THE BRI AT 10, SOME HITS, MANY MISSES

THE CONTEXT: Recently, the third Belt and Road Forum(BRF) was convened in Beijing, China which has put the spotlight back on Chinese signature initiative of Belt and Road Initiative (BRI). Even though the BRI is criticised for ground realities, all eyes will be on the future of the Belt and Road Initiative.

OUTCOME OF THE BRF

• The BRF III is themed on “High-quality Belt and Road Cooperation: Together for Common Development and Prosperity”.
• Three high-level forums were held under the topics of Connectivity in an Open World Economy, Green Silk Road for Harmony with Nature, and Digital Economy as a New Source of Growth, respectively.
• Six thematic forums with focuses on Trade Connectivity, Maritime Cooperation, Clean Silk Road, Think Tank Exchanges, People-to-People Bonds, and Subnational Cooperation were respectively convened.

Chinese President announced the following major steps:

• Building a multidimensional Belt and Road connectivity network.
• Supporting an open world economy
• Carrying out practical cooperation
• Promoting green development
• Advancing scientific and technological innovation.
• Supporting people-to-people exchanges
• Promoting integrity-based Belt and Road cooperation
• Strengthening institutional building for Belt and Road international cooperation

WHAT IS BELT AND ROAD INITIATIVE (BRI)?

• Belt and Road Initiative (BRI) is a large-scale infrastructure development programme launched by China in 2013.
• In October 2017, the Belt and Road Initiative was written into the Communist Party’s Constitution, signalling an all-out effort to realize the vision.
• The initiative aims to connect Asia with Europe and Africa through a network of railways, highways, ports, airports, and other infrastructure projects with the intent to promote trade, investment, and economic growth in participating countries.
• The BRI comprises two main components:

1. 1. The Silk Road Economic Belt : It focuses on improving connectivity and cooperation between China and countries in Central Asia, Europe, and West Asia.
   2. Maritime Silk Road: It focuses on strengthening maritime cooperation between China and countries in Southeast Asia, South Asia, and Africa.

CHINA’S INTENT OF BRI

• From regional to global: Early debates in China reveal the intent behind the Belt and Road Initiative (BRI). It was intended to be a gateway for China to transition from a regional power with global influence to a global power with comprehensive strength. It is argued that the BRI was China’s bid to reboot globalisation and rectify its shortcomings.
• Infrastructure to counter rivals: A rising China also felt the need to develop new transport and trade arteries as alternatives to counter rivals to boost Chinese economy.
• Challenging other lending institutions: China intends to put its money all over the world through the initiative and having a strong economic hold by challenging other lending institutions.
• Building an economic order centred on countering the dollar: At the onset, China was pitching for the use of local currency in trade, with the intent of pushing out the dollar to build an economic order centred on China.

ACHIEVEMENT OF BRI

Since its introduction in 2017, the BRI has evolved into a comprehensive strategy for China, with greater involvement in projects.

• The Chinese government’s white paper on BRI (“The Belt and Road Initiative: A Key Pillar of the Global Community of Shared Future”) revealed that over 200 BRI cooperation pacts had been inked with over 150 nations.
• The document also stated that total two-way investment between China and partner countries from 2013 to 2022 touched $380 billion.
• Under China’s Marshall Plan, motorways, power plants, ports, railway networks, and digital infrastructure have been built.
• Some of the key projects are:

1. 1. Laos High-speed railway: Laos took on huge loans from China to partially finance a $6 billion high-speed railway connecting it with the underdeveloped, landlocked nation.
   2. Djibouti Naval base: China showered Djibouti with investment after bringing the small African nation into the BRI’s orbit, and a military base is the centerpiece of the project.

ISSUES WITH BRI:

• Debt sustainability: One of the most significant criticisms of the BRI is that it is a debt trap, which involves China lending money to developing countries for infrastructure projects that they cannot afford to repay. Critics argue that this leads to countries becoming trapped in a cycle of debt and dependence on China, which can undermine their sovereignty and increase their vulnerability to economic and political pressure from China.
• Social and environmental impact: There are also concerns regarding social and environmental impact of the infrastructure projects. A report from the ISEAS-Yusof Ishak Institute on the BRI has highlighted issues related to ecological damage, displacement of people, disputes over payouts and labour unrest.
• Decentralised approach: The BRI is not a multilateral initiative but seen as a collection of bilateral projects. This decentralized approach leads to lack of coordination and create governance challenges. It lacks a centralized governing structure, making it difficult to address issues collectively.

INDIA’S POSITION

• India is among the first countries to oppose the project, India had signalled its strong displeasure ahead of the first BRF over the inclusion of the China-Pakistan Economic Corridor (CPEC) as a BRI project.
• The CPEC passes through Pakistan-Occupied Kashmir and is the main reason for India not participating in the BRI. It is against the sovereignty and territorial integrity of India.

THE WAY FORWARD:

• India’s initiative: India need to participate actively with its partners in the region to offer alternative connectivity arrangements to its neighbours.
• Global initiative: There is a need of strengthening of global initiatives to counter BRI. With the emergence of alternative initiatives, such as the G7’s Partnership for Global Infrastructure and Investment (PGII) and the EU’s Global Gateway Plan, could also shape the future of infrastructure development in developing countries.
• China’s role: The future of the BRI will depend on China’s ability to address the challenges and concerns raised by participating countries and to adapt to changing global conditions.

To ensure the long-term sustainability and success of the BRI, China may need to focus on promoting greater transparency and sustainability in BRI projects and work collaboratively with participating countries to address debt sustainability concerns.

THE CONCLUSION: The BRI faces significant challenges, including concerns about debt sustainability and the impact of China’s economic slowdown. Here, there is a need to provide an alternative to BRI, but the larger and stronger economies have to come together to find a way ahead.

PREVIOUS YEAR QUESTIONS:

Q.1 The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (2018)

Q.2 “China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia”. In the light of this statement, discuss its impact on India as her neighbour. (2017)

MAINS PRACTICE QUESTIONS

Q.1 BRI has raised geopolitical concerns regarding Chinese control over critical infrastructure, and it is blamed for its “debt-trap diplomacy’’. Analyse.

SOURCE: https://www.thehindu.com/opinion/op-ed/the-bri-at-10-some-hits-many-misses/article67435346.ece