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Introduction
During a speech to the Indonesian Parliament in October of 2013, Chinese President Xi
Jinping announced China’s plans to launch a series of infrastructure investments that
would allow China to connect with economies throughout East, South, and Central Asia
and on to the Middle East and Europe called the , One Belt, One Road Initiative
(OBOR). Today, it has been dubbed one of the largest investment projects in history in
that affects more than 68 countries and 65% of the world’s population but as it
continues to expand, we must consider, should it be seen as a threat or supported, how
it will affect developing countries and its overall global political and economic impact.
Term Definition
One Belt, One Road (OBOR) A foreign policy and economic initiative
that would create a cohesive economic
infrastructure for developing participating
parties.
21st Century Maritime Silk Road (MSR) The maritime route of the OBOR
The OBOR initiative consists of the Silk Road Economic Belt (SREB) (the land route)
and the Martine Silk (MSR) (the maritime Route). Through such connections, the OBOR
initiative is possible. The SREB consists of economic corridors that connected
infrastructure networks that stimulate economic development that include the
China-Pakistan Economic Corridor (CPEC), Bangladesh-China-Myanmar Economic
Corridor (BCIM), The New Eurasia Land Bridge Economic Corridor (NELB), The
China-Mongolia-Russia Economic Corridor (CMREC), China-Central Asia-West Asia
Economic Corridor (CCWAEC), China- Indochina Peninsula Economic Corridor
(CICPC). Without such corridors, China would not have access to a vast majority of
countries in the European Union, East Europe ,and West Asia and North Africa.
The promise of the OBOR initiative to developing nations has made it wildly attractive.
Such countries believe that will enable economic growth through massive investments
by China in local transmission projects. For example, a country that is landlocked like
Nepal joined the OBOR has improved cross-border connectivity with China and other
neighboring countries. Furthermore, a country like Pakistan could greatly benefit from
their participation in the initiative as it will provide benefits from the China-Pakistan
Economic Corridor that provides them access to the Arabian Sea routes.
Concerns have arisen since the initial proposal of the initiative. Even though President
Xi Jinping promised that China has no intention of interfering with the internal affairs of
other countries, colonial and economic imperialism has been a growing and observed
the feature of the OBOR initiative. Compared to previous routes used by colonial
powers to exploit and control various communities. It eerily compares to a Japanese
plan that similarly promised to provide work for Japan’s recession-hit construction sector
by building Japanese infrastructures around Asia. It failed to even get off the ground as
allegations of corruption surrounded the project. Now, through the establishment of the
OBOR, China has begun to plant itself with developing nations.
Through the establishment of the OBOR initiative, China has the potential to yield
serious economic and even more political gain. China aimed to boost its own domestic
growth through “show” of economic diplomacy. For example, regions in China that are
less developed can trade with neighboring countries. Opening new markets would be
beneficial for the Chinese economy. China is seeking to acquire raw material and
secure new energy supplies from Central Asia, while it aims to increase its access to
European markets by land. Geopolitics has taken up a large portion as to explaining
and strategic planning of China.
Officials fear that the OBOR may facilitate criminal activity. Believing that China is using
the OBOR to “debt-trap” countries to further their own goals. As they build
Infrastructures that control parts of the developing nation, the nation becomes
dependent and submissive to China’s rule– such as over territorial disputes in the South
China Sea or silence on human rights violations. Furthermore, the presence of crime is
sense as China may be sacrificing the security of the participating nations as its focus is
on making a profit. If these infrastructures built by China do not possess the proper or
required security features, all efforts and resources may well have been wasted. Lastly,
the OBOR’s railroad infrastructures have proven difficult to monitor. Allowing for an
increase in illegal activity due to inadequate border patrols. These may facilitate illegal
activity such as but not limited to; human trafficking and drug trafficking.
Long-term feasibility has been in question since the OBOR but with recent studies
conducted by ChinaPower, it was reported that OBOR infrastructure projects within
Central Asia, Myanmar and Pakistan are projects to lose vast amounts of money due to
underutilization. Majority of the OBOR projects have been expected to increase benefits
after a long period of time but growing capital will tie-up. Despite these obstacles, it is
important to factor in that the OBOR was designed as a long-term plan. That a vast
majority of proposed projects are still in its planning phases. Despite the fact that it will
be many years before we actually see the success of the OBOR initiative, it certainly
has the potential to create a cohesive economic infrastructure for developing nations.
Silk Road Economic Belt and the 21st Century Maritime Silk Road
The Silk Road Economic Belt (SREB) connects countries such as but not limited to,
China, Central Asia, Russia ,and Europe; though the use of the Mediterranean Sea and
the Persian Gulf that runs through Central and West Asia. While the 21st-Century
Maritime Silk Road connects China's coast to Europe through the South China Sea and
the Indian Ocean in one route, and from China's coast through the South China Sea to
the South Pacific in the other route.
Sri Lanka
Sri Lanka stands as an example as to how China’s OBOR can devastate a developing
nation. In 2014, Sri Lanka with the grand assistance of the Chinese built the Mattala
Rajapaksa International Airport (MRIA) in Hambantota. Spending an estimated $190
million, over 90% of the total cost. Unable to repay China, Sri Lanka decided to give the
airport to India so that it can reimburse the Chinese loans. Forcing them to face a debt
crisis.
Republic of India
The Republic of India has previously condemned the OBOR initiative. India’s distrust
and rejection not only stemmed from the initiative benefit is long-time enemy, Pakistan
but the Indian Government felt threatened by OBOR’s growing influence over the
neighboring countries. The Indian Government sought out to decrease the soft power of
the Chinese Government by countering the advance and infrastructure plans made in
participating nations. For example, India proposed to become a major investor in
Southeast Asia. For China, one of the most important countries in the Philippines as it
would provide them with access to the Pacific. As a counter, the Philippine government
reported that the Indian government had pledged more than $1.25 billion in 2018. Such
an investment would create upwards of 100,000 jobs within the country. The investment
would have made India the second-largest foreign investors in the Philippines behind
the Netherlands, followed by China and Australia.
Timeline of Events
May, 2017 Beijing held the first Belt and Road Forum for
international Cooperation.
July, 2018 95% of the listed outcomes from the Belt and
Road Forum for International Cooperation
has been accomplished.
Possible solutions to the OBOR initiative may focus on transparency on all related
plans, which would allow for a check and balance between China and other participating
nations. Through the publication of such documents with the public could increase
accountability between nations and multilateral cooperation. Furthermore, cooperation
between the appropriate UN bodies such as UNESCAP and the International Labour
Organization (ILO), would allow the revision and moderation of OBOR plans to ensure
that they adhere to human rights and labor standards.
Overall, to resolve any future or current issues with the OBOR it is important to secure
Chinese cooperation through the possible use of inducements. Without such
cooperation all endeavors to resolve the issue will countries will fail.
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