Dhaka defends China’s OBOR project: 

Dhaka defends China’s OBOR project: 

Context

• Bangladesh Foreign Secretary Shahidul Haque holds a view that countries must not become isolated in the name of sovereignty. He emphasized on the putting sovereignty issue behind and put economic benefits in front seat.
• The statement is a counter to India’s tough position against China’s One Belt, One Road (OBOR) Initiative during a discussion on Asian connectivity projects.

What is China’s One Belt, One Road (OBOR) Initiative?

• Considered as Chinese President Xi Jinping’s ambitious project, OBOR focuses on improving connectivity and cooperation among Asian countries, Africa, China and Europe.
• The action plan was approved by the Chinese state council in 2015. The “Belt” seeks to create a land route from China to Europe. The “Road”, strangely enough, hopes to create a maritime route from China to the Mediterranean through the Indian Ocean.
• The Belt, which plans to connect east and west overland across the Eurasian landmass, envisions three routes: from China to Europe via Central Asia; from China to the Persian Gulf and the Mediterranean via West Asia; and from China to South East Asia and South Asia.
• The main crux is to grow land routes as well as maritime routes.

Why is the policy significant to China?

• The policy is significant for China since it aims to boost domestic growth in the country.
• OBOR is also touted as a part of China’s strategy for economic diplomacy.
• Considering China’s exclusion from G7, OBOR policy might just provide China an opportunity to continue its economic development.
• OBOR could help earn higher returns on surplus savings or capital exports and it could provide a new source of external demand.
• It could use the excess capacities in railways, steel, metals and cement, to provide work for their construction companies, while using their experience of infrastructure projects.
• It is a stepping stone for China’s aspirations of global leadership by creating a rival to the transatlantic economic area with the US at its apex.

What is India’s position on OBOR?

• India is strictly not in favour of OBOR initiative.
• The main reason behind India’s opposition towards the policy is the China-Pakistan Economic Corridor (CPEC), which is a part of OBOR.
• Recent Chinese reports claim that following the launch of CPEC in Pakistan, the country has received investments worth more than $46 billion.
• India has put sovereignty issues and raised objections over CPEC projects in Pakistan-occupied Kashmir (PoK).
• It poses a major security threat to India as Beijing is trying to encircle New Delhi by undertaking construction projects in the neighbouring countries under the guise of connectivity purposes.
• For its political differences and strategic concerns, it is imperative for India to not budge from its position as it would count as a submissive acceptance of the CPEC.

If India sets to join OBOR, what are its potential benefits?

• India and China need to ensure that their differences on political questions do not prevent both sides from advancing economic cooperation, something both countries have struggled to lately.
• The Modi government may need to consider the future of its Pakistan policy, because the possibility of India benefiting from regional connectivity by land would entail a measure of normalized ties with Islamabad.
• It can be a great boost for employment and labor movement prospects for India, which is facing chronic unemployment crisis in Eastern part which can be truly unlocked by this initiative.
• India can join the maritime trade route with China and help solve its crude oil needs.
• The landlocked north can have two vent-out ports in forms of Indian side and even Pakistan side creating economic prosperity in the process.

How should India counter OBOR?

• India should upgrade internal connectivity.
• India should modernize connectivity across its land and maritime frontiers with neighbouring countries.
• India should work with countries like they did with Japan and multilateral institutions to develop regional connectivity in the Indian Subcontinent and beyond.
• India’s vision document on ASIS- AFRICA GROWTH CORRIDOR can be a good front.
• India Japan have launched their own infrastructure development projects to balance OBOR- GREAT WALL.