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China's One Belt One Road Strategy: The New Financial Institutions and India’s Options

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  • Ajay Chhibber

    (George Washington University)

Abstract

The revival of ancient Silk Road strategy into the One Belt One Road (OBOR) Strategy or the new Silk Road project signals China’s ambitious approach to global issues and challenges. Its outward-oriented strategy attempts to encourage new trade and connectivity throughout Asia with road and maritime links to Africa, the Middle East and on towards Europe. The new financial institutions linked to the OBOR strategy - the US $100 billion Asian Infrastructure Investment Bank (AIIB) and the US $40 billion New Silk Road Fund (NSRF) have been set up. These together with the US $50 billion New Development Bank (NDB) and the US $100 billion Contingent Reserve Arrangement (CRA) represent Chinese backed new financial institutions that are not part of the existing Western dominated financial architecture. They will adhere to the Paris declaration but will not abide by the conditionality driven DAC framework. They are designed to help address issues of infrastructure underfunding, to create new pathways to sustainable development, south-south cooperation and mutually compatible solutions to development problems.

Suggested Citation

  • Ajay Chhibber, 2017. "China's One Belt One Road Strategy: The New Financial Institutions and India’s Options," Working Papers 2017-7, The George Washington University, Institute for International Economic Policy.
    • Handle: RePEc:gwi:wpaper:2017-7
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    File URL: http://www2.gwu.edu/~iiep/assets/docs/papers/2017WP/ChhibberIIEPWP2017-7.pdf
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    References listed on IDEAS

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    1. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
    2. Mr. Ashvin Ahuja & Mr. Malhar S Nabar, 2012. "Investment-Led Growth in China: Global Spillovers," IMF Working Papers 2012/267, International Monetary Fund.
    3. Mr. Shaun K. Roache, 2012. "China's Impacton World Commodity Markets," IMF Working Papers 2012/115, International Monetary Fund.
    4. Mr. Paulo Drummond & Miss Estelle X Liu, 2013. "Africa’s Rising Exposure to China: How Large Are Spillovers Through Trade?," IMF Working Papers 2013/250, International Monetary Fund.
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    Cited by:

    1. Badar Alam Iqbal & Mohd Nayyer Rahman & Shaista Sami, 2019. "Impact of Belt and Road Initiative on Asian Economies," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(3), pages 260-277, September.
    2. Vivek Mishra & Sayantan Haldar, 2020. "Emerging Contours of Contemporary Asian Maritime Connectivity: Economic and Strategic Objectives," India Quarterly: A Journal of International Affairs, , vol. 76(3), pages 461-478, September.
    3. Kong, Qunxi & Chen, Afei & Shen, Chenrong & Wong, Zoey, 2021. "Has the Belt and Road Initiative improved the quality of economic growth in China's cities?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 870-883.
    4. Uma Purushothaman & Nandan Unnikrishnan, 2019. "A Tale of Many Roads: India’s Approach to Connectivity Projects in Eurasia," India Quarterly: A Journal of International Affairs, , vol. 75(1), pages 69-86, March.

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    More about this item

    Keywords

    New Silk Road; New Development Bank; AIIB; Spice Route;
    All these keywords.

    JEL classification:

    • F - International Economics
    • H - Public Economics
    • O - Economic Development, Innovation, Technological Change, and Growth

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