ONE BELT ONE ROAD (OBOR) by China
Chinese President Xi Jinping announced one of China’s most ambitious foreign policy and economic initiatives at the end of 2013. He called for the building of a Silk Road Economic Belt and a 21st Century Maritime Silk Road, collectively referred to as One Belt One Road (OBOR).
What is “One Belt, One Road” or OBOR?
One Belt, One Road (OBOR) is China’s much-touted new foreign and economic policy. It is a development strategy to connect China with Central Asia, Europe, and Indo-Pacific littoral countries. This policy has two components:
Belt– The “One Belt” refers to the land-based “Silk Road Economic Belt”. Here Beijing aims to connect the country’s underdeveloped hinterland to Europe through Central Asia.
Road – The “One Road” references the ocean-going “Maritime Silk Road”. It is to connect the fast-growing South East Asian region to China’s southern provinces through ports and railways.
The plan is to connect the Pacific Ocean and the Indian Ocean. This will connect Chinese coastline with SE Asia, South Asia, Gulf and East coast of Africa. China will build hard and soft maritime infrastructure. It will include custom co-ordination, the formation of SEZ, new ports, e-commerce, trade liberalisation and policy coordination.
OBOR covers countries throughout the Asian continent from China to the rest of Eurasia. The geographical stretch makes it comparable with Silk Road or Silk Route, an ancient network of trade routes connecting the East and West around 120 BCE to 1450s CE that is famous for the profitable silk (and horses) trade. That is why it is also called as “New Silk Road” initiative.
Objectives of China behind the One Belt One Road
• The OBOR strategy is often reported as China’s ambitious push to take a bigger role in global affairs and expand its friend circle.
• While China insists that the investment in OBOR is economically motivated and it will bring economic benefits to host countries but the project is multiprolonged and is intended to serve diplomatic, economic and strategic purposes.
• It is also intended to address its domestic needs in economic transformation. The demand for industrial output will increase and thus will revitalise its economy.
• This project will build China’s soft power and some analysts call it a China’s Marshall Plan.
• This initiative will make Indo-Pacific region to be Sinocentric economic and security region.
• It is also an attempt to counter US propaganda that rising China is a threat to world peace. Thus, it is to convince that rising China is not a threat rather creates a win-win situation for all.
• Maritime Silk Road, and especially Chinese infrastructure investment is implicitly intended to facilitate more frequent People’s Liberation Army Navy deployments in the Indian Ocean and beyond.
Which countries are involved?
The ‘Belt’ and ‘Road’ covers primarily Asia and Europe, encompassing around 60 countries.
On China’s “One Belt, One Road” official website, it also says the initiative is open to all countries as well as international and regional organisations for cooperation.
India’s position regarding One Belt One Road
India is opposed to Chinese One Belt One Road (OBOR) initiative since the China-Pakistan Economic Corridor (CPEC) passes through the Indian Territory. Indian government stated that the connectivity cannot undermine the sovereignty of other nations.
Should India join One Belt One Road?
Advantages of joining OBOR
• India will not be able to stop China in carrying on this initiative nor can it stop its neighbours from joining this initiative. So, whether India joins this initiative or not, the project will take place and not join may harm India’s interests.
• India may become isolated in this region since all of its neighbours (except Bhutan) have joined One Belt One Road. Leaving any regional platform may hamper India’s credentials and may hasten the end of its regional hegemony.
• Some analysts say that this initiative will be a win-win situation for India since it will increase the connectivity of
the region. There may emerge mutually beneficial swap where India protecting Chinese interests in the Indian Ocean and China securing India’s essential undertakings in their part of the waters.
• Regional transport, energy security, and blue economy are key to OBOR initiative which will be helpful for India.
• China has the financial capital, technology to accelerate the development of other countries and India also need resources and funds for its own development.
