A SCMP article of 19 December asserts that China's Belt and Road Initiative is unraveling in the wake of a series of hold-ups and cancellations for fear of a "debt trap" and economic and ecological sustainability.
While corruption, ill-conceived financing, and ecological impacts continue to plaque some Belt and Road projects, on the whole, they have delivered substantial gains for host countries.
According to a Standard Chartered Bank report of 9 October, Belt and Road projects remain alive and kicking, often in partnership with international organizations like the World Bank and the Asian Infrastructure Investment Bank (AIIB).
According to the report, "bilateral debt relief offered by China should help to avoid systemic debt fallout. Increased transparency would likely improve project quality, address growing concerns and facilitate debt resolution. Commercial, environmental and social viability would help ensure project sustainability".
EY (Ernst and Young), an international accounting giant, released a report dated September 2018, showing, among other things, -
- China has signed 118 Belt and Road contracts with 103 countries with international organizations.
- 279 deliverables were identified at the 2017 Belt and Road Forum for International Cooperation. Of these, 265 have become routinized and 14 proceeding in an orderly manner.
- 130 bilateral or regional transport agreements have been signed with B & R countries including railways, highways, shipping, aviation and postal services.
- 2, 490 China-Europe freight train services now operate, an increase of 69% year-on-year, involving some 10,000 journeys in 15 countries and 43 cities.
- The Mombasa-Nairobi Railway project shortens journey time from 10 hours to 4, reducing logistic cost by 40%. Local procurement accounts for 40% of the contract value.
- Along the B & R, China has opened 356 international road passenger and freight transport lines, and set up 5,100 direct flights very week with 45 countries.
- Import and export value between China and B & R countries increased 18% annually, totalling US$5 trillion over 5 years.
- China has invested US$28.9 billion in 82 Economic and Trade Zones along the B & R, attracting 4,000 companies, contributing US$2 billion taxes and creating 244,000 jobs for host countries.
- Cultural exchange and cooperation agreements have been signed with 60 B & R countries with two-way visits exceeding 25 million. This is expected to increase to 85 million by 2020 with tourist consumption reaching US$110 billion.
- China's Scholarship Silk Road Program supports at least 3,000 additional students from B & R countries every year.
- The Datang Environment Desulfurization Project in India actively improves local environment.
Truth is almost always somewhere in the middle.
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