As 2016 begins, an historic contest is underway over competing development models – that is, strategies to promote economic growth – between China, on the one hand, and the US and other Western countries on the other. Although this contest has been largely hidden from public view, the outcome will determine the fate of much of Eurasia for decades to come.
Most Westerners are aware that growth has slowed substantially in China, from over 10% per year in recent decades to below 7% today (and possibly lower). The country’s leaders have not been sitting still in response, seeking to accelerate the shift from an export-oriented, environmentally damaging growth model based on heavy manufacturing to one based on domestic consumption and services.
But there is a large external dimension to China’s plans as well. In 2013, President Xi Jinping announced a massive initiative called “One Belt, One Road,” which would transform the economic core of Eurasia. The One Belt component consists of rail links from western China through Central Asia and thence to Europe, the Middle East, and South Asia. The strangely named One Road component consists of ports and facilities to increase seaborne traffic from East Asia and connect these countries to the One Belt, giving them a way to move their goods overland, rather than across two oceans, as they currently do.
The China-led Asian Infrastructure Investment Bank (AIIB), which the US earlier this year refused to join, is designed, in part, to finance One Belt, One Road. But the project’s investment requirements will dwarf the resources of the proposed new institution.
Indeed, One Belt, One Road represents a striking departure in Chinese policy. For the first time, China is seeking to export its development model to other countries. Chinese companies, of course, have been hugely active throughout Latin America and Sub-Saharan Africa in the past decade, investing in commodities and extractive industries and the infrastructure needed to move them to China. But One Belt, One Road is different: its purpose is to develop industrial capacity and consumer demand in countries outside of China. Rather than extracting raw materials, China is seeking to shift its heavy industry to less developed countries, making them richer and encouraging demand for Chinese products.
Global Preventive Diplomacy Initiative Launched in New York Ahead of UNGA 80
New York, NY — The Global Preventive Diplomacy Initiative (GPDI) was launched at an exclusive event organized by the Center for International Relations and Sustainable Development (CIRSD) on the top floor of New York’s iconic MetLife Building, bringing together diplomats, philanthropists, business leaders, academics, and thought leaders for a conversation on the future of conflict prevention and international cooperation. The launch came just days before the opening of the 80th Session of the United Nations General Assembly, which annually brings together heads of state and government for the High-Level General Debate — making New York the world’s diplomatic capital.
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Eighty years after its founding, the UN finds itself at a critical juncture. Its purpose is on trial, and its mission urgently requires recalibration. The world it inherited from the scorches of the Second World War no longer exists, yet many of the organisation’s practices remain rooted in a bygone era – out of sync with today’s realities and detached from those it was created to serve.
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CIRSD President Vuk Jeremić to SINA Finance: Multilateralism Will Evolve, Not Disappear
Below is the full text of the interview:
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