Trump’s Policy for Africa Exist Only to Stop China

July 20, 2019

The analysis in the article below published by WPR is useful. However, I can be more blunt: President Trump’s policy for Africa has nothing to do with helping Africa, but it only to counter China’s influence! President Obama did very little for Africa, but make speeches about so called good governance and promoted his fraudulent “power-less Africa” program. Sadly, President Trump is following in Obama’s footsteps, premising his strategy for Africa on the old British geo-political doctrine of winners and losers in a zero-sum game. Read my article:  President Trump’s Fundamentally Flawed Africa Policy  Stopping China is not a policy to help Africa, a continent still suffering today from enormous infrastructure deficits, a legacy of 500 years of slavery, colonialism, and neo-colonialism. Despite all the propaganda against China, China’s Belt and Road infrastructure initiative has done more to assist African nations in developing their economies in recent decades, that all the combined initiatives of Europe and the United States. President Trump’s “Prosper Africa” will not advance Africa’s interests. The best way to actually promote development in Africa, build robust manufacturing sectors, and industrialize the underdeveloped continent, would be for President Trump to join China in building infrastructure across the continent in the spirit of the Belt and Road Imitative. 

World Politics Review

Donald Trump’s daughter and adviser, Ivanka Trump, and Kwesi Quartey, Deputy Chairperson of the African Commission.
Ivanka Trump, and H,E, Kwesi Quartey, Deputy Chairperson, African Union

Trump’s ‘Prosper Africa’ Strategy Is Fixated on a Cold War-Like View of China

Kimberly Ann ElliottTuesday, July 16, 2019

During the Cold War, American policymakers frequently pushed nonaligned countries to take sides. The Central Intelligence Agency fomented coups against governments that flirted with communism and the Soviet Union, or that just drifted too far to the left for comfort. The State Department threatened to cut aid flows to countries that voted too often against U.S. priorities at the United Nations. Could sub-Saharan Africa find itself caught in the middle again if a cold war with China breaks out?

In a speech at the Heritage Foundation last December, President Donald Trump’s hawkish national security adviser, John Bolton, launched a new initiative called “Prosper Africa” that he said was aimed at promoting trade and commercial ties “to the benefit of both the United States and Africa.” But there are a number of reasons for African governments to be concerned about what the administration really has in mind.

First of all, Bolton cast the goal of increased economic engagement as something necessary for “safeguarding the economic independence of African states and protecting U.S. national security interests,” not as something helpful for African economic development. He pointed to the growing influence of “great power competitors,” China and Russia, which he suggested were investing in Africa mainly “to gain a competitive advantage over the United States.” While there are certainly valid concerns about some of China’s foreign aid and lending practices in Africa and other developing countries, African governments have generally welcomed Chinese aid and investment. It’s not at all clear they would agree that this is a competition where they must choose one side or the other.

A second reason to be skeptical of how seriously this administration takes the goal of helping Africa develop is the low level of U.S. engagement to date. President Donald Trump has not visited the continent; his wife and daughter have in trips heavy on photo ops but light on policy substance. Secretary of Commerce Wilbur Ross—hardly the most dynamic member of the Cabinet—was supposed to represent the administration last month at the U.S.-Africa Business Summit in Maputo, the capital of Mozambique, where details of the Prosper Africa initiative were announced. But he cancelled at the last minute because of a “scheduling conflict,” according to his office, sending Deputy Secretary of Commerce Karen Dunn Kelley instead.

By contrast, Chinese President Xi Jinping has visited Africa multiple times and has welcomed a stream of African officials to Beijing. Russian President Vladimir Putin will host 50 African leaders at a summit in Sochi later this year. Gyude Moore, a former minister of public works in Liberia (he’s now my colleague at the Center for Global Development), called the lack of Cabinet-level U.S. participation at the Maputo meeting insulting.

There are a number of reasons for African governments to be concerned about what the Trump administration really has in mind.

Finally, another reason to question the White House’s intentions with respect to trade with Africa is Trump’s view that trade policy is a zero-sum game: If another country wins, the United States must lose, and vice versa. Indeed, before getting to the mutual benefit part of his speech last December, Bolton asserted that the administration’s new Africa strategy would remain true to Trump’s “central campaign promise to put the interests of the American people first, both at home and abroad.”

So it should be no surprise that when he discussed trade, Bolton emphasized American jobs and exports to Africa. He said that the administration wants to pursue “modern, comprehensive trade agreements… that ensure fair and reciprocal exchange.” In recent congressional testimony, U.S. Trade Representative Robert Lighthizer also reiterated the administration’s goal of negotiating a bilateral trade agreement with an African country that could become a model for others. Negotiators for a little country, negotiating with a big country like the United States, might wonder just what reciprocity means in that context.

