Discuss about the Challenging Business Global Environment.
The initiative OBOR is an effective and systematic project for the economic development of the nations. The OBOR was proposed by the Chinese President that achieved full attention from all over the world. Along with this, the OBOR is a join of two major components: the Silk Road Economic Belt as well as the 21st Century Maritime Silk Road. For case, the Silk Road Economic Belt is visualized as three paths linking China to Europe (through Central Asia), the Mediterranean, the Persian Gulf (Via West Asia), and the Indian Ocean (through South Asia). The 21st Century Maritime Silk Road is designed to build links among regional watercourses. The OBOR was helpful to endorse the economic opulence of the nations. Moreover, the OBOR also developed mutual learning and understanding between different nations of the world. The initiative also promoted peace as well as development among the nations. Overall, it is an enormous undertaking that will be beneficial to the people as well as nations all around the world.
On the other hand, this research paper would be helpful to explain the major principles, frameworks, priorities and cooperation mechanisms that are related to the initiative OBOR. Moreover, the paper would also be beneficial to show the impact of the OBOR on Africa. In other words, it also can be said that, the paper would show the impact of the initiative OBOR on the industries or sectors such as: ICT, agriculture, infrastructure, tourism & hospitality and cultural exchanges of Africa. Also, the paper would explain the challenges of putting the OBOR to work in Africa. To end with, the report would be valuable to describe that the OBOR may be or not a replacement for the ASEAN region.
Background: The initiative OBOR is an effective endeavor that offers new positive energy to the world. The OBOR offers new ideas for the international cooperation and governance in order to develop the environment of peace into world (Overholt, 2015). Along with this, the main objective of the OBOR is to endorse the connectivity of Asian, African & European continents and their contiguous seas, develop & reinforce affiliations among the countries, establish multi-tiered & compound connectivity networks and also provide diversified, autonomous, fair and sustainable development within the countries. Moreover, the initiative is also helpful to line up and synchronize the development strategies of these countries and also capture market prospective within the regions (Lee & Cullinane, 2016). The OBOR would also be valuable to improve people-to-people & cultural exchanges, create job opportunities, endorse investment and consumption, develop mutual understanding among the people of these countries, and also enable them to live in peace, concord, and prosperity.
On the other hand, it is also true that, the economy of china is strongly allied with the economy of the world. China plays a significant role to provide new patterns and ideas for the development of the world economy. It assimilates itself into the world economic system (Wu & Zhang, 2016). Moreover, China is committed to develop policies of opening-up and put up new blueprints of all-round opening-up for the economy development of the world. In this situation, the initiative OBOR would also be beneficial for the development of China. It is because of with the help of the OBOR; china would be able to enlarge as well as expand its opening-up, and to reinforce its commonly beneficial collaboration with nations including Asia, Africa, Europe and the rest of the globe. Therefore, the initiative will work to provide the happiness and to fulfill the interests of the world community effectually (Zimmerman, 2015).
Principles: The initiative OBOR is align with the major principles of the charter of the United Nations. The five principles of peaceful coexistence are mainly endorsed by the Belt and Road initiative (Parsons & Abrahams, 2009). For case, mutual respect to the autonomy & territorial veracity of each other, mutual non-interference in the inner affairs of each other, mutual non-aggression, equality & mutual benefit, and peaceful coexistence are these five principles that are line up with the Belt and Road initiative. Along with this, the initiative works for cooperation of the nations. The OBOR is open for all the nations and also beneficial to all over the world. It is in agreement as well as comprehensive. The Belt and Road initiative sponsors lenience among nations and reveres the means of development that are preferred by different countries (Fallon, 2015). Moreover, it offers a common ground of development and removes the differences that exist among nations; so they can survive in peace for common affluence.
On the other hand, the Belt and Road project goes behind market operations. It works according to the market rules and norms for the global development of the nations. The initiative plays a critical role in the resource allocations; so all the nations may use their available resources in an effectual and a proper manner. It does not make any interfere in the functions of the governments of the nations. Moreover, the Belt and Road initiative works on the principle of mutual benefits. It takes care about the interests as well as concerns of all the nations (Chacko, 2016). As a result, all the parties those are involved would be equally benefited with the major principles adopted by the initiative OBOR.
