This is the first volume which deals with the BRI, its multiple projects and its contribution towards economic development and the international implications in international trade and international financial institutions. This book does not just provide a description of the multiple projects of the BRI, but instead integrates various theories of economic development with the practice of the BRI, so that theories of economic development have been discussed in great detail to explain the importance of the BRI to economic growth.
Volumes I and II go far beyond the Ancient Silk Road because the present BRI has greater implications in economic and geostrategic and therefore in political terms, especially as it spreads across all continents; for example, it includes huge investments in South America and the African continent. Although the Ancient Silk Road has not been ignored, however the two volumes concentrate on the present BRI to highlight its importance in economic development in numerous economies and its impact on international relations. The importance of the Ancient Silk Road has been explained but to emphasize its role too much would distract from the importance of the present BRI. Instead, both volumes concentrate on the current BRI as a precursor to a shift from a unipolar towards a multipolar world order.
The present Silk Road Initiative goes back to the 1970s, including various projects which have become of the BRI. The âgo outâ policy to find raw materials required for Chinaâs growth of her domestic economy has been formulated first during the 1990s eventually also contributed to the present BRI. Chinaâs âgoing outâ policy was first announced in 2001 to find markets in other countries for Chinaâs exports. Hence, the Tenth Five-Year Plan (2001-05) also contributed significantly to the creation of the present BRI. Other Five-Year Plans, such as the Eleventh Five-Year Plan (2006â2010) and the Twelfth Five-Year Plan (2011â2015), also elaborated further on the potential of a future BRI.
These two volumes analyse the Belt and Road Initiative (BRI) to explain its importance within the Global Economy. The first volume will analyse trade and economic development in regard to the BRI, and the second volume explains the changing international financial system and the implications of such changes. The analysis cuts across multidisciplinary fields, especially as economic decisions are made within a political framework which has legal as well as social implications. Even though these two volumes are primarily concerned with the economic ramifications of the BRI, the political, sociological and legal implications will be analysed in detail as well. An analysis of the BRI from only one aspect would be only a partial and therefore a limited perspective, so that a multidisciplinary approach is taken to provide a more comprehensive understanding of the functions and operations of the BRI. These two volumes also discuss in-depth various economic theories which relate to economic growth and economic development to explain how various economic development theories relate to the BRI; in other words, the theoretical discussions explain how various economic theories actually are implemented in practice; so that there is a reciprocal relationship between theory and practice.
Many of the countries which are part of the BRI have different economies and relate to each other in multiple ways, so that the economic conditions of the participating countries have to be considered before appropriate economic theories can be applied. There is no one single economic theory that is applicable to all countries equally. There are no economic theories which can be adopted without taking account of the specific economic conditions of all participating countries; hence, there is âno one size fits allâ so that economic theories have to be adapted towards the economic conditions of specific countries.
The BRI is a global phenomenon so that its implications for the global economy cannot be discussed without relating it to the operation and reform of the international financial system and how it will be able to promote international trade and economic growth and development, including Chinaâs international trade relations and how the progression of the BRI will affect the economies of China, of the participating countries and the global economy as a whole.
If the BRI will be successfully implemented, it will have a considerable impact on the rise and fall of different economies. This will lead eventually towards a new world order in economic as well as in international relations. Hence, it is essential to discuss economic and financial theories in detail before the BRI can be assessed properly. The implementation of the BRI is essentially a multinational project on a global scale to enhance the interconnectivities between people and economies, so that the infrastructures to promote such interconnectivity are fully described and assessed.
China is an emerging power and through the implementation of the BRI China is at the forefront of globalization while declining powers are trying to erect tariff walls. The implications of a successful implementation of the BRI will be discussed at length in this book which goes beyond a mere description of the projects of the BRI and economic development of the participating countries; so that it analyses the possible international economic and political consequences on a global scale as well. However, various policies of countries which are opposed to the BRI may attempt to interfere with the successful implementation of the BRI together with the political consequences of a successful implementation of the BRI will be discussed as well; although such scenarios including their outcomes are difficult to predict.
The function and implications of the BRI are of greater importance than its name. The BRI is to facilitate the interconnectivity between nations, so that the BRI referred to in this book is considerable wider than the ancient Silk Road and the purpose of it has extended now to almost all continents. Hence, the BRI as regarded in this book is wider than the conventional conception of the Silk Road but extends across the five continents. This book deals with Chinese projects on a global scale rather than just be concerned with those that are located within the geographical location of the ancient Silk Road; instead, it describes the construction of infrastructure on a global scale to enhance connectivity between countries. Furthermore, alternative routes such as the Northern Sea Route are also analysed as such routes are interrelated with the BRI. After describing various projects in multiple regions of the BRI, an analysis of how the development of infrastructure will lead to economic growth and development will follow (Chapter 8). The BRI will have profound implications for the global economies so that the international organizations of trade and finance will be discussed (Chapter 9) and the international financial institutions in relation to the BRI will be discussed (Chapter 10). Finally, the conclusion of Volume I will highlight the importance of the BRI to global trade (Chapter 11).
The implementation of the BRI only illustrates such processes of transformation, and this book illustrates why this is the more likely outcome. However, there are opposing arguments as well, including the assumption that China will eventually collapse (Chang 2001). Chang (2001) argues that China has only five, and at the most ten years, before it falls. There is the misapprehension here that assumes that politics in China is static and so cannot adapt to new economic and political circumstances; however, much needed reforms have been implemented and more such reforms are likely to come. Chang proposed in 2012 that China will collapse in that year; however, now it is 2019 and China is going stronger than ever, even though Chinaâs economic growth has slowed down to some extent.
This book is followed up with a second volume which analyses in detail the consequences of the BRI, including the changing international financial system, its impact on international trade and economic development. The impact of the BRI on Chinaâs domestic economy, the economies of the participating countries and its impact on the global economy will be analysed in great detail together with the effect on international relations. Below is a summary of each chapter of the first volume. Chapter 1 provides a detailed introduction to the first volume.
This book integrates various theories of economic development with the practice of the BRI. Theories of economic development have been discussed in great detail to explain the importance of the BRI to economic growth. Regional integration through trade as it is occurring through the BRI is greatly discussed with a subsequent discussion of the requirements of various types of infrastructure to facilitate interconnectivity between the countries involved. The various projects of infrastructure have been described in detail. The first volume concludes with discussions on various international organizations of trade and finance together with the financial institutions in support of the BRI.
Chapter 1 of the first volume provides an introduction which highlights the major themes of the first volume. Chapter 2 will discuss various economic policies and their implications which include a detailed analysis of Chinaâs âgoing outâ policy. China emphasized the promotion of exports but has now adopted a âgoing outâ policy without neglecting exports. China has a relatively fast rate of economic growth and an increasing domestic consumption which require sufficient resources. Hence, this chapter discusses the importance of Chinaâs âgoing outâ policy to Chinaâs further economic development.
Policies of the Washington Consensus are compared and contrasted with the Beijing Consensus. Different policies to facilitate economic development will be explained. Arguments about state intervention within the economy may have to be reassessed. It will be argued that a state-led strategy of economic development can be integrated with a growing private sector; hence, a detailed discussion will be provided on state intervention in the economy and it will be argued that the BRI projects cannot be implemented without government initiatives; so that state intervention and government finance, especially in regard to the provision of infrastructure are required for any successful implementation of the BRI to enhance the connectivity between nations. Various appropriate industrial policies to transform developing economies will also be described. It is argued in this chapter that a paradigm shift may be required in theories of economic growth and economic development to promote sustainable economic development which essentially is multidimensional. The design of the ap...