The Dynamics of One Belt One Road (OBOR): Understanding, Economic Corridors, and Global Impact

One Belt One Road (OBOR), spearheaded by Chinese President Xi Jinping, is a colossal economic development and commercial initiative aimed at fostering connectivity and collaboration among numerous countries across Asia, Africa, and Europe. Often hailed as the “Project of the Century,” OBOR spans approximately 78 countries, making it one of the most extensive and ambitious undertakings in modern history.

Initially announced in 2013 with the goal of reviving the ancient Silk Route, OBOR’s scope has undergone significant expansion over the years. What began as an effort to restore historical trade routes has transformed into the Belt and Road Initiative (BRI), encompassing diverse territories and development projects. The initiative involves the construction of a vast network comprising roadways, railways, maritime ports, power grids, and oil and gas pipelines.

OBOR consists of two main components: the “Silk Road Economic Belt” and the “21st Century Maritime Silk Road.” The former, primarily land-based, seeks to connect China with Central Asia, Eastern Europe, and Western Europe. Meanwhile, the latter, sea-based, extends from China’s southern coast to the Mediterranean, Africa, South-East Asia, and Central Asia. Despite their names, the ‘Belt’ refers to a network of roads, and the ‘Road’ denotes a sea route.
These components give rise to six economic corridors, each playing a crucial role in facilitating trade and connectivity:

The New Eurasian Land Bridge, connecting Western China to Western Russia
The China-Mongolia-Russia Corridor, linking North China to Eastern Russia via Mongolia
The China-Central Asia-West Asia Corridor, uniting Western China to Turkey through Central and West Asia
The China-Indochina Peninsula Corridor, linking Southern China to Singapore via Indo-China
The China-Pakistan Corridor, connecting South Western China through Pakistan to Arabian Sea routes
The Bangladesh-China-India-Myanmar Corridor, joining Southern China to India via Bangladesh and Myanmar
Additionally, the maritime Silk Road connects coastal China to the Mediterranean through Singapore-Malaysia, the Indian Ocean, the Arabian Sea, and the Strait of Hormuz.

OBOR holds immense significance for China, serving as a linchpin for domestic growth and a cornerstone of the country’s economic diplomacy strategy. By linking less-developed border regions like Xinjiang with neighboring nations, China anticipates not only economic growth but also geopolitical influence. The initiative aims to create new markets for Chinese goods and secure cost-effective routes for exports.
China has committed a staggering amount, exceeding $1 trillion, in investments for various infrastructure projects. These investments are facilitated through the provision of low-cost loans to participating countries, establishing China as a key financial player in global infrastructure development. Noteworthy examples include Kyrgyzstan and Tajikistan, which support OBOR due to substantial Chinese investments in local transmission projects, fostering economic development in these nations.

While China promotes OBOR as an inclusive project for regional development, it has sparked varying perceptions globally. Some nations view it as a strategic move by China to consolidate influence both regionally and globally. Critics argue that the initiative allows China to build and control a trading network centered around itself, potentially reshaping global trade dynamics.
Participating countries, such as landlocked Nepal, have recognized the potential benefits of joining OBOR. Nepal recently signed a deal to improve cross-border connectivity with China, showcasing the project’s appeal to nations seeking economic advantages. Additionally, Pakistan is poised to benefit significantly from the $46 billion China Pakistan Economic Corridor (CPEC), connecting southwestern China through Pakistan to Arabian Sea routes.

OBOR is a strategic opportunity for China to bolster its regional and global influence by creating a vast network of infrastructure projects that enhance connectivity and trade routes.

Yes, critics argue that the Belt and Road Initiative enables China to build and control a trading network centered around itself, potentially reshaping global trade dynamics and concentrating trade control.

Landlocked countries like Nepal see OBOR as an opportunity to enhance cross-border connectivity and gain economic advantages by joining a project that promotes infrastructure development.