Coordinated efforts key to tackling international risks
BRI projects in Global South see progress on integrating environ&social impact: Sébastian Treyer
Editor's Note:
While the China- proposed Belt and Road Initiative ( BRI) has greatly contributed to global infrastructure connectivity and injected new dynamics into global growth, it has also become a target of Western slandering and propaganda against China.
Anti- China forces have touted the mega plan as creating “debt trap” that embroiled a number of developