Global partnerships need local help
By Li Yong |
chinawatch.cn |
Updated: 2019-03-13 17:14
As leaders from around the world gather in Beijing for the second Belt and Road Forum, it is a good opportunity to take stock and reflect upon what has happened since the Belt and Road Initiative was first announced by President Xi Jinping in 2013. Since then, and especially since the first Belt and Road Forum two years ago, the BRI has become globally known, and the initial focus on a more narrow set of countries along the ancient silk roads has been broadened to include and connect virtually all parts of the globe.
From day one, the BRI has been a reflection of China’s commitment to multilateralism. It has provided a new mechanism for win-win cooperation, common development, prosperity, peace and mutual understanding among countries. This promise has become even stronger as the thematic scope of the initiative has been widened from an initial focus on increasing infrastructure connectivity to one that embraces cooperation in such areas as industrial development, technology and knowledge transfer, cultural exchanges and sustainable development.
In the same vein, the BRI has amplified its potential to be "developmental". As much as a development perspective is now being applied to the initiative, this is where it could first and foremost benefit and create synergies with the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs), adopted by member states of the United Nations in 2015. This is also where the BRI could become an effective and innovative tool to reinvigorate South-South and triangular industrial cooperation in the long run.
Many of the countries along the BRI are still in the process of development, but many exhibit great potential for near-future growth if the right partnerships can be put in place. To advance on the SDGs, financing partnerships remain a key topic for them. The financing needs of the 2030 Agenda in developing countries are estimated to be at least $1 trillion annually for infrastructure investments alone. Increased investments in infrastructure, energy and manufacturing through the Belt and Road undoubtedly have a potential to help bridge this financing gap and – consequently – advance the SDGs.
The SDGs that are closely related to the thematic scope of the BRI are likely to benefit the most. They include SDG 9 which focuses on "building resilient infrastructure, promoting inclusive and sustainable development and fostering innovation". By seizing the opportunity to participate in the BRI, many developing countries could face a unique window of opportunity in their journey along the road to industrialization and modernization, a journey that is likely to lead through trade and innovation powered by increased investments and infrastructure connectivity.
At the same time, a number of preconditions will have to be met to ensure that the BRI truly fulfills its potential to act as an accelerator for achieving the SDGs. The UN has a chance to play a tangible role in this process by matching the development needs of individual countries to the solutions and capacities of others, and ensuring that cooperation under the BRI upholds the highest levels of quality and sustainability standards. Coincidentally, this will also help to defy criticism from those who have been worrying that investments along the BRI could expose participating countries to financial and other risks.
As a specialized UN agency mandated to foster inclusive and sustainable industrial development (ISID) in its member states, UNIDO has been working with governments, business associations, companies, academia and other stakeholders to solve industrial development challenges for more than 50 years, earning a reputation as one of the world’s most experienced industrial problem-solvers and industrial policy advisers, owing particularly to its role as a neutral and honest broker in the promotion of international cooperation.
UNIDO has engaged with China and other countries on the BRI right from the beginning. Early on, the organization seized upon the opportunity to see the BRI as an innovative model for enhanced South-South and triangular cooperation. Dedicated technical cooperation projects have been implemented along the continental and maritime silk roads, connecting countries on such key topics as green industrial park development and others more.
During the first BRI Forum two years ago, UNIDO also signed several key agreements with the Chinese government in support of the BRI, aiming to facilitate the exchange of best practices among countries along the Belt and Road. Based on these, UNIDO and the Chinese government subsequently signed a joint action plan, with a list of dedicated priority projects that are currently being put in practice. These include initiatives to strengthen knowledge and experience-sharing through South-South and triangular cooperation in such areas as joint industrial development research, energy and trade capacity-building. In the long run, these interventions will contribute to bridging regional economic divides and foster employment opportunities.
The second Belt and Road Forum provides an opportunity for UNIDO and others to further broaden their engagement in the BRI, for example, by joining the International Coalition for Green Development on the Belt and Road to be launched. In so doing, UNIDO can build on the lead role it has taken in recent years on the issue of greening the BRI in the context of the China Council for International Cooperation on Environment and Development (CCICED), a high-level policy think tank reporting directly to the State Council.
As we set our eyes on a reinvigorated, inclusive and sustainable BRI, there is one dimension which is sometimes overlooked in development discourses on the BRI: the city dimension, which is key among country cooperation at the macro-level and business deals at the micro-level. As partnerships and coalitions progress, there is a need to also connect and "bridge" cities, as local actors are most directly involved in tying the knots that can make the ancient silk roads a reality again.
