The impact of One Belt One Road maritime infrastructure investment on the development of partner countries in Asia and Africa

Abstract

In 2013, Chinese President Xi Jinping announced that China was investing in a massive regional infrastructure plan called the “One Belt One Road.” The research project examines the“road” side of the Belt and Road—short for the Maritime Silk Road—which will connect China with Europe via Southeast Asia and Eastern Africa by paying for the construction of container ports and export processing zones in numerous countries along the way. One Belt One Road intends to continue China’s doctrine of “win-win” development by providing much needed infrastructure financing for lesser developed countries while at the same time providing opportunities for China to continue experiencing economic growth despite the slower, “new normal.” China’s shipping companies, construction companies, and banks hope to expand into new markets while at the same time host countries hope for the same success buoyed China’s own special economic zones and allowed them to rapidly develop. On top of that, it allows China to test the waters as a leader in global economic and political affairs and attempt to improve how countries both developed and developing perceive it. As a result, One Belt One Road is a very multifaceted and ambitious program for China’s future. This paper addresses a gap in research about this very new topic. Using two primary case studies, one in Africa and one in Southeast Asia, this paper analyzes potential outcomes for currently announced projects as well as what the prospects may be for future projects to evaluate the status for the Belt and Road is since its announcement four years ago. Attention is given to the current situations in these developing countries, their relations with China, and how improved infrastructure may or may not improve their economic and social development. The paper also addresses what China expects to get out of its investment, both monetarily and in international stature by increasing the number of its military abroad. Altogether, the research makes policy prescriptions as to whether the Belt and Road can truly be mutually beneficial for investor and investee and the actions policymakers should take to create a development model.