Collaborative value of the Belt and Road
By Ivona Ladjevac |
China Watch |
Updated: 2018-05-17 11:18
As it has been proved many times throughout history, both new ideas and pioneers draw significant attention and are often denounced, mostly by those who are bigoted and unproductive. It looks like we are witnessing the same scenario with the Belt and Road Initiative proposed by China.
While the initiative draws inspiration from the legacies of the ancient Silk Road, trade expansion and cultural exchange, at the same time, it attempts to renew the legacies in the context of changing the geopolitical and economic landscape. Following the idea of perpetual global interdependence, the initiative calls for necessity to overcome prejudice and for a change in mindset to stop seeing each other strictly as competitors, but as partners.
Despite this, since the initiative was launched, there have been many atrocious comments claiming it intends to undermine and destabilize the current global economic order and even create dividing lines, particularly in Europe. Such attitudes are directly connected with the creation of 16+1 — comprising Central and Eastern European countries and China — which has been seen as China’s attempt to make the EU more vulnerable. Recently, some senior EU officials have become extremely vocal in accusing China of "wanting to shape globalization to suit its own interests", namely "the reduction of surplus capacity, the creation of new export markets, and safeguarding access to raw materials".
Such a biased attitude prevents them from realizing:
• that the Belt and Road Initiative is a unique opportunity to connect continents through infrastructure as well as cultural and technological exchanges in order to drive sustained economic progress;
• that it deeply integrates China with the world economy — the new financial institutions established by China, for example, the Asian Infrastructure Investment Bank and the Silk Road Fund, operate under current global economic and financial order;
• that it is a comprehensive initiative, including political cooperation, policy dialogue, trade and investment, infrastructure building, connectivity, culture exchange and people-to-people exchange – it's not a purely economic initiative;
• that it's an open, inclusive platform for development rather than an exclusive arrangement and is a cooperative initiative aimed at contributing to mutually beneficial economic development.
Along with insisting on abolishing ideological divisions and geopolitics, the Belt and Road Initiative is decisive to pushing forward comprehensive and balanced development of all participating countries by promoting further and in-depth cooperation.
Unlike mainstream regional organizations in Europe, the initiative appears to be an open, unconditional platform offering possibilities for development through projects and investments. Such opportunities have been warmly welcomed in the Western Balkans, a region known to be the most problematic in Europe.
Despite being part of the European continent, the five countries that make up the region —Serbia, Montenegro, Macedonia, Albania, and Bosnia and Herzegovina — have remained excluded from the political and economical influence of the European Union. These countries have been knocking on the EU's door for two decades, but the door has remained firmly closed regardless of the conditions they have fulfilled.
So it's not difficult to understand why these nations welcomed both the Belt and Road Initiative and 16+1 as a chance to change position from subordinate to partner. Membership of the 16+1 is voluntary and unconditional.
Already the 16 + 1 has seen significant results. For instance, a summit in Bucharest, the Romanian capital, resulted in the Bucharest Guidelines to determine annual summits and develop a mid-term agenda of cooperation. At the same time we have seen increased trade and investment without any form of protectionism. The most important result from the Belgrade summit was a deal on construction of a Belgrade-Budapest railroad. This railroad fits with a plan to connect Budapest with Athens via Belgrade as well as Skopje in Macedonia, which would put the Piraeus Port to maximum use.
From the perspective of CEE countries, the announced $10 billion in funds is significant amount of money that will, after completion of all planned infrastructure investments, bring even bigger amounts through transportation and the flow of people, goods and capital. Each of these countries, Serbia among them, is dedicated to using this opportunity and will attempt to implement this strategy as fast as possible. Each country has prepared projects and engaged experts to facilitate implementation. In that sense, of the biggest importance are the infrastructure projects that will benefit all partners involved. Building bridges, upgrading railways, constructing roads, investments in ports – these are also just a few of many significant and valuable projects.
Preserving the proactive approach that China has had since the beginning is an important source of a power that will ensure and extend the economic benefits. That means that the interests of all participating countries will be fulfilled through regular connections and policy coordination.
Finally, it is not a secret that China is aiming for a much more ambitious goal, which includes the creation of a free trade area (bilateral and regional) and wider financial integration spurred by bilateral exchange agreements. The basic goal, as stated at the 2015 Boao Forum, is "to promote a well-regulated and free flow of economic factors, a highly efficient allocation of resources and deep market integration, encouraging countries along the Belt and Road to achieve economic policy coordination and implement wider and more detailed regional cooperation of higher standards, and joint creation of an open, comprehensive and balanced regional architecture of economic cooperation for the benefit of all".
The author is head of a regional Belt and Road center at the Institute of International Politics and Economics in Belgrade, Serbia. The views do not necessarily reflect those of China Watch.
