1. BRI: Platform for promoting multilateralism and deeper integration
The second Belt and Road Forum for International Cooperation (BRF) will be held on April 25-27 in Beijing and is expected to bring the world closer for the goal of promoting multilateralism. The forum will be attended by some 5,000 participants from more than 150 countries, including 37 heads of state and government leaders. The second BRF, which is taking place amid growing fears of protectionism, is a crucial platform for the world to bring about high-quality cooperation under the Belt and Road Initiative (BRI). The forum themed "Belt and Road Cooperation: Shaping a Brighter Shared Future" is expected to play a key role in pushing the global economy forward despite some impasses.
The BRI was launched in 2013 to deepen cooperation and help build a shared common future between global economies. It has largely contributed to the global economy through infrastructure development and enhanced connectivity in well-off economies as well as marginalized societies.
So far, the BRI has played an instrumental role by improving policy coordination, connectivity measures, a free and fair trading system, financial cooperation and people-to-people relations in both developed and developing partner countries. While working on these five key areas, the BRI has been hailed for upholding multilateralism, globalization and broader cooperation based on the principles of mutual respect, equality and win-win cooperation. The BRI has created new opportunities for the countries involved, not only in infrastructure development, but also toward improving the livelihood of their citizens.
Likewise, the BRI has had a positive impact and helps to improve the competitiveness in many countries given the huge number of projects kicking off and positively impacting the lives of millions. These projects are not only about developing infrastructure, but also supporting trade facilitation, economic competitiveness and improving the livelihood of the people in those regions. It's been widely reported how BRI projects have helped to boost Bangladesh's GDP by around 1 to 1.5 percentage points while Pakistan, Sri Lanka and the Maldives have also witnessed substantive progress since joining the BRI. According to a recent report by the World Bank, Bangladesh and Nepal – the two BRI partners in South Asia – are likely to remain the second and third fastest growing economies respectively in South Asia.
At the same time, the BRI is also helping the world meet many of the UN's 17 Sustainable Development Goals (SDGs). Given this, the BRI is proving to be increasingly inclusive and offering many opportunities to the peoples and nations around the world. According to the Asian Financial Development Report on Infrastructure Finance, the BRI has the potential to fill large infrastructure investment gaps in ASEAN countries. The report stated that the BRI can be impactful, as it can leverage the financial resources of nearly 70 economies, including China, to create new and affordable financing for infrastructure construction. "Such positive progress will be further fueled by the BRI's ability to guide private investment," the report mentions. At a time when many countries are grappling with downward pressure on their economies against the backdrop of rising protectionism and volatile markets, the BRI and the projects under its framework will help propel economic growth rates and reduce poverty. It will also increase job opportunities in many countries while encouraging countries to embrace new technological advancements and innovation. The BRI has a truly global scale. Its role is crucial in furthering the development of international relations to seek an inclusive path of mutually beneficial cooperation in order to propel the world economy to greater heights.
The time has come to improve the synergy between the BRI and other development strategies. Through this, connectivity for regional integration and multilateralism as well as the economic liberalization of world economies can be enhanced. As more Chinese enterprises' non-financial investments along the BRI routes continue to boom, this could benefit a large global population through job creation, the production of high-quality goods, trade diversification and improved services.
However, further intensive collaboration is needed among major and emerging economies to make the BRI a successful initiative and to grow its economic pie. Frequent communication among scholars, academicians and think tanks as well as high-level dialogues among top leaders are equally important to keep things on the right track. Hence, the second BRF is a welcome step to build a more inclusive form of globalization. Furthermore, the equal distribution of development will spill over to less advantaged people around the world. The BRI will indeed create a strong bond while promoting an open trading system – a key to global prosperity.
The time has come for all to seize the opportunity to build multilateralism and uphold the principles of globalization by firmly grasping the spirit of BRI. The BRI has unveiled new development opportunities through high-level cooperation on infrastructure development, robust connectivity and policy dialogue adapted to suit different countries' local context.
