electronic Global Trade Credit Platform/eGTCP's Blog: B&R Initiative Brings Huge Benefits to All of Trade

During the ongoing 2017 Dalian Summer Davos, the Belt and Road Initiative is the hottest topic. On June 28, a session was held in the Dalian International Conference Center to discuss global implications of the Belt and Road Initiative.

"One Belt, One Road offers a powerful vision in today's world," said Ahsan Iqbal, Minister of Planning and Development of Pakistan.

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In Pakistan where the China-Pakistan Economic Corridor (CPEC), part of the Belt and Road Initiative, is expected to generate $57 billion in long-term investment, the effects are already being felt with significant capital flows in the energy and telecommunications sectors - and with Mandarin Chinese now the most studied language in Pakistan, he said.

Iqbal said that, as connectivity under the Belt and Road Initiative is actualized, the process will stimulate inclusive growth that will "touch the lives of millions of people now cut off from the mainstream."

In a world that seems increasingly fragmented, Zhang Tao, Deputy Managing Director of International Monetary Fund, reckoned that "the bottom line is that the Belt and Road Initiative has the potential to strengthen cross-border dialogue and foster multinational cooperation. This is very important in today's increasingly interconnected world, and is going to be even more important in the next few years."

Danny Alexander, Vice-President and Corporate Secretary of the Asian Infrastructure Investment Bank, observed that China's vision will enable developing countries in Asia to achieve "leapfrog" development, and that the ambitious framework has the potential to secure the region's economic security for decades to come.

"The success of these strategies, to invest in infrastructure and promote connectivity, will be key in determining the prosperity of Asia over the next 20-25 years," he said, before offering a caveat: "The stakes are high, so it matters that we work within partnerships."

Describing the Belt and Road Initiative vision as mutually beneficial, Ann Sim, Senior Minister of State for Trade and Industry of Singapore, said approaching the exciting potential of connectivity in the spheres of infrastructure and finance and deepening people-to-people links will require strong policy-coordination providing not only a clear direction, but also a degree of flexibility.

"In the case of Singapore, I would say that we see a value in having frameworks. At the same time, we see the value in moving ahead with experiments and demonstration projects," she added.

Although the Belt and Road Initiative brings huge benefits along the region, there are still some challenges ahead.

According to Minister Iqbal, effective coordination is required because lots of government departments are involved. In addition, a great deal of skilled labor was required along the Belt and Road.

The Belt and Road Initiative refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road proposed by Chinese President Xi Jinping in 2013. The initiative aims at promoting policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bond in the international community.

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