If more than two decades of history is any guide, negotiating a trade deal with the United States will mean more or less accepting whatever text American negotiators put in front of their counterparts, including onerous demands for strict intellectual property protections that could increase prices for drugs and agricultural inputs. Negotiating with one country at a time is also problematic because most African countries are party to one or more regional communities, which they are stitching together in a single, continent-wide free trade agreement that just formally entered into force. The continent—home to a large number of small economies, many of them landlocked—desperately needs more regional integration to increase its competitiveness by lowering transportation and other costs of trade and achieving economies of scale.

Beyond these problematic trade plans, what else is in the administration’s Prosper Africa initiative? Its second stated aim is to engage the private sector and double U.S. trade with and investment in Africa. According to Kelley’s remarks in Maputo, two of the three strands of the program are aimed at helping American companies find and close deals across Africa by streamlining and better coordinating U.S. government activities that provide information, financing and risk insurance to the private sector. She also suggested that these efforts on behalf of American businesses could include “U.S. government advocacy” to “expedite” transactions, which sounds like it might involve a little arm-twisting if African officials question the terms of a deal.

Helping African countries improve the investment climate, which is Prosper Africa’s third strand, and connecting American investors to opportunities on the continent, are worthy—and indeed longstanding—goals. Overall, however, the initiative appears to be a mix of existing programs in shiny new packaging, and with little new money. The $50 million proposed budget for Prosper Africa is a drop in the bucket compared to the administration’s proposed 9 percent cut in overall aid to Africa. And efforts to negotiate bilateral trade agreements country by country would undermine the regional integration that is needed for the continent’s development.

Trade and aid to support development in Africa can and should be to the mutual interest of all involved. But putting Prosper Africa in the context of the geopolitical rivalry with China, alongside Trump’s belligerent America First rhetoric, undermines that positive message.

Kimberly Ann Elliott is a visiting scholar at the George Washington University Institute for International Economic Policy, and a visiting fellow with the Center for Global Development. Her WPR column appears every Tuesday

 

China-Africa Debt Trap Refuted Again. Belt and Road Building Infrastructure-Developing Africa

July 12, 2019

President Xi and African Heads of State (courtesy of Al Jazeera)

This excellent article, once again refutes the slander that China is imposing a ‘debt-trap’ on African nations. The author, Ehizuelen Michael Mitchell Omoruyi, executive director of the Center for Nigerian Studies at the Institute of African Studies, Zhejiang Normal University, shows how China through the Belt and Road is developing vital infrastructure for Africa. 

“Millions of articles have been written on China-Africa engagement that involve the terms “Sino-optimism,” “Sino-pragmatism” and “Sino-pessimism.” With that said, somehow, China has also been mentioned in some Western media in a negative light, including headlines with phrases such as “Can China circumvent the middle-income trap?” “China’s trapped transition,” “The Thucydides Trap” and the “debt trap.”

“As for the debt trap, the term refers to the idea that Chinese loans in the continent of Africa are a strategy by the Middle Kingdom to extract concessions and purchase allegiance. I do not concur! China’s involvement with African nations is far beyond building railways, bridges and roads…

Continue reading: Belt and Road Offers Development not Debt Trap

China Announces $1 Billion Belt and Road Africa Fund Led by South African

Announced July 3 on the sidelines of the Summer Davos Meeting World Economic Forum in Dalian, China, this $1 billion investment fund also achieves another first–in that it will be not be run by the state government–thus being China’s first “NGO.” It will also notably be led, not by a Chinese, but by a South African.

Intended to be up and running by September, this fund–to be capitalized by wealthy Chinese businessmen and their families–will be headed by Dr. Iqbal Survé, “born and educated in Cape Town” (according to his website). Survé had started his own, Sekunjalo investment fund in 1997, leaving his medical career at the call of Nelson Mandela, who was seeking local investors to lead the development of the economy. Dr. Survé had become “affectionately known as the ‘Struggle Doctor’ because of his provision of medical care towards victims of apartheid brutality,” says his “about” page.

Since then Survé came to serve as chair of the BRICS Business Council for South Africa, and most recently as a member of the Business Council Chairman for the five BRICS countries. A hedge fund operator he definitely is not. Commenting from China, Dr. Survé said, “The discussions that we’ve had with Chinese business people, state-owned enterprises and family offices, have resulted in the establishment of this fund. Africa is ready to grow and is heading towards a $5 trillion economy. The [Africans] have seen how China was able to grow from 1980, when China made up only 2% of the global GDP when compared to today, where China makes up 19% of the global GDP.

This fund is a great boost for the development of Africa.” The fund will be overseen by a Belt and Road Business Council, eventually to grow to 1,000 Chinese and African members.

