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77-664: The Belt and Road Initiative ( BRI or B&R ), known in China as the One Belt One Road and sometimes referred to as the New Silk Road , is a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in more than 150 countries and international organizations. The BRI is composed of six urban development land corridors linked by road, rail, energy, and digital infrastructure and
154-611: A borderline extending 5,600 km, giving it easy access to the Eurasian heartland." Some analysts have suggested that the CCP considers Xinjiang's local population, the Uyghurs , and their attachment to their traditional lands potential threats to the BRI's success, or it fears that developing Xinjiang may also open it up to radicalizing Islamic influences from other states which are participating in
231-481: A carbon-copy manner with little success. This isomorphic mimicry –adopting organizational forms that have been successful elsewhere but that only hide institutional dysfunction without solving it on the home country –can contribute to getting countries stuck in 'capability traps' where the country does not advance in its development goals. An example of this can be seen through some of the criticisms of foreign aid and its success rate at helping countries develop. Beyond
308-512: A community or region". Daphne Greenwood and Richard Holt distinguish economic development from economic growth on the basis that economic development is a "broadly based and sustainable increase in the overall standard of living for individuals within a community", and measures of growth such as per capita income do not necessarily correlate with improvements in quality of life. The United Nations Development Programme in 1997 defined development as increasing people‟s choices. Choices depend on
385-684: A major contributor to development economics , asserted that economic development grew to concentrate on the poor regions of the world , primarily in Africa , Asia and Latin America yet on the outpouring of fundamental ideas and models. It has also been argued, notably by Asian and European proponents of infrastructure-based development , that systematic, long-term government investments in transportation , housing , education , and healthcare are necessary to ensure sustainable economic growth in emerging countries. During Robert McNamara's 13 years at
462-641: A motivation, while others note that the BRI also serves as signposts for Chinese provinces and ministries, guiding their policies and actions. Academic Keyu Jin writes that while the BRI does advance strategic interests for China, it also reflects the CCP's vision of a world order based on "building a global community of shared future ". China has already invested billions of dollars in several South Asian countries like Pakistan , Nepal , Sri Lanka , Bangladesh and Afghanistan to improve their basic infrastructure, with implications for China's trade regime as well as its military influence. This project can also become
539-523: A new economic corridor for different regions. For example, in the Caucasus region, China considered cooperation with Armenia from May 2019. Chinese and Armenian sides had multiple meetings, signed contracts, initiated a north–south road program to solve even infrastructure-related aspects. The BRI has been viewed as part of a strategy to lessen the effect of choke points such as the Strait of Malacca in
616-421: A panel dataset for each 50 states with unemployment, labor force participation by race, and annual labor market statistics. In addition, for contractionary monetary policy, they utilize the federal funds rate, the short-term interest rates charged to banks. Seguino and Heintz Seguino concludes that the impact of a one percentage point increase in the federal funds rate relative to white and black women's unemployment
693-731: A press release whenever a memorandum of understanding related to the Belt and Road Initiative is signed with a new country. Not counting China, there were 154 countries formally affiliated with the Belt and Road Initiative As of August 2023 according to observers at Fudan University 's Green Finance and Development Center, and an independent analysis from Germany from the same time also found 148 member states out of 249 political entities surveyed. The Council on Foreign Relations additionally found 139 member countries as of March 2021; countries that are documented as joining since then include Syria and Argentina. The full list of current members according to
770-587: A professional industry of highly specialized practitioners. The practitioners have two key roles: one is to provide leadership in policy-making , and the other is to administer policy, programs, and projects. Economic development practitioners generally work in public offices on the state, regional, or municipal level, or in public-private partnerships organizations that may be partially funded by local, regional, state, or federal tax money. These economic development organizations function as individual entities and in some cases as departments of local governments. Their role
