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Blue Dot Network

Understanding the Blue Dot Network Initiative by the US, Japan and Australia on Infrastructure Development.

The Blue Dot Network is a counter to China’s Belt and Road Initiative. The Blue Dot Network was announced on November 4, 2019, at the Indo-Pacific Business Forum in Thailand. The BDN is an initiative led by the governments of the USA, Japan, and Australia. The BDN aims to unite governments to develop global infrastructures like roads, ports, and bridges. The BDN’s development projects focus on the Indo-Pacific region specifically.

The BDN doesn’t offer loans or grants public funds for the development project. However, it is set to serve as a seal of approval which will let people know that the roads are Sustainable. India became a part of the Blue Dot Network on February 25, 2020.

Is the Blue Dot Network a counter to the OBOR?

The network may seem like a counter to the OBOR initiative. Strategic experts are of the opinion that while the Blue Dot may be seen as a counter to the OBOR, it needs a lot of fine-tuning for two reasons:

  • There is a fundamental difference between the OBOR and Blue Dot – while the former offers direct financing that will provide short-term relief, the latter is not a direct financing initiative and therefore may not be what some countries need

  • The blue dot will need cooperation among the multiple stakeholders when it comes to grading projects. Since they may differ on the standards that need to be kept, it will be an uphill task to get them to agree on a common factor

Belt and Road Initiative

The Belt and Road Initiative or the One Belt One Road initiative is an infrastructure project launched in 2013 by Chinese President Xi Jinping. The initiative aims to construct a road that would stretch from East Asia to Europe. The completion of this initiative can result in China’s political and economic influence in Europe and Asia.

  • Silk Road Economic Belt Countries: The Silk Road Economic Belt aims to connect Central Asia and Eastern and Western Europe to China
  • 21st Century Maritime Silk Road: The 21st Century Maritime Silk Road aims to connect Mediterranean countries, African countries, Southeast Asian Countries, and Central Asian countries to China’s southern coast

Benefits of India joining the blue dot network

  • There will be greater transparency and financial accountability when it comes to development projects India will undertake
  • The network will act as a globally recognized seal of approval for major infrastructure projects, which will drive home the message that these projects are not exploitative but sustainable
  • The Blue Dot project is about providing foreign companies, often reluctant to invest in emerging economies due to concern about corruption or climate change, the right information about which project to invest in
  • It will also ensure “principle” based and “sustainable” investment in infrastructure. It will provide quality infrastructure and facilitate potential foreign investment for the Indian economy
  • It might give India an economic edge over its rival, China, in the form of better quality infrastructural projects

Conclusion

The BDN was formally announced on 4th November, 2019 at the Indo-Pacific Business Forum in Bangkok, Thailand. The Blue Dot Network is a multi-stakeholder initiative that aims to bring governments, private sector entities and civil society together to promote “high quality, trusted standards for global infrastructural development” It will be led by the US along with Japan and Australia.It is a multi-stakeholder initiative to bring together governments, the private sector and civil society to promote high-quality, trusted standards for global infrastructure development. It is expected to serve as a globally recognised evaluation and certification system for roads, ports and bridges with a focus on the Indo-Pacific region.