This year marks five years of the Belt and Road Initiative (BRI) – a mammoth ambitious geostrategic initiative in the contemporary history of world politics. Announced by President Xi Jinping in 2013 during his visits to Kazakhstan and Indonesia, respectively, the initiative involving 65 countries will see more than 200,000 jobs created, investment exceeding $70 billion and 75 overseas joint economic projects initiated. It has also seen 38 bilateral agreements made between China and other countries, 403 new direct flight routes and new shipping routes connecting 47 countries so far.
At least $7.48 billion has been invested while $47.8 billion in new engineering contracts were sealed. With such an unprecedented growth in just five years, the BRI is a new global world order. Established with a vision to create a shared future of peace and prosperity, the initiative has two major land and sea routes: the Silk Road Economic Belt and the 21st-Century Maritime Silk Road which are further divided into economic corridors. Apart from these, the BRI has five key aspects: infrastructure development, uninterrupted trade ties, financial integration, strengthening policy coordination and people to people exchanges. The key purpose of this global investment project is to enhance economic interconnectivity and to develop infrastructure across southeast Asia, Eurasia, the 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, the BRI has given tremendous opportunities to Pakistan. The China-Pakistan Economic Corridor as the flagship of the BRI has seen huge infrastructure built and economic development. Pakistan is at the crossroads of this gigantic Chinese initiative and has all the potential to take the benefits.
When in 2013, Xi announced this initiative, almost all the capitals of the world began sending positive responses. With its equality, openness and inclusiveness, the Belt and Road circle of friends has been expanding ever since and more countries and international organizations are joining the initiative. According to one estimate, the BRI covers almost two-thirds of the world’s population and has six corridors: China-Pakistan, Bangladesh-China-India-Myanmar, China-Indochina peninsula, China-Central Asia-West Asia, the New Eurasia Land Bridge and China-Mongolia-Russia. The approach adopted by BRI is that it is more outward rather than an inward looking approach. It further emphasizes the transport connectivity and economic cooperation among the countries and to establish and revive the old silk route hence to complement the grand Chinese strategy of creating new opportunities and open markets for new products without challenging the other powers. This project is multifaceted and multidimensional and with great diplomatic and geopolitical undertaking has morphed through series of interactions, from the “Modern Silk Road” to the “Belt and Road Initiative”. Many global experts have termed the “New Silk Road” the beginning of a new era of globalization. Most of the infrastructure is built on the pattern of the ancient Silk Road, but with the use of latest technology to meet modern infrastructure requirements. If we look back in history, the ancient Silk Road can be traced back to the Han Dynasty when China’s imperial envoy Zhang Qian helped the government to establish this route over 2,000 years ago. The ancient road was a network of trade routes that linked China to Central Asia and the Middle East. The road was named after China’s most important export – silk and played an important role in the development of the entire region for thousands of years.
China is spending an estimated $5 trillion on infrastructure development that spans Asia, the Middle East, Europe, and Africa. To make this global project a success, the global program is divided into two parts: the Silk Road Economic Belt and 21st-Century Maritime Silk Road.
The Silk Road Economic Belt is envisioned as three routes connecting China to Europe through Central Asia, the Middle East, the Mediterranean via West Asia and the Indian Ocean through South Asia whereas the 21st-Century Maritime Silk Road is planned to create connections among regional waterways. So far, over 60 states, with a combined gross domestic product of $21 trillion, have shown an interest in participating in the Road and Belt Initiative. Through this global route, China plans to link landlocked countries. Thus, it’s all about 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 the partners to enhance regional and economic growth, develop and integrate. For initial financial investment plans, China planned to spend an estimated $4-8 trillion budget on this mega project. For this purpose, it has established local banks to finance various projects, economic corridors and related plans. In 2014, Beijing established the $40 billion Silk Road Fund to finance these initiatives, and it has made investments in several key projects. These mega projects are just the start as BRI enters a new stage of more detailed and comprehensive development outlook.
Through BRI, the Chinese market will open up for new dimensions and destinations while the countries will benefit from the rising Chinese industries. The prosperity is not only tremendous for the regional countries and at the global level but it is also unstoppable.
