Prem Kumari Pant, Nepal
The Silk Roads is traditionally regarded as trading route of ancient Chinese civilization.
Trade in silk grew during the Han Dynasty in the first and second centuries.
Historically, the Silk Road is a unique example of intercontinental cooperation and collaboration not only of trade and commerce but also in the realm of ideas and cultures with a 2000-year history connecting Asia to Europe, the Silk Roads, will definitely play a key role in fostering greater connectivity and facilitating trade between South Asian countries, to a greater extent and also create a new trade corridor.
Since assuming power in 2013, President Xi Jinping has been making relentless efforts to help turn around the country.
His most important contribution is the launch of BRI, which carries both national and international importance. In a nutshell, the BRI is a visionary blueprint for global economic development in the 21st century.
The multi- dimensional international development program spans across more than 60 countries and regions from Asia to Europe via Central Asia, Southeast Asia, South Asia, West Asia and Middle East, which currently accounts for some 30 percent of global GDP and more than 35 percent of the world’s merchandise trade.
By 2050, the BRI aims to contribute 80 percent of global GDP growth, and elevate three billion more people into the middle class.
Nearly 70 countries and international organizations have already signed up for the initiative estimated to be worth US $ 5 trillion.
The resolution of major issues dogging the region can help regional assimilation.
The historical Silk Roads trading routes have inspired many people and it has been perceived as a modern metaphor for sharing and learning cross cultures, art and disciplines, a simile for exploring regional commonalities and an epithet to explore interests’ convergence among regional powers.
The participation of the concerned countries in the new Silk Roads projects will mark the return to the central stage.
The proposals on the BRI will increase trust, deepen economic cooperation and strengthen cultural interaction among the neighboring countries along the Road and Belt.
In his G-20 Summit speech President Xi gave high priority to infrastructure development. The new Silk Road initiative envisioned by President Xi Jinping, which entails the construction of a Silk Road economic belt as well as the Maritime Silk Belt paints a grand picture of the common development.
The BRI will strengthen China’s cooperation with Asian countries which is also China’s friendly policies towards its neighboring countries.
One of the grandest flagship projects of China, it seeks to positively augment the country’s role in global affairs.
When Chinese President Xi Jinping visited Central Asia and Southeast Asia during the period, he raised the initiative of jointly building the Silk Road Economic Belt and the 21st-Century Maritime Silk Road.
Essentially, the ‘belt’ includes countries situated on the original Silk Road through Central Asia, West Asia, the Middle East, Africa and Europe.
The initiative calls for a broader integration of the region as a cohesive economic power through building infrastructure, increasing cultural exchanges, and broadening trade.
Apart from this zone, which is largely analogous to the historical Silk Road, another area that is said to be included in the extension of this ‘belt’ is South Asia and Southeast Asia.
Many of the countries that are part of this ‘belt’ are also members of the China-led Asian Infrastructure Investment Bank (AIIB).
The Bank founded by China in 2014 with the participation of 56 other countries dedicated to easy lending for their development projects.
China substantiated its integrated blueprint of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road (MSR)—the twin initiatives covered by the conceptual umbrella of the “BRI”.
China’s soaring vision envisages that the Silk Roads, once completed, would impact 4.4 billion people and, within a decade, generate trade above $2.5 trillion. Projects like these were the real reasons for backing the resurgence of Eurasia, marking a real paradigm shift in the global economy under President Xi.
During the course of history, large and small countries have extracted economic benefits from the renowned Silk Road, whereas the territorial connectivity also made exchange of people and ideas possible, promoted cultural and social advancement, and facilitated dialogue and integration among different civilizations.
In today’s economically progressive world, compared to Europe, South East Asia and North America, regional cooperation in Asia remains inadequate and frail regional integration.
Recognizing the fact that regional integration is an inevitable measure to meet the demands of economically globalized world, the notion of Silk Road was reformulated and rephrased by China in 2013 under ‘BRI i.e., Economic Belt along the Silk Road.
For the countries and regions ratifying the concept of ‘BRI’, the project holds opportunities like systemic innovation; infrastructure development; improved business environment; harmonization in the flow and distribution of sources of production, means of production and relations of production; development of landlocked states and remote areas, lowering costs of trade and investment barriers; and verve for reforms in national policies.
Favorably, the project is not a start from scratch; rather the initiatives are a continuation and upgrading of existing cooperation.
A suitable way forward for the states party to the initiative would be to consider linking their existing, upcoming and future projects together into an integrated package that may lead to multiplied cost-effectiveness.
Asian countries have to accept diversity that exists in them history, culture, religion and level of development.
It is high time to develop harmony, to bridge differences by seeking common grounds and to attain mutual benefits through soft power perspective.
Strengthening people to people exchanges across a spectrum of areas and faiths would be a positive step to ensure peace and development in Asia.
Endorsing upon a pragmatic approach, states should invoke various cooperation initiatives and mechanisms under the auspices of ‘BRI to make it more effective and mutually reinforcing.
The initiative stands complementary to the on-going process of the Eurasian Economic community, providing platform to partner countries to come together, discuss strategies, harmonize state’s individual and collective positions through consultation, and formulate corresponding plans.
It provides a chance to improve cross-border transportation infrastructure, facilitate trade and investment, endorse greater trade settlement in local currencies, draft more currency swap schemes, strengthen bilateral and multilateral financial cooperation, set up financial institutes for regional development, bring down transaction costs, enhance capacity to fend off financial risks and make the region’s economy more competitive globally.
As the conditions are ripe, the projects of common interests among partner states, such as road, railway, aviation, river and maritime shipping, energy, resources, pipeline, electricity and telecommunication, should be consulted and implemented immediately.
‘BRI’ is an enduring methodical project that cannot be done overnight, thus states should undergo step-by-step advancement and resilience in their economic setup by creating more growth points.
Asia is acknowledged as the engine of global growth and a key driver for multi-polarization and economic globalization.
The “BRI” run through the continents of Asia, Europe and Africa, connecting the vibrant East Asian economic circle at one end with the developed European economic circle at the other.
Specifically, the BRI focuses on bringing together China, Central Asia, Russia and Europe; linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and West Asia; and connecting China with South-East Asia, South Asia and the Indian Ocean.
China wishes to leverage Tibet geographic location to extend a Silk Road to Nepal.
# The opinions expressed in the article are those of the author’s: Ed. Upadhyaya N. P.
Our contact email address is: editor.telegraphnepal@gmail.com