One Belt One Road Initiative Essay

Introduction

One Belt One Road Initiative is a project whose focus was the connectivity and cooperation between the Asian countries. The primary partners of this initiative are China and the member countries of both the land-based and the maritime Silk Road. Ideally, this initiative aims to create numerous infrastructural and economic projects that would connect China to the rest of Asia and accelerate economic growth in the region. Aside from just creating physical connections through roads and railways initiative aims to create a larger platform for trade, economic and cultural cooperation between the member states.

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Implicit and Explicit Objectives

The main explicit objectives include improving the development and ensuring economic growth for the parts of Asia that are underdeveloped. In particular, the western part of China which still lags behind regarding development. Another explicit objective of the initiative is to that it opens up both the land-based and maritime Silk Road for economic development and connectivity. This objective can be achieved through movement of goods and services, the movement of people and information as well as the exchange of culture. Additionally, the initiative aims to promote greater integration and collaboration among the People's Republic of China and its neighbors. Finally, the initiative seeks to improve the energy security in its member states through diversification of their import sources.

The main implicit objectives of the initiatives include; the One Belt One Road is to act as an outlet for the domestic surplus that China has and offer it for investment in other countries. This is because China has a surplus in a number of its sectors that have improved due to the economic dive and a rise in the buildings in recent decades. As such, the initiative offers a significant outlet for China's products. Another aspect of this overcapacity is seen concerning reserves. In the last past, there has been an unprecedented accumulation of capital and foreign exchange reserves in China. As such, this initiative presents numerous channels for outside investment and allows China to diversify its foreign exchange reserves.

Another implicit objective of this initiative is that it offers China new markets for its products and services. By diversifying China's export markets, the lifecycle of Chinese products will be extended, and this will form a platform improving China's existing industries and developing the emerging sectors. This diversity will be created by collaboration with some developing countries along the routes in the initiative. It is also expected to improve trade and accelerate economic growth in the developing countries that form the initiative.

The implicit objectives of this initiative are being funded by both the Silk Road Fund as well as the Asian Infrastructure Investment Bank (AIIB). The Silk Road Fund is an investment fund of China that is directed at fostering increased investment in the member countries of the One Road One Belt initiative. This fund was created in December 2014 in Beijing, during which the Chinese government pledge over 40 billion US dollars. The primary focus of this fund is infrastructure resource development as well as fostering industrial cooperation among the member countries. The main finding source is the Chinese government.

In the same breath, the initiative is also funded by the Asian Infrastructure Investment Bank (AIIB). The AIIB is a multilateral institution as opposed to the Silk Road Fund. Each member country of the institution has a say in the fund that is tied to its contribution to the fund. However, just like the Silk Road Fund, China is its largest shareholder. Its operations are mainly offering loans to the member countries that can be used to finance infrastructure projects and eventually result in economic growth in the Eurasian region. The intended recipients of these loans include all member countries of the Bank. Its main focus is infrastructural development, and it has a capital base of 65 billion pounds. The bank was initially founded by 21 countries with China as the pioneer. However, as of 2018, this membership has expanded to over 64. The bank now has 64 member countries with 20 other nations having the prospect of joining. The membership is not only limited to Asian countries, but some European countries such as the UK, France, and Germany have also participated.

Why China Is Doing It

There are some objectives for China's involvement in spearheading the initiative. Other countries have widely criticized this initiative as a push by China for more participation in global affairs. In particular, it has been seen as a way of converting China's surplus regarding capital, manufactured products, and foreign reserves into bargaining chips for international influence. Additionally, it is directed at enhancing regional connectivity and accelerating economic growth and infrastructural development in the broader Eurasian region. This will be achieved through investment in transport infrastructure, education, and other economic projects.

What Does This All Mean?

There are three main perspectives on what this means for the geopolitical climate of the world. The first perspective contends that the United States is the world's biggest source of peace and stability. As such, the rise of China as an economic power ought to be inherently ominous. Additionally, China's economic partners, for instance, Russia, are existential threats to this peace and stability. As such, they need to be curtailed by all means necessary. This is commonly referred to as the mainstream Western perspective. The second perspective holds that America and other countries with imperialistic tendencies are the main causes of destruction and instability in the world. They have led to the economic enslavement of developing nation, and as such, the rise of China provides an excellent alternative that needs appreciation.

The third perspective is that the rise of China as an emerging power provides an alternative to global governance. The increasing influence of these regimes is seen as an unmitigated disaster in the wake of globalization. China's rise and America's decline imply a radical change in the geopolitical landscape. It also means there will be a change in the global governance structure since the United States can no longer dominate the capabilities of China. This also has serious implications for the peace and stability of the world since the United States will no longer use its might and influence to start wars in foreign lands.

Conclusion

The One Belt One Road Initiative is bound to result in unprecedented economic and infrastructural development in the extensive Eurasian region. It has some implicit and explicit objectives. These include improving the economies of the countries involved, act as an outlet for China's overcapacity and offer China new markets for its products and services. These initiatives are being funded through the Silk Road Fund and the Asian Infrastructure Investment Bank. The initiative prospectively changes the geopolitical landscape of the world and places China in pole position to take a more advanced role in global leadership.