Reflecting on a Decade of the Belt and Road Initiative in Nepal
This year marks a decade since the Belt and Road Initiative (BRI) was proposed by Chinese President Xi Jinping in 2013. As the third Belt and Road Forum for International Cooperation concluded in Beijing on October 18, it is an opportune moment to reflect on Nepal’s journey with the BRI and its impact on the nation’s development.
The BRI is a connectivity-driven development strategy aimed at enhancing global investment, trade, cultural exchanges, and people-to-people ties among partner countries. Envisioned to revive the ancient Silk Road routes, the initiative seeks to build a network of trade corridors linking Asia with Africa and Europe.
Since its inception, over 150 countries have signed memorandums of understanding (MoUs) with the Chinese government to participate in the BRI, demonstrating the initiative’s global resonance among developing nations.
In 2015, the establishment of the Asian Infrastructure Investment Bank (AIIB) provided a dedicated financing mechanism for infrastructure projects in Asia, supporting the objectives of the BRI. With China holding a significant equity share, the AIIB has become instrumental in funding key development projects across the continent.
Nepal joined the BRI in 2017, viewing it as a pivotal opportunity to secure development financing for much-needed infrastructure enhancements. With limited domestic revenue that barely covers recurrent expenditures and debt obligations, Nepal relies heavily on foreign funding to drive its development agenda.
Following the MoU, both China and Nepal have continually emphasized their commitment to advancing BRI projects. High-level visits, including the recent one by Prime Minister Pushpa Kamal Dahal Prachanda in September 2023, have resulted in agreements focusing on enhancing connectivity through the development of ports, roads, railways, airports, and communication networks. These initiatives fall under the broader framework of the Trans-Himalayan Multi-dimensional Connectivity Network, aiming to bridge the connectivity gap between the two nations.
The economic cooperation and people-to-people exchanges between Nepal and the Chinese mainland have seen significant growth since 2017. Prior to the COVID-19 pandemic, China emerged as Nepal’s largest source of foreign direct investment, the second-largest source of tourists, and the second-largest trading partner. These developments underscore the deepening ties fostered through the BRI.
Looking ahead, Nepal anticipates that continued collaboration under the BRI framework will accelerate its economic growth, enhance regional connectivity, and improve the livelihoods of its people. As the world navigates post-pandemic recovery, Nepal’s active engagement in the BRI presents new opportunities for development and prosperity.
Reference(s):
cgtn.com