Framework: The initiative OBOR is an initiative of win-win cooperation that upholds common development as well as opulence for the development of the nations (Nalbantoglu, 2017). Along with this, by developing mutual understanding and reliance in all-round exchanges, it provides a path to develop peace and friendship among nations. Moreover, the government of China also plays a major role in the promotion of the initiative OBOR. It sponsors peace & mutual aid, honesty & comprehensiveness, and mutual learning & benefit for the development of the nations. The Chinese government also endorses practical collaboration in all the areas, and makes efforts to develop a civilization of shared interests, economic incorporation, mutual political trust, and cultural comprehensiveness (Tubilewicz, 2016).
In addition to this, the initiative runs all the way through the continents of Africa, Asia, & Europe and also connects the economic circles of involved countries with one another for their economic development (Suryadinata, 2017). Moreover, the OBOR also develops flat, secure and competent transport roads to connect major sea ports to improve the economic prosperity of the nations. The OBOR is an ambitious economic hallucination of the opening-up of as well as cooperation between the nations. It specifies that all the nations should go towards the objects of mutual benefit and security in order to work in concert efficiently. The initiative develops high trade standards and establishes a network of free trade to maintain economic relations, expand cultural exchanges & political trust, endorse mutual understanding, encourage different civilizations, and also encourage harmony & camaraderie among people of different nations (He, 2016). In this way, the framework of the Belt and Road initiative is totally related to the mutual trust and corporation among nations.
Cooperation Priorities: The Belt and Road initiative contains some important priorities to provide big space for cooperation to the nations. For example, policy coordination, financial integration, unrestricted trade, facilities connectivity, and people-to-people bond are the major priorities related to the OBOR initiative. Policy coordination is essential to execute the initiative in an effectual manner. It is because of an effective policy coordination plays a major role in order to endorse inter-governmental collaboration, develop a multi-level policy exchange, enlarge mutual interests, improve mutual political trust, and accomplish new collaboration accord efficiently (Wang, Lee, Chen, Jiang & Liu, 2016). With the help of the OBOR, all the nations can synchronize their economic development policies & strategies; and can achieve cooperation of each other for the success of their large-scale ventures.
On the other hand, financial integration is the other priority related to the initiative. It is because of financial integration is essential to develop intensify financial cooperation and build a stable currency system within nation. It will also develop credit information system and investment & financing system in Asia. Moreover, it will also be helpful to create a well-organized regulation coordination system in the area (Oishi, 2015). Along with this, unrestricted trade is another major priority of this initiative. The major aim behind it is to improve investment & trade facilitation among nations, and also to eradicate investment & trade barriers in order to develop a sound business atmosphere within the area and in its interrelated nations.
In addition to this, facilities connectivity is also a priority area for executing the project OBOR (Chen, 2016). With the help of the initiative, countries would be able to develop transportation construction plans as well as technical standard systems to give respect to the sovereignty of other nations. The initiative would also be helpful to develop an integrated coordination mechanism for transportations in order to improve the connectivity within nations. Apart from this, people-to-people bond is essential to give public support to implement the Road and Belt project. For the success of the initiative, all the nations should support the spirit of friendly cooperation to endorse wide cultural & intellectual exchanges, media cooperation, and personnel exchanges & collaboration and to get public support in order to develop bilateral as well as multilateral collaboration among nations (Conley, Mina & Nguyen, 2016).
Cooperation Mechanisms: The Belt and Road initiative will improve the role of multilateral cooperation mechanisms among nations. The OBOR will be useful to use the existing mechanisms/means in an efficient manner. For example, ACD (Asia Cooperation Dialogue), SCO (Shanghai Cooperation Organization), CASCF (China-Arab States Cooperation Forum), APEC (Asia-Pacific Economic Cooperation), CGCCSD (China-Gulf Cooperation Council Strategic Dialogue), Central Asia and so on are the some important existing mechanisms that are used by the OBOR to reinforce communication among relevant countries, and also attract more nations as well as states to contribute in the OBOR initiative (Kirton, 2016).
The Belt and Road initiative will positively affect Africa. In other words, it can be said that, Africa will be more prosperous with the help of the initiative. Moreover, the OBOR will influence the industries or business sectors such as: infrastructure, agriculture, ICT, tourism & hospitality and cultural exchanges in a positive way. In the context of infrastructure, the OBOR provides framework as well as analysis concerning infrastructure development in East African Nations (The Economist Corporate Network, 2016). Moreover, due to the initiative, Africa developed public-private partnership (PPP) infrastructure projects for the economic development of the nation. The initiative also improved the connectivity among nations. The improved connectivity will be valuable to provide trade opportunities and also improve the productivity as well as profitability of Africa quickly. Also, East African Nations such as: Tanzania, Kenya, and Zimbabwe would also be more benefited with the help of this initiative. The nation has started numerous effective infrastructure projects in these three nations. The Standard Gauge Railway (SGR) is one of the biggest infrastructure projects of Africa that will improve the transportation, connectivity, and trade among nations (Nataraj & Sekhani, 2015).
