Yellen calls on development banks to raise private capital to support G7 infrastructure

US Treasury Secretary Janet Yellen has called on the World Bank and other multilateral development lenders to increase infrastructure investment in developing countries as part of a concerted effort by the wealthy G7 democracies to challenge China's multi-billion-dollar One Belt initiative.

Yellen on Tuesday convened the Group of Seven finance and development ministers and the presidents of multilateral development banks for talks to encourage investment in infrastructure in low- and middle-income countries; the Treasury said in a statement supporting its shareholders - um adopting a bold and innovative approach to strengthen quality infrastructure, including an action plan to mobilize new private capital in six months," he said.

The G7 economies the United States, Canada, Britain, Germany, Italy, France and Japan, and the European Union started a joint initiative last year to narrow the $40 trillion infrastructure financing gap that developing countries will face by 2035.

The G7 Build a Better World (B3W) initiative aims to mobilize public and private sector investment in climate, health, digitization, and gender equality to offset the One Belt, One Road Initiative (BRI) declared by the Chinese PM Xi Jinping in 2013.

The Ministry of Finance said Tuesday's meeting was attended by critical G7 ministers and leaders from the African Development Bank, also Asian Development Bank, Inter-American Development Bank, also European Bank for Reconstruction also Development, and the World Bank.

"We know that infrastructure investment if done right stimulates sustainable and sustainable growth and is critical to delivering essential services to people, sustaining trade, and creating jobs," Yellen said at the meeting.

Canada's Deputy Prime Minister and Finance Minister Christia Freeland told participants that the initiative could play a key role in driving physical and social infrastructure investment in countries where it was most in need while ensuring gender equality.

World Bank President David Malpas provided details of the bank's new climate-related diagnostic tools. They said they would encourage investment in climate-smart infrastructure, including adaptation and reducing greenhouse gas emissions.

Malpas, who denounced confidentiality agreements demanded by Chinese creditors, also reiterated his call for more transparency in debt and lending as developing countries build infrastructure.