BRI (Belt and Road Initiative)
BRI is the largest infrastructure project of China amounting to USD 1.3 trillion. It comprises 6 major corridors.
One of the major dimensions of BRI is the transport sector.
The six corridors mapped under BRI include:
- CHINA-EUROPE corridor
- CHINA-CENTRAL ASIA-IRAN corridor
- CHINA-CENTRAL ASIA-EUROPE
- CHINA-MONGOLIA corridor
- CHINA-MYANMAR-BANGLADESH corridor to CHINA-ASEAN corridor
- CPEC corridor
It is the combination of land and sea routes.
B3W (build back better world):
- It is the largest ever investment project in human history that will amount to USD 43 trillion.
- In the first phase, USD 7 trillion would be invested. It is a project of G7 countries (US, Canada, France, Germany, UK, Australia).
- B3W is a project on paper.
- It is not a well elaborated/ well explained project on the other hand BRI is manifested practically.
Major differences between both initiatives are as follows
Transport Sector Projects Under BRI
- The most important component is the bullet train project on every corridor.
- The second important component is network of highways and motorways.
- The third important component is focus on sea routes - China will build 26 seaports under BRI.
Transport Sector Projects Under B3W
- Its focus is not primarily on the development of the transport sector or transportation system, with an exception of railway projects announced for eastern Europe and Japan-ASEAN railway track.
- This is because its focus is on traditional sea routes.
Energy Sector
Under BRI
- China under BRI is focusing mostly on energy projects.
- It is focused on hydrocarbon energy projects
- Major focus is on oil & gas in the Caspian region – Russia, Asia, Iran, Azerbaijan
- Major focus on Hydrocarbons in the Middle East - China will be importing hydrocarbons from Caspian regions and middle east.
Under B3W
- B3W does not focus on hydrocarbon projects. It solely focuses on clean energy projects like Wind, Solar and Hydroelectric projects (including tidal energy).
Clean Energy Projects
Under BRI
- China under BRI is focusing on clean or carbon free energy projects.
- These include Hydroelectric projects, wind projects, solar projects and civil nuclear projects.
Under B3W
- B3W does not focus on hydrocarbon projects. It solely focuses on clean energy projects like Wind, Solar and Hydroelectric projects (including tidal energy).
Special Economic Zones
Under BRI
- Under BRI China will invest in Special Economic Zones. It intends to invest in 150-200 special economic zones by 2090. Of them most will be in Asia, Africa, and Eastern Europe respectively.
- Of these 10 Economic Zones will be under CPEC, 23 under Europe-Asia.
Under B3W
- B3Ws focus is also on the development of the production sector (industries). Not only of G7 countries, but of East Asia, Southeast Asia, Eastern Europe, North & South America.
Agriculture Sector
Under BRI
- Under BRI China will increasingly invest in the agricultural sector.
- Especially in South Asia, Central Asia and ASEAN countries. More and more focus will be on agriculture to meet China's increasing future demand.
Under B3W
- On the other hand, B3W does have an aspect of a food security programme but it is still not clear how much it would invest in the agricultural sector.
Mode of Investment
- Moreover, the mode of investment under BRI & B3W is different.
BRI
- Diverse modes introduced by China. E.g., loan-based projects - railways etc.
- China is making heavy investment in BRI projects under the BOT- build, operate, transfer model. (Chinese companies will invest, build projects, and operate it for a particular period) and then will transfer to a particular country.
- Public-private partnership – majority of the investment in agricultural and industrial sector will be made under public-private partnership and foreign direct investment.
- BRI primarily comprises developmental projects; there is no major investment on the human development index.
B3W
- This is a loan based project. Investment will be based on commercial loans for development projects.
- Loan will be provided by
- IMF
- World Bank
- European central bank
- Asian development bank etc.
- A significant allocation would be made for social welfare programmes. There will be a focus on human development index, women empowerment
- Aid would be provided to uplift the marginalized sectors/ parts of the society.
Project Model
- BRI is a project of interdependency. It just doesn't have loan-based projects. A significant number of projects are public - private partnerships: Chinese companies and companies of respective countries with major govt investments
- Investment would be made on BOT Models (build operate and transfer)
- These are the projects of inert dependency models
- B3W promotes dependency model through loans
- BRI and B3W are the projects that will make respective countries dependent on them, this will influence the decision-making process of governments through investment diplomacy.
- B3W is primarily launched to contain the growing influence of China.
Conclusion
- BRI is a project that is under practical manifestation. Billions of dollars investment has already been made or is in process. Whether it is Pakistan, Iran, Azerbaijan, Myanmar, ASEAN countries etc.
- Investment must be initiated under B3W. but if investment initiates then it will be a far bigger project than BRI.
- The financial constraints of the G7 countries is another hurdle for this initiative.
