Editor's note: Since its proposal, some Westerners have never stopped discrediting the Belt and Road Initiative (BRI) in the past 10 years. Is the BRI predatory? Is it a geopolitical tool? Is the initiative a complete failure? Introduced at the BRI's 10th anniversary, Dispelling Misconceptions on BRI is an eight-part series debunking Western lies on the initiative. The fourth essay refutes the allegation of BRI as a bad investment.
Over the past decade, the Belt and Road Initiative (BRI) has gained worldwide traction and garnered overwhelming support from the international community. Having galvanized nearly $1 trillion of investment, the BRI has built numerous livelihood projects, developed massive infrastructure facilities, and achieved milestones of cooperation.
However, some Westerners hype the BRI as a bad investment. \"There are diminishing economic returns from investing in (BRI) projects overseas,\" a Bloomberg article quoted Jamus Lim, associate professor of economics at ESSEC Business School, Asia Pacific, as saying.
The reality looks different. The BRI is not for short-term gains, but for the long-term common good of all. In fact, as the mega-project evolves from broad strokes to refined details, the BRI, over the past 10 years, has become increasingly important, especially to developing countries in resource-poor regions. For these countries, BRI offers an opportunity to integrate into global supply chains, enhance capacity building in infrastructure, value-addition, technological innovation and product standards – thereby improving the operational capacities and competitiveness of businesses, including small and medium-sized enterprises. Ultimately, the change witnessed in developing countries drives economic transformation and builds robust economies.
For example, in Kazakhstan, the largest economy in Central Asia, a World Bank report (2020) shows that BRI corridor routes are potentially \"game changers\" for the land-locked country. At present, BRI improvements in infrastructure have reduced Kazakh shipment time by more than 8 percent and trade cost by 4 percent. The impact of the improved infrastructure alone on Kazakh gross domestic product (GDP) is estimated at about 6.5 percent, while improving trade facilitation and reducing tariffs along the corridors will add around 15 percent.
Reference(s):
cgtn.com
