The European Commission’s Global Gateway initiative, aimed at competing with China’s Belt and Road program, is facing criticism from anti-poverty campaigners. According to a report by Oxfam, Eurodad, and Counter Balance, the EU is focusing too much on promoting commercial interests rather than fighting poverty in developing countries. The report analyzed 40 EU projects and found that European companies were heavily involved, potentially prioritizing business opportunities over development goals.
The Global Gateway initiative, launched in 2021, aims to mobilize funds for projects in Africa, Latin America, Asia, and the Balkans, focusing on areas such as the digital and green transition, transport, research, and education. However, critics argue that the initiative lacks transparency, particularly in its advisory group, which is made up of European companies and associations, excluding companies from developing countries.
European Commission officials defend the initiative, stating that it represents a paradigm shift in development aid, moving away from traditional grant systems. They argue that working with banks allows for more projects to be implemented, and member states have pushed for this shift as they reduce development aid in favor of other priorities.
Critics warn that the Global Gateway risks prioritizing commercial objectives over development goals, citing examples such as the EU-Chile trade deal, which may lead to job reductions in certain sectors. They call for reforms to ensure that the initiative truly supports partnerships and development, rather than simply de-risking European companies. As the debate continues, the future of the Global Gateway and its impact on poverty reduction remains a topic of contention.
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