The China-Pakistan Economic Corridor continued to remain the crown of the Belt and Road Initiative since its inception during the visit of Xi to Pakistan in April 2015. It is a Chinese vision of shared future and prosperity of the region beyond the horizon of Himalayas. The multi-million dollar project is one of the fastest and most effective projects within the Belt and Road Initiative completing its various phases with strength, dedication and the hard work of Chinese and Pakistan engineers, workers and supporters.
Being a flagship project of BRI, CPEC provides privilege to Pakistan in not waiting too long for experiencing the outcomes. Substantial projects such as roads and railway networks, infrastructure developments, Gawadar port development, energy related projects, Orange Line, Yellow Line, power plants will be viable before 2020, as their upshots start pouring, the belief of people will strengthen, giving it more endurance. With much of investment in Pakistan, CPEC is ensuring a boost to Pakistan’s economy. Massive investment would not only expand the GDP but also catalyze the GDP growth. Sequential flow of foreign direct investment (FDI) would lend a hand to improve its perception and image with other investors. It would signal the safe and favorable environment for business opportunities. It is a blessed opportunity where Pakistani business and corporate sector will be anchored to robust economy of the world. With largest foreign currency reserves of $3.6 trillion, it is able to create its own investment at home and abroad. It is the largest exporter in world with $2.34 trillion annual exports, while it is the third largest importer with annual import value of $1.96 trillion. China now leads as being one of the main financiers of Asian Infrastructure and Investment Bank (AIIB) with investments exceeding $20 trillion.
The BRI is a reality with clear vision put forward by China while recognizing the realities of the multipolar world order. China and Pakistan along with the other key leading players, BRI vision is a momentous event of our contemporary times. With visionary Chinese leadership, the day is not far away when the world will see the rise of peace, prosperity and development with equality and shared responsibility, community with shared prosperous future. The global community will need to put their heads together to understand and begin working to develop the aspiring economies of the entire global community for peace and prosperity.
Muhammad Asif Noor is director of Institute of Peace and Diplomatic Studies and Centre for Belt and Road and CPEC, Islamabad Pakistan, and secretary general of Pakistan-Shanghai Cooperation Organization Friendship Forum. The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.
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Muhammad Asif Noor
This year marks five years of the Belt and Road Initiative (BRI) – a mammoth ambitious geostrategic initiative in the contemporary history of world politics. Announced by President Xi Jinping in 2013 during his visits to Kazakhstan and Indonesia, respectively, the initiative involving 65 countries will see more than 200,000 jobs created, investment exceeding $70 billion and 75 overseas joint economic projects initiated. It has also seen 38 bilateral agreements made between China and other countries, 403 new direct flight routes and new shipping routes connecting 47 countries so far.
At least $7.48 billion has been invested while $47.8 billion in new engineering contracts were sealed. With such an unprecedented growth in just five years, the BRI is a new global world order. Established with a vision to create a shared future of peace and prosperity, the initiative has two major land and sea routes: the Silk Road Economic Belt and the 21st-Century Maritime Silk Road which are further divided into economic corridors. Apart from these, the BRI has five key aspects: infrastructure development, uninterrupted trade ties, financial integration, strengthening policy coordination and people to people exchanges. The key purpose of this global investment project is to enhance economic interconnectivity and to develop infrastructure across southeast Asia, Eurasia, the 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, the BRI has given tremendous opportunities to Pakistan. The China-Pakistan Economic Corridor as the flagship of the BRI has seen huge infrastructure built and economic development. Pakistan is at the crossroads of this gigantic Chinese initiative and has all the potential to take the benefits.
When in 2013, Xi announced this initiative, almost all the capitals of the world began sending positive responses. With its equality, openness and inclusiveness, the Belt and Road circle of friends has been expanding ever since and more countries and international organizations are joining the initiative. According to one estimate, the BRI covers almost two-thirds of the world’s population and has six corridors: China-Pakistan, Bangladesh-China-India-Myanmar, China-Indochina peninsula, China-Central Asia-West Asia, the New Eurasia Land Bridge and China-Mongolia-Russia. The approach adopted by BRI is that it is more outward rather than an inward looking approach. It further emphasizes the transport connectivity and economic cooperation among the countries and to establish and revive the old silk route hence to complement the grand Chinese strategy of creating new opportunities and open markets for new products without challenging the other powers. This project is multifaceted and multidimensional and with great diplomatic and geopolitical undertaking has morphed through series of interactions, from the “Modern Silk Road” to the “Belt and Road Initiative”. Many global experts have termed the “New Silk Road” the beginning of a new era of globalization. Most of the infrastructure is built on the pattern of the ancient Silk Road, but with the use of latest technology to meet modern infrastructure requirements. If we look back in history, the ancient Silk Road can be traced back to the Han Dynasty when China’s imperial envoy Zhang Qian helped the government to establish this route over 2,000 years ago. The ancient road was a network of trade routes that linked China to Central Asia and the Middle East. The road was named after China’s most important export – silk and played an important role in the development of the entire region for thousands of years.