AU Demands: African Integrated High Speed Railway Network

July 4, 2019

The article below written by a friend of mine is a useful over view of the African Union’s plan to build High Speed Rail-lines in Africa.  High-Speed Rail together with the production of abundant supplies of energy are indispensable for the continent’s development and the industrialization of African economies. The link to the entire article that is worth reading follows the excerpts.

“The vital plan for an African Integrated High-Speed Railway Network (AIHSRN), approved by the African Union (AU) in 2014, appears to be going forward energetically. But in fact, Africa is getting only half a loaf at best. Standard gauge rails are being built, but to “save money,” they are not being built to standards permitting the high speeds that the African Union had specified. These “higher”-speed lines are not “high-speed” by any accepted standard. Or, worse, existing lines of the old colonial gauge are being rehabilitated—again because “there is not enough money.”

“Yet having “enough money” is not the problem it seems to be: The principle of Hamiltonian credit—credit extended by government, on the strength of nothing but the skills of the population, and earmarked for projects sure to produce leaps in productivity—has been known in theory and practice for 200 years, even if suppressed by the business schools.” Read my post from earlier this year on Alexander Hamilton: Nations Must Study Alexander Hamilton’s Principles of Political Economy

“AIHSRN is not a master plan for all rail transport in Africa. It is, rather, a plan for rapid rail transport across long distances. And Africa has long distances. To go from Cairo to the Cape of Good Hope by road or rail is more than 10,000 kilometers (6,200 miles)—the equivalent of going from New York to San Francisco and back again.

“Yet with the AIHSRN, an express train could depart from Cairo at 6:30 a.m. on Monday morning, travel at an average of only 220 km/h (137 mph), make only five half-hour stops—at Khartoum, Nairobi, Dodoma (Tanzania), Harare, and Johannesburg—and arrive in Cape Town in time for an early breakfast on Wednesday. The east-west trip from Addis Ababa in Ethiopia to Dakar, Senegal—“only” 8,100 km—will be quicker. The implications of such speed for the African economy—and for African integration in all respects—are enormous.

“The continental plan is for six west-east routes from the Atlantic to the Indian Ocean/Red Sea, and four routes that run from north to south—a 6×4 grid (see map).

“Because of their high speeds, the trains must run on dedicated, standard gauge lines that will not usually accept traffic from other, slower lines of the sometimes denser, surrounding rail network.

“The plan includes the construction of railway manufacturing industries, parts suppliers, maintenance facilities, and the building up of railway training academies.

“The AIHSRN is part of the African Union’s Agenda 2063, a fifty-year plan for the economic, social and cultural development of the entire continent, born in 2013”

Read full article: Africa Integrated High Speed Railway Network

China Helps Ghana Industrialize. First Ever Russia-Africa Summit

June 23, 2019

You will read below the continued cooperation of Russia and China with Africa in promoting economic growth on the continent. In this respect, the US is largely absent in Africa. President Trump would be wise to correct this flawed US policy, and join Russia and China in engaging in the development of African nations. 

Ghanaweb.com

Help Ghana industrialize – Business Development Minister tells China

 

Ibrahim Mohammed Awal 750x406
Ghana’s Minister for Business Development, Dr Ibrahim Mohammed Awal

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Minister for Business Development, Dr Ibrahim Mohammed Awal, has appealed to China not to be a mere trading partner but to also support Ghana’s efforts to become a manufacturing hub in West Africa.

He said while Ghana appreciated and looked forward to growth in the trade relations between the two countries, it was critical for China to prioritize manufacturing in Ghana as well.

Opening the third China Trade Week in Accra yesterday, Dr Awal said his appeal was premised on the government’s industrialization drive as one of the major pillars to Ghana’s accelerated, all-inclusive and sustainable development.

The three-day event was organised by MIE Events, a global event organizer, as a business to business trade show featuring over 100 Chinese manufacturers looking to develop direct trading partnerships and links with local businesses.

It was also a platform for the local business community to explore business opportunities in China to enhance trade cooperation between the two countries.

It is a platform for both Ghanaian and Chinese businesses and brands to increase their visibility, find vendor partners and distributors in each other’s country.

Organizing for First-Ever Russia-Africa Summit in October Underway

The Kremlin announced officially on May 28 that the first-ever Russia-Africa Summit will be held on Oct. 24, 2019, in Sochi. It will be co-chaired by President Vladimir Putin and current chair of the African Union, Egyptian President Abdel Fattah el-Sisi. All the heads of state of Africa are invited to attend, as well as leaders of major sub-regional associations and organizations. An economic forum will be held for Russian and African officials and businessmen the day before (Oct. 23), which some 3,000 African businessmen are expected to attend.

