Belt & Road Initiative (BRI)

• 12 Mar 2019

Why is it in News?

Italy has signed up for the Belt & Road Infrastructure Summit in China.

What is BRI?

• The Belt and Road Initiative (BRI) is an ambitious effort to improve regional cooperation and connectivity on a trans-continental scale. The initiative aims to strengthen infrastructure, trade, and investment links between China and some 65 other countries that account collectively for over 30 percent of global GDP, 62 percent of population, and 75 percent of known energy reserves.
• The BRI consists primarily of the Silk Road Economic Belt, linking China to Central and South Asia and onward to Europe, and the New Maritime Silk Road, linking China to the nations of South East Asia, the Gulf Countries, North Africa, and on to Europe

What is BRI Membership?

• It must be kept in mind that BRI is not a multilateral organization and signing the MOU simply means that country has given a green signal for China funded Infrastructure Projects.
• BRI is also not a trade pact where rules & regulations will be clearly spelled. It is a Chinese centric project which is being designed, developed and implemented solely by China.

Why is joining of Italy seen as a Major Achievement by China?

EU and the other G7 Countries used to label Chinese BRI Initiative as a “Debt Trap” mechanism. Joining of Italy will increase the acceptability of China and will dilute the stand of EU & G7 Countries.

Why is India opposed to the BRI?

• China Pakistan Economic Corridor which is a part of the BRI passes through Pakistan occupied Kashmir (POK); this initiative of China is an attack on India’s sovereignty.
• With BRI passing through POK, China has become a third party to the dispute.
• India sees this initiative as an extension of ‘String of Pearls’ which intends to encircle India.

Is not joining BRI Wise?

• If India will not join BRI, it will be surrounded by countries where Chinese influence exists; the best way is to become a part of the initiative and shape the imitative to our advantage.
• Once India will join the BRI, it will open gateways to large and inaccessible markets for our competent private sectors.
• As things stand, POK will not be reverted to India’s possession, but joining the BRI will effectively give India access to the region.