This year marks a significant milestone as the Belt and Road Initiative (BRI), proposed by Chinese President Xi Jinping in 2013, celebrates its tenth anniversary. The recent Belt and Road Forum for International Cooperation held in Beijing from October 17 to 18 provides a perfect moment to reflect on BRI's impact, particularly in Nepal.
The BRI is a connectivity-driven development strategy aiming to build the Silk Road Economic Belt and the 21st Century Maritime Silk Road. Its primary goals are to enhance investment, trade, cultural exchanges, and people-to-people connectivity among partner countries.
Since its inception, over 150 countries and regions have signed memorandums of understanding (MoUs) on BRI cooperation, with developing countries largely responding positively. In 2015, the Asian Infrastructure Investment Bank (AIIB) was established as a key financing window for the BRI, focusing on infrastructure projects across Asia.
Nepal joined the BRI by signing an MoU in 2017, viewing it as a vital opportunity for development financing. Given Nepal's reliance on foreign funding to cover recurrent expenditures and manage financial obligations, the BRI has been pivotal in supporting the country's infrastructure growth.
Since 2017, high-level visits between China and Nepal, including Prime Minister Pushpa Kamal Dahal Prachanda's visit in September 2023, have emphasized the commitment to fast-track BRI agreements. These agreements encompass the development of ports, roads, railways, airports, and communication networks, all under the Trans-Himalayan Multi-dimensional Connectivity Network framework.
The economic cooperation between China and Nepal has flourished, with significant increases in foreign direct investment, tourism, and trade before the COVID-19 pandemic. China has emerged as Nepal's largest source of foreign direct investment and its second-largest trade partner and tourist source.
As the BRI enters its second decade, Nepal continues to benefit from enhanced connectivity and economic growth, reinforcing the initiative's role in fostering sustainable development and stronger international ties.
Reference(s):
cgtn.com
