Japan highlights G-20 principles for quality infrastructure investment

June 10, 2019

Fukuoka--Japan sees the Group of 20 advanced and emerging economies' approval of principles for high-quality infrastructure investment as a major achievement at a meeting of G-20 finance ministers and central bank chiefs in the southwestern Japan city of Fukuoka over the weekend.

The G-20 officials reached an accord on the infrastructure investment principles, even at a time when the group is struggling to take concerted action, due in part to escalating U.S.-China trade friction.

"Japan embarked on a campaign focusing on the quality of infrastructure (investment) four years ago, and we successfully had this initiative included in documents (released after the G-20 meeting)," Japanese Finance Minister Taro Aso told a press conference on Sunday.

In a joint statement, the G-20 officials mentioned "the importance of maximizing the positive impact of infrastructure to achieve sustainable growth and development while preserving the sustainability of public finances."

The move came amid concerns about China's excessive lending for infrastructure projects in developing countries under its Belt and Road regional development strategy.

For instance, China came under international condemnation after acquiring the right to manage a port in Sri Lanka for 99 years as the South Asian island nation had difficulty repaying high-interest loans from China.

China, a key G-20 member, accepted the principles for quality infrastructure investment apparently because it could not ignore "fierce eyes from the world," a senior Japanese Finance Ministry official said.

However, China refused to submit a self-review report on its lending practices at the Fukuoka meeting.

For high-quality infrastructure investment, "It's essential to ensure transparency about each country's lending balance," a former Japanese Finance Ministry official said.

Japan and other countries are poised to continue urging China to disclose its loans to developing countries. Jiji Press