Study cites Belt Road risk

MANILA, Philippines — A study on China’s Belt Road Initiative has cited risk of nations getting misled by hyped opportunities promised by the program.

The study, titled  “The 21st Century Silk Road: Perils and Opportunities of China’s Belt and Road Initiative,” was presented at a recent forum in Makati City organized by the Stratbase ADR Institute (ADRi).

“Although some analysts say that BRI is a promising initiative for infrastructure global development, it has also been criticized for being too ambiguous and murky, prompting states to exercise more caution in screening Chinese contractors and applying strong safeguards to prevent being trapped into ‘debt diplomacy,’” said Stratbase ADRi president Dindo Manhit.

In the study, author Richard Heydarian said the BRI should be able to promote inclusive growth and provide jobs for the locals, rather than keep them reliant  on fully integrated Chinese supply of capital, technology and labor.

“If this will not be guaranteed, the Philippines’ engagement with China will be meaningless and unsustainable,” he said.

The study states that BRI’s objectives are aligned with China’s geopolitical goals including facilitating its long-term plans of developing landlocked hinterlands and underdeveloped regions, assisting and promoting troubled state-owned enterprises, developing trading partners’ basic infrastructure to reverse anemic growth in global trade, gaining foothold across strategically located nations, and globalizing Chinese technological and industrial standards across emerging markets.

Corruption, lack of transparency, and problems in accountability plagued Chinese projects in past administrations, the study said. It also noted the World Bank’s blacklisting several Chinese contractors and stressed the need for the Philippine government to ensure that competitive bidding process is observed, and strict standards in good governance and environmental sustainability are enforced.