China has created an action plan for its Silk Road concept
in the form of the “One Belt, One Road” (OBOR) initiative.
It is grandiose, potentially involving an area that covers
55 percent of world GNP, 70 percent of global population,
and 75 percent of known energy reserves. China’s financial
commitments to the project seem huge: some multilateral
and bilateral pledges may overlap, but it is still likely we are
looking at up to $300 billion in infrastructure financing from
China in the coming years1 – not counting the leveraging
effect on private investors and lenders, and the impact of
peer competition. Japan, for example, has just announced
a $110 billion infrastructure fund for Asia, and the Asian
Development Bank is hurriedly revising its disbursement
rules to increase its lending capacity. This does not even
include the grand bargain being discussed with Russia on
overland transport, energy, and cyber-connectivity.
China has created an action plan for its Silk Road conceptin the form of the “One Belt, One Road” (OBOR) initiative.It is grandiose, potentially involving an area that covers55 percent of world GNP, 70 percent of global population,and 75 percent of known energy reserves. China’s financialcommitments to the project seem huge: some multilateraland bilateral pledges may overlap, but it is still likely we arelooking at up to $300 billion in infrastructure financing fromChina in the coming years1 – not counting the leveragingeffect on private investors and lenders, and the impact ofpeer competition. Japan, for example, has just announceda $110 billion infrastructure fund for Asia, and the AsianDevelopment Bank is hurriedly revising its disbursementrules to increase its lending capacity. This does not eveninclude the grand bargain being discussed with Russia onoverland transport, energy, and cyber-connectivity.
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