President Putin first proposed the idea of such a summit at the 2018 BRICS summit in South Africa, and his aide, Yury Ushakov, is now chairing the summit Organizing Committee. Russian organizers describe the summit as “of unprecedented scale” for Russia, whose intent is to provide “a strategically important step towards creating the most favorable conditions to develop trade and economic relations and diversity the forms and areas of Russian-African cooperation.”

Preparatory meetings are already being held, including a Russia-Africa Business Dialogue organized as part of the St. Petersburg Forum; a Russia-Africa Economic Forum being held in Moscow yesterday and today, along with the 26th annual shareholders meeting of the African Export-Import Bank, which is being held in Moscow for the first time; and a Russia-Africa Parliamentary Conference on July 1-3. Work started in April on drafting a document to be titled “Russia-Africa: Shared Vision 2030,” involving people from the African continent and Russians.

China’s Belt-Road Initiative Advancing Growth in Africa and Germany. Will the US join?

June 20, 2019

Everyday, nations around the world are experiencing economic growth by participating in China’s Belt and Road Initiative-BRI. For a truly global transformation, the United States must join this new paradigm of development. The most productive way to enhance relations with China, is for President Trump, at next week’s G-20 meeting, to discuss with President Xi Jinping, the US joining the BRI. This would create an unprecedented level of economic growth throughout the world. It would also be a brilliant flank against those voices in the US, and internationally, who are demonizing China, and trying two divide our two great nations. 

{Independent}: Belt and Road Contributing to Prosperity in Africa

A feature today in the South African {Independent Online Business Report} publication reviews the benefits of the Belt and Road Initiative for Africa, saying that Liberia, Morocco, and Tunisia have benefited from African development projects, as has Ethiopia from the Addis Ababa Light Rail, which cut travel time to and from the city. Through the BRI, China has also built a light-rail system in Abuja, Nigeria, the first to be built in Western Africa. Chinese construction companies have further assisted Angola in rebuilding its Benguela Railway, which had been destroyed in the civil war. The country can now transport goods from Angola’s western coastline to the border of the Democratic Republic of Congo.

Chinese-funded projects have also led to the construction of the Isimba and Karuma hydroelectric power stations, two new sources of electricity to Uganda, which will ultimately aid development. In Rwanda, road construction projects have brought young citizens into construction through their employment. This ultimately improved their welfare and provided labor skills. In the spirit of BRI’s trade ambitions, Egypt now looks to make the idea of the Cape-to-Cairo road a reality. Since taking the reins as 2019-2020 chairperson of the African Union, Abdel Fattah el-Sisi of Egypt plans to construct a superhighway through multiple African nations, eventually ending in Cape Town, to open
countries to trading in the Cape’s ports and in Cairo, Egypt’s gateway to the European Union.

German Mittelstand Supports New Silk Road

China’s proposed Belt and Road Initiative (BRI) has been creating opportunities for German enterprises, said Hans von Helldorff, chairman of the board of the Federal Association of German Silk Road Initiative (BVDSI), in an interview with Xinhua on June 17.

“The future markets and the new markets, for example, are in Asia, Africa, as well as Eastern and Southern Europe. They are not so well-connected. China has been providing the connections, thus it will generate great opportunities,” said von Helldorff, stating that new markets are needed by Germany’s Mittelstand firms.

Von Helldorff said that, thanks to the inter-connectivity, businesses have already been on the rise in some German cities, such as Hamburg and Duisburg. Many small and medium-sized companies in Germany got contracts with seaborne and logistics enterprises from China and other countries for local registration, legal, accounting, and tax services, von Helldorff stated.

“The infrastructure projects along the Belt and Road countries also need a lot of know-how. Harbor-related, road-related, train-related, etc. We have to open our eyes and participate in them,” von Helldorff said, declaring that the strengths of German businesses can contribute as an “innovation and investment engine.”

Speaking about prevailing doubts and worries about the BRI, allegations that the initiative might be politically motivated and harm local industries, von Helldorff said that some of them are simply clichés and that some are unfounded.

“The BVDSI sees China as a fast-growing economy that follows a plan. We need to sit and make eye-to-eye contacts and negotiations. Only cooperation in the sense of fair competition is for the benefit of humanity,” von Helldorff said. The BVDSI, founded in March 2019, is a business association serving as a platform for the interests of small- and medium-sized German companies. The BVDSI plans to organize a
forum later this year in Germany on the BRI for partners to establish project-related contacts.

