Daily Times

This year marks the five years of the Belt and Road Initiative (BRI) – a mammoth ambitious geostrategic initiative in contemporary history of world politics. Announced by President Xi in 2013 during his two historic visits to Kazakhstan and Indonesia, thus far 65 countries have consented to be part of the project that will create over 200,000 jobs.

Additionally investments have exceeded the $70 Billion mark, 75 overseas joint economic projects were initiated, 38 bilateral agreements were made between China and other countries, 403 direct flight routes and new shipping routes connecting 47 countries have been set up, and this year alone over $47.8 billion worth of engineering contracts were awarded.

Established with a vision to create a shared destiny of peace and prosperity, the initiative has two major land and sea routes: a Silk Road Economic Belt and a 21st century Maritime Silk Road, which are further divided into economic corridors. Apart from these, the BRI has five key subjects to cater including: infrastructure development, uninterrupted trade ties, financial integration, strengthening political cooperation and people to people exchanges.

The key purpose of this global investment project is to enhance economic interconnectivity and to develop infrastructure across South East Asia, Eurasia, Indian Ocean, the Middle East and Africa. The massive initiative has great economic and trade significance for states across the world. From concept to action and from planning to implementation, BRI has put forward tremendous amount of opportunities for Pakistan, including the China Pakistan Economic Corridor (CPEC), the flagship of BRI.

The ancient Silk Route can be traced back to the Han Dynasty, when China’s imperial envoy Zhang Qian helped to establish this route over 2,000 years ago. This ancient route linked China to Central Asia and the Middle East. The road was named after China’s most important export- silk and played important role in the development of the entire region for hundreds of years

Ever since President Xi announced this initiative, the response from countries around the world has been quite positive. According to one estimate, the BRI covers almost two third of the world’s population and has six corridors including CPEC, as well as Bangladesh-China-India-Myanmar, China-Indochina Peninsula, China-Central Asia-West Asia, the New Eurasia Land Bridge and the China-Mongolia-Russia Corridor. The project promotes transport connectivity and economic cooperation among the countries, and tries to establish and revive the old silk route, in order to complement the grand Chinese strategy of creating new opportunities and open the markets.

It is set to be completed by 2020 and is considered a new era of globalization. Most of the infrastructure is built on the pattern of ancient Silk Route, but with the use of latest technology to meet modern day standards. The ancient Silk Route can be traced back to the Han Dynasty, when China’s imperial envoy Zhang Qian helped to establish this route over 2,000 years ago. This ancient route linked China to Central Asia and the Middle East. The road was named after China’s most important export-Silk and played important role in the development of the entire region for hundreds of years.

China is spending an estimated $5 trillion on infrastructure development that spans across Asia, the Middle East, Europe, and Africa. To make this global project a success, the global program is divided into two parts-Silk Road Economic Belt (SREB) and 21st Century Maritime Silk Road (CMSR).

The SREB is envisioned as three routes connecting China to Europe through Central Asia and the Middle East, the Mediterranean via West Asia, and the Indian Ocean through South Asia, while CMSR is planned to create connections among regional waterways. So far, over 60 states, with a combined gross domestic product (GDP) of US $21 trillion, have shown interest in participating in BRI. Through this global route, China has planned to link landlocked countries, by building massive infrastructure circles around transport, energy, roads, railways, and ports. The global project aims to create the world’s largest platform for economic cooperation, including policy coordination, trade and financing collaboration, and social and cultural cooperation.

The multi-trillion dollar project will help all partners enhance regional and economic growth, and for initial financial investment, China has planned to spend an estimated $4-8 trillion on this mega project. For this purpose, it has established local banks, and in 2014 Beijing also established the $40 billion Silk Road Fund. Through BRI, the Chinese markets will be open for potential investors, while other countries can benefit from China’s growing local economy.

CPEC continues to remain the crown of the BRI and is one of its fastest and most effective projects. Substantial projects such as roads and railway networks, infrastructure developments, Gawadar port development, energy related projects, Orange Line, Yellow Line and power plants will be viable before 2020, and are expected to be quite a boost for Pakistan’s economy.

It will also be beneficial for local businesses to be anchored to one of the most robust economies of the world. China has the largest foreign currency reserves of $3.6 trillion, is the largest exporter in the world with $2.34 trillion annual exports, and is the third largest importer, with annual imports of $1.96 trillion. They are also now the leading financiers of the Asian Infrastructure and Investment Bank (AIIB), with investments exceeding $20 trillion.

BRI is a reality with clear vision put forward by China that recognizes the realities of the multi-polar world order today, with the current visionary Chinese leadership, the day is not far away when the world will witness an end to tyranny, poverty and conflict, and the rise of peace, prosperity and equality.

The writer is Director, Institute of Peace and Diplomatic Studies and Secretary General, Pakistan-Shanghai Cooperation Organization Friendship Forum

Published in Daily Times, October 3^rd 2018.