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2. Nepal hopes high from second Belt and Road Forum
The China proposed Belt and Road Initiative (BRI) is an economic pie, given its immense scale and multi-faceted layers of cooperation among all partners. The BRI ensures deeper cooperation and synergy effects to the participating countries, with China in the lead role. For sure, the BRI has brought people closer, with economic integration and robust infrastructure for their shared brighter future beyond their national boundaries. The large scale participation in the BRI, including G7 member country Italy to the least developed countries, has not only made this forum inclusive, but has also given hope to the resolution of development bottlenecks through collaborative efforts.
Nepal, as a part of BRI, is no exception to this. Nepal formally joined the BRI in 2017 by signing a memorandum of understanding (MoU) during the premiership of Pushpa Kamal Dahal 'Prachanda'. The country firmly believes that such a visionary approach offers opportunities for collaboration, partnership and cooperation for mutual benefits. Also, a large section of policymakers, diplomats, development workers and officials believe that there remains a high chance for collaboration in propelling the country's economy by creating a system of value-chains for mutual advantages once some projects under the BRI framework were brought into operation.
With such aspirations, Nepal's President Bidya Devi Bhandari is paying a state visit to China at the invitation of President Xi Jinping, to attend the second Belt and Road Forum for International Cooperation and the opening ceremony of the 2019 International Horticultural Exhibition in Beijing from April 24 to May 2. This is the first time that Nepal's head of state will visit Beijing since Nepal abolished the monarchy 12 years ago. According to a press briefing of Nepal's Foreign Affairs Ministry, President Bhandari will hold talks with President Xi to strike deals on key and mutually beneficial cooperation agreements. Nepal is hopeful of getting China's support to meet its huge financing gap for building more physical infrastructure. Besides China's neighborly gesture, Chinese FDI and collaboration for bilateral investment cooperation remain equally high.
During this visit, officials are scheduled to strike a deal on developing connectivity infrastructures under the Trans-Himalayan Multi-Dimensional Connectivity Network which was agreed upon between Nepal's Prime Minister KP Sharma Oli and Chinese Premier Li Keqiang during Oli's recent visit to Beijing. This shall be the most important part of the BRI for Nepal, as rail would overhaul the existing development impasses. Regarding infrastructure, the other key area is Chinese investment in some hydropower projects, tourism, and telecom companies, among others. More importantly, Nepal has welcomed increased numbers of Chinese tourists, with China becoming Nepal's top source of tourists, adding revenue to Nepal's touristic sites and creating more jobs for locals.
Nepal and China have witnessed a growing number of cultural exchange programs since the BRI agreement. The China Cultural Centre has been established in Nepal, many cultural teams have exchanged bilateral visits while more people have started to learn the Chinese language. Dr. Kalyan Sharma, a Ph.D. graduate from Fudan University, said that Nepal and China have witnessed a series of cultural promotion programs, noting his confidence that Nepal-China cooperation deepened further after Nepal joined the BRI.
There are also rosy days ahead for Sino-Nepal relations in regards to people-to-people exchange. More Nepali students have been given the opportunity to study in Chinese universities since Nepal joined the BRI. The scholarship quota for Nepalis has gone up, while the number of Chinese researchers and students visiting Nepal is also on the rise. As a result, more Nepali students have been able to come to China to further their education. By offering more scholarships, the BRI is also supporting Nepal in its social engineering. Furthermore, ongoing progress on BRI projects will contribute to Nepal's lasting peace and stability by creating jobs for Nepal's youth, who generally leave home for Gulf States in search of better prospects. Nepal is now hopeful that it can make a U-turn on current development bottlenecks via construction under the BRI framework.
Against this backdrop, the second BRF and President Bhandari's visit to Beijing shall open the door for Nepal's brighter future. China's experience on its development path and its miraculous advancement are an example for Nepal to urge its own development. The BRI is deemed a pool of opportunity for Nepal.
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3. Ways OBOR could become a boon for Nepal
Despite unnecessary hue and cry from a section of politicos at home over the Prime Minister's recent trip to China, the visit turned fairly successful to further cement Nepal-China relations by clearing some 'misunderstandings', and most importantly establishing Nepal's firm commitment to the Belt and Road Initiative (BRI), also known as 'One Belt, One Road' (OBOR).
