The Belt and Road Initiative (BRI), a significant economic development project led by China, aims to bolster economic growth across the Eurasian region. This vast initiative seeks to enhance international cooperation and economic development, a crucial step as global economic growth wanes.
The Need for European Involvement
According to Kristalina Georgieva, director of the IMF, the world is experiencing a synchronized slowdown, with slower growth affecting 90 percent of global economies. Much of this slowdown can be attributed to European hesitance in fully engaging with Asia's economic landscape. Thomas Kruessman of the London School of Economics highlights that Europe's integration into Asia's regional economic framework remains more aspirational than actual, with China dominating the developmental space.
Potential Economic Benefits
European engagement in the BRI could pivot the global economy towards prosperity in several ways. Firstly, it would foster free trade agreements, which are pivotal for reducing trade barriers like tariffs that hinder market interactions. Tristan Kohl of the Cambridge Journal emphasizes that while China lacks effective trade agreements with the European Union, the BRI aims to diminish these trade costs, potentially boosting EU-China GDP by 1.87% and increasing trade by $99 billion as per Jaques Pelkman's prediction at the Center of European Policy Studies.
Enhancing Global Trade Connections
Zakir Ullah of the Eurasia Review argues that cooperation under the BRI could serve as a bridge linking Asian and European markets, which is essential for global economic stability. Such collaboration could lead to a widespread reduction in trade costs, thereby increasing bilateral trade between BRI countries by 1.3% for every 1% reduction in these costs, as noted by Hannah Edinger of Deloitte.
Integrating Asian Markets
Currently, trade policies within Asia present significant challenges, particularly in terms of elevated costs and logistical inefficiencies. Alberto Turkstra from the Council on European Studies suggests that EU involvement could significantly strengthen regulatory and legal frameworks in Asia, enhancing the continent's global economic standing.
China and EU: A Collaborative Future
China is also advocating for a more multilateral approach to push the BRI, with institutions like the Asian Infrastructure Investment Bank inviting broader participation, especially from European nations, as Alicia Herrero of Bruegel notes. Such a framework could lead to substantial developmental gains for Central Asia, potentially increasing development by over 20% for the region's economies, according to Paul Vallely of the Brookings Institute.
A Call for European Action
The European Union's participation in the Belt and Road Initiative is not just a strategic economic move but a necessary one to stimulate global economic growth and alleviate poverty. As Gunther Wiegand of Chatham House points out, access to the European market has historically spurred economic miracles. With Asia representing a significant portion of the global economy and its future growth, engaging with the BRI could prove indispensable for fostering global economic stability and prosperity.
It is time for Europe to embrace a broader vision and affirm its involvement in the Belt and Road Initiative.
