Which country among those receiving funding and investment as part of the BRI is considered a poster child for the debt trap claimed by critics of the BRI?
Sri Lanka-China: The Poster Child of Debt Trap Diplomacy The takeover of Sri Lanka’s Hambantota Port is perhaps the classic case of debt trap diplomacy within the BRI’s sphere.
Why is the belt and road initiative important for China?
The Belt and Road Initiative in Asia China views the BRI as vitally important in securing its borders on the Asian mainland. Belt and Road investments are viewed as a way to facilitate China’s ‘periphery diplomacy’ – trade and infrastructure partnerships with the countries along this enormous land border.
What are the impacts of China’s belt and Road Initiative?
China proposed the Belt and Road Initiative (BRI) in 2013 to improve connectivity and cooperation on a transcontinental scale. Quantifying the impacts of the BRI is a major challenge, which is why the World Bank Group has produced empirical research and economic models that assess the opportunities and risks of BRI projects.
What is the belt and Road Initiative (BRI)?
The Belt and Road Initiative will further strengthen the contribution of emerging market economies and developing countries to the world economy and help balance growth in the world.
How can developing countries benefit from China’s infrastructure projects?
Developing countries, in which the projects are built, would profit as transshipment points and from the development of new industries that could plug into international supply chains. Revenues from the resultant economic growth would then repay the Chinese loans, with interest. That all sounds rosy.
Who benefits from China’s economic growth?
In short, China benefits from both the financing and construction of infrastructure projects, while developing countries must bear all of the financial risk. When trade is booming, that may not matter much. But when it is not, that should be a concern.