Wednesday, February 18, 2015

Silk Road Economic Belt

The "Silk Road Economic Belt" is a Chinese initiative to integrate
economies of Asia and Europe along the Eurasian corridor with Chinese economy; through
the development of transport infrastructure and communication networks involving
railways, roads & fiber optics highways that would connect South Asia,
South East Asia, Central Asia and Europe along an integrated land corridor.
Intent:
1. 
realize Chinese aspirations of playing an enhanced role
at regional and global levels.
2. 
First step towards establishing Chinese hegemony at
regional and global levels; instead of US $ or Euro, the local currencies &
Renminbi to be dominant means of economic deals.
objectives:
1. 
development: of Chinese
hinterland particularly Xinjiang province which is seeing a lot of ethnic
violence arising out of social problems like poverty, unemployment,
backwardness etc.
2. 
Economic Growth: enhanced connectivity will boost China's
trade with entire Eurasian continent; Chinese overcapacity in construction
materials will be utilized; efficiency improves.
3. 
Enhanced Regional & Global clout: China hopes to
gain closer cultural and political ties with countries along the silk Road.
4. 
Counter US: policy of "Pivot of Asia" and its
trans-pacific partnership agreement which try to contain China and consolidate
American hegemony.
5. 
showcase a softer side of China & gain an upper
hand over regional powers such as India & Japan.
implications for India:
Security:
1. 
Chinese influence in Indian neighbours such as Nepal,
Bhutan may increase.
2. 
encircling India via land corridor just like string of
pearls in Indian Ocean.
Political:
1. 
India's clout at regional level might be reduced.
Economic: if India participates in
the initiative then
1. 
its trade might be boosted with Eurasian economies.
2. 
China may fund infrastructure development in India too.
Conclusion: the need for India is to balance security concerns with economic
benefits to be derived; particularly in the context of Chinese assertiveness.

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