847-511: A set of policies for Chinese engagement with the global South , including diversifying resource and energy supplies, building loan-funded infrastructure using Chinese companies, creating new markets for Chinese companies, and engaging global South countries simultaneously at bilateral and regional levels. With regard to China and the African countries, the Forum on China-Africa Cooperation (FOCAC)
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#1732780203962924-486: A significant amount of revenue from this source are less accountable to their citizens (they are more autonomous) as they have less pressure to legitimately use those resources. Just as it has been documented for countries with an abundant supply of natural resources such as oil, countries whose government budget consists largely of foreign aid donations and not regular taxes are less likely to have incentives to develop effective public institutions. This in turn can undermine
1001-571: A significant indicator of a country's economic advancement: this perspective is illustrated notably through the Basic Rail Transportation Infrastructure Index (known as BRTI Index) and related models such as the (Modified) Rail Transportation Infrastructure Index (RTI). In an effort to create an indicator that would help measure gender equality , the United Nations has created two measures:
1078-499: A steady pace. As of 2023, Maritime Silk Road investments were 60% of the BRI's total investment volume. The Asian Infrastructure Investment Bank , first proposed in October 2013, is a development bank dedicated to lending for infrastructure projects. As of 2015, China announced that over one trillion yuan (US$ 160 billion) of infrastructure-related projects were in planning or construction. The primary goals of AIIB are to address
1155-465: Is 0.015 and 0.043, respectively One growing understanding in economic development is the promotion of regional clusters and a thriving metropolitan economy . In today's global landscape, location is vitally important and becomes a key in competitive advantage . International trade and exchange rates are key issues in economic development. Currencies are often either under-valued or over-valued , resulting in trade surpluses or deficits. Furthermore,
1232-552: Is a significant multi-lateral cooperation mechanism for facilitating BRI projects. The China-Arab States Cooperation Forum (CASCF) serves a similar coordinating role with regard to BRI projects in the Arab states. Countries join the Belt and Road Initiative by signing a memorandum of understanding with China regarding their participation in it. The Government of China maintains a listing of all involved countries on its Belt and Road Portal, and state media outlet Xinhua News Agency puts out
1309-400: Is important to not expect that particular economic development programs be able to fix many problems at once as that would be establishing unsurmountable goals for them that are highly unlikely they can achieved. Any development policy should set limited goals and a gradual approach to avoid falling victim to something Prittchet, Woolcock and Andrews call 'premature load bearing'. Many times
1386-401: Is likely to increase the world GDP by $ 7.1 trillion per annum by 2040, and that benefits will be "widespread" as improved infrastructure reduces "frictions that hold back world trade". CEBR also concludes that the project will be likely to attract further countries to join, if the global infrastructure initiative progresses and gains momentum. Supporters praise the BRI for its potential to boost
1463-487: Is no evidence to prove that China is deliberately aiming to do debt-trap diplomacy. Research from Deborah Brautigam , an international political economy professor at Johns Hopkins University , and Meg Rithmire, an associate professor at Harvard Business School , have disputed the allegations of debt-trap diplomacy by China and pointed out that "Chinese banks are willing to restructure the terms of existing loans and have never actually seized an asset from any country, much less
1540-526: Is no reason to believe the BRI framework is worse for developing countries' debt than Western lending frameworks. For China itself, a report from Fitch Ratings doubts Chinese banks' ability to control risks, as they do not have a good record of allocating resources efficiently at home. This may lead to new asset quality problems for Chinese banks where most funding is likely to originate. It has been suggested by some scholars that critical discussions about an evolving BRI and its financing needs to transcend
1617-584: Is not motivated to repeat the model of the People's Liberation Army Support Base in Djibouti . Economic development of China's less developed western regions, particularly Xinjiang , is one of the government's stated goals in pursuing the BRI. The strategic location of Xinjiang has also been recognized as central. In 2014, state media outlet Xinhua News Agency stated Xinjiang "connects Pakistan, Mongolia, Russia, India, and four other central Asian countries with
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#17327802039621694-495: Is still the reference term in Chinese-language media. The Belt and Road Initiative is believed by some analysts to be a way to extend Chinese economic and political influence. Some geopolitical analysts have couched the Belt and Road Initiative in the context of Halford Mackinder 's heartland theory . Scholars have noted that official PRC media attempts to mask any strategic dimensions of the Belt and Road Initiative as
