Over the past decade, the Belt and Road Initiative (BRI) has gained worldwide traction and garnered overwhelming support from the international community. With investments nearing $1 trillion, the BRI has facilitated numerous livelihood projects, developed massive infrastructure facilities, and achieved significant milestones in international cooperation.
Despite its achievements, some skeptics label the BRI as a bad investment, arguing that there are diminishing economic returns from investing in BRI projects overseas. However, the reality paints a different picture. The BRI is not designed for short-term gains but for the long-term common good of all participating nations.
As the mega-project evolves from broad strokes to refined details, the BRI has become increasingly important, especially to developing countries in resource-poor regions. For these countries, the BRI offers an opportunity to integrate into global supply chains, enhance infrastructure capacity, foster technological innovation, and improve product standards. This, in turn, boosts the operational capacities and competitiveness of businesses, including small and medium-sized enterprises, driving economic transformation and building robust economies.
Take Kazakhstan, the largest economy in Central Asia, as an example. According to a World Bank report from 2020, BRI corridor routes are potentially “game changers” for this landlocked country. Improvements in infrastructure have reduced shipment times by over 8% and trade costs by 4%. The impact of these enhancements alone on Kazakhstan’s gross domestic product (GDP) is estimated at about 6.5%, with further gains of around 15% possible through improved trade facilitation and reduced tariffs along the corridors.
The BRI’s focus on long-term development, inclusive growth, and infrastructure connectivity demonstrates its value as a strategic investment. By fostering collaboration and shared prosperity, the BRI continues to contribute significantly to global economic development.
Reference(s):
cgtn.com
