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China proposed the Belt and Road Initiative (BRI) in 2013 to improve connectivity and cooperation on a transcontinental scale.
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How big is the BRI?
China has presented the BRI as an open arrangement in which all countries are welcome to participate. However, an official list of participating countries does not yet exist.
World Bank research focused on 71 economies geographically located along BRI transport corridors, including China. In 2017, these economies received 35% of global foreign direct investments and accounted for 40% of global merchandise exports.
How much does the BRI cost?
For the 70 BRI “corridor economies” (excluding China), projects in all sectors that are already executed, in implementation, or planned are estimated to amount to US$575 billion.
What potential opportunities does the BRI present?
If completed, BRI transport projects could reduce travel times along economic corridors by 12%, increase trade between 2.7% and 9.7%, increase income by up to 3.4% and lift 7.6 million people from extreme poverty.
What risks are involved with BRI projects?
The BRI presents risks common to many major infrastructure projects: debt risks, governance risks (corruption and procurement), stranded infrastructure, environmental risks and social risks.
What needs to happen for the BRI to succeed?
BRI transport projects have the potential to substantially improve trade, foreign investment, and living conditions for citizens in participating countries—but only if China and other corridor economies adopt deeper policy reforms that increase transparency, expand trade, improve debt sustainability and mitigate environmental, social and corruption risks.
The Belt and Road initiative is a clear example of globalisation. Shenkar and Luo (2007:2) define globalisation as "the acceleration and extension of interdependence of economic and business activities across national boundaries.”
What do you think about the initiative? Is globalisation a positive force for developing countries?
You may wish to read more about the initiative via the links below. Leave your ideas in the comments below.