Prime Minister Pushpa Kamal Dahal, in an interview to China Global Television Network (CGNT), shared that his discussions with Chinese President Xi Jingping was primarily focused on the issue of connectivity. "All the discussions can be synthesized in one word i.e connectivity," he elaborated further defining connectivity in terms of railways, roadways and the BRI.
After decades of whooping economic development, China is now looking beyond its borders for opportunities to invest, promote trade and share Chinese development experience to the outer world. China, the world's leader in infrastructure development, has aimed at promoting regional integration between China and rest of the world covered by the BRI through excellent infrastructure including ports, roads, railways and oil and gas pipelines on the basis of mutual investments, though a paltry amount from the LDCs.
On September 7, 2013, Chinese President Xi Jinping—the most powerful leader in modern China after Chairman Mao Tse-tung—delivered a speech titled "Promote People-to-People Friendship and Create a Better Future" in Kazakhstan where he proposed to build a Silk Road Economic Belt together with Central Asian countries. A month later, the Chinese president gave another speech in Indonesia on "Join Hands in Building China-ASEAN Community of Shared Destiny", unveiling a major initiative to build "the 21st-Century Maritime Silk Road." The Chinese government was preparing groundwork massively for this but the two announcements by the Chinese leader left a wave of his proposal across the globe.
According to the official site of BRI, the BRI will extend from the Chinese mainland to Europe and covers 60 per cent plus of the world's population living in around 60 countries across Asia, Europe and Africa. This will cover one-third the world's GDP, and 35 per cent of the world trade.
Chinese strategists say that Silk Road Economic Belt and 21st-Century Maritime Silk Road are the two main routes of the BRI Initiative. The Silk Road Economic Belt focuses on bringing together China, Central Asia, Russia and Europe; linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and West Asia connecting China with South East Asia, South Asia and the Indian Ocean. However, the Maritime Silk Road is designed to have two routes, one from China's ports along its coast to Europe via the South China Sea and the Indian Ocean while the next is from China's ports along its coast through the South China Sea to the South Pacific, according to a publication from Renmin University of China.
Why Nepal should join?
China is opening up on all fronts in the recent decades. An open door allows Nepal, one of the 14 countries that shares border with China, and other developing nations to access the vast Chinese market. Besides, the BRI initiative would help to share China's development opportunities with countries along the routes and achieve common prosperity and the proposal is expected to propel gradually emerging Nepal's economy. If we are to believe the advocates of the BRI, this move is set to reinvigorate the seamless flow of capital, goods and services between Asia and the rest of the world.
Nepal's entry in the initiative is also the need of the hour for capacity building projects in the manufacturing sector to create a momentum for growth and to bring about great opportunities for shared development. Nepal can also expect policy coordination to bolster mutual trust, coordinate development strategies, facilitate trade and introduce multilateral cooperation mechanisms on the spirit of global peace, cooperation, openness, inclusiveness, mutual learning and mutual benefit.
We can expect that the small and medium enterprises (SMEs) from Nepal would get unparalleled opportunities to tap into new markets along the Belt and Road and gain deeper access to markets in the Chinese mainland, ASEAN, the Middle East, and Central and Eastern Europe.
Foreign Affairs Expert and former Ambassador to Japan Dr Bishnuhari Nepal said that PM Dahal's commitment to join the BRI is a welcome step adding that now the Ministry of Foreign Affairs should prioritize this. He adds that Nepal can benefit hugely from China's efforts to promote win-win cooperation from the BRI as the project is about more than short-term gain. "Chances remain high for Nepal to bring in huge Chinese investments and receive grants too from the BRI fund once we join the BRI," Dr Nepal said.
The BRI would immensely support the China-Nepal economic Corridor (CNEC) and also the China-India-Nepal Economic Corridor (CINEC) as BRI would support the Asian countries through CINEC.
Nepal should also join the initiative without any delay as China is working to bring the Qinghai-Xigatse railway to Keruing by 2020 and Nepal's dream for Kathmandu-Pokhara-Lumbini and Keruing-Kathmandu railway connectivity Nepal's dream for railway connectivity is likely to transform into a reality with support from the same BRI.
