A new transport corridor announced on the sidelines of the G20 summit in Delhi will become the basis of world trade for hundreds of years to come, Indian Prime Minister Narendra Modi said in a recent radio address. Can it really?
US President Joe Biden and Saudi Crown Prince Mohammed bin Salman upgraded their frosty relationship from an awkward fist bump last year to a firm handshake as they announced the India-Middle East-Europe Economic Corridor (IMEC). (Biden had once vowed to make Saudi Arabia a global pariah.)
The project launched to bolster transportation and communication links between Europe and Asia through rail and shipping networks, while beneficial for the region, was also telling of American foreign policy, “which, to put it simply, is anything that would further US interests against China,” Ravi Agarwal, editor-in-chief of Foreign Policy magazine told the BBC.
America does not benefit materially from being part of the project, “but this can be put in the category of the Japan-South Korea summit at Camp David,” says Parag Khanna, author of Connectography. The US marked its diplomatic presence at the presidential country retreat by brokering a thaw in the relationship of the two pacific nations in the face of growing Chinese expansionism.
The IMEC is also being seen by many as a US counter to China’s Belt and Road Initiative (BRI), a global infrastructure-building project that connects China with Southeast Asia, Central Asia, Russia and Europe.
Are comparisons with BRI justified?
This year marks a decade since President Xi launched the BRI.
Some say the project’s grand ambitions have dwindled significantly, as lending to projects has slowed down amid China’s economic slowdown. Countries like Italy are expressing their desire to withdraw, and nations such as Sri Lanka and Zambia find themselves caught in debt traps, unable to meet their loan obligations.
BRI has also faced criticism for a numerous other reasons from its “underlying objectives of gaining strategic influence through developmental footprint… aggressively linking different regions with Sino-centric value chains, inadequate attention to local needs, lack of transparency, disregard for sovereignty, adverse environmental impact, corruption, and lack of sound financial oversight,” Girish Luthra, a fellow at the Observer Research Foundation think-tank wrote in a recent paper.
Despite the hiccups the Chinese have achieved a “staggering amount” and IMEC isn’t even close to being a “rival” says Mr Khanna, adding that it can at best be a moderate volume corridor.
“It is not a game changer on the scale of BRI. It is a good announcement but you don’t look at the proposal and say, oh my god, the world can’t live without it,” Mr Khanna told the BBC.