 

President Trump’s Harmful Huawei Sanctions Against China, the US, and the World

June 16, 2019

President Trump’s foolish sanctions against Huawei display a poor understanding of the history of human development on this planet, as we know it. As William Jones points in his article below, it is the US economy and American citizens, more than China, that could suffer from these ill thought out sanctions. The beauty of human beings is our continued ability over millions of years to make discoveries of new physical principles of the universes, due to our inherent capacity for creative thought. Although this quality of human thought is less valued in American culture these days, this is not so in China. China will continue to make scientific advances, as should all nations. We should all rejoice when new discoveries are made, resulting in new advances in applied technologies, which benefits all of mankind. Who will create the next technological platform with “6G?” This is the essence of human progress and it should be celebrated. As I have repeated many times on this website, if The Trump administration and US Congress had any brains, they would enthusiastically join China’s Belt and Road Initiative, and collaborate with China in industrializing the Moon as a stepping stone to colonizing Mars. These joint endeavors would produce a new platform of economic growth across the globe that would benefit humanity for decades to come.

Africa should not be bullied into rejecting Huawei’s 5G technology

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The U.S. Could Be Shooting Itself in the Foot with Huawei Sanctions

2019-06-12 China Today

Author:WILLIAM JONES

The near-hysteria in Washington over the expansion of Huawei worldwide and its development of 5G technology has provided some much sought ammunition for politicians here in Washington with a dearth of ideas for resolving America’s economic woes, and may have some short-sighted benefit for them among a populace fearful that the direction of American society is on a downward spiral. Finding a scapegoat for the country’s dilemma apart from the powers in Washington that actually determine the fate of the nation, is always a welcome relief for those power-brokers who hold themselves above scrutiny. And preventing a competing nation from becoming an integral contributor to the vital communications networks on which the world increasingly depends is an added boon. And yet the attempt to undermine Huawei from becoming a bigger player in the world’s communications systems may in fact sabotage the growth of U.S. companies engaged in the same field

Read US Sanctions Against Huawei

African Union Deepening Relationship With Huawei

Africa should not be beholden to US anti-China policy from President Trump’s administration. China and Africa have formed a closed relationship, collaborating to build vitally necessary infrastructure projects that the US and the West have refused to build over many decades. African nations have the right to have the most advanced technologies to realize their full economic potential on a continent rich with people and resources.

 

Huawei’s vice-president for the Northern African region Philippe Wang (on the left) and the deputy chair of the African Union, H.E. Kwesi Quartey

June 2, 2019

Huawei announced on May 31 that they had signed a three-year MOU to “improve the technical expertise of the African Union (AU) and to cooperate on key issues related to information and communication technologies,” according to Quartz Africa. Huawei and the AU will partner to strengthen sectors including the internet, cloud computing, broadband, 5G networks, artificial intelligence, and cyber-security, while also providing training for young people.

Since an MOU signed in 2015, people from across the AU have been hosted on tours to Huawei training centers in China.    While the China-bashers in the U.S. are warning countries against Huawei spying on people, China is “trying to improve its competitive advantage in the continent,” Quartz Africa reports.

“The company is already one of the biggest phone brands operating in Africa, coming just behind China’s Transsion and South Korea’s Samsung in the smartphone space. Since starting its operations in Kenya in 1998, it has used a blend of pricing, customer service, brand awareness, and a vision to bridge the digital divide to penetrate the African market. Huawei has also reportedly built about 70% of Africa’s 4G networks, vastly outpacing competitors in the demand not just for internet but for improved and faster connectivity.”

“Huawei’s deal with the AU could also be seen in the context of trying to improve its competitive advantage in the continent. The company is already one of the biggest phone brands operating in Africa, coming just behind China’s Transsion and South Korea’s Samsung in the smartphone space. Since starting its operations in Kenya in 1998, it has used a blend of pricing, customer service, brand awareness, and a vision to bridge the digital divide to penetrate the African market.

“Huawei has also reportedly built about 70% of Africa’s 4G networks, vastly outpacing competitors in the demand not just for internet but for improved and faster connectivity.

“Under this agreement, we are pleased to consolidate our existing partnership with Huawei, a leading group in the fields of innovation and technological research,” Thomas Kwesi Quartey, the deputy chairperson of the AU said. “It is essential that we work closely with our partners to meet the digital transformation challenges of Africa.”

Continue reading

 

In Africa, the Belt and Road Is Generally Spurring Socio-EconomicDevelopment

Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project, also known as Lamu corridor is a transport and infrastructure project in Kenya that, when complete, will be the country’s second transport corridor

May 12, 2019

The Belt and Road strategy of international cooperation already up and running and phenomenally redrawing the global development map. With outlaying economic corridors and tremendous added value it is also putting Africa in the front-line of emerging global economic hubs, wrote Charles Onunaiju, Director Center for China Studies, Utako, Abuja, in his article, “Africa and China’s Belt and Road Strategy,” that appeared in {The Sun} of Nigeria on May 8.