The BRI, one of the largest development plans in modern history, is founded on five key elements namely promoting people-to-people bonds and cooperation; enhancing monetary policy coordination and bilateral financial cooperation; planning and supporting large-scale infrastructural development projects; building facilities to enable connectivity along the belt and road and facilitating cross-border investment and supply chain cooperation. Thereby, Nepal's participation becomes meaningful for us to transfer our nation in a developed one through wider integration in all the components of the BRI.
Melsam Ojha, President of Friendship and Development Academy, justifies Nepal's entry in the BRI to enhance our roadway and railways connectivity and tap into the giant Chinese markets for our domestic products.
Ojha shares that Nepal will have an expanded market access to Europe through China; scientific and technological advancement and ideas sharing for better opportunities for Nepal's entrepreneurs as well. He, however, says that Nepal itself should increase its production by receiving international technologies and investment to increase our exports so that the meaning of getting connected to the world market becomes profound for our generations.
He suggests the government to orient our entrepreneurs to do homework for production of high-value goods (like mushroom, Yarshagumba, Nepali papers, Pashmina, handicrafts, Rudrakshya, Bodhichitta and many others) having comparative advantages. Nepal's affiliation to the BRI can be synthesized in a word 'PIE' i.e for production; investments and imports; and exports and expertise, Ojha adds.
Hence, it seems very timely and inevitable that Nepal signs up to the BRI for robust connectivity, large-scale production, luring huge amount of foreign direct investments, expedite exports of our goods and services, expand market, and for the cause of scientific and technological advancement, which in turn will have a far-reaching contribution in the making of the Asian century.
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4. Belt and Road Forum offers multiple development choices for Nepal
Beijing, April 29 (RSS): The second International Belt and Road Forum (BRF) that concluded here on Saturday has spread rays of hopes while raising the aspirations of the participating countries for their development and deeper integration.
The Chinese flagship ambitious project, Belt and Road Initiative or BRI, that aims to make large investments for infrastructure development, connectivity, deepening cooperation and bolster people-to-people relations has opened new space for Nepal's economic growth too and thereby materialize the current government's slogan of 'Prosperous Nepal, Happy Nepali'.
The BRI is poised to become one of the top international cooperation initiatives for offering a wider platform for economic development, industrial development and technology transfer for the countries like Nepal. Hence, good-preparation, selection of projects, financing modality, negotiations on them and dealing for the projects should remain Nepal's top priority henceforth.
Upon completion of the BRF, President Bidya Devi Bhandari and other Heads of state and governments attending the BRF signed a joint communiqué to reach several milestones. As per the communiqué, the Nepal-China Trans-Himalayan Multi-dimensional Connectivity Network, including Nepal-China cross-border railway is being identified for development.
This means that cross-border railways between Nepal-China is a priority, thus is a key issue for our development. Now, the governments of Nepal and China are supposed to carry out the detail homework to advance the project ahead.
Earlier, in her address at the High-Level Meeting of the second BRF, President Bhandari had pointed out that the development of 'Trans-Himalayan Multi-Dimensional Connectivity Network', including Nepal-China Cross-Border Railway, to boost connectivity not only between Nepal and China but with other countries in the region as well.
In her remarks, President Bhandari added that the BRI carries huge potential and it is an important framework for collaboration, for cooperation and for connectivity. It lays emphasis on boosting connectivity, developing infrastructure, connecting markets and enhancing cooperation among the nations in diverse sectors in the region and beyond, she said.
Talking to RSS in Beijing, former Prime Minister Madhav Kumar Nepal, said the BRI is aimed at connecting the entire world for mutual benefits, prosperity, mutual learning and to resolve the country-specific and global problems.
The former Prime Minister, who attended the second BRF at the invitation of the Communist Party of China, said that BRI assists comparatively poorer nations in their development endeavours, thus Nepal too can take maximum benefits out of this China-forwarded project.
Regarding the issue of possible debt trap, the former PM brushed aside the allegation adding that we need lending to meet our financing gap but should be cautious to finish the projects on time and repay the loans.
