1 | Introduction
What is the Belt and Road Initiative?
Chinese President Xi Jinping announced what would become the BRI in 2013 when he proposed a Silk Road Economic Belt and a 21st Century Maritime Silk Road in speeches given in Kazakhstan and Indonesia, respectively. Over the following years these two initiatives would be combined and rebranded as “One Belt, One Road,” referring to a Eurasian economic belt and a maritime “road,” before eventually becoming the Belt and Road Initiative, or BRI. The scale and ambition of the BRI coupled with the Chinese government’s extensive promotion of the project internationally have drawn commensurate attention from policymakers. China frames the BRI as a global development project based on 5 pillars: policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people exchanges. Popularly identified primarily with large-scale infrastructure projects, the BRI aims to promote trade and investment, support cultural exchange, and enhance financial cooperation with partner countries. While China has not released an official budget, some unofficial estimates have valued the project at upwards of US$1 trillion.1 The ambiguity surrounding the scale of the project results in part from an imprecise definition of what counts as a BRI project (we observed substantial variation during our site visits, discussed in more detail later), and some projects that predate the launch of the BRI have now adopted the label. Despite the lack of clarity surrounding the BRI, the scale of the project has drawn comparisons with the U.S.’ post-WWII Marshall Plan.2 Much of the money related to the BRI comes in the form of non-concessional loans from Chinese state-owned institutions, which blurs the line between commercial outreach and development assistance, further complicated by China’s lack of transparency regarding its development financing compared to OECD countries. The Chinese government has heavily promoted the BRI both domestically and as part of its international relations strategy, making it central to its own internal politics while also drumming up support from key international organizations. The BRI was incorporated into the constitution of the Communist Party of China during the 19th Party Congress in 2017.3 The core multilateral development banks (MDBs) and international financial institutions (IFIs) have interests broadly in line with many of the goals of the BRI. Six of the largest multilateral development banks signed a memorandum of understanding with China’s Ministry of Finance to support the BRI, most notably the World Bank and the Asian Development Bank (ADB).4 The creation of the Asian Infrastructure Investment Bank (AIIB), viewed by some as a part of the BRI, was similarly met with support from within and outside the region. United Nations Secretary-General Guterres spoke glowingly of the BRI at the second Belt and Road Forum, an international meeting convened by China about the initiative in April 2019.5 Rolland, “A Concise Guide to the Belt and Road Initiative.” Shen and Chan, “A Comparative Study of the Belt and Road Initiative and the Marshall Plan.” 3 Xinhua, “‘Belt and Road’ Incorporated into CPC Constitution” 4 Ministry of Finance of the PRC. “Memorandum of Understanding on Collaboration on Matters of Common Interest Under the Belt and Road Initiative.” 5 United Nations, “United Nations Poised to Support Alignment of China’s Belt and Road Initiative with Sustainable Development Goals, Secretary-General Says at Opening Ceremony.” 1 2
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