1771-547: Is to seek out new economic opportunities and retain their existing business wealth. There are numerous other organizations whose primary function is not economic development that work in partnership with economic developers. They include the news media, foundations, utilities, schools, health care providers, faith-based organizations, and colleges, universities, and other education or research institutions. There are various types of macroeconomic and sociocultural indicators or "metrics" used by economists and geographers to assess
1848-429: Is typically associated with improvements in a variety of areas or indicators (such as literacy rates , life expectancy , and poverty rates) , that may be causes of economic development rather than consequences of specific economic development programs. For example, health and education improvements have been closely related to economic growth, but the causality with economic development may not be obvious. In any case, it
1925-654: The Adriatic ports and Piraeus . All in all, the ship connections for container transports between Asia and Europe will be reorganized. In contrast to the longer East Asian traffic via north-west Europe, the southern sea route through the Suez Canal towards the junction Trieste shortens the goods transport by at least four days. In connection with the Silk Road project, China is also trying to network worldwide research activities. Simon Shen and Wilson Chan have compared
2002-691: The Bank of China lent over US$ 185.1 for BRI projects. As of April 2019, the Industrial and Commercial Bank of China had lent over US$ 100 billion for BRI projects. In 2017, China joined the G20 Operational Guidelines for Sustainable Financing and in 2019 to the G20 Principles for Quality Infrastructure Investment. The Center for Global Development described China's New Debt Sustainability Framework as "virtually identical" to
2079-669: The Gender-Related Development Index (GDI) and the Gender Empowerment Measure (GEM). These indicators were first introduced in the 1995 UNDP Human Development Report. Other factors include the inflation rate, investment level and national debt , birth and death rates, life expectancy , morbidity , education levels (measured through literacy and numeracy rates), housing , social services like hospitals , health facilities , clean and safe drinking water , schools (measured by
2156-749: The Suez Canal to the Mediterranean, thereby linking Haifa , Istanbul , and Athens , to the Upper Adriatic region to the northern Italian hub of Trieste , with its international free port and its rail connections to Central Europe and the North Sea . As a result, Poland , the Baltic States , Northern Europe, and Central Europe are also connected to the maritime silk road and logistically linked to East Africa, India and China via
2233-705: The Western Regions ; "road" is short for the 21st Century Maritime Silk Road , which refers to the Indo-Pacific sea routes through Southeast Asia to South Asia, the Middle East and Africa. It is considered a centerpiece of Xi Jinping's foreign policy . The BRI forms a central component of Xi's "Major Country Diplomacy" strategy, which calls for China to assume a greater leadership role in global affairs in accordance with its rising power and status. As of early 2024, more than 140 countries were part of
2310-540: The post-war period of reconstruction initiated by the United States. In 1949, during his inaugural speech, President Harry Truman identified the development of undeveloped areas as a priority for the West: There have been several major phases of development theory since 1945. Alexander Gerschenkron argued that the less developed the country is at the outset of economic development (relative to others),
2387-539: The 1980s pushing an agenda of free trade and removal of import substitution industrialization policies. In economics, the study of economic development was born out of an extension to traditional economics that focused entirely on the national product , or the aggregate output of goods and services. Economic development was concerned with the expansion of people's entitlements and their corresponding capabilities, such as morbidity , nourishment , literacy , education , and other socio-economic indicators. Borne out of
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2464-897: The BRI concept as the "Silk Road Economic Belt" on 7 September 2013 at Nazarbayev University in Astana , Kazakhstan In October 2013 during a speech delivered in Indonesia, Xi stated that China planned to build a "twenty-first century Maritime Silk Road" to enhance cooperation in Southeast Asia and beyond. The BRI's stated objectives are "to construct a unified large market and make full use of both international and domestic markets, through cultural exchange and integration, to enhance mutual understanding and trust of member nations, resulting in an innovative pattern of capital inflows, talent pools , and technology databases." The Belt and Road Initiative addresses an "infrastructure gap" and thus has