• Trade: The OBOR project will open more links of trade between India and other countries. Further, India does not enjoy much leverage to guide ocean trade markets despite having proximity to the sea and a strong navy. Through OBOR project India will get access to more business in an environment which promote friendly reforms.
• Some analysts feel that countries like Russia and others in SCO would want Indian participation in OBOR as a counterweight to Chinese influence.
• Regardless of economic interests, India cannot ignore the symbolic significance as it was along the Silk Route that Indian trade and philosophy (Buddhism) travelled to the rest of Asia. Thus, China may gain cultural hegemony in the region which may prove counterproductive to India.
Disadvantages of joining OBOR
• OBOR is a unilateral ideational of China and there is a lack of transparency in its working. The process is not participatory and collaborative in nature.
• Under Maritime Silk Route (MSR) China is developing ports in Bangladesh, Sri Lanka, and Pakistan and is trying to enlarge its influence using its economic might in the Bay of Bengal and the Arabian Sea. Thus, MSR is nothing but an economic disguise to the “Strings of Pearls” Theory. China is investing a huge amount of money in India’s immediate neighbourhood and these countries tend to use the China card against India.
• OBOR seems to be primarily driven by broad geostrategic and geopolitical aim. For Example, China-Pakistan Economic Corridor (CPEC) gives de facto legitimization to Pakistan’s rights in Pakistan Occupied Kashmir which is against India’s interests. Since this port is closer to the Persian Gulf, it could be used as a transhipment point for China’s energy supplies obviating the needs to go through the Strait of Malacca in South East Asia. Apart from serving as a commercial port, Gwadar is also deep enough to accommodate submarines and aircraft carriers. Thus, it may be used as a military port by People Liberation Army Navy in future.
• Through OBOR, China is countering the strategies of India in North East region and is promoting its greater presence in North East India, part of which China claims as its own territory. This may have a security impact on India.
What should India do to counter One Belt One Road?
India has already refused to join this initiative due to geostrategic and geopolitical angle attached to this project. Instead, India has started initiatives for connectivity on its own. Following are some of the steps taken by India.
Project Mausam: It is soft power diplomacy by India. The project is under Ministry of Culture and its purpose is to reconnect and re-establish communication links between countries of Indian Ocean and enhancing their cultural values.
Project Sagarmala: It is a port led direct and indirect development with a focus on infrastructure and connectivity. The project is to enhance the capacity of major and non-major ports and also to start their modernization process.
Chabahar Port: Chabahar’s location gives India access, besides Iran, to Afghanistan, Central Asia, and Europe, bypassing Pakistan altogether and cutting down significantly current travel distances and time. International North South Transport Corridor (INSTC) initiated by India, Russia, and Iran is another connectivity solution for India in Central Asia.
SAGAR: In 2015, India unveiled its strategic vision for the Indian Ocean i.e. Security and Growth for All in the Region (SAGAR). It is an increasing recognition of the increasing importance of maritime security, maritime commons and cooperation..
I ORARC: India is involved in the Indian Ocean Rim Association grouping whose first summit took place in Jakarta in 2017. The association gains importance by the fact that the Indian Ocean carries half of the world’s container ships, one-third of the world’s bulk cargo traffic and two-thirds of the world’s oil shipments.
T he Asia-Africa Growth Corridor (AAGC): It is an IndiaJapan economic cooperation agreement aimed at the socio-economic development of Asia and Africa. The vision document for AAGC was released by India in the 2017 African Development Bank meeting. The aim of the Asia-Africa Growth Corridor is to develop infrastructure and digital connectivity in Africa through Indo-Japan collaboration.
A lliances: Alliance of India with like-minded countries like Japan. Japan has agreed to promote India’s “Act East” policy by developing and strengthening reliable, sustainable and resilient infra that augments connectivity within India and between India and other countries in the region aimed at advancing Asian industrial networks and regional value chains with open, fair and transparent business environment in the region. Japan and India can build rail and road connectivity across the Eurasian landmass running parallel to OBOR.