Skip to main content

Mobilizing the Indo-Pacific infrastructure response to China’s Belt and Road Initiative in Southeast Asia


EXECUTIVE SUMMARY

China has become a significant financier of major infrastructure projects in Southeast Asia under the banner of its Belt and Road Initiative (BRI). This has prompted renewed interest in the sustainable infrastructure agenda in Southeast Asia from other major powers. In response, the United States, Japan, and Australia are actively seeking to coordinate their own revamped overseas infrastructure efforts as part of a trilateral arrangement aimed at upholding a free and open Indo-Pacific.

Though principally motivated by geostrategic concerns, such international policy efforts are also well-justified on economic grounds — given the persistence of Southeast Asia’s large infrastructure financing gap, low world interest rates, and concerns about structurally weak global economic growth. In addition, China’s approach to infrastructure poses clear risks to governance, as well as economic, environmental, and social sustainability in the region. Finally, at the time of writing, the COVID-19 virus has unleashed a global health and economic pandemic of enormous proportions. Policymakers are currently focused on containing the health and economic damage of the virus. However, as the priority shifts to the post-crisis recovery, this inevitably will see focus return to the sustainable infrastructure agenda — with Southeast Asian governments looking for willing partners to assist.

The current approach of the trilateral partners, however, is likely to fall short in its ambition to provide a credible response to China’s BRI. The present emphasis on mobilizing more private capital for infrastructure development cannot deliver the kind of dividends needed to compete with the scale of China’s BRI. Nor is an emphasis on high infrastructure standards likely to deter Southeast Asian governments from taking on Chinese projects as long as China continues to be perceived as offering faster, less risk-averse, and more responsive support compared to alternatives available from traditional partners.

This policy brief makes several practical recommendations that would allow the trilateral partners to compete more effectively with China while simultaneously promoting more sustainable development outcomes. This includes increasing efforts to expand the pool of bankable projects and providing technical assistance to help Southeast Asian governments to better manage any BRI projects they might take on — particularly via the multilateral development banks, which can act as politically neutral technical arbiters. Meanwhile, the trilateral partners need to improve the competitiveness of their own infrastructure approaches to be more streamlined, less risk-averse, and more fit-for-purpose. This could be a useful part of the agenda for the new Blue Dot Network. More ambition is also needed. Contrary to the assumption that it impossible to match China’s financing scale, estimates presented in this policy brief suggest that the gap is not that large —  implying the trilateral partners can indeed keep pace if they are willing to direct adequate budgetary resources to the task. Finally, Australia is currently the only trilateral partner without access to the full range of development financing instruments and should consider options for addressing this gap in its capabilities


https://www.brookings.edu/research/mobilizing-the-indo-pacific-infrastructure-response-to-chinas-belt-and-road-initiative-in-southeast-asia/

Comments

Popular posts from this blog

SSG Commando Muddassir Iqbal of Pakistan Army

“ Commando Muddassir Iqbal was part of the team who conducted Army Public School operation on 16 December 2014. In this video he reveals that he along with other commandos was ordered to kill the innocent children inside school, when asked why should they kill children after killing all the terrorist he was told that it would be a chance to defame Taliban and get nation on the side. He and all other commandos killed children and later Taliban was blamed. Muddassir Iqbal has deserted the military and now he is  with mujahedeen somewhere in AF PAK border area” For authenticity of  this tape journalists can easy reach to his home town to interview his family members or   ISPR as he reveals his army service number” Asalam o Alaikum: My name is Muddassir Iqbal. My father’s name is Naimat Ali. I belong to Sialkot divison (Punjab province), my village is Shamsher Poor and district, tehsil and post office  Narowal. Unfortunately I was working in Pakistan army. I feel embarrassed to tell yo

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میں Please help the deserving persons... Salary: Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows; Welder: Rs. 1,700 daily Heavy Duty Driver: Rs. 1,700 daily Mason: Rs. 1,500 daily Helper: Rs. 850 daily Electrician: Rs. 1,700 daily Surveyor: Rs. 2,500 daily Security Guard: Rs. 1,600 daily Bulldozer operator: Rs. 2,200 daily Concrete mixer machine operator: Rs. 2,000 daily Roller operator: Rs. 2,000 daily Steel fixer: Rs. 2,200 daily Iron Shuttering fixer: Rs. 1,800 daily Account clerk: Rs. 2,200 daily Carpenter: Rs. 1,700 daily Light duty driver: Rs. 1,700 daily Labour: Rs. 900 daily Para Engine mechanic: Rs. 1,700 daily Pipe fitter: Rs. 1,700 daily Storekeeper: Rs. 1,700 daily Office boy: Rs. 1,200 daily Excavator operator: Rs. 2,200 daily Shovel operator: Rs. 2,200 daily Computer operator: Rs. 2,200 daily Security Supervisor: Rs.

A ‘European Silk Road’

publication_icon Philipp Heimberger ,  Mario Holzner and Artem Kochnev wiiw Research Report No. 430, August 2018  43 pages including 10 Tables and 17 Figures FREE DOWNLOAD The German version can be found  here . In this study we argue for a ‘Big Push’ in infrastructure investments in greater Europe. We propose the building of a European Silk Road, which connects the industrial centres in the west with the populous, but less developed regions in the east of the continent and thereby is meant to generate more growth and employment in the short term as well as in the medium and long term. After its completion, the European Silk Road would extend overland around 11,000 kilometres on a northern route from Lisbon to Uralsk on the Russian-Kazakh border and on a southern route from Milan to Volgograd and Baku. Central parts are the route from Lyon to Moscow in the north and from Milan to Constanţa in the south. The southern route would link Central Europe with the Black Sea area and