Currently, more than 50 percent of the world’s population lives in cities. The importance of cities and the mutual interdependence between sustainable urban and industrial development cannot be overstated as cities not only generate more than 70 percent of global wealth, but also produce 70 percent of global greenhouse gas emissions. Industrialization today would be unthinkable without the “agglomeration economies” that cities provide, neither without their creative potential as hubs of innovation, nor without them being the sites of production and hosts of industrial parks. On the downside, a lot of the negative environmental impact of industrial activities is still generated in cities, where it heavily affects citizens in the form of air, water and soil pollution. Global sustainability will therefore not be possible without ensuring the sustainability of cities and by addressing the urbanization-industrialization nexus in all its dimensions.
In recognition of the centrality of cities, not only as geographic signposts on the Belt and Road, but also as actual places where many of the development issues and cooperation projects could play out in the future, UNIDO joined hands with other partners, including the Finance Center for South-South Cooperation, to organize an annual flagship event titled Bridge for Cities. The event provides a platform through which cities can share their development challenges and experiences, and ultimately improve their local capacities through new partnerships.
After three successful editions, Bridge for Cities is by now recognized as a fixture on the Belt and Road agenda. In its own particular way, it has managed to adapt the five pillars of the BRI at the urban level. It has, among other things, advanced policy coordination and enhanced connectivity by facilitating city cooperation. By extension it has also contributed to strengthening people-to-people bonds.
This year’s event is set to take place in Vienna on Sept 3 and 4, and will be devoted to discussing how cities can benefit from the opportunities brought about by the New Industrial Revolution to address urban challenges. The event will carry forward key messages and insights derived from the Belt and Road Forum and discuss how to employ them for making the 2030 Agenda for Sustainable Development and the SDGs a reality in cities.
This year will see discussions on the Belt and Road surely move on from securing international political will and commitment to concrete partnerships and cooperation projects, it also marks the 40th anniversary of cooperation between China and the United Nations, including UNIDO. For UNIDO, this milestone will be an ambition and motivation to step up its efforts to support China’s global agenda and constructing of a community of shared destiny for all mankind -- never forgetting that eventually global partnerships require local ties.
The author is director general of the United Nations Industrial Development Organization.
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.
As leaders from around the world gather in Beijing for the second Belt and Road Forum, it is a good opportunity to take stock and reflect upon what has happened since the Belt and Road Initiative was first announced by President Xi Jinping in 2013. Since then, and especially since the first Belt and Road Forum two years ago, the BRI has become globally known, and the initial focus on a more narrow set of countries along the ancient silk roads has been broadened to include and connect virtually all parts of the globe.
From day one, the BRI has been a reflection of China’s commitment to multilateralism. It has provided a new mechanism for win-win cooperation, common development, prosperity, peace and mutual understanding among countries. This promise has become even stronger as the thematic scope of the initiative has been widened from an initial focus on increasing infrastructure connectivity to one that embraces cooperation in such areas as industrial development, technology and knowledge transfer, cultural exchanges and sustainable development.
In the same vein, the BRI has amplified its potential to be "developmental". As much as a development perspective is now being applied to the initiative, this is where it could first and foremost benefit and create synergies with the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs), adopted by member states of the United Nations in 2015. This is also where the BRI could become an effective and innovative tool to reinvigorate South-South and triangular industrial cooperation in the long run.
Many of the countries along the BRI are still in the process of development, but many exhibit great potential for near-future growth if the right partnerships can be put in place. To advance on the SDGs, financing partnerships remain a key topic for them. The financing needs of the 2030 Agenda in developing countries are estimated to be at least $1 trillion annually for infrastructure investments alone. Increased investments in infrastructure, energy and manufacturing through the Belt and Road undoubtedly have a potential to help bridge this financing gap and – consequently – advance the SDGs.
The SDGs that are closely related to the thematic scope of the BRI are likely to benefit the most. They include SDG 9 which focuses on "building resilient infrastructure, promoting inclusive and sustainable development and fostering innovation". By seizing the opportunity to participate in the BRI, many developing countries could face a unique window of opportunity in their journey along the road to industrialization and modernization, a journey that is likely to lead through trade and innovation powered by increased investments and infrastructure connectivity.