Elaborating the contribution of the Belt and Road Initiative in Africa, Onunaiju wrote: “Since the action plan of the Belt and Road strategy was rolled out, key infrastructure projects have sprung up in Africa taking shape from its concessional funding support and inspirations of facility connectivity. In respect of overland construction, Chinese companies through concessional financial support have built the Addis Ababa-Djibouti Railway in Ethiopia, which is the first electrified railway in Africa, the Mombasa-Nairobi Railway in Kenya, the Abuja-Kaduna Railway in Nigeria, Benguela railway in Angola, and many others, including the Lagos-Ibadan-Kano-Abuja [railroad] under construction.

“With regards to the maritime component of Belt and Road Initiative, Africa features eminently in the key infrastructure projects. So far, Chinese companies have constructed the port of Bagamoyo in Tanzania, the No. 19 berth of the port of Mombasa and three berths of port Lamu, all in Kenya, the New port of Pointe-Noire in the Republic of Congo or Congo Brazzaville, the Lekki Deep Seaport in Nigeria, the Kribi Deep seaport in Cameroon, and the port of Tamatave in Madagascar.

“Under the framework of the Belt and Road strategy of international cooperation, the port of Cherchell in Algeria has been built and is in operation, while the Port of Luanda in Angola is under construction. The distinct feature of each of these ports is that they either have access to major road connections or sit near the sites of industrial parks, thereby having significant impacts on economic development of the coastal areas of Africa.”

Read the entire article below.

Africa and China’s Belt and Road strategy

Belt-Road Initiative and Belt-Road Forum: A New Model of Global Development

May 9, 2019

Belt-Road Initiative is Now Second Largest Trade Bloc

{Global Times} reports today that the BRI has become the second-largest trade bloc in the world, surpassing NAFTA, now second only to the EU. The BRI countries account for 13.4% of world trade, while the EU is about 20%.

In terms of investment, {Global Times} reports, the BRI countries have become the most important destinations for foreign capital inflows in the world, accounting for 31.6 percent of the total in 2017, exceeding the 23-percent share of NAFTA and the 21.2-percent share of the EU.

Chinese President Xi Jinping talks to United Nations Secretary General Antonio Guterres (not pictured) during the bilateral meeting of the Second Belt and Road Forum at the Great Hall of the People on 25 April 2019 in Beijing, China. (Credit: Getty Images/Getty Images News/Andrea Verdelli / Stringer)

Vladimir Yakunin: BRI is “A Future Model of Global Development-in-Solidarity”

Vladimir Yakunin, the former president of Russian Railways and the initiator of the Dialogue of Civilizations (DOC — the Rhodes Conference), has posted an article on the DOC Research Institute website titled: “The Belt and Road Initiative as a new model for global inclusive development and solidarity.”

Yakunin writes that the Second Belt and Road Forum “should be seen to represent significant global development amidst uncertain times.” He reviews the decay of the world economy that led to the 2008 financial crisis, where investments in infrastructure were drastically curtailed, while “the world economy became `financialized;’ i.e., the financial sector increasingly dominated the real sector. This uncontrolled imbalance eventually led to the financial crisis and later to the global systemic crisis.”

The DOC, founded in 2012, took on an effort to develop “a new approach to under-standing the role of infrastructure projects in global development,” which was published as: “Trans-Eurasian Belt Development: RAZVITIE project,” and presented at a specially organized conference in Milan in November 2012.

The developments at the Second Belt and Road Conference this past week, Yakunin writes, “showed an increasingly widespread unders-tanding that economic egotism and arrogance is giving way to rational collectivism and an orientation towards a new type of globalization, based on principles of equality, sovereignty, and mutual development.”

Yakunin notes that some Western officials are worried that the BRI, together with the new financial institutions like the AIIB, the BRICS’s NDB, and the Silk Road Fund, are challenging their “long-time dominant positions,” but notes that “the traditional international development institutions did not provide the necessary weight for developing countries to participate in the global financial system.”

He reviews the huge growth in the BRI, such as the 73% increase in China-Europe freight trains in 2018 over 2017, with 6,363 trips in 2018, connecting 59 Chinese cities and 49 cities in 15 European countries.”

His conclusion: “[T]he key idea of the Belt and Road initiative — equal and mutually beneficial cooperation without imposing any political conditions — clearly contradicts the currently dominant thesis in contemporary world politics. The new approaches could change the very essence of geopolitics and geo-economics by altering the outdated Cold War mentality of the past. Geopolitical theory has always been articulated through a lens of conflict, dividing the world into `us’ and `them’…. “The Belt and Road Initiative could be the source of a future model of global development-in- solidarity. The key here is the inability to return to the concept of a uni-polar or bipolar world, which can be seen today in global trends towards development of a truly multilateral world.”