2541-428: The BRI, China seeks to strengthen its position and diminish American military influence, but that China's BRI activity is likely not a prelude to American-style military bases or American-style global military presence. Other analysts characterize China's construction of ports which could have dual-uses as an attempt to avoid the necessity of establishing strictly military bases. According to academic Xue Guifang, China
2618-473: The BRI. A leading group was formed sometime in late 2014, and its leadership line-up publicized on 1 February 2015. This steering committee reports directly into the State Council of China and is composed of several political heavyweights, evidence of the importance of the program to the government. Then Vice-Premier Zhang Gaoli , who was also a member of the 7-man CCP Politburo Standing Committee ,
2695-720: The BRI. On 29 December 2014, China established the Silk Road Fund with total capital of US$ 40 billion and ¥100 billion. The Silk Road Fund invests in BRI infrastructure, resource development, energy development, industrial cooperation, and financial cooperation. The Karot Hydropower Project in Pakistan was its first project. China Investment Corporation supports the BRI by investing in its infrastructure projects, participating in other BRI-related development funds, and assisting Chinese corporations with foreign mergers and acquisitions. China Investment Corporation also invested in
2772-477: The BRI. Generally, the United States and EU have not offered global South countries with investment comparable to what China offers through the BRI. China is the largest bilateral lender in the world. Loans are backed by collateral such as rights to a mine, a port or money. This policy has been alleged by the U.S. Government to be a form of debt-trap diplomacy ; however, the term itself has come under scrutiny as analysts and researchers have pointed out that there
2849-513: The BRI. The participating countries include almost 75% of the world's population and account for more than half of the world's GDP. The initiative was incorporated into the constitution of the Chinese Communist Party in 2017. The Xi Jinping Administration describes the initiative as "a bid to enhance regional connectivity and embrace a brighter future." The project has a target completion date of 2049, which will coincide with
2926-443: The Belt and Road Initiative as one of the largest infrastructure and investment projects in history, covering more than 68 countries, including 65% of the world's population and 40% of the global gross domestic product as of 2017. The project builds on the old trade routes that once connected China to the west, Marco Polo and Ibn Battuta 's routes in the north and the maritime expedition routes of Ming dynasty admiral Zheng He in
3003-594: The Chinese government is below: China's investment in the BRI began at a moderate level in 2013 and increased significantly over 2014 and 2015. Investment volume peaked in 2016 and 2017. Afterwards, investments decreased gradually, and then significantly during the COVID-19 pandemic. The BRI's lowest investment volume was in 2023. China's investment in the Maritime Silk Road portion of the BRI has grown at
3080-623: The HSR seeks to improve healthcare facilities, enhance disease prevention, and strengthen healthcare cooperation across participating countries. The initiative includes the construction of healthcare facilities, such as hospitals in Pakistan and Laos, and collaborative programs with global organizations like the World Health Organization. Academic Shaoyu Yuan finds that while the HSR contributes to health sector improvements in participating nations, it also prompts discussions regarding
3157-475: The Maritime Silk Road linked by the development of ports. Chinese Communist Party (CCP) general secretary Xi Jinping originally announced the strategy as the "Silk Road Economic Belt" during an official visit to Kazakhstan in September 2013. "Belt" refers to the proposed overland routes for road and rail transportation through landlocked Central Asia along the famed historical trade routes of
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3234-550: The Silk Road Fund. CIC's domestic subsidiary Central Huijin indirectly supports the BRI through its support of domestic financial institutions, such as policy banks or state-owned commercial banks, which in turn fund BRI projects. Policy banks, including the Chinese Development Bank and the Export-Import Bank of China , have important roles in funding BRI projects. Between 2015 and 2020,
3311-442: The United States, view the project critically because of possible Chinese government influence, others point to the creation of a new global growth engine by connecting and moving Asia, Europe and Africa closer together. In the maritime silk road, which is already the route for more than half of all containers in the world, deep-water ports are being expanded, logistical hubs are being built, and new traffic routes are being created in
3388-459: The West for far longer. " Modernization ", " Westernization ", and especially " industrialization " are other terms often used while discussing economic development. Historically, economic development policies focused on industrialization and infrastructure ; since the 1960s, it has increasingly focused on poverty reduction . Whereas economic development is a policy intervention aiming to improve
