UNIGOU - Training-Paper - Template 2023 (Recuperação Automática)
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UNIGOU - Training-Paper - Template 2023 (Recuperação Automática)
The Belt and Road Initiative and its Implications for the
International System.
Joab Caselato a.
a
Latin American Institute of Economy Society and Politics, Federal University For Latin American Integration, Foz do
Iguaçu, Brazil, [email protected].
Abstract. The main objective of this article is to analyse and examine the Chinese Belt and Road
Initiative (BRI), which is a grand global regional integration project led and financed by China,
involving many countries in Asia, Europe, Africa and Latin America. BRI aims at its core to
promote trade, investment, infrastructure, connectivity and cultural exchange between the
countries that participate in it and is currently seen as one of the largest development initiatives
in history and a key factor in the contemporary International System. The paper in question
uses a broad literature review based on articles from Google Scholar and economic analysis
websites to analyse the main aspects concerning BRI, such as its historical context, its short and
long-term objectives, its role in the foreign policy of Beijing, the geopolitical and power
dimensions, the economic benefits and challenges of implementing this initiative on the global
geopolitical scenario and the implications of its existence and development for the world order.
The key argument for the article is that China pursues both multilateral cooperation and self-
interest through BRI, using strategic investments to gain advantages in areas such as transport,
energy and security. However, the article also considers the possibility that BRI could end up
partaking in some form of debt-trapped diplomacy, creating economic dependence and political
alignment of many countries with China, and challenging the Western order.
Keywords. International Relations, Belt and Road Initiative, China, Geopolitics, Foreign Policy.
BRI represents a unique approach to globalisation Pestana (2020) infers that the "String of Pearls"
that reflects the main characteristics and interests strategy is an adjacent branch of the belt and road
of China, considering that this initiative is developed initiative and takes place through the establishment
from a long-term stance. Its central focus is the of military bases and commercial infrastructures
development of massive infrastructure, such as throughout the Indian Ocean, with the purpose of
ports, roads and railways, that promote economic expanding its geopolitical influence in key areas
integration and connect the nations involved. By such as the Indian Ocean and Africa, creating its ties
south of Port Sudan. This implies the an environment favourable to the promotion of
implementation of the projects already mentioned more solid economic relations between China and
in nations that have joined the Belt and Road the nations involved. In this context, Chinese
Initiative, facilitating the expansion of Chinese financial institutions, including the political and
economic and political power in these regions. commercial banks created, together with
Furthermore, the author states that the strategy multilateral credit organisations, facilitate the
aims to secure Chinese maritime trade routes, also financing of projects within the initiative. It is
guaranteeing access to strategic natural resources, important to note that, considering that BRI is still
such as oil and gas. in the development phase, it will be necessary to
wait a longer period for a comprehensive
1.3 BRI’s Role in the Chinese Foreign assessment of its long-term economic results [3].
Policy Perspectives regarding China's financing practices
The aforestated strategy represents an approach in BRI member countries suggest a growing
that focuses on China's geopolitical influence and willingness to direct resources to smaller-scale and
has connections to the use of Hard Power, referring more sustainable projects, in line with discussions
to the employment of military or economic that took place during the second Belt and Road
resources to impose the will of a state on other Forum, held in 2019 This trend indicates a possible
international actors. This strategy implies a more adaptation to concerns related to the financial and
assertive and pragmatic approach, often involving environmental viability of projects, which could
the investment of substantial economic resources contribute to more equitable and lasting economic
and, potentially, the use of force to achieve China's growth in the regions involved in the initiative [3].
political objectives in strategic areas [4].
2.1 China’s Benefits from BRI
On the other hand, there is a cultural perspective
underlying the Belt and Road Initiative that plays China has been experiencing economic gains from
the role of China's Soft Power tool, marked by the the Belt and Road Initiative by providing financing
idea of strategic persuasion to achieve goals using to support ambitious ventures in participating
culture, history and State values as instruments for countries. This has resulted in contracts being
such. From this perspective, the Belt and Road awarded to Chinese companies to build
Initiative, along with cultural partnerships and the infrastructure and provide equipment.
installation of Confucius institutes in partner states, Furthermore, the initiative has enabled the
becomes a means of expanding Chinese Soft Power, expansion of China's geopolitical and commercial
that is, cultivating diplomacy that is based on influence in strategic areas, in accordance with
cultural attraction and in building a favourable specific objectives established in particular
image of the country [4]. circumstances [4].
