Why in news?
- Of late, Japan & USA are increasingly endorsing India’s dissent against China’s trillion dollar ‘Belt & Road Initiative – BRI’.
- This presents a chance to build a credible alternative to the BRI for enhancing connectivity in the Asia-Pacific.
What is BRI?
- BRI is a set of projects being piloted by China to enhance connectivity between Asia, Europe & Africa by land and sea.
- It is humongous in scale and is touted as one that would establish China’s primacy in the world geo-politics.
- BRI was viewed with awe around the world and enthusiastically embraced by most of China’s neighbours in the region.
- As it is a pet project of President Xi, his strengthening clout within the China is expected to enhance the vigour of the initiative.
What are India’s Concerns?
- India on the contrary gave a stinging public rebuke, arguing that projects under China’s BRI have not met international standards.
- It opined that ‘connectivity initiatives’ must follow principles of financial responsibility to avoid unsustainable debt creation.
- It also stressed on BRI’s disregard for environmental issues, lack of transparency in cost assessments.
- Also, technology transfer modules that are need for long term project sustainability isn’t clear.
- In a reference to ‘China Pakistan Economic Corridor’ that passes through Kashmir (PoK) – India voiced that connectivity projects must respect sovereignty and territorial integrity of states.
How is the consensus on the Indian Standpoint?
- Although, Japan & USA had sent representatives to the Beijing summit on BRI (that India boycotted) – they have increasingly become critical of it now.
- Delhi, Tokyo and Washington have even begun discussions on joint projects for Indo-Pacific infrastructure development as alternatives to the BRI.
- USA - has recently drubbed China’s development assistance as ‘predatory economics’ and also echoed many of India’s views.
- Large debt conditions, it argued would force countries to swap debt for equity - thereby seeding strategic control to China.
- The US has also begun Investing in infrastructure projects in the region and is in consultation with many countries.
- Its agreement with Nepal to augment electricity and transportation infrastructure is a case in point.
- Japan – Japan has been vouching for joint connectivity & infrastructure projects even before the conception of BRI.
- In 2015, Japan announced the ‘Partnership for Quality Infrastructure - PQI’ and plans to spend about $200 billion during the next five years.
- More recently, talks on a “Free and Open Indo-Pacific” and enhanced connectivity between Africa & Asia has been mooted.
- Notably, Japan has a better experience in executing projects in third world countries and is also offering better terms than China.
What is the way ahead?
- Many small nations have limited alternatives when it comes to infrastructure investments and financing.
- Hence, transparent and sensible regional lending mechanisms need to be strengthened to help nations avoid debt traps like BRI.
- India’s Role - India needs to enhance its infrastructure initiatives with its own resources in the Subcontinent.
- It also needs to get partner countries like US, Japan, Europe to coordinate their initiatives as well as take up joint projects.
- It should also learn to overcome its many institutional limitations in implementing projects in other countries.
- The Purpose - While building an alternative to China’s BRI is needed, it shouldn’t become an irrational rivalry.
- Rather, it should be a demonstration of possibility for sustainable infrastructure development.
- By doing this, Delhi and its partners can improve the bargaining capacity of smaller countries vis-a-vis China.
- It is expected to eventually push Beijing to discard the predatory provisions in its BRI and make it a genuinely cooperative venture.
Source: Indian Express