network. When projects are certified by the Blue Dot Network, communities and investors can be confident about the high standards and sustainability of the infrastructure.
Sources: the Hindu.