week 8 Flashcards
Belt and Road Initative
aka one belt one road
created by Xi Jinping in 2013 linking maritime and land trade routes
more than 146 countries in 2022, including 55 African countries
cost of the project is rising (1.3 trillion in 2020)
all levels of gov, major state-owned companies, and commercial banks are all involved
Original Silk Road
arose during the westward expansion of China’s Han Dynasty (206 BCE–220 CE), which forged trade networks throughout what are today the Central Asian countries of Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, as well as modern- day India and Pakistan to the south.
* Those routes extended more than four thousand miles to Europe.
A successful BRI would allow China to
more efficiently utilize excess savings and construction capacity, expand trade, consolidate economic and diplomatic relations with participating countries, and diversify China’s import of energy and other resources through economic corridors that circumvent routes that are controlled by the U.S. and its allies.
Silk Road Economic Belt
On land, Beijing aims to connect the country’s underdeveloped hinterland to Europe through Central Asia
Maritime Silk Road
The second leg of Xi’s plan is to build a 21st Century Maritime Silk Road connecting the fast-growing Southeast Asian region to China’s southern provinces through ports and railways
BRI objectives
Creating a vast network of railways, energy pipelines, highways, and streamlined border crossings, both westward —through the mountainous former Soviet republics —and southward, to Pakistan, India, and the rest of Southeast Asia.
* Such a network would expand the use of Chinese currency, the renminbi
* In addition to physical infrastructure, China plans to build 50 economic zones
5 Priorities of BRI
policy coordination, infrastructure connectivity, unimpeded trade, financial integration, and connecting people
China’s motivation behind BRI
motivated to boost global economic links to its
western regions, which historically have been neglected.
By so doing it is engaging different parts of China in development and globalization.
expanding military agenda and political influence leading to the possibility of reshaping the nature of global leadership.
Debt trap diplomacy
through BRI, china is critiqued for providing infrastructure funding to developing economies under opaque loan terms, only to strategically leverage the recipient country’s indebtedness to China for economic, military, or political favor
Cons of BRI
For some countries that take on large amounts of debt to fund infrastructure upgrades, BRI money is seen negatively.
BRI projects are built using low-interest loans as opposed to aid grants. Some BRI investments have involved hidden bidding processes and require the use of Chinese firms.
As a result, contractors have inflated costs, leading to canceled projects and political backlash.
Pros of BRI
stimulating development in previously non-developed places – African places – the railway lines, ports, better built
Sri Lanka’s Hambantota port
example of debt-trap diplomacy
exchange for a 99-year lease of the Sri Lankan
port in 2017
BRI & Africa
- 2015 – at FOCAC in South Africa – BRI scarcely
mentioned - 2016 - China declared Africa significant partner in BRI
- 2018 – BRI is the center! Almost everything is BRI at
FOCAC – Infrastructure is the keyword! - 2021 – at FOCAC – Infrastructure is not mentioned
Criticisms of China’s Exporting Authoritarianism
BRI has been criticized as an effort to export China’s authoritarian model, as a number of major loan recipients have poor records of democracy and civil liberties (e.g., Venezuela in Latin America, Cambodia and Laos in Asia, and Sudan and Zimbabwe in Africa).
* While the advanced economies have generally been critical of the initiative, Italy broke ranks with the rest of the G-7 and signed up for BRI in 2019 but signed off in 2023!
* The West could be more effectively engaged than
criticizing China e.g. IMF loans and forcing China to be
more transparent!
Development Partnership View
Development and implementation of infrastructure and industry
Increasing African infrastructure boosts China’s exports, uses China’s excessive labor force, and transfers industries to Africa
Competitive View
China is using Africa to compete with European countries and the US
Beneficial View
China’s relationship with African countries has had multiple socio-economic benefits, such as increased jobs
China is a leader in investment, FDI, loans, and aid in Africa
Colonial View
Through BRI and Chinese loans, African countries have transitioned from European colonies to being apart of imperial China
Economic Trap View
China has used loans to economically trap African countries
China then politically influences these countries
Resource Driven View
China is using Africa for easier access to minerals and raw materials as well as cheap labor
undermine’s Africas growth and industralization
Reasons why Kenya is a center point for BRI in Africa
large coastal and regional economy
geographical position (Mombasa port & borders South Sudan (which China needs to export oil from))
historical 15th-century links
Kenya has few trade, security, political, and economic links with China
Standard Gauge Railway
flagship project for Kenya’s Vision 2030 development agenda & aligns with the Railways Master Plan of East Africa to revive & expand the railways of Tanzania, Uganda, and Kenya
from Mombasa (the largest East African port) to Kenya’s capital Nairobi (phase 1) and eventually to Naivasha (phase 2)
Phase 1 cost $3.8 billion (5% of Kenya’s GDP)
Built by the China Road and Bridge Corporation according to Chinese railway standards
The largest infrastructure project in Kenya for cargo and passenger transportation
The loan matured in August 2023, with a 10-year grace period & a 40-year repayment plan