3465-468: The World Bank under McNamara's tenure "sold" states poverty reduction "through a mixture of persuasion and coercion." The development of a country has been associated with different concepts but generally encompasses economic growth through higher productivity, political systems that represent as accurately as possible the preferences of its citizens, The extension of rights to all social groups and
3542-403: The World Bank's and IMF's own debt sustainability framework. According to academic Jeremy Garlick, for many impoverished countries, China is the best available option for development finance and practical assistance. Western investors and the World Bank have been reluctant to invest in troubled countries like Pakistan, Cambodia, Tajikistan, and Montenegro, which China is willing to invest in through
3619-532: The World Bank, he introduced key changes, most notably, shifting the Bank's economic development policies toward targeted poverty reduction. Before his tenure at the World Bank, poverty did not receive substantial attention as part of international and national economic development; the focus of development had been on industrialization and infrastructure. Poverty also came to be redefined as a condition faced by people rather than countries. According to Martha Finnemore,
3696-434: The attainment of a standard of living equivalent to that of industrialized countries . Economic development can also be considered as a static theory that documents the state of an economy at a certain place. According to Schumpeter and Backhaus (2003), the changes in this equilibrium state documented in economic theory can only be caused by intervening factors coming from the outside. Economic development originated in
3773-480: The backdrop of Keynesian economics (advocating government intervention), and neoclassical economics (stressing reduced intervention), with the rise of high-growth countries ( Singapore , South Korea , Hong Kong ) and planned governments ( Argentina , Chile , Sudan , Uganda ), economic development and more generally development economics emerged amidst these mid-20th century theoretical interpretations of how economies prosper. Also, economist Albert O. Hirschman ,
3850-634: The centennial of the People's Republic of China (PRC)'s founding . Numerous studies conducted by the World Bank have estimated that BRI can boost trade flows in 155 participating countries by 4.1 percent, as well as cutting the cost of global trade by 1.1 percent to 2.2 percent, and grow the GDP of East Asian and Pacific developing countries by an average of 2.6 to 3.9 percent. According to London-based consultants Centre for Economics and Business Research , BRI
3927-416: The country's efforts to develop. In its broadest sense, policies of economic development encompass three major areas: Contractionary monetary policy is a tool used by central banks to slow down a country's economic growth. An example would be raising interest rates to decrease lending. In the United States, the use of contractionary monetary policy has increased women's unemployment. Seguino and Heintz uses
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#17327802039624004-491: The debt-trap diplomacy debate. This concerns the networked nature of financial centers and the vital role of advanced business services (e.g. law and accounting) that bring agents and sites into view (such as law firms, financial regulators, and offshore centers) that are generally less visible in geopolitical analysis, but vital in the financing of BRI. In August 2022, China announced that it would forgive 23 of its interest-free loans to 17 African nations. The loans had matured at
4081-629: The distance learners must travel to reach them), ability to use hard infrastructure (railways, roads, ports, airports, harbours, etc.), and telecommunications and other soft infrastructure like the Internet . The Gender Empowerment Measure (GEM) focuses on aggregating various indicators that focus on capturing the economic, political, and professional gains made by women. The GEM is composed of just three variables: income earning power, share in professional and managerial jobs, and share of parliamentary seats. The Gender Development Index (GDI) measures
4158-663: The economic development goals of specific countries cannot be reached because they lack the State's capabilities to do so. For example, if a nation has little capacity to carry out basic functions like security and policing or core service delivery it is unlikely that a program that wants to foster a free-trade zone (special economic zones) or distribute vaccinations to vulnerable populations can accomplish their goals. This has been something overlooked by multiple international organizations, aid programs and even participating governments who attempt to carry out 'best practices' from other places in
4235-415: The end of 2021. Economic development In the economics study of the public sector , economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and objectives. The term has been used frequently in the 20th and 21st centuries, but the concept has existed in
4312-455: The event of a military conflict and to blunt the U.S. island chain strategy . A 2023 study by AidData of the College of William & Mary determined that overseas port locations subject to significant BRI investment raise questions of dual military and civilian use and may be favorable for future naval bases. Writing in 2023, David H. Shinn and academic Joshua Eisenman state that through
