Dr. David Aptsiauri 

Former Ambassador of Georgian  to China, 

Visiting Professor of University of International Business and Economics (Beijing)

Research Fellow of Levan Mikeladze Diplomatic Training and Research Institute under the Ministry of Foreign Affairs of Georgia

Why BRI can be considered as a new and promising model of global economic cooperation?

BRI is open for joining to all potential participants based on freedom of choice  in making a decision for cooperation ( principle of transparency of the concept of BRI). BRI originated in China , but it belongs to the World. It is rooted in history, but oriented  toward  the  future , focusing on Asia, Europe and Africa, but it is open to all partners. It is a process of open , inclusive  and common development , not an exclusionary bloc  of a ‘China club’. It neither differentiates between countries by ideology nor plays the zero-sum game. Countries are welcome to join the initiative if they so will. ( The Belt and Road Initiative Progress, Contributions and Prospects, source: Belt and Road Portal 2019-04-22)

At present we observe a new wave of  disputes in global framework of international relations. These trends bring less predictability for future stability in the World. In this regard  many countries  refocused their attention to BRI as a promising opportunity for more stabile national development and global security.

China chose a good moment for announcement of a new initiative since starting from 2008 the international community had  been facing the severe consequences of the world financial crises, including the financial turbulence of the Euro zone later and decline of effectiveness of the World Bank  to prevent the risks for global economic stability. On the contrary China has been developing dynamically with almost 10 per cent of GDP growth annually till 2014 and currently at the  level  of 6,7 percent. The world desperately needs new approaches and resources to overrun the crises and turn to predictable development. In this context we agree with  Mr. Yang Jian, Deputy President of the Chinese think tank  Shanghai Institute for International Studies (SIIS), who said :“The reason why the Belt and Road initiative is gaining wider and wider recognition is that besides promoting the development of participating countries, it has also contributed to the recovery of the World economy after the global financial crises, and conforms to the UN Sustainable Development Goals.”

BRI is not limited in time project. It is a platform for long term and comprehensive intra regional cooperation covering such sectors as infrastructure, trade, transport, manufacturing, financial relations , communication, new technologies and others. As President of  the Swiss Confederation Mr. Ueli Maurer pointed out in his interview for Chinese mass media during 2019 Beijing BRI Forum, “Belt and Road Initiative is a rare , long term plan that has created a new dimension for the development of the World economy.”

Expression of really global interest by participation in BRI of over 150 countries representing all continents and world experiences of political and economic development, in fact reflects the United Nations scale of cooperation as to the geographical composition of the countries. By the end of March 2019 the Chinese Government has signed 173 cooperation Agreements with 125 countries and 29 international organizations based on the principle of seeking common ground while reserving differences and agreed on economic cooperation plans. As the Founder and Chairman of the World Economic Forum Mr. Klaus Schwab mentioned in his speech at the 2019 Beijing BRI Forum, “now the initiative has become an adult, which means that it has become an important factor in the global economy. It has grown up.”

Mobilization of enormous financial resources, thanks to mostly Chinese key contribution, for economic development of the countries alongside BRI, is strengthening the stability of the world economy and security through East-West dimension of global partnership ( major shareholder in AIIB with 100 billion US Dollars capitalization , 40 billion Silk Road Fund, 50 billion US Dollars New Development Bank). As to rough estimates, from 4 to 8 trillion US Dollars investments are needed to make the BRI as successful  project  based on diverse funding channels ( BRI bonds, private capital investment and private public partnerships (PPP), state owned enterprise ( SOE) and so on.

Improvement of connectivity is an attractive extra motivation for cooperation. New East-West transport land routes from China to Europe reduce the time of delivery of the goods up to 12-14 days, when the maritime dispatch takes 30-35 days.

Promotion of further liberalization of trade relations via signing of bilateral Free Trade Agreements between China and BRI participants and opening a huge Chinese market for many countries and new emerging marketplaces for Chinese producers, including such partners as Australia, Switzerland, New Zeeland, Singapore, Iceland, Georgia and others, Japan, Korea, Norway, Israel and others are in negotiation process. The new element is enhancing multilateral cooperation through first of all bilateral approach and relevant interest. China’s trade with BRI countries exceeded within 2013 -2018 – 6 trillion US Dollars, direct investments - up to 90 billion US Dollars (source: China Daily  2019). Free trade Agreements were signed by China with more than 20 countries. According to data also issued by the Ministry of Commerce of China 56 economic and trade cooperation  zones  were established in the areas connected with BRI.

The mentioned case is an attempt to present such model of cooperation that is based not only on business motivation but also on interest to promote cultural exchanges via people to people contacts and share rich traditions of Eastern and Western history and culture. This a sign of advancing of non economic stimulating factors for cooperation, in our opinion so underestimated at present and important for better understanding of each other, respect and trust. The Silk Road scholarship in first half of 2018  reached 39,3 million US Dollars, 66100 Chinese students are studying currently in the countries involved in BRI, 81 education institutions and projects are also activated in BRI countries, 24 million Chinese people visited countries involved in the BRI.