Dr. S. Saraswathi
China is trying to assume leadership of globalization by taking big initiatives involving many countries in different continents on huge never heard of expenditure. Whereby, Chinese President Xi Jinxing has emerged as the champion of global free trade in his keynote address at the first Belt and Road Forum (BRF) for International Cooperation held in Beijing recently. The Forum was attended by 29 leaders and over 100 delegations worldwide where India’s absence made global news.
Among the participants were UN Secretary General, IMF Chief, World Bank President signifying the international importance of the event. The US too seemed to be impressed by this extraordinary initiative by China and is watching its progress.
Notably, the BRF represents the New Silk Route connecting Far Eastern and West European countries through land, sea, air and satellite communications. Dubbed the New Silk Road it intends keeping alive the historic importance of the ancient Silk Road and underscore China’s transcontinental leadership.
Recall, the original Silk Road was a network of trade routes formally established during China’s Han Dynasty (202 BCE-220CE) which linked various regions of the ancient world via trade. It had a political beginning conceived as a diplomatic move to form alliances against traditional Chinese enemies — Xiangnu. But instead, developed as a commercial venture to promote international trade.
The original Silk Road was not one road but comprised many routes by land and water. It started from the present Korean peninsula and Japan and went up to the Mediterranean Sea and had four corridors through India. Trade was carried on in various goods but the road was called the Silk Road because of the popularity and demand for Chinese Silk in the entire route. Trade between the East and the West was officially opened by the Hans in 130 BCE.
Pertinently, the term “Silk Road” was coined by a German traveller and geographer Baron Ferdinand von Richthofen in 1877 CE. However, the road and trade declined when the Ottoman Empire (Turkey) boycotted trade with the West. The routes were closed after the end of World War I and the dismantling of the Ottoman Empire which allied with Germany in the War.
Importantly, the Silk Road served a variety of purposes besides trade like providing diplomatic ties, cultural contacts and facilitating religious tours. In India, UNESCO has found 12 sites of the ancient Silk Road across seven States: Bihar, J&K, Maharashtra, Puducherry, Punjab, Tamil Nadu and Uttar Pradesh and are declared World Heritage Sites.
In fact, the idea of reviving the Silk Road was mooted by Chinese President Xi Jinxing in 2013 for promoting international trade. Under the project, called the New Silk Road, Beijing provides support for construction of infrastructure, communications and transport network connecting Asia, Europe, and Africa. The object is to establish the world’s largest platform for economic cooperation.
Significantly, rail projects are being given priority under the project wherein some 5,000 annual train links with Europe are expected to be completed by the year 2020. Also on the anvil are various types of projects like a tunnel in Uzbekistan, port in Bangladesh, refinery in Saudi Arabia, power lines, oil and gas pipelines, electricity and telecommunications connectivity etc in many participating countries which are essential for trade and commerce.
Further, despite its exit from the European Union, Britain has shown an interest in the New Silk Road by accepting construction of an inter-connecting tunnel under the North Channel between Scotland and Northern Ireland directly at the centre of the two great trading routes – New Silk Route via the Channel Tunnel and the Transatlantic Route via the ports of Northern Ireland.
Consequently, with China’s expansionist ambitions visible in several moves in India’s neighborhood, it is but natural for New Delhi to be cautious in its reaction to the New Silk Road. Its fears stem from a possible strategic encirclement by a “string of pearls” around the Indian Ocean and on land as China is financing and building ports, railway lines, power stations and highways in Nepal, Bangladesh and Sri Lanka. Certainly, these cannot be ridiculed as far fetched. The China-Pakistan Economic Corridor planned to run through Pak occupied Kashmir adds to India’s worries.
Undeniably, the project cannot be viewed as a purely economic corridor for the benefit of all the users. It is likely to be of used for non-economic movements also.
Additionally, China has plans to cover Latin America also in a different way. The Ecuadorean hydro-electric power station and Coca Coda Sinclair have been inaugurated by Beijing recently.
Clearly, the impact of the New Silk Road has to be assessed in the context of growing voices in many countries against globalization and flagrant violations of global rules by many players when their national interests are affected. Britain’s exit from the EU and Trump Administration’s support for protectionism in US to “buy America” and “hire Americans” are against the backdrop of this magnum opus venture for free trade from China.
Beijing’s ambition to become the champion of globalization and its President’s appeal to world leaders to give up protectionism therefore, need cautious handling. Asian nations have to weigh their options and must examine whether the projects will promote their exports as much as their imports from China. The New Silk Road is not a project of a neutral international organization like the UNO.
Undoubtedly, China’s moves to enter and spread over territories of several South-Asian countries like Philippines and Viet Nam and incursions into Arunachal Pradesh remain the backdrop in which international networks are being built for common purposes. Beijing’s moves in the Indian Ocean Region cannot be regarded as friendly gestures by other concerned countries.
One thing that is certain is that poor countries will find it difficult to repay the debt they incur in having projects much beyond their financial strength. The “debt trap” awaiting many countries entering into massive infrastructure projects is not an imaginary bogey, but something that will not only falsify the benefits of a global market but will curtail their freedom and sovereignty in future. Debt is like a mouse trap that has no escape doors.
Clever creditors do not put down their conditions initially but show their true colours once the victim is trapped and become voiceless and weak. It is common knowledge that no loans are available without strings attached. Economic dependency will pave way for political submission. India will do well to go within its capacities and not nurture ambitions for overnight growth through grandiose plans.
In sum, credibility, genuine global interests and faith in goodwill and co-existence are necessary for lasting international friendship. In the world today, geo-politics and geo-economics are intertwined. Every country has to take care of both aspects and cannot afford to lose one for the sake of the other.
India’s reservations about the Silk Road are on solid ground. It has to take only measured steps though it might betray skepticism and some amount of nervousness over the political and economic dominance exhibited by China in Asia with extension to Europe. Certainly, the New Silk Road represents Beijing’s global ambition. —INFA
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