4389-476: The expanding infrastructure needs across Asia, enhance regional integration, promote economic development and improve public access to social services. At inception, the AIIB was explicitly linked to the BRI. The AIIB was subsequently broadened to include investments with states that are not involved with the BRI. Loans through AIIB are accessible on AIIB's website, unlike many other forms of Chinese investment through
4466-507: The gender gap in human development achievements. It takes the disparity between men and women into account through three variables, health, knowledge, and living standards. *Top country subdivisions by GDP *Top country subdivisions by GDP per capita *Top country metropolitan by GDP Cultural exchange Too Many Requests If you report this error to the Wikimedia System Administrators, please include
4543-550: The global GDP, particularly in developing countries. However, there has also been criticism over human rights violations and environmental impact, as well as concerns of debt-trap diplomacy resulting in neocolonialism and economic imperialism. These differing perspectives are the subject of active debate. China's policy of channeling its construction companies abroad began with Jiang Zemin's Go Out policy . Xi Jinping 's BRI built on and expanded this policy as well as built on Jiang's China Western Development policy. Xi announced
4620-543: The growth of globalization has linked economic development with trends on international trade and participation in global value chains (GVCs) and international financial markets. The last financial crisis had a huge effect on economies in developing countries. Economist Jayati Ghosh states that it is necessary to make financial markets in developing countries more resilient by providing a variety of financial institutions . This could also add to financial security for small-scale producers. Economic development has evolved into
4697-627: The hinterland. The maritime silk road runs with its connections from the Chinese coast to the south, linking Hanoi , Kuala Lumpur , Singapore , and Jakarta , then westward linking the Sri Lankan capital city of Colombo , and Malé , capital of the Maldives, and onward to East Africa, and the city of Mombasa , in Kenya. From there the linkage moves northward to Djibouti , through the Red Sea and
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#17327802039624774-545: The imbalance between its more developed eastern regions and its less developed western regions . For developing countries, the BRI is appealing because of the opportunities it offers to alleviate their economic disadvantages relative to Western countries. The BRI offers them infrastructure development, financial assistance, and technical assistance from China. The increase in foreign direct investment and increased trade linkages also increases employment and poverty alleviation for these countries. While some countries, especially
4851-448: The incentive compatibility problems that can happen to foreign aid donations –that foreign aid granting countries continue to give it to countries with little results of economic growth but with corrupt leaders that are aligned with the granting countries' geopolitical interests and agenda –there are problems of fiscal fragility associated to receiving an important amount of government revenues through foreign aid. Governments that can raise
4928-644: The initiative to the post-World War II Marshall Plan. It is the largest infrastructure investment by a great power since the Marshall Plan. China intentionally frames the BRI flexibly in order to adapt it to changing needs or policies, such as the addition of a "Health Silk Road" during the COVID-19. The Health Silk Road (HSR) is an initiative under China's Belt and Road Initiative (BRI) aimed at enhancing public health infrastructure and fostering international cooperation in healthcare. Initiated as part of China's broader strategy to engage in global health governance,
5005-474: The long-term debt sustainability and the transparency of project execution. As the HSR expands, it exemplifies China's role in global health diplomacy, reflecting a complex interplay between development goals and geopolitical strategy. The official name for the initiative is the Silk Road Economic Belt and 21st-Century Maritime Silk Road Development Strategy ( 丝绸之路经济带和21世纪海上丝绸之路发展战略 ), which
5082-428: The more likely certain conditions are to occur. Hence, all countries do not progress similarly. From the 1940s to the 1960s the state played a large role in promoting industrialization in developing countries, following the idea of modernization theory . This period was followed by a brief period of basic needs development focusing on human capital development and redistribution in the 1970s. Neoliberalism emerged in
5159-448: The opportunities to get them and the proper functionality of institutions and organizations that can attend more technically and logistically complex tasks (i.e. raise taxes and deliver public services). These processes describe the State's capabilities to manage its economy, polity, society and public administration. Generally, economic development policies attempt to solve issues in these topics. With this in mind, economic development