In addition to this, the agriculture sector will also be improved due to the OBOR initiative. It is because of African countries export their consumer goods to China with agricultural products (Picciau, 2016). But, in recent years, China is enlarging its presence in special economic zones of Africa; and this is a major indication towards the agriculture development of the nation. Moreover, the increased presence of China in Africa will also improve the tourism and hospitality sector of the nation. The initiative will also improve people-to-people bond or cultural exchanges of nation with other nations. It is because of the major aim of the initiative is to improve the connections among nations (Broadman, 2006). In this way, the OBOR will improve the industry sector, infrastructure, economy, trade, cultural tourism, people to people exchanges, tourism & hospitality sector, etc. to enhance the prosperous of African nations.
It is true that the belt and road initiative will fulfill the interests of the involved nations. Moreover, the project has potential impacts on economic development of the countries. But, there are some potential challenges that Africa may face at the time of putting the OBOR to work within nation. First major risk associated with the initiative is uncertainty of the process. It is because of the OBOR totally depends on the concept of giving in terms of leadership as well as finance. So, by putting the OBOR to work, the nation may lose its money and position also (Lim, Chan, Tseng & Lim. 2016). Moreover, the initiative also pulls out the western improvement policy of the precedent decade. It is unclear that this initiative is viable or not. In this way, uncertainty involved in the initiative is the biggest challenge of putting the OBOR to work in Africa.
On the other hand, different geographical as well as geopolitical conditions of the nations are also the other challenge associated with the initiative. The government of Africa thinks that geopolitical conditions are different outside the nation. In this situation, it would be very risky to invest huge amounts into such low return and high risky projects (Haggai, 2016). Moreover, the African government is also worried about that the hurry to execute the Belt and Road initiative could lead to replication and depletion within nation. It is because of numerous international railway projects are linked with the initiative. But these ways may be pricey and frequently underused. So, in the hurry to endorse the initiative, lots of provinces might be unable to take the advantages of the OBOR. In this situation, the hurry to put the OBOR to work can spoil profits of the involved nations (Nolan, Rowley & Warner, 2016). In this way, these are some risks or challenges that are related to the OBOR initiative.
Yes, I see the OBOR initiative as a replacement for the ASEAN region. It is because of for the ASEAN region or ASEAN nations, the Road and Belt project would be valuable to tackle infrastructure discrepancies and to raise industrial as well as economic development effectively. Along with this, the OBOR initiative will develop a single market and production base for the overall development of the ASEAN nations. OBOR will also develop physical infrastructures and vigorous trade systems to improve integration among nations (Wong, 2017). In addition, with the help of the initiative, the ASEAN region will be the centre of the international value chains. Apart from this, by considering the unwillingness of the USA to ratify the TPP (Trans-Pacific Partnership), the OBOR initiative may also be seen as a replacement for the ASEAN region. It is because of the USA can outline some unambiguous projects in the Belt and Road initiative to bind China more closely to the ASEAN region. These specific projects may beneficial for the economic development of the ASEAN region (Zhang, 2016). In this way, it can be assumed that, the OBOR can be seen as a replacement for the ASEAN region.
In addition to this, due to the OBOR initiative, the position of China will change in the region and globally. It is because of the ONOR will provide an ultimate platform to china; so it can develop strong ties up with its adjacent Asian countries. Moreover, with the help of the belt and road initiative, china would be able to develop high-speed rail network and to share these networks globally to export its high-end technology as well as services to all over the world (Swaine, 2015). So, the OBOR initiative will be helpful to improve the prosperity and economy of the nations in an effectual and a significant manner.
Conclusion
On the premises of the above analysis, it can be assumed that, the Belt and Road framework has potential to endorse economic development in the including nations. Moreover, the initiative would also be beneficial to encourage financial incorporation, connectivity, policy harmonization, trade flows, facilities, etc. in an appropriate manner. Along with this, it is also observed that, the OBOR also has potential to endorse systematic & free flow of economic factors and profound integration of markets to accomplish economic policy synchronization as well as to create open, comprehensive & unbiased regional economic collaboration architecture in order to encourage economic development in all the related nations.
References
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