New research reaffirms Belt and Road fosters growth, connectivity

Note:The following article is taken from the Chinese-language "Commentaries on International Affairs".

The China Center for International Economic Exchanges released a report on Tuesday that says the Belt and Road Initiative has helped increase economic activity in the participating countries and contributed to the recovery of the global economy. The Belt and Road Trade and Investment Index Report focused on 41 countries taking part in the initiative, evaluating and analyzing their trade, investment development, and future trends from 2012 to 2017.

Students from 20 Belt and Road countries learning Chinese calligraphy and painting at the Zhejiang Agriculture and Forestry University, May 8, 2019. [Photo: IC]

Quoting data from the United Nations, the report points out the Belt and Road economic bloc has overtaken the North American free trade zone to become the world's second-largest trade bloc, second only to the Eurozone. By the end of 2017, trade among the participants accounted for 13.4 percent of total global trade, and 65 percent of the trade in the European Union. Foreign capital flows of Belt and Road participants in 2017 accounted for 31.6 percent of the world's total, surpassing both the North American free trade area (23 percent) and the European Union (21.2 percent).

The findings follow the release last week of a report by the finance and investment research agency Moody's that says the investments in large transportation and energy projects through the Belt and Road helps to expand productive capacity by closing critical infrastructure gaps.

Moody's focused on the potential long-run economic gains and near-to-medium term macro-stability risks for 12 emerging and frontier countries in South, Southeast, and Central Asia. Moody's sees Pakistan, Mongolia, Kazakhstan and Cambodia as reaping the greatest potential economic gains from the Belt and Road Initiative.

Last month, when the former president of Kazakhstan, Nursultan Nazarbayev, was in Beijing to attend the second Belt and Road Forum for International Cooperation, he quoted the Chinese proverb that building the road is the first step towards prosperity. He said his country doesn't have any sea access, but the Belt and Road has brought six railroads and 11 highways to his country. Kazakhstan also partnered with China on the building of a logistics base on China's east coast at Lianyungang, which provides Kazakhstan with direct access to the Pacific Ocean.

These two recent reports are the latest examples of the recognition the Belt and Road Initiative has received for its role in fostering economic development. Both Antonio Guterres, the United Nations secretary general, and Klaus Schwab, the founder and executive chairman of the World Economic Forum, have voiced their support for the initiative, with Schwab updating the old Chinese proverb by saying, "If you seek prosperity, build connectivity."

When world leaders gathered in Beijing for the second Belt and Road forum, they agreed to jointly promote high-quality development in the initiative. Their support for its ongoing development offers the promise that the Belt and Road will continue to bring more inclusive growth and connectivity to the participating countries. And as the recent research reports have reaffirmed, this will help to increase economic activity among the participants and continue to drive economic growth around the world.