Caixin: One Belt, One Road as China’s 21st Century Marshall Plan?

China could be on its way to leading the global economy, helped by One Belt, One Road. David Vines, writing for Caixin, compares the initiative to the Marshall Plan during the last century, which benefited Europe and Japan. China, with big investments in infrastructure, could emerge as a leader in setting rules and standards for global governance, but Vines points to two risks: First, “The Belt and Road initiative might conceivably become no more than a gigantic instrument of supply-chain management for China, creating the kind of jobs that drive an enormous Chinese production machine,” he writes. Enthusiasm among development partners could wane if projects are organized in a circular way with all spokes directed toward China. Second, dependencies may develop, with political leverage applied to poorer nations. Vines urges cooperation and shared input on projects, aiming for high standards for labor and environmental protections. The world would benefit if One Belt, One Road pursues high standards for projects and governance and avoids competition and inequality. – YaleGlobal

Caixin: One Belt, One Road as China’s 21st Century Marshall Plan?

One Belt, One Road may put China on a path to lead global economy, setting rules and standards for governance – if it avoids truly lifts other countries
David Vines
Wednesday, May 17, 2017

Read the article.

David Vines is an Emeritus Fellow of Balliol College, Oxford, and a former professor of economics at Oxford University.

Copyright ©2017 Caixin Global Limited. All Rights Reserved.

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