The 10 years of the Belt and Road Initiative: reflections and learnings

During the month of October in Beijing, China, will be carried out third Belt and Road Forum for International Cooperationwithin the framework of this event the 10 years of the Belt and Road Initiative, the BRI, are commemorated.

Its main purpose will be to promote this initiative as one of the main platforms for global economic cooperation, focusing on deepening the connectivity and development of the countries that comprise it. At this meeting, various experiences will be shared in order to trace and plan their continuity and future.

How the BRI was born

President Xi Jinping10 years ago, in a speech at Nazarbayev University in Astana, the capital of Kazakhstan, he presented the idea of ​​creating an economic belt based on the ancient Silk Road. It is so The BRI was born with the objective of achieving openness and growth with inclusion, seeking prosperity through mutually beneficial cooperation.

Precisely with that country, the first major project of logistics infrastructure was built within the framework of BRI, the China-Kazakhstan Logistics Cooperation Base. It is located in Lianyungang, China, more than 4,000 kilometers from Astana. It has allowed Kazakhstan to gain an “exit to the sea” from the Pacific Ocean and become a major transportation hub connecting Asia and Europe, and the Chinese city to go from being a small shipyard to becoming a land and intermodal transportation hub. maritime of international level.

It is worth mentioning that in turn, an investment fund was created and the Asian Infrastructure Investment Bank (AIIB) was founded, a multilateral financial institution to carry out the portfolio of projects linked especially to logistics infrastructure works in the various countries that are part of this initiative.

Initially the BRI was focused on the countries of Central Asia, who shared the history of the ancient Silk Road. Subsequently, countries from other continents joined, currently reaching more than 150 countries from all regions of the world and the membership of more than 30 international organizations.

Some results, reflections and learnings

As a result, during these 10 years, More than 3,000 projects were completed throughout 150 countries around the world, exceeding one trillion dollars in investments.

For example, the total value of foreign trade carried out through China-Europe freight trains from 2013 to the present was about 30 billion dollars, more than 13,000 trips of such trains, across 69 train routes that They unite both regions.

Of course, the BRI has been evolving and mutating based on the real and concrete needs of the world and considering the experiences that were obtained.

In its beginnings, the implementation of the BRI was lax and criticized in socio-environmental terms. The second Belt and Road Forum, which took place in 2019, was very important, where the need to incorporate more projects linked to environmental care was presented as great challenges. Thus, China incorporated policies and guidelines in this regard and currently environmental protection and biodiversity play a key role in discussions and projects.

On the other hand, the launch of the initiative occurred in a context in which its purpose was based on the search for large-scale projects to use productive surpluses, promoting certain key sectors and exporting technology and materials of Chinese origin. After the pandemic there were certain changes in financing. Smaller scale projects began to be included, replacing megaprojects (which in many cases are more complex to carry out); More innovative initiatives linked to the green economy also began to be seen.

Although many projects have been completed and generated important and positive impacts in the recipient countries, many challenges remain to be overcome so that the benefits and results are even greater and effective.

In relation to this, the recent World Bank report argues that the BRI carries great potential to promote and grow in terms of trade, foreign investments and improve the living conditions of the citizens of the countries that comprise it. However, this is possible as long as their governments manage to carry out profound reforms in political terms in order to increase transparency, trade, improve debt sustainability, and environmental and social care. Likewise, the document concludes that infrastructure projects help reduce differences in terms of infrastructure and policies in the economies of the countries that comprise them, although in many cases they are too expensive.

What is expected from this Third Forum

For this third Forum of the Belt and Road Initiative for International Cooperation, joint work will be carried out with the international community to share results and experiences with the purpose of outlining and planning the continuity of a high-quality Belt and Road .

More than 110 countries have already confirmed their presence and participation, including leaders, ministers, businessmen, experts and representatives of various international organizations.

The event agenda includes an opening ceremony with leaders from all over the world, three high-level forums on connectivity, ecological development and the digital economy, as well as six other forums specialized in various topics including trade, people exchanges and an ideas laboratories.

President Alberto Fernandezin what will be the last official trip of his mandate, will travel to China seeking to increase cooperation and exchange in economic, financial and commercial matters with China and with other member countries of the Belt and Road Initiative, and especially promote the recent incorporation of Argentina to the BRICS.

Graduate in International Trade (UCES). Master in International Economic Cooperation and PhD in International Economics (University of International Business and Economics, UIBE China)