Excerpts below:

“SEARCHING FOR A NEW PARADIGM OF SOCIO-ECONOMIC DEVELOPMENT”

“Numerous studies conducted after the crisis demonstrated a positive correlation between investment in infrastructure and economic growth. Importantly, it was also shown that infrastructure projects play a positive role in short-term outcomes as well, due to their creation of new jobs and their development of local enterprises, which increase long-term regional development levels.[1] Another conclusion voiced by many prominent economists over the last ten years has been the necessity of developing a new economic model to replace the existing neo-liberal system because neo-liberalism no longer meets requirements. Such statements were difficult to imagine before the crisis, but now seem obvious”

“CHALLENGES ON THE PATH TO IMPLEMENTATION”

“Taking into account the scale of the Belt and Road Initiative and the amount of investment China put into it through the newly founded multilateral financial institutions like the Asian Infrastructure Investment Bank, the New Development Bank, and the Silk Road Fund, it is not surprising that major powers including the European Union and the US are expressing significant concerns.”

Read entire article

 

Second Belt & Road Forum: Infrastructure is the Bedrock of Development

April 30, 2019

2nd Belt & Road Forum-April 25-27, 2019 (courtesy TheNews.com)

Xi Jinping’s Keynote to Belt and Road Forum Emphasized Goals of the BRI

Chinese President Xi Jinping’s speech to the opening ceremony of the Second Belt and Road Forum on April 26, “Working Together To Deliver a Brighter Future For Belt and Road Cooperation,” broadly laid out the BRF approach and prospects for the future.

“Together, we will create an even brighter future for Beltand Road cooperation…. The joint pursuit of the BRI aims to enhance connectivity and practical cooperation. It is about jointly meeting various challenges and risks confronting mankind and delivering win-win outcomes and common development…. A large number of cooperation projects have been launched, and the decisions of the first BRF have been smoothly implemented. More than 150 countries and international organizations have signed agreements on Belt and Road cooperation with China….
“Infrastructure is the bedrock of connectivity, while the lack of infrastructure has held up the development of many countries. High-quality, sustainable, resilient, affordable, inclusive and accessible infrastructure projects can help countries fully leverage their resource endowment, better integrate into the global supply, industrial and value chains, and realize inter-connected development. To this end, China will continue to work with other parties to build a connectivity network centering on economic corridors such as the New Eurasian Land Bridge….

“Innovation boosts productivity; it makes companies competitive and countries strong…. China will continue to carry out the Belt and Road Science, Technology and Innovation Cooperation Action Plan and Technology Transfer.”

President Xi also used his speech to present a list of a half-dozen major policy steps China has undertaken as part of its Opening Up strategy:
“First, we will expand market access for foreign investment in more areas….
“Second, we will intensify efforts to enhance international cooperation in intellectual property protection….
“Third, we will increase the import of goods and services on an even larger scale. China has a vast potential for increasing
consumption….
“Fourth, we will more effectively engage in international macro-economic policy coordination. A globalized economy calls for global governance. China will strengthen macro policy coordination with other major economies and keep the RMB exchange rate basically stable….
“Fifth, we will work harder to ensure the implementation of opening-up related policies.”

President Xi Jinping Chairs Roundtable at 2nd BRI Forum– ‘Boosting Connectivity for New Sources of Growth’

The concluding day of the 2nd Belt and Road Forum for International Cooperation in Beijing, President Xi Jinping chaired the Roundtable discussion among the 39 guests–37 heads of state plus the leaders of the IMF and United Nations. A joint communiqué has been issued (see separate slug,) and the Chinese Foreign Ministry has also posted a summary of the “Deliverables” from the Forum.

After a day of presentations, as well as sideline bilateral meetings, Xi and his wife Peng Liyuan hosted a welcome banquet for the national leaders. The cordial, but high-level tone of the deliberations April 25-27, was set in Xi’s keynote opening yesterday, when he happily welcomed everyone, “Good morning! As a line of a classical Chinese poem goes, ‘Spring and autumn are lovely seasons in which friends
together to climb up mountains and write poems.’ On this beautiful spring day, it gives me great pleasure to have you with us here at the Second Belt and Road Forum for International Cooperation (BRF).”

Read President Xi’s Key Note address

Second Belt & Road Forum Joint Communiqué States Development Commitments; Lists 35 Specific Economic Corridors–Including “The New Eurasian Land-Bridge”

The 37 national leaders were listed in the very first point of the Communiqué, and the following points identified the role of the “ancient Silk Road” to “the strengthening of the connectivity and the expansion of the world economy in the spirit of promoting peace and cooperation, openness, inclusiveness, equality, mutual learning and mutual benefit” and the role for today’s “Belt and Road cooperation” to do the same thing for the future. The remaining points were grouped under these headings: “Strengthening Development Policy Synergy”; and “Boosting
Infrastructure Connectivity”; and “Promoting Sustainable Development”; and “Strengthening Practical Cooperation”; and “Advancing People-to-People Exchanges”; concluding with, “Way Forward,” which stated, “We envisage the Belt and Road Forum on regular basis with possible follow-up events…[looking forward] to the 3rd Forum.”

