Question

Details about china's "One belt,One Road" Strategy with refference

Answer 1

China's One belt and One road strategy is to enhance trade, investment, infrastructure between Asia, Europe and Africa. The belt consists of the road and rail transportation which was prevalent as the Silk Road in pre modern times. Whereas one road reflects the sea routes which would connect all the major ports. The strategy is to increase economic growth via trade through this initiative so that world trade becomes convenient and economical.

It would include 60% of the world's population, and is expected to be the greatest investment project in history. Via this strategy the travel time could reduce drastically and increase trade activity by 9.7%. It would also increase income by 3.4% and lead to economic development via lifting people out of poverty.

However there are several risks in place as the initiative requires huge capital investment which could lead to financial distress of various countries, leading to stranded infrastructural projects. It could also lead to procurement issues and corruption if not implemented efficiently.

But all in all it is expected to connect 71 countries and 40% of worldwide GDP and that China can trade with the global world at a quicker and at a much more efficient pace. But it is an expensive project which if not done in the right way could put several economies in distress.

Reference: China Says It's Building the New Silk Road. Here Are Five Things to Know Ahead of a Key Summit: Time Magazine

Belt and Road Initiative: World Bank.