All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.
As it has been proved many times throughout history, both new ideas and pioneers draw significant attention and are often denounced, mostly by those who are bigoted and unproductive. It looks like we are witnessing the same scenario with the Belt and Road Initiative proposed by China.
While the initiative draws inspiration from the legacies of the ancient Silk Road, trade expansion and cultural exchange, at the same time, it attempts to renew the legacies in the context of changing the geopolitical and economic landscape. Following the idea of perpetual global interdependence, the initiative calls for necessity to overcome prejudice and for a change in mindset to stop seeing each other strictly as competitors, but as partners.
Despite this, since the initiative was launched, there have been many atrocious comments claiming it intends to undermine and destabilize the current global economic order and even create dividing lines, particularly in Europe. Such attitudes are directly connected with the creation of 16+1 — comprising Central and Eastern European countries and China — which has been seen as China’s attempt to make the EU more vulnerable. Recently, some senior EU officials have become extremely vocal in accusing China of "wanting to shape globalization to suit its own interests", namely "the reduction of surplus capacity, the creation of new export markets, and safeguarding access to raw materials".
Such a biased attitude prevents them from realizing:
• that the Belt and Road Initiative is a unique opportunity to connect continents through infrastructure as well as cultural and technological exchanges in order to drive sustained economic progress;
• that it deeply integrates China with the world economy — the new financial institutions established by China, for example, the Asian Infrastructure Investment Bank and the Silk Road Fund, operate under current global economic and financial order;
• that it is a comprehensive initiative, including political cooperation, policy dialogue, trade and investment, infrastructure building, connectivity, culture exchange and people-to-people exchange – it's not a purely economic initiative;
• that it's an open, inclusive platform for development rather than an exclusive arrangement and is a cooperative initiative aimed at contributing to mutually beneficial economic development.
Along with insisting on abolishing ideological divisions and geopolitics, the Belt and Road Initiative is decisive to pushing forward comprehensive and balanced development of all participating countries by promoting further and in-depth cooperation.
Unlike mainstream regional organizations in Europe, the initiative appears to be an open, unconditional platform offering possibilities for development through projects and investments. Such opportunities have been warmly welcomed in the Western Balkans, a region known to be the most problematic in Europe.
Despite being part of the European continent, the five countries that make up the region —Serbia, Montenegro, Macedonia, Albania, and Bosnia and Herzegovina — have remained excluded from the political and economical influence of the European Union. These countries have been knocking on the EU's door for two decades, but the door has remained firmly closed regardless of the conditions they have fulfilled.
So it's not difficult to understand why these nations welcomed both the Belt and Road Initiative and 16+1 as a chance to change position from subordinate to partner. Membership of the 16+1 is voluntary and unconditional.
Already the 16 + 1 has seen significant results. For instance, a summit in Bucharest, the Romanian capital, resulted in the Bucharest Guidelines to determine annual summits and develop a mid-term agenda of cooperation. At the same time we have seen increased trade and investment without any form of protectionism. The most important result from the Belgrade summit was a deal on construction of a Belgrade-Budapest railroad. This railroad fits with a plan to connect Budapest with Athens via Belgrade as well as Skopje in Macedonia, which would put the Piraeus Port to maximum use.
From the perspective of CEE countries, the announced $10 billion in funds is significant amount of money that will, after completion of all planned infrastructure investments, bring even bigger amounts through transportation and the flow of people, goods and capital. Each of these countries, Serbia among them, is dedicated to using this opportunity and will attempt to implement this strategy as fast as possible. Each country has prepared projects and engaged experts to facilitate implementation. In that sense, of the biggest importance are the infrastructure projects that will benefit all partners involved. Building bridges, upgrading railways, constructing roads, investments in ports – these are also just a few of many significant and valuable projects.
Preserving the proactive approach that China has had since the beginning is an important source of a power that will ensure and extend the economic benefits. That means that the interests of all participating countries will be fulfilled through regular connections and policy coordination.
Finally, it is not a secret that China is aiming for a much more ambitious goal, which includes the creation of a free trade area (bilateral and regional) and wider financial integration spurred by bilateral exchange agreements. The basic goal, as stated at the 2015 Boao Forum, is "to promote a well-regulated and free flow of economic factors, a highly efficient allocation of resources and deep market integration, encouraging countries along the Belt and Road to achieve economic policy coordination and implement wider and more detailed regional cooperation of higher standards, and joint creation of an open, comprehensive and balanced regional architecture of economic cooperation for the benefit of all".
The author is head of a regional Belt and Road center at the Institute of International Politics and Economics in Belgrade, Serbia. The views do not necessarily reflect those of China Watch.
All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.