Additionally to this, Gao (2018) also brings to the Through BRI, China can effectively pursue its
discussion the fact that BRI represents an important interests and achieve its aspirations, with a
instrument for Chinese foreign policy in its substantial focus on economic benefits. For China,
leadership of what is called “Globalisation 5.0”, investment plays a fundamental role, as it makes it
based on global collaboration and temporally possible to obtain raw materials and expand its
initiated from the creation of the initiative. For her, companies. Given that industrial investment and the
this action is carried out as a salute and nostalgic supply of such materials constitute vital elements of
tribute to the Ancient Silk Road, which begins in the its economy, the acquisition of mineral resources
3rd century BC and goes until the 15th century AD, emerges as a pressing need. Consequently, the
as well as seeking to replicate again the “Chinese investment in countries with abundant mineral
economic miracle”, which occurred from the reserves is crucial, as it allows China, after the initial
Revolution of 1949, in the rest of the Global South investment, to guarantee access to the minerals
through the construction of infrastructure in necessary to sustain its economic growth [5].
countries in these regions, losing the imperialist Another fundamental point of analysis is the ability
character observed in the actions of the Global and need for Chinese companies to make
North towards the South and being guided by investments. Therefore, China establishes as one of
multilateralism. its main objectives the creation of jobs for its
citizens, something that is achieved through
economic growth, thus requiring a more substantial
presence in different regions and allowing its local
2. The Economical Aspects of BRI companies to invest in other territories. In general
Considering its 10 years of existence, BRI is still terms, China is recognized for its imposing works
currently laying the foundations to expand Foreign and projects, as well as its undeniably strategic
Direct Investment (FDI) flows destined for countries areas of influence [5].
participating in the initiative, using the creation of
Moreover, the Belt and Road Initiative helps China the geopolitical and economic development in
face several internal challenges, including excess strategic regions, acquiring active strategic
industrial capacity, regional disparities and resources in countries undergoing socioeconomic
economic transition. By directing investments in development [4] [8].
infrastructure abroad, China is able to take
advantage of its underutilised resources, foster
progress in less developed regions and stimulate
processes of innovation and industrial 4. Final Discussions
restructuring. This results in benefits for both China
and the regions involved in the initiative [6]. Despite all the hypotheses, criticisms and concerns
discussed here, it is still too early for us to properly
comprehend whether the global policy proposed by
the Belt and Road Initiative is actively placing the
3. BRI and the Debt-trap Diplomacy countries involved in conditions that fall under debt
trap diplomacy, given the lack of concrete evidence
Taking into account that the action of BRI takes that this is happening at the moment and
place mainly through the granting of loans of considering that the project is working actively for
considerable value to member countries, the just over a decade. However, it can be said that
possibility opens up for the hypothesis that these there are indeed tangible concerns linked to the
amounts are too high for them to be able to pay sustainability of the debts that are developing. This
them under acceptable conditions. In this way, the concern is based on the obvious distinction between
excessive debt that such a scenario presents could external and internal debts, since the first must
be something very important to be considered in necessarily be paid off through exports, as
the equation [5]. Pestana (2020) gives this debt previously presented, and there are obvious limits
scenario the name “Debt Trap Diplomacy”, a concept to the total monetary amount that the subsidised
already discussed by many researchers in this field country can afford [6].
and which implies diplomatic actions based on debt
exports from one country to another, through loans, Conclusively, even with all the possible concerns
which make the debtor country find itself in a involved in the existence of BRI, it can be said that
situation of serious dependence on the creditor, the ambitious Belt and Road Initiative seeks to build
having no other choice but to renegotiate these a complex economic and logistical system that links
debts in a way that is extremely beneficial to the China with neighbouring regions and beyond, with
creditor, through the reduction of export prices, in the aim of boost sustainable economic development
strong support in diplomatic decisions on an and promote China's global influence in an
international stage and causing great financial extremely impressive way. This undertaking,
instability in the affected nation. despite being ambitious, represents one of the
largest infrastructure investment efforts in modern
For Pestana (2020), there are great risks of history, with an exacerbated potential to
countries involved in the initiative ending up being significantly impact the economies and
trapped by this form of diplomacy, due to the fact international relations of the nations involved.
that they are underdeveloped countries, often small Furthermore, the increase in direct foreign
and with low income, lacking effective methods of investment, in amounts never seen before, in
circumventing or reversing a hypothetical Chinese countries that need it so deeply shows a real
dominance in this scenario [7]. All these issues possibility and hope that the barriers imposed by
considered can lead to an intense impact on the neoliberal capitalism, which encourage inequality
ability of countries to adapt to sustainable and escape so much from a real scenario of
development perspectives [8]. international cooperation, will finally be conquered
and that multilateralism will become the real norm
Certain Western-based critics, primarily defenders of the International System in the future.
of the current global situation and the economic
dominance played by the United States, claim that
BRI may in fact become a tool of debt trap
diplomacy provisions, considering that currently 5. References
Chinese international loans exceed the mark of five
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