The Belt and Road Initiative (BRI), launched in 2013, has emerged as a transformative force in fostering economic ties and synergetic development across Asia and beyond. By promoting unimpeded trade over land and sea, the BRI is reducing barriers, enhancing connectivity, and catalyzing economic growth among participating countries.
A World Bank report highlights the significant potential of the BRI to reshape global trade dynamics. If proposed BRI projects are fully implemented, travel times along participating countries’ transport corridors could decrease by 12 percent by 2030, thanks to improved infrastructure. This reduction in travel time is expected to lower trade costs substantially.
The anticipated decrease in trade costs could lead to a remarkable increase in trade volumes—between 2.8 to 9.7 percent for participating countries, and 1.7 to 6.2 percent for non-participating countries. This surge in trade is projected to contribute an additional 0.7 percent to annual global economic growth, amounting to half a trillion dollars. Moreover, real per capita incomes could rise by 0.7 to 2.9 percent, potentially lifting approximately 7.6 million people out of extreme poverty and 32 million out of moderate poverty.
Despite the challenges posed by the COVID-19 pandemic and a shifting global economic landscape characterized by new trade barriers and slowing growth, the BRI continues to play a pivotal role in promoting cooperation and connectivity. As Chinese President Xi Jinping remarked at the opening ceremony of the third Belt and Road Forum for International Cooperation on October 18, the BRI has opened up new avenues for international exchanges and established a fresh framework for global cooperation.
Central Asia, in particular, has transformed into a crucial transport bridge connecting the economic powerhouses of the Chinese mainland and Europe. This transformation has turned previously landlocked areas into thriving hubs of connectivity. The emergence of new transport routes throughout the region heralds a revolutionary “new great silk road,” facilitating unprecedented levels of trade and interaction.
Statistics underscore the BRI’s impact on trade facilitation. Between January and November 2022, a total of 15,162 freight trains traversed between Asia and Europe, transporting 1.48 million TEUs (twenty-foot equivalent units) of cargo. Over the past decade, China-Europe freight trains have made 77,000 trips, carrying 7.31 million TEUs of goods worth more than $340 billion.
The BRI’s focus on unimpeded, convenient, and efficient trade is not only enhancing economic growth but also fostering closer ties among nations. By continuing to build and improve infrastructure, reduce trade barriers, and promote cooperation, the BRI is poised to significantly contribute to global development and shared prosperity.
Reference(s):
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