The Belt And Road Initiative (BRI), also known as the One Belt, One Road (OBOR) initiative, is a massive global infrastructure development project proposed by the Chinese government.
Inception
It was first announced by Xi Jinping in 2013 and has since become one of the most significant and ambitious international development initiatives in history.
Its purpose
The aim is to enhance connectivity and promote economic cooperation among countries in Asia, Europe, Africa, and beyond, consisting of two main components:
- the land-based Silk Road Economic Belt and
- the sea-based 21st Century Maritime Silk Road.
The Silk Road Economic Belt seeks to revive the ancient Silk Road trading routes by establishing a network of transportation infrastructure, including railways, roads, and pipelines, connecting China with Central Asia, Europe, and the Middle East.
It’s unbelievably big and unbelievably hated by the United States.
The 21st Century Maritime Silk Road focuses on enhancing maritime trade routes and developing port infrastructure in Southeast Asia, Africa, and Europe.
It’s difficult to criticise because the net benefits heavily outweigh the downsides. And the best part is that the private sector (not the Chinese government) is playing a major role in the BRI development.
Put another way, while the US government is bombing everybody, the Chinese government is allowing private companies to create international networks so that everybody can make more money.
Think about it.
Making trade faster and cheaper?
As somebody who lives at the bottom tip of Africa, I think it’s a great idea.
Summary
- It spans over 60 countries.
- The initiative’s name is inspired by the ancient Silk Road.
- The estimated investment for this project exceeds $4 trillion, making it one of the largest infrastructure and investment projects in history.
It comes with many benefits for emerging countries.
Brian Berletic broke apart the initiative and explained what it means for the rest of the world.
Tariffs and trade restrictions only serve to reduce the standard of living of the populace.
Murray Rothbard