At the same time, a number of preconditions will have to be met to ensure that the BRI truly fulfills its potential to act as an accelerator for achieving the SDGs. The UN has a chance to play a tangible role in this process by matching the development needs of individual countries to the solutions and capacities of others, and ensuring that cooperation under the BRI upholds the highest levels of quality and sustainability standards. Coincidentally, this will also help to defy criticism from those who have been worrying that investments along the BRI could expose participating countries to financial and other risks.
As a specialized UN agency mandated to foster inclusive and sustainable industrial development (ISID) in its member states, UNIDO has been working with governments, business associations, companies, academia and other stakeholders to solve industrial development challenges for more than 50 years, earning a reputation as one of the world’s most experienced industrial problem-solvers and industrial policy advisers, owing particularly to its role as a neutral and honest broker in the promotion of international cooperation.
UNIDO has engaged with China and other countries on the BRI right from the beginning. Early on, the organization seized upon the opportunity to see the BRI as an innovative model for enhanced South-South and triangular cooperation. Dedicated technical cooperation projects have been implemented along the continental and maritime silk roads, connecting countries on such key topics as green industrial park development and others more.
During the first BRI Forum two years ago, UNIDO also signed several key agreements with the Chinese government in support of the BRI, aiming to facilitate the exchange of best practices among countries along the Belt and Road. Based on these, UNIDO and the Chinese government subsequently signed a joint action plan, with a list of dedicated priority projects that are currently being put in practice. These include initiatives to strengthen knowledge and experience-sharing through South-South and triangular cooperation in such areas as joint industrial development research, energy and trade capacity-building. In the long run, these interventions will contribute to bridging regional economic divides and foster employment opportunities.
The second Belt and Road Forum provides an opportunity for UNIDO and others to further broaden their engagement in the BRI, for example, by joining the International Coalition for Green Development on the Belt and Road to be launched. In so doing, UNIDO can build on the lead role it has taken in recent years on the issue of greening the BRI in the context of the China Council for International Cooperation on Environment and Development (CCICED), a high-level policy think tank reporting directly to the State Council.
As we set our eyes on a reinvigorated, inclusive and sustainable BRI, there is one dimension which is sometimes overlooked in development discourses on the BRI: the city dimension, which is key among country cooperation at the macro-level and business deals at the micro-level. As partnerships and coalitions progress, there is a need to also connect and "bridge" cities, as local actors are most directly involved in tying the knots that can make the ancient silk roads a reality again.
Currently, more than 50 percent of the world’s population lives in cities. The importance of cities and the mutual interdependence between sustainable urban and industrial development cannot be overstated as cities not only generate more than 70 percent of global wealth, but also produce 70 percent of global greenhouse gas emissions. Industrialization today would be unthinkable without the “agglomeration economies” that cities provide, neither without their creative potential as hubs of innovation, nor without them being the sites of production and hosts of industrial parks. On the downside, a lot of the negative environmental impact of industrial activities is still generated in cities, where it heavily affects citizens in the form of air, water and soil pollution. Global sustainability will therefore not be possible without ensuring the sustainability of cities and by addressing the urbanization-industrialization nexus in all its dimensions.
In recognition of the centrality of cities, not only as geographic signposts on the Belt and Road, but also as actual places where many of the development issues and cooperation projects could play out in the future, UNIDO joined hands with other partners, including the Finance Center for South-South Cooperation, to organize an annual flagship event titled Bridge for Cities. The event provides a platform through which cities can share their development challenges and experiences, and ultimately improve their local capacities through new partnerships.
After three successful editions, Bridge for Cities is by now recognized as a fixture on the Belt and Road agenda. In its own particular way, it has managed to adapt the five pillars of the BRI at the urban level. It has, among other things, advanced policy coordination and enhanced connectivity by facilitating city cooperation. By extension it has also contributed to strengthening people-to-people bonds.
This year’s event is set to take place in Vienna on Sept 3 and 4, and will be devoted to discussing how cities can benefit from the opportunities brought about by the New Industrial Revolution to address urban challenges. The event will carry forward key messages and insights derived from the Belt and Road Forum and discuss how to employ them for making the 2030 Agenda for Sustainable Development and the SDGs a reality in cities.
This year will see discussions on the Belt and Road surely move on from securing international political will and commitment to concrete partnerships and cooperation projects, it also marks the 40th anniversary of cooperation between China and the United Nations, including UNIDO. For UNIDO, this milestone will be an ambition and motivation to step up its efforts to support China’s global agenda and constructing of a community of shared destiny for all mankind -- never forgetting that eventually global partnerships require local ties.
The author is director general of the United Nations Industrial Development Organization.
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.