First, China should promote sustainable development in other developing countries, in Asia and beyond. The term sustainable development, of course, is not new at all, but the sad reality is that most developing countries cannot achieve this goal due to a variety of factors, including their heavy reliance on natural resources, lack of capital, and so forth. This is why so many poor countries are still stuck in the low-income trap.
Some countries believe that initiative forms a closed loop. They even draw it as a closed loop on currently popular maps. Actually it is open: a network of capital construction, investment, business and information, rolling the economic corridors into one. It emphasizes starting a new concept of regional and international cooperation for the 21st century rather than following the well-beaten track of expansionist western countries.
Modi`s main problem is that even such a coherent strategy needs investment. On average in developing economies, 52 percent of GDP growth comes from capital investment. In India it is 53 percent. But in 2013, the latest year for which international data exists, India`s percentage of fixed investment in GDP was 28 percent compared to China`s 47 percent. To move its growth rate closer to China, India will have to significantly increase the percentage of investment in its economy.
Is the Belt and Road Initiative China’s Marshall Plan?Such questions were frequently raised with me after I finished speaking about the belt and road at the Italian think-tank Istituto Per Gil Studi Di Politica Internazionale. It therefore seems the ideal time for the Boao Forum to seek consensus and publish a white paper on the Belt and Road Initiative.
To address first the economic core issue, Adam Smith, the founder of modern economics, noted in the first sentence of "The Wealth of Nations" that the most powerful force in economic development was division of labor, including international division of labor: "The greatest improvement in the productive powers of labor, and the greater part of the skill, dexterity, and judgment with which it is directed, or applied, seem to have been the effect of the division of labor." The rest of Smith`s anal
The Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, also known as "One Belt, One Road", offer opportunities for China and Europe to join hands in operating the great Eurasian market, a Chinese scholar said here Monday.