China is spending an estimated $5 trillion on infrastructure development that spans Asia, the Middle East, Europe, and Africa. To make this global project a success, the global program is divided into two parts: the Silk Road Economic Belt and 21st-Century Maritime Silk Road.
The Silk Road Economic Belt is envisioned as three routes connecting China to Europe through Central Asia, the Middle East, the Mediterranean via West Asia and the Indian Ocean through South Asia whereas the 21st-Century Maritime Silk Road is planned to create connections among regional waterways. So far, over 60 states, with a combined gross domestic product of $21 trillion, have shown an interest in participating in the Road and Belt Initiative. Through this global route, China plans to link landlocked countries. Thus, it’s all about 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 the partners to enhance regional and economic growth, develop and integrate. For initial financial investment plans, China planned to spend an estimated $4-8 trillion budget on this mega project. For this purpose, it has established local banks to finance various projects, economic corridors and related plans. In 2014, Beijing established the $40 billion Silk Road Fund to finance these initiatives, and it has made investments in several key projects. These mega projects are just the start as BRI enters a new stage of more detailed and comprehensive development outlook.
Through BRI, the Chinese market will open up for new dimensions and destinations while the countries will benefit from the rising Chinese industries. The prosperity is not only tremendous for the regional countries and at the global level but it is also unstoppable.
The China-Pakistan Economic Corridor continued to remain the crown of the Belt and Road Initiative since its inception during the visit of Xi to Pakistan in April 2015. It is a Chinese vision of shared future and prosperity of the region beyond the horizon of Himalayas. The multi-million dollar project is one of the fastest and most effective projects within the Belt and Road Initiative completing its various phases with strength, dedication and the hard work of Chinese and Pakistan engineers, workers and supporters.
Being a flagship project of BRI, CPEC provides privilege to Pakistan in not waiting too long for experiencing the outcomes. Substantial projects such as roads and railway networks, infrastructure developments, Gawadar port development, energy related projects, Orange Line, Yellow Line, power plants will be viable before 2020, as their upshots start pouring, the belief of people will strengthen, giving it more endurance. With much of investment in Pakistan, CPEC is ensuring a boost to Pakistan’s economy. Massive investment would not only expand the GDP but also catalyze the GDP growth. Sequential flow of foreign direct investment (FDI) would lend a hand to improve its perception and image with other investors. It would signal the safe and favorable environment for business opportunities. It is a blessed opportunity where Pakistani business and corporate sector will be anchored to robust economy of the world. With largest foreign currency reserves of $3.6 trillion, it is able to create its own investment at home and abroad. It is the largest exporter in world with $2.34 trillion annual exports, while it is the third largest importer with annual import value of $1.96 trillion. China now leads as being one of the main financiers of Asian Infrastructure and Investment Bank (AIIB) with investments exceeding $20 trillion.
The BRI is a reality with clear vision put forward by China while recognizing the realities of the multipolar world order. China and Pakistan along with the other key leading players, BRI vision is a momentous event of our contemporary times. With visionary Chinese leadership, the day is not far away when the world will see the rise of peace, prosperity and development with equality and shared responsibility, community with shared prosperous future. The global community will need to put their heads together to understand and begin working to develop the aspiring economies of the entire global community for peace and prosperity.
Muhammad Asif Noor is director of Institute of Peace and Diplomatic Studies and Centre for Belt and Road and CPEC, Islamabad Pakistan, and secretary general of Pakistan-Shanghai Cooperation Organization Friendship Forum. The author contributed this article to China Watch exclusively. The views expressed 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.
