Discover One Belt One Road: The Ambitious Global Development Project
One Belt One Road (OBOR), the visionary initiative launched by Chinese President Xi Jinping, stands as a monumental effort to enhance global connectivity and economic collaboration among a swath of countries across Asia, Africa, and Europe. Celebrated as the ‘Project of the Century’ by Chinese leaders, OBOR affects about 78 countries worldwide.
Key Insights
- OBOR aims to boost connectivity and cooperation among nations spanning Asia, Africa, and Europe.
- Over time, OBOR’s reach has expanded to incorporate more territories and diverse development initiatives.
- The project garners strong support from nations like Kyrgyzstan and Tajikistan due to substantial Chinese investments in local infrastructures.
How One Belt One Road Functions
Initiated in 2013 to revive the historic Silk Road, OBOR’s scope has broadened significantly to cover additional regions and new development undertakings. Also known as the Belt and Road Initiative (BRI), OBOR aims to establish an extensive network comprising roadways, railways, maritime ports, power grids, and oil and gas pipelines, among other crucial infrastructures.
OBOR is divided into two key components:
- Silk Road Economic Belt - Land-based routes envisioned to bridge China with Central Asia, Eastern Europe, and Western Europe.
- 21st Century Maritime Silk Road - Sea-based routes that aim to link China’s southern coast to regions including the Mediterranean, Africa, Southeast Asia, and Central Asia.
The initiative includes six economic corridors:
- New Eurasian Land Bridge - Connecting Western China to Western Russia
- China-Mongolia-Russia Corridor - Bridging North China to Eastern Russia via Mongolia
- China-Central Asia-West Asia Corridor - Linking Western China to Turkey via Central and West Asia
- China-Indochina Peninsula Corridor - Connecting Southern China to Singapore via Indo-China
- China-Pakistan Corridor - Connecting Southwestern China through Pakistan to Arabian sea routes
- Bangladesh-China-India-Myanmar Corridor - Linking Southern China to India via Bangladesh and Myanmar
The maritime component further ties coastal China to the Mediterranean through Singapore-Malaysia, the Indian Ocean, the Arabian Sea, and the Strait of Hormuz.
Special Considerations: The Importance of OBOR to China
For China, OBOR is pivotal as it seeks to invigorate domestic growth and enhance economic diplomacy. By linking more remote regions like Xinjiang to neighboring countries, China anticipates revitalizing economic activities. Moreover, OBOR aims to open and expand new markets for Chinese goods and secure cost-effective routes for exporting materials easily.
China has pledged over $1 trillion for various OBOR infrastructure projects, financed by offering low-cost loans to participating countries. Nations such as Kyrgyzstan and Tajikistan align with OBOR due to significant investments by China in their local infrastructures.
Countries like Nepal and Pakistan are notable participants; Nepal has joined OBOR under an agreement to improve cross-border connectivity with China, while Pakistan benefits from the $46 billion China-Pakistan Economic Corridor (CPEC) project, enhancing access to Arabian sea routes.
While China advocates OBOR as a holistic regional development project, some nations view it as China’s strategic maneuver to amplify its regional influence and establish a dominant global trade network. This collaboration may elevate China’s role on the global stage and foster the wider usage of the Chinese yuan within the OBOR realm.
Related Terms: Silk Road, Economic Diplomacy, Global Trade, Infrastructure Projects, Chinese Economy.
References
- Sandia Report. “The China-Pakistan Economic Corridor: Trade Security and Regional Implications”, Page 12.
