The XV BRICS Summit is held in Johannesburg, South Africa from August 22–24. (PHOTO: XINHUA)

By Hasan Daud Butt

This year marks the 10th anniversary of the Chinese Belt and Road Initiative (BRI), which includes China’s support to developing countries to bridge trade and connectivity gaps and steer them towards growth and prosperity amidst economic crises. The BRI is a truly massive project, spread across over 100 countries from Uganda to Djibouti and from Laos to Gwadar in Pakistan. The Initiative is meant to connect the east with the west, under the spirit of the ancient Silk Road, using a complex network of interconnected routes that are meant to facilitate the exchange of goods, ideas, cultures, and knowledge. The BRI had a portfolio of infrastructure including SEZs bridges, tunnels, high-speed railways, energy, and transportation and optical connectivity, as well as several people-to-people exchange programs including cultural initiatives, educational projects, scholarships, and Confucius Institutes.

The Chinese government continues to promote initiatives like BRI, GDI, and the Global Security Initiative, to formulate action plans and major policies based on Socialism with Chinese characteristics for a New Era, under the vision of shared prosperity and development. In the past decade, the BRI has generated nearly 1 trillion USD, launched over 3,000 cooperation projects, created over 420,000 jobs, and lifted 40 million people out of poverty through contributions to development that are commercial, noncommercial, financial, and non-financial, like grants, in nature.

The BRI has remained active over the past ten years, responding to the historical trend of economic globalization and the needs of the times that advocate for changes in the global governance system. It has continued to offer new opportunities for participating countries and to promote and enhance their development as one of the most important aspects of their human rights. With its four pillars of seamless trade facilitation, policy interconnection, interpersonal engagement, and wider investment to ensure the growth of partner nations, the BRI is seen as a glimmer of hope in global development. 

Since its launch in 2013, the BRI has continued to shape international commerce and globalization, facilitating the trade of valuable goods, as was the case centuries ago, when the ancient Silk Road helped the movement of goods such as silk, spices, precious metals, ceramics, textiles and more between Asia and Europe. Movement of people along the ancient Silk Road also facilitated the exchange of knowledge in various fields including science, medicine, astronomy and mathematics.

It is believed that a wider recovery of BRI investments is likely to move forward. Therefore, the partner countries need to prepare well and create an enabling environment for investment flow. In this regard, the role of these governments will be crucial, supported by a public-private engagement and providing attractive opportunities, offering a favorable risk-reward balance for investors and ensuring a stable political climate, rule of law, and transparent regulatory framework. While some people's ambivalence of the BRI will undoubtedly persist, in the past 10 years, the initiative has remained resilient and successful and will continue to provide opportunities to partner with countries along the route to boost their economies.

Today, the world is confronted with immense challenges to sustainable development and enormous disparities of opportunity, wealth, and power exists. Natural resource depletion and adverse impacts of environmental degradation and loss of biodiversity exacerbate the list of challenges that humanity faces. Similarly, geoeconomic issues including decreased investor confidence, decreased risk appetite, and increased financial market volatility are having adverse impacts on the world's economies.

Amidst this, the only way to achieve development as a top priority for the entire globe is by firmly moving in the general direction of peaceful development, realizing that this is in everyone's best interests. Therefore, the XV BRICS Summit in South Africa from August 22–24 is crucial for sharing experiences and also tailoring new approaches to the unique strengths and opportunities of respective countries, diversifying funding sources, and reducing risks and accelerating the work on uncompleted projects. All this will require flexibility and pragmatism by leadership and collective wisdom under the win-win spirit of the ancient Silk Road.

Dr. Hassan Daud Butt is a Projects Management specialist and an associate professor at Bahria University. He has served as a diplomat in China and has been a former CEO of the provincial investment Board & Project Director of the CPEC project.