In this article we will explore the Silk Road Economic Belt. It was created as an economic development zone for countries in central Asia, namely China, India, Pakistan, Myanmar, Russia, and Bangladesh. The Belt was created to promote economic connectivity, trade, and political cooperation in these countries. There are currently seven countries that make up the Silk Road Economic Belt.
These countries have strong bilateral relationships with each other. For example, India and Pakistan maintain friendly and strong relations, trading with each other on a regular basis. At the same time, both these countries support the interests of each other’s respective clients. Pakistan has been involved in promoting business in the Indian market and vice versa. On the political front, both India and Pakistan are committed to promoting peace and stability through diplomacy. These two countries also cooperate in fighting against terrorism and drug trafficking.
China is the biggest trading partner for both India and Pakistan. They have regularly exchanged dialogues on trade, economy, and other topics. The high-level political discussions that take place in these negotiation platforms provide a forum for discussion and possible cooperation. However, despite their positive relationship, India and Pakistan have major differences over their policies. These differences come from their strategic, developmental, and cultural differences Silk Road economic belt.
The Pakistani government has been repeatedly saying that it wants to deepen its ties with India while India says it wants to be a reliable and secure neighbor in the southern part of Asia. Both countries have had separate visions for the promotion of their respective polices. At the end of the day, both these countries want to promote a strong connectivity belt to serve their own economic needs and to increase trade.
In order to achieve this, they are trying hard to reduce trade barriers with neighboring countries. They want to strengthen the economic interconnectivity of their region through the establishment of the Silk Road Economic Belt. This initiative is being supported by several nations including the Islamic countries and the neighbors. Some of them like; India, China, Pakistan, and South Korea are actively supporting it.
The Belt will create an enhanced security environment and will allow goods and products from all over the world to flow into the twelve countries of the Shanghai Cooperation Organization (SCO). This includes the most populated and developing country of the SCO, China. Additionally, the SCO is an international organization led by China. Therefore, it will create an improved economic environment for companies in every country that wants to trade in the SCO.
The Belt is a vast area, stretching for over 5000 kilometers. It will start from China through Pakistan and end at Afghanistan. It will then go across to India, Iran, and Kashmir. Although the SCO has no observer status, it is widely accepted as an integrated trade zone. All member countries of the SCO will have free trade within its exclusive trade zones. The benefits include liberalization of import and export duties, elimination of tariffs on trade between member nations, and increased access to cheap labor.
The success of the Silk Road Economic Belt will be closely watched. Although China is a major player in the region, other countries, including India and Russia are also watching the developments very closely. Both of these countries have a large amount of resources at their disposal. Whether or not they choose to use these resources will be determined by the government policies that they implement.
However, some analysts are skeptical about the long term effects of the SCO on the global economy. For one, the SCO may promote bilateral cooperation rather than multilateral organization. Multinational businesses will be forced to engage in bilateral trade negotiations with the member countries. Additionally, some of these countries may fail to fully implement their free trade obligations. Furthermore, the creation of the SCO has caused many regional governments to seek closer relations with the United States.
One possible effect of the development of the SCO could be an increase in global trade. There is already a significant increase in cross-border trade within the SCO. Some of the countries that are part of the SCO are trying to attract more investment capital from the United States, which could increase the flow of capital into the region. This will only further boost the economic benefits of the SCO. This could also help the United States realizes its goal of containing China economically.
The Silk Road Economic Belt and Road initiative have so far been successful in establishing stable and growing economies in the SCO. However, it is unclear what the long-term effects will be. The success of the SCO may only be a foreshadowing of what could happen if other countries decide to join the SCO. Given the United States’ increasing focus on the Asia-Pacific for trade and other purposes, the failure of the SCO to produce a sustainable global economic structure could set back its development for decades.