BRI-sustainable, inclusive growth, and financial sources

Abstract

At China’s 19th National Congress of China Communist Party in October 2017, the Belt and Road Initiative was included in the Party’s Constitution. This proves the importance of this initiative for China and the long-term commitment of China to implement it. According to the Vision and Actions Plan to Jointly Built Belt and Road and the 21st Maritime Silk Road, it is a Chinese initiative born in China but turned to the world and it aims to a new global economic model that can support a sustainable global economy in 2100 BRI arises in the outcome of World Economic Crisis of 2008 which effects are still present in the world economy, and since 1997 Asian financial crisis until now China has adopted infrastructures investments as an economic counter-cycle measure. Also multilateral development financial institutions recommend their member states to increase infrastructures projects to underpin economic growth. The improvement of infrastructures and connectivity is a base for the development of trade, investment and economic activity. There is a tremendous academic research work on the impact of the construction of infrastructures, trade and investment in the economic growth. BRI takes these conclusions into consideration and advances new ways of progress pretending to reduce barriers and put countries working together with a new mindset based on knowledge, connectivity, trust and cooperation. But we face two realities in the world, for instance in Africa 650 million people don’t have yet electricity and in the developed world we are talking on big data and cloud computing. How to deal with this huge disparity? Does BRI call for the use of a global sustainability filter in strategic projects? Behind BRI, there is a financial sustainable rationale that should be prioratized; What is the cost of the infrastructures need to achieve this sustainable global economy? What are the sources for this financing? A model rather different from the traditional one China practised till now to implement infrastructures, the foreign aid model together with Outward Foreign Direct Investment or the Angola Mode Model will not serve this new vision of China for the world. What criteria should be used to support them with financial schemes?.