Furthermore, Minister for Physical Infrastructure and Transport Management Raghubir Mahaseth observed that BRI is not only for China and its people but for the whole world given that peoples from around the world are brought on board. He believes that this initiative is aimed at making BRI countries and partners prosperous after their participation.
"Now, Nepal can take more benefits if we could realize Nepal-China cross-border connectivity," he said.
As a partner of BRI, Nepal should expedite its efforts carefully given her location in between the two giant economies and embrace the BRI projects for its benefits since the BRI has aroused global vibrations and deliberations on development, partnership, collaboration and shared benefits.
In his inaugural speech, Chinese President Xi Jinping announced to welcome financial institutes around the world to participate in financing the BRI projects adding that multiple participations will bring common benefits.
If this is to follow, Nepal can easily meet the financing gaps to build any projects under the BRI framework, even from different other multilateral and bilateral agencies. As a result, Nepal should speed up its pace to strike deals to tap the technology and investment opportunities developing from the BRI.
Since there is high-level commitment to the BRI, the government mechanism too should work in tandem to bear fruits for our prosperous future and strike deal with the Chinese government to further some key projects under the BRI framework.
The sooner we work, sooner we end our infrastructure paucity, by keeping the national interests at the top the quicker we shall fulfill the people's long-held desire for development and prosperity.
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5. Vision into Reality: BRI changes lives from poverty to prosperity
The Belt and Road Initiative (BRI) forwarded by Chinese President Xi Jinping in 2013 has passed its five years of ups and downs. With many successful stories accomplished across the world, the BRI has come to the new stage while holding the second International Cooperation for Belt and Road Forum. Chinese President Xi is inaugurating the BRF on 26 April 2019 in Beijing amid the presence of 37 head of state and government.
The forum to be attended by some 5,000 participants from more than 150 countries is taking place at a time when the world is closely watching the Beijing-proposed initiative with much attention. The forum themed "Belt and Road Cooperation: Shaping a Brighter Shared Future" is looked by the critics with suspicions while the BRI members have pinned high hopes on it and have expected much role of the BRI for the development and enhanced cooperation based on mutual benefits. This is because, so far, altogether 126 countries including G7 member state Italy and 29 international organizations have signed up for the world's ever largest project. China's Belt and Road Initiative is deemed to be the largest scale global development project as its total investment will be representing 70 percent of the world's population, 55 percent of its GDP, and 75 percent of its energy reserves. Likewise, UN agencies have also established firm collaboration with BRI for the development of humankind and to meet the SDGs by 2030.
As the BRI started to bear fruits, the peoples have already started to praise this multi-billion intercontinental project. The peoples have come up with the nations' stories to share with the world viewing that the BRI has helped promote the quality of peoples'livelihood with better infrastructure development.
In the eve of the BRF, China Global Television Network (CGTN) show 'Vision into Reality' offered the open discussions and deliberations from the field in regard to rumours against the BRI, its benefits to the peoples and the contribution made by the BRI projects for regional development.
According to a participant from Uganda, the ambitious initiative is changing the lives of millions of peoples in Africa with mega projects, mainly the high-speed railways, opening up business and development opportunities in the continent.
Talking part in the show, a Maldivian participant said that Sinamale Bridge of 2.1 kilometers in length and 20.3 meters in width opened on August 30, 2018 referred to as the China-Maldives Friendship Bridge has linked the country's only international airport to the capital city of Male by cutting the time and distance heavily short. "The bridge has changed people's lives and businesses, making things much easier for everyone living in the area, as well as those visiting the country," she shared her nation's story. Similarly, a participant from Fiji said that multi-million-dollar projects sponsored under the BRI also include the redevelopment of the Suva Civic Centre Auditorium and construction of a state-of-the-art sports facility for Marist Brothers High School.
Rumours of debt trap
According to media reports, China is planning to invest four trillion US dollars in 65 countries spanning from Eastern China to Western Europe, covering the continent of Africa and the countries of East and Southeast Asia. The countries need trillions of dollars to meet their financing gaps since they are cash strapped to forward their development projects. Amid such circumstance, the BRI can be the way out to meet the budget crunch as the AIIB and Silk Road Fund could dole out the money under different modality. As Nepal too is also reeling under the crisis of financing gap, the BRI could be the best solution to fund many projects, particularly hydropower projects, highways and others.
