On September 7, an international conference was held in Astana to commemorate the 10th anniversary of the Belt and Road Initiative (BRI), a colossal global development and infrastructure endeavor. This event also marked the 30-year partnership between Central Asia and China. The BRI conference, organized by Kazakhstan's Center for Chinese Studies, took place at Nazarbayev University, where President Xi Jinping first introduced the ambitious BRI a decade ago. The conference brought together scholars and experts from Kazakhstan and China to discuss the initiative's progress, challenges, and the evolving partnership between the two regions, The Astana Times reported.
BRI Overview:
The Belt and Road Initiative, proposed by President Xi Jinping during his 2013 visit to Kazakhstan, is a global development strategy aimed at fostering connectivity and cooperation among countries across multiple continents. It consists of two main components: the Silk Road Economic Belt, focusing on land-based routes, and the 21st Century Maritime Silk Road, centered on maritime routes. China has signed numerous cooperation agreements related to BRI with over 150 countries and invested nearly $1 tn as of March.
Kazakhstan's Role in BRI:
Kazakhstan has been an early and enthusiastic supporter of the BRI, aligning its participation with its goal of becoming a transport and logistics hub in Eurasia. The country boasts 11 international transport corridors and aims to increase the share of transport and logistics in its GDP to 9% within three years.
Aidar Amrebayev, head of the Center of Political Studies in Almaty, emphasized the enduring strategic partnership between Kazakhstan and China, highlighting the 52 joint projects valued at over $21.2 bn. Many of these projects, including the Shymkent oil refinery reconstruction and CaspiBitum enterprise in Aktau, contribute significantly to the BRI's objectives.
Transport Potential and Connectivity:
Developing transport potential is a key objective of BRI, and Kazakhstan plays a pivotal role in connecting East and West. The Trans-Caspian International Transport Route, or Middle Corridor, has been a focus of cooperation. President Tokayev emphasized the importance of modernizing infrastructure and digital solutions to maximize its capacity.
Freight transit between Kazakhstan and China reached 23 mn tons in 2022 and continued to grow. The region's strategic location and connectivity are central to BRI's success.
Central Asia's Contribution to BRI:
Central Asia has seen significant growth in trade with China, with Kazakhstan accounting for a substantial portion. China's direct investment in Central Asian nations exceeds $15 bn, with projects worth $63.9 bn. Vital facilities such as gas pipelines, wind farms, hydropower plants, highways, and power plants have been constructed under BRI.
Connectivity, encompassing physical and digital infrastructure, is central to BRI's objectives. Vladimir Norov, former Uzbekistan foreign minister, suggested aligning the BRI with the EU's Global Gateway connectivity initiative, benefiting landlocked Central Asian countries and promoting regional integration.
Challenges and Concerns:
While BRI has brought significant infrastructure improvements, concerns include debt sustainability and environmental considerations. Countries participating in BRI have taken on substantial loans from Chinese banks, raising concerns about debt dependency. Transparency in project selection, financing terms, and environmental and social impacts remains a critical issue.
The BRI conference in Astana highlighted the enduring partnership between Central Asia and China and the significant progress made in the past decade. Kazakhstan's pivotal role in enhancing connectivity and its commitment to BRI were underscored. Challenges related to debt and transparency persist, but the potential for economic development and regional cooperation remains substantial.
Earlier Daryo reported that IFC commited record $1.6bn in Central Asia.
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