The global economic, political and social dynamics - after around 70 years - have come full circle. In the 1950s, it was the United States of America that stood high and propagated globalisation of economy in an unprecedented manner. It also sought to lead the world through its strong democratic institutions, rule of law and culture of meritocracy. The bitterness of the World War II evaporated in no time and being well and sincerely led by the US, various nations gelled together and subscribed to the ideals of free market which ushered in an era of prosperity for those countries and their people. Many countries that moved out of the phase of colonisation also joined in as emerging economic powers and benefited from the new world order. China and the Soviet Union at that time of history had closed borders and common economy. But they could not resist the magic of globalisation and by the 1980s these major socialist economies too joined the global club.
China, after the 1980s, never looked back and leaped forward to reach all corners of the world with its cheap products. It motivated leading global technology entrepreneurs to invest in China. Beijing offered them effective workforce and free trade and business opportunities. In a short period of just 30 years, it became the second largest economy of the world. The US did a good job for decades in gelling together the global economies. It, however, later realised that it had gone too far in globalisation and much at the expense of its own economy where jobs, technology and controls have moved out of its borders.
China in the meantime expanded its global outreach; it has now positioned itself as the flag carrier of economic globalisation and is beginning to flex its political muscles too.
China is now in the process of establishing six economic corridors under the 'One Belt, one Road' plan. The China Pakistan Economic Corridor (CPEC) is one of the six corridors of 'One Belt, one Road'.
Apart from countries alongside the route of the CPEC such as Iran and Central Asian states, others have also shown interest to become part of this venture which is open to all countries to benefit from. The United Kingdom, Germany, Turkey and France have also been vocal about their intentions to join the CPEC. Officials from other European countries are also reportedly in negotiations with Pakistani and Chinese officials to start projects under the CPEC.
The most promising candidate and the trend-setter for developed markets to join the CPEC appears to be the United Kingdom. Capitalising on the strength of its colonial past and experience in Asia it has good prospects of success in this region of growth and potential.
UK Secretary of State for Foreign and Commonwealth Affairs Boris Johnson echoed his country's interest in the CPEC during his most recent visit to Pakistan. Johnson termed the CPEC "a wonder project" and expressed his desire for UK companies to participate in various projects of it. "I am very excited about the CPEC idea and I would like UK firms to participate in the construction of this fabulous venture," Johnson said while addressing the students and faculty of the Government College University in Lahore. "But this should be part of an even more ambitious vision that would revive the ancient Silk route and see the rebirth of trading caravans connecting East and West."
Boris Johnson urged the UK investors to Pakistan. Johnson also said that Karachi should be Asia's "biggest trading entrepôt" alongside Singapore and Shanghai. The British Secretary of State also pledged that his country will "play a part" in helping Pakistan achieve closer economic integration.
"My message to you all is that Britain wants to be with you to make this journey. I believe that bilateral trade between our two countries - just £2.7 billion - is not enough given our closeness," Johnson also said.
France, Germany and Turkey are also mulling joining the CPEC. Earlier last month, Jean Marc Fenet, head of the Embassy of France's Regional Economic Department for India and South Asia, is reported to have expressed his country's interest in becoming part of the China-Pakistan Economic Corridor. Addressing the members of business community at the Islamabad Chamber of Commerce and Industry (ICCI), Fenet said France views Pakistan as a huge and prosperous market for business.
The CPEC offers business potential in infrastructure, energy sector, economic and industrial zones to be set up along the corridor route. This means a pull through for real estate development, banking and insurance services, products-system-project supply, technology transfer and applications, consultancy and services, rail transportation, healthcare facilities, food and entertainment industry development, tourism and above all managerial and skilled human resource development to effectively manage all of this. But the CPEC also poses some serious challenges to Pakistan. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and other business chambers have, for example, expressed their concerns that CPEC's ToRs are skewed in favour of China and the unhindered influx of Chinese products in Pakistan will cause immense harm to Pakistan's industry on several counts.
With changing global economic and political dynamics our partners from the UK and other countries would like to become part of the CPEC if we could manage to make a good case, provide an enabling environment to them and sincerely implement what needs to be implemented.
Another challenge is Pakistan's ability to honour the external loan repayments. This means a substantial increase in revenue generation and cost rationalisation. This will be only achievable through competence in project execution demanding quality supplies and professional management. (The writer is former President, Oversees Investors Chamber of Commerce and Industry)