5236-467: The people in question and their nation. The UNDP indicates four chief factors in development, especially human development, which are empowerment, equity, productivity, and sustainability. Mansell and Wehn state that economic development has been understood by non-practitioners since the World War II to involve economic growth, namely the increases in per capita income , and (if currently absent)
5313-468: The port of Hambantota". In an editorial letter, they argued that it was 'long overdue' for people to know the truth and not to have it be "willfully misunderstood". Writing in 2023, academic and former UK diplomat Kerry Brown states that China's relationship to the Hambantota port has become the opposite of the theorized debt-trap modus operandi. Brown observes that China has had to commit more money to
5390-961: The potential to accelerate economic growth across the Asia Pacific , Africa and Central and Eastern Europe . A report from the World Pensions Council estimates that Asia, excluding China, requires up to US$ 900 billion of infrastructure investments per year over the next decade, mostly in debt instruments, 50% above current infrastructure spending rates. The gaping need for long-term capital explains why many Asian and Eastern European heads of state "gladly expressed their interest in joining this new international financial institution focusing solely on 'real assets' and infrastructure-driven economic growth". The initial focus has been infrastructure investment, education, construction materials, railway and highway, automobile, real estate, power grid, and iron and steel. Already, some estimates list
5467-419: The project, expose itself to further risk, and has had to become entangled in complex local politics.As of 2024, the port has not been a significant economic success, although shipping through the port is on the increase. In his comparison of BRI loans to IMF loans and Paris Club loans, which have not been very successful in reducing the debt of developing countries, academic Jeremy Garlick concludes that there
5544-453: The relative economic advancement of a given region or nation. The World Bank 's "World Development Indicators" are compiled annually from officially recognized international sources and include national, regional and global estimates. GDP per capita is gross domestic product divided by mid-year population. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidizes not included in
5621-884: The south. The Belt and Road Initiative now refers to the entire geographical area of the historic " Silk Road " trade route , which has been continuously used in antiquity. The goals of the BRI were officially presented for the first time in a 2015 document, the Vision and Actions on Jointly Building Belt and Road . It outlined six economic corridors for trade and investment connectivity would be implemented. The BRI develops new markets for Chinese firms, channels excess industrial capacity overseas, increases China's access to resources, and strengthens its ties with partner countries. The initiative generates its own export demand because Chinese loans enable participating countries to develop infrastructure projects involving Chinese firms and expertise. The infrastructure developed also helps China to address
5698-415: The value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Median income is related to real gross national income per capita and income distribution . European development economists have argued that the existence of modern transportation networks- such as high-speed rail infrastructure constitutes
5775-770: The well-being of people, economic growth is a phenomenon of market productivity and increases in GDP ; economist Amartya Sen describes economic growth as but "one aspect of the process of economic development". The precise definition of economic development has been contested: while economists in the 20th century viewed development primarily in terms of economic growth , sociologists instead emphasized broader processes of change and modernization . Development and urban studies scholar Karl Seidman summarizes economic development as "a process of creating and utilizing physical, human, financial, and social assets to generate improved and broadly shared economic well-being and quality of life for
5852-528: Was initially abbreviated as the One Belt One Road (Chinese: 一带一路 ) or the OBOR strategy. The English translation has been changed to the Belt and Road Initiative (BRI) since 2016, when the Chinese government considered the emphasis on the words "one" and "strategy" were prone to misinterpretation and suspicion, so they opted for the more inclusive term "initiative" in its translation. However, "One Belt One Road"
5929-554: Was named leader of the group, and Wang Huning , Wang Yang , Yang Jing , and Yang Jiechi named deputy leaders. On 28 March 2015, China's State Council outlined the principles, framework, key areas of cooperation and cooperation mechanisms with regard to the initiative. The BRI is considered a central element within China's foreign policy , and was incorporated into the CCP's constitution in 2017 during its 19th Congress . The BRI represents
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