Merits of BRI and its flagship project CPEC

In the past two years, China introduced three major initiatives for the benefit of mankind. These are Global Development Initiative (GDI), Global Civilization Initiative (GCI) and Global Security Initiative (GSI).

The first initiative, GDI, aims to promote economic development, poverty alleviation, and sustainable growth. GCI—the second initiative—emphasizes cultural exchange, understanding, and cooperation among nations to foster a shared global civilization. GSI, on the other hand, focuses on enhancing national security and safeguarding China’s interests through Military Modernization, Counterter-rorism and Cyber security, Maritime Security, Regional Stability, Space and Technology and Economic Security.

It is noteworthy that these initiatives—reflecting China’s commitment to addressing global challenges and shaping a more interconnected world—came a decade after the unveiling of the Belt and Road Initiative (BRI) in 2013, as an extensive global infrastructure development strategy. More than 150 countries and international organizations have joined this mega project, fostering economic development and inter-regional connectivity across four continents. BRI comprises six urban development land corridors linked by road, rail, energy, and digital infrastructure and the Maritime Silk Road (MSR) linked by the development of ports.

Studies conducted by World Bank analysts conclude that BRI can boost trade flows in the 150 participating countries by 4.1 percent, as well as cut the cost of global trade by 1.1 percent to 2.2 percent, and raise the GDP of East Asian and Pacific developing countries by an average of 2.6 to 3.9 percent.

Conservative economic experts like the London-based Centre for Economics and Business Research (CEBR) consultants, forecast that BRI is likely to increase the world GDP by $7.1 trillion per annum by 2040, and that “benefits are likely to be widespread” as global trade increases from increasing infrastructure that reduces “frictions that hold back world trade”.

This envisions a shared future of economic prosperity by focusing on several key aspects, namely infrastructure development, trade facilitation, investment and financing, people-to-people connectivity, sustainable development and regional cooperation. Connectivity facilitates trade, investment, and economic growth. Trade facilitation comprises reducing trade barriers, streamlining customs procedures, and enhancing cross-border trade. China provides funding for BRI projects through various mechanisms, including the Asian Infrastructure Investment Bank (AIIB) and bilateral agreements. People-to-people connectivity is achieved through cultural exchanges, educational programs, and tourism initiatives.

Sustainable Development receives major focus by BRI through supportable practices, environmental protection, and social responsibility, aiming to balance economic gains with ecological and social well-being.

Regional cooperation is envisaged through linking regions, encouraging joint ventures, technology transfer, and knowledge sharing, collaborative efforts, and economic diversification.

The major components of BRI are the Silk Road Economic Belt (SREB), 21st Century Maritime Silk Road (MSR) and Digital Silk Road (DSR). SREB is the land-based component, which aims to build and expand land routes for people and commerce across Europe, the Middle East, Central Asia, and Asia. The ocean-based component—MSR—originates from East China and connects various seaports in the South China Sea, the Arabian Sea, the Persian Gulf, and terminates at the Baltic Sea, referring to the Indo-Pacific Sea routes through Southeast Asia to South Asia, the Middle East and Africa. DSR aims to enhance digital connectivity in BRI countries by improving their technology infrastructure.

BRI was incorporated into China’s Constitution in 2018 and has a target completion date of 2049, which will coincide with the centennial of the People’s Republic of China’s (PRC’s) founding, which would also see the fruition of China’s Second Centenary Goal of “building a modern socialist country that is prosperous, strong, culturally advanced and harmonious.”

The land corridors of BRI include its flagship project, the China–Pakistan Economic Corridor (CPEC), the New Eurasian Land Bridge, the China–Mongolia–Russia Economic Corridor, the China–Central Asia–West Asia Economic Corridor (CCAWEC), the China-Indochina Peninsula Economic Corri-dor (CICPEC), and the Trans-Himalayan Multi-Dimensional Connectivity Network (abbreviated (THMCN).

Launched in 2015 during the official visit of China’s President Xi Jinping to Pakistan, CPEC is a significant infrastructure network project spanning 3,000 kilometres in Pakistan, commencing from the deep-sea port of Gwadar, located on the coast of Balochistan in Pakistan and terminating at Kashgar, the focal point of the fabled Silk Road.

CPEC aims to secure and streamline China’s energy imports from the Middle East by circumventing the existing route through the Straits of Malacca, which could be blockaded during conflicts. Simultaneously, energy-starved Pakistan gets new dams and energy from the Central Asian states.

The major benefits it accrues to Pakistan are envisaged as job creation and economic growth. CPEC is predicted to create over 2.3 million jobs in Pakistan between 2015 and 2030 and enhances Pakistan’s exports and development capacity, providing a quarter of its total electricity.

Despite its popularity, BRI also has a few detractors, which include the USA, India, Japan and Australia. They direct their criticism over alleged human rights violations and environmental impact, as well as concerns of debt-trap diplomacy which could lead to economic imperialism.

For Pakistan, the challenges to CPEC arise from threats of terrorism and extremism, which deter investors and contribute to the slow pace of progress by Pakistan.

Notwithstanding these hiccups and the global pandemic COVID-19, BRI—euphemistically referred to as the New Silk Road—and CPEC have played a major role in deepening international cooperation, promoting closer ties between countries and boosting global growth as they will empower the regional countries to reach their true potential by providing employment, investment, trade and commercial opportunities.

Copyright Business Recorder, 2024