According to a study by the China Africa Research Initiative at John Hopkins University, Africa owed some 36 percent of its total external debt to the International Monetary Fund (IMF) and the World Bank (WB) in 2018. Between 2000 and 2016, the debt from China to the continent was merely 1.8 percent. So, data speaks loud and clear! The myth of the debt trap is itself dispelled. Ultimately, most of the loans are concessional with no political preconditions but with long maturities and low interest rates, the allegation on debt trap is not a valid proposition. So, this has come to seize the opportunity to transform the vision into reality and uplift the people's life from poverty to prosperity across the needy communities in the world.
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6. Nepal officially joins Belt and Road Initiative
Just ahead of the Belt and Road Forum for International Cooperation (BRF) to be conducted in Beijing on Sunday and Monday, Nepal has formally joined the China-proposed Belt and Road Initiative (BRI) by signing the Memorandum of Understanding (MoU) on Cooperation under the BRI in Kathmandu this morning.
Nepal's Foreign Secretary Shanker Das Bairagi and Ambassador of China to Nepal Yu Hong signed and exchanged the MoU on behalf of their governments at the presence of Nepal's Deputy Prime Minister and Minister for Finance Krishna Bahadur Mahara and Minister for Foreign Affairs Dr. Prakash Sharan Mahat.
With the MoU on BRI multi-lateral cooperation, Nepal has officially joined the China-promoted strategic move to be a part of it which in turn is likely to give impetus for Nepal's presence in the region. The Nepal government would identify the areas of cooperation, welcome the Chinese investments and implement the projects so as to receive Chinese support under the initiative. Nepal would also sign other sectoral agreements under the BRI framework.
Earlier, a cabinet meeting on May 7 had decided to sign the framework agreement on BRI.
After the formal ceremony organized to sign the MoU, Nepal's Ministry of Foreign Affairs has said the major thrust of the MoU is to promote mutually beneficial cooperation between Nepal and China in various fields such as economy, environment, technology and culture.
"The MoU seeks to strengthen cooperation in connectivity sectors including transit transport, logistic systems, transport network and related infrastructures development such as railway, road, civil aviation, power grid, information and communication," reads the press statement.
Speaking on the occasion, Nepal's Foreign Affairs Minister Dr. Mahat said, "Nepal is in need of huge foreign investments to proceed ahead development efforts, to uplift living standards of Nepalis and ensure prosperity in the country. We are fully confident that Nepal too will get benefit from the Road and Belt Initiative unveiled by the Chinese President (Xi Jinping)."
"Our major focus shall be on infrastructure development and cross-border connectivity to address the development challenges Nepal is facing due to its landlocked geographic location and least developed economic status," Nepal's Foreign Affairs Secretary Bairagi said.
Following the MoU agreement, the major media outlets in Kathmandu have given due priority terming the incident "historic."
A vernacular online, lokaantar.com, carries a news story on MoU agreement stating it a far-reaching step adding that China's assistance to Nepal in the future is likely to soar up after Nepal's participation in the initiative.
Likewise, another popular news portal, setopati.com, has published an in-depth interview of Ambassador of Nepal to China Mr. Leela Mani Paudyal with the banner headline titled "Immense possibility of Chinese investment has opened up now."
Similarly, Nepal's most-viewed news portal, onlinekhabar.com has carried out news along with a video clips with the headline "Nepal signs China's OBOR initiative."
Furthermore, Nepal's largest media house's web portal, ekantipur.com, has also posted a detailed news story of the event, stating: Nepal became the formal member of the neighbor China's ambitious OBOR project introduced for development cooperation.
Meanwhile, a high-level delegation from Nepal is attending the BRF to be held in Beijing. Deputy Prime Minister and Minister for Finance Krishna Bahadur Mahara, Minister for Information and Communications Surendra Kumar Karki and Minister for Physical Infrastructure and Transport Ramesh Lekhak, and other high-ranking government officials would also take part in the forum, Deputy Prime Minister Mahara confirmed.
