Kathmandu, April 14

China-backed Asian Infrastructure Investment Bank (AIIB) could provide financing mechanisms for countries interested in joining the Chinese government’s ‘Belt and Road Initiative’.

During an interaction organised here today by Nepal-China Friendship Forum, Professor Huang He from Fudan University, Shanghai, said that the recently established multilateral institution — AIIB — could provide financial mechanisms for neighbouring countries of China for their participation in the initiative.

Stating that this initiative of China will be more supportive to connect the least developed and developing economies of South Asia and South East Asia to the diverse market, he further said, “The ‘Belt and Road Initiative’ will foster market opportunities by abiding to the market rules and international norms, and help diversify the availability of market resources.”

The Chinese government has touted the initiative as a means to significantly boost the economies of the South Asia region.

The ‘Belt and Road Initiative’ focuses on bringing together China, Central Asia, Russia and Europe. It will link China

with the Persian Gulf and the Mediterranean Sea through Central Asia and West Asia and connect China with Southeast Asia, South Asia and the Indian Ocean.

While weak infrastructure in the region has long been identified as the key barrier for development of trade and

tourism sectors, he said, “The initiative taken by China can bring new dynamism in the economy with improved traffic connectivity, which is a key to economic development.”

Addressing the programme, Professor Parbir De from the New Delhi-based think-tank Research and Information System for Developing Countries (RIS) said that Chinese initiatives are often viewed with

suspicion and urged the

Chinese government to open discussions and negotiations for the countries to participate in the initiative.

He also expressed dissatisfaction that the BCIM (Bangladesh-China-India-Myanmar) that starts from Kunming of China and ends at Kolkata of India and vice versa is not incorporated in the ‘Belt and Road Initiative’, and said encompassing BCIM could significantly benefit South Asia.

“As BCIM connects Kolkata, the gateway port for Nepal, the initiative could have provided added benefit to Nepal and Bhutan,” he said.

He further opined that the Chinese authorities need to clarify about which corridors they want to prioritise through the initiative as it has only identified China-Pakistan Economic Corridor for extension of the proposed initiative at present. “But the corridor passes through disputed areas and the Indian government will never accept this. In addition, it will create huge problem in economic integration of South Asia region,” he claimed.

He suggested that the initiative rather focus on BBIN (Bangladesh-Bhutan-India-Nepal) area of South Asia citing the viability of the BBIN project.

Meanwhile, Shankar Sharma, former vice chairman of National Planning Commission, opined that apart from facilitating multidimensional connectivity, the ‘Belt and Road Initiative’ will encourage people-to-people dialogue and could enhance innovative development practice.