The region moreover accounts for more than 50 percent of the world's total energy consumption, by virtue of big consumers like China, India, and Russia. Specifically, it consumes more than 70 percent of all coal, about 50 percent of gas, and about 40 percent of petroleum.
However there is an imbalance between production and consumption, which varies according to country. For example, the energy demands of India and China greatly exceed their respective turnout, while the output of other countries far surpasses demand. The situation thus calls for cooperation among these countries. From 2013 to 2016 China signed dozens of energy cooperation projects with countries along the Belt and Road, and imported the bulk of crude oil, so generating for exporters funds for development. Trade and cooperation between China and these countries in petroleum products has also been promoted.
There is also broad scope for cooperation in agriculture. Considerable differences exist in the agricultural resources of countries along the routes. For example, Russia and Kazakhstan own abundant farmland, while the per capita area of arable land in India and China is relatively small. Generally speaking, most countries along the routes lack cultivated land, and for more than half (55.4 percent) of them the per capita figure is below the world average. Per capita water resources in these nations, meanwhile, are only half the world average. As 70 percent of these countries engage in extensive agriculture, per hectare grain output only stands at 3.5 tons, as compared with the world average of 3.9 tons. Around 63 percent of countries along the Belt and Road need to import food. Enhancing agricultural cooperation, therefore, is crucial to resolving their food security problems. China's agricultural trade with these countries is in deficit, which will promote their agricultural development. Agricultural investment to these countries will be strengthened so as to make full use of agricultural resources. It is now vital to support efforts to increase grain outputs in these countries and so guarantee food safety.
Improving Global Economic Governance
Judging from actual results, the Belt and Road has had positive impact on global economic governance. Its remarkable effects are apparent in two respects.
Its aim to propel construction of the Belt and Road and resolve capital shortfalls, the Asian Infrastructure Investment Bank (AIIB), initially proposed by China, officially opened on January 16, 2016. Its multilateral financing institution now has 70 full members (including countries and economic entities). Its main purpose is to provide regions in Asia and along the Belt and Road with loans that will enable them to improve infrastructure and the productive forces of energy and transportation, among others. The AIIB has so far provided US $2 billion in loans for infrastructure construction in countries like Pakistan, Bangladesh, Tajikistan, Indonesia, Myanmar, Azerbaijan, and Oman.
Practice has proven that the AIIB constitutes an effective supplement to the World Bank, and in particular to the Asian Development Bank, as regards investment, finance and international aid to the Asia-Pacific region and countries along the Belt and Road. In line with the demands of the new era, it also proposes adjustments and improvements to the global governance structure. From another perspective, it explores ways of reforming and perfecting the management structure and improving the efficiency of both International Monetary Fund and the World Bank.
In addition to the AIIB, the China-led Silk Road Fund directly supports construction of the Belt and Road by giving financial support for infrastructure, resource exploitation, and industrial and financial cooperation so as to promote mutual development and prosperity in areas along the Belt and Road. China plans to contribute a total of US $40 billion, having carried out its first US $10 billion capital injection in December 2014, when the fund was officially established. This first investment was in building the Karot Hydropower Station in Pakistan, to support construction of the China-Pakistan economic corridor, one of six such corridors built under the auspices of the Belt and Road Initiative.
Actual results in infrastructure and connectivity construction cooperation are also visible. Based on its infrastructure construction experience since the start of reform and opening-up, China is actively supporting the infrastructure and connectivity construction of countries along the Belt and Road. This concept has been highlighted and gained financial support. The projects mentioned above represent only a fraction of the drive to promote construction of the Belt and Road. More projects will be steadily implemented in accordance with actual demand. Promoting global infrastructure and connectivity and improving global infrastructure governance are undoubtedly of huge positive significance.
Moreover, China hopes to deepen South-South cooperation through the construction of the Belt and Road, and promote joint development amongst developing countries. During the UN Sustainable Development Summit on September 26, 2015, Chinese President Xi Jinping announced five plans whereby developing countries can achieve the goals of the post-2015 development agenda. Specifically, China would do its utmost to increase investment in the least developed countries (LDCs) to US $12 billion by 2030. China would also exempt the outstanding intergovernmental interest-free loans owed by relevant LDCs, landlocked developing countries, and small island developing countries which fell due at the end of 2015. China would furthermore establish an international development knowledge center to facilitate studies and exchanges with respect to development theories and practices suited to each country's respective national conditions.
Reducing poverty is a main objective of South-South cooperation. China has lifted almost 500 million people out of poverty during the past 30 years, and will eliminate absolute poverty nationwide by 2020. The country has indeed accumulated rich poverty alleviation experience for the world. Construction of the Belt and Road will generate more revenue and job opportunities for the countries concerned, so helping poor countries to rapidly eradicate poverty. This is another notable contribution to the improvement of global economic governance.
In conclusion, the Belt and Road is a brand-new, fundamental international platform and public good which will enhance regional economic cooperation and development, and also improve global economic governance and development.
Source: China Today