Here is the full list of “Economic corridors” identified in the Communiqué:

(1) Addis Ababa-Djibouti economic corridor, including the
development of industrial parks along the economic corridor
(2) Agua Negra Pass International Tunnel
(3) Baku-Tbilisi-Kars new railway line and Alyat free
economic zone in Baku
(4) Brunei-Guangxi economic corridor
(5) China-Central Asia-West Asia economic corridor
(6) China-Europe Land-Sea Express Line
(7) China-Indochina Peninsula economic corridor, including
Laos-China economic corridor
(8) China-Kyrgyzstan-Uzbekistan International Highway
(9) China-Laos-Thailand Railway Cooperation
(10) China-Malaysia Qinzhou Industrial Park
(11) China-Mongolia-Russia economic corridor
(12) China-Myanmar economic corridor
(13) China-Pakistan economic corridor
(14) Eastern Economic Corridor in Thailand
(15) Economic corridor in Greater Mekong Subregion
(16) the EU Trans-European Transport Networks
(17) Europe-Caucasus-Asia International Transport corridor
and Trans-Caspian International Transport Route
(18) the Industrial Park “Great Stone”
(19) International North-South Transport Corridor (INSTC)
(20) the Lake Victoria-Mediterranean Sea Navigation
Line-Linkage Project (VICMED)
(21) the Lamu Port-South Sudan-Ethiopia Transport corridor
(22) Malaysia-China Kuantan Industrial Park
(23) the Nepal-China Trans-Himalayan Multi-dimensional
Connectivity Network, including Nepal-China cross-border railway
(24) New Eurasian Land Bridge
(25) the New International Land-Sea Trade Corridor of the
China- Singapore (Chongqing) Demonstration Initiative on
Strategic Connectivity
(26) Northern Corridor Trade Route in Africa linking the
maritime port of Mombasa to countries of the Great Lakes region
of Africa and Trans-Africa Highway
(27) North-South Passage Cairo-Capetown Pass-way
(28) the Port of Piraeus
(29) Port Sudan-Ethiopia Railway Connectivity
(30) Regional Comprehensive economic corridors in Indonesia
(31) the Suez Canal Economic Zone
(32) Transcontinental shipment of cargo using the capacities
of the Northern Sea Route
(33) Transoceanic fiber optic cable
(34) “Two Corridors and One Belt” Framework
(35) Uzbekistan-Tajikistan-China International Highway

Read entire communique of Belt-Road Forum

Belt and Road Is Unstoppable: `Critics’ Are Strong Supporters

The extraordinary attendance of governments, heads of state and government, and thousands of businesses at the Second Belt and Road Forum, comparing with the largest international meetings in history, was already proof that the Belt and Road Initiative (BRI) has expanded greatly since the first BRF in 2017 and is now  an unstoppable new paradigm of economy. After the Second BRF, certain myths of “backfire” and “criticism” in Asia also fell away.

Malaysian Prime Minister Mahathir Mohamed gave interviews in which he expressed full confidence in the BRI and surprise at its scope. Speaking to Bernama News Agency April 28, he said: “We feel that the [One Belt, One Road] OBOR initiative is not a domination plan by China, which would end up being controlled by China. Instead, it is a policy developed by all the countries, and not only focused on China. Previously … including the Trans-Pacific Partnership, developed countries made the proposals and asked us to accept them. This is not like that; the forum attendees are from small countries and they are sitting with China…They sit together at the same level, and talk about how to develop infrastructure projects.”

In an interview with China’s TV network CGTN, Dr. Mahathir said he had thought the Belt and Road was an infrastructure project for Asia.

“Now it is quite clear that it is, practially, a worldwide project …to improve connectivity and infrastructure development all over the world…I’m very glad I’m here, because now I understand better the character of the project. China has a lot of new technologies, and we need these new technologies.” He forecast large-scale Chinese investment and exports into Malaysia.

Indonesia’s investment minister, Harvard graduate Tom Lembong, who had been critical of China’s rail investments, told {South China Morning Post} that Indonesia has “found China’s openness to its feedback on improving the Belt and Road Initiative highly encouraging…. I believe in the next 5 to 10 years, BRI will stimulate additional investment in probably tens of billions of dollars [in Indonesia],” Lembong said.

In Europe, Italy and Austria are joining Portugal in planning issuance of “Panda Bonds” — infrastructure bonds issued by other countries in yuan, to be issued into China’s bond market. Even Germany Economics Minister Peter Altmaier found the Beijing forum “better than expected,” and is headed back with a Mittelstand delegation.