Current Affairs » Belt And Road Initiative

Belt And Road Initiative

Revival of the ancient trade routes

Why in the News?

External Affairs Minister of India told a virtual meeting of the Shanghai Cooperation Organisation (SCO) that the connectivity project (BRI) should respect the sovereignty and territorial integrity of Member States.

 

About

Belt and Road Initiative

  • China began the Belt and Road Initiative in 2013 under President Xi Jinping. 
  • It aims to revive the ancient trade routes crossing to and from China–from Rome in Europe to East Asia.
  • BRI partnerships encompass infrastructure investments in the construction, transport, aviation, telecommunications, and energy sectors stretching across many countries in Asia and Africa. 

 

Concerns:

  • Many BRI projects have become a cause of debt burden among recipient countries.
  • Another concern for the BRI is its current dependence on the U.S. dollar to fund the bulk of its projects.
  • Western critics have attacked the initiative as a new colonialism, or Marshal Plan for the 21st century.

 

India’s Stand:

  • India opposes BRI because it passes through Indian territory that is illegally held by Pakistan.



Global Responses to BRI

  • Build Back Better World (B3W) Initiative:  It was launched at the 47th G7 summit to counter China’s BRI.
  • PGII initiative: It counters  China’s Belt and Road Initiative (BRI) by raising funds for global infrastructure programs in poor countries. 

 

Geopolitical Significance:

  • China is using BRI as a strategic tool in the least developed and developing countries to leverage its influence around the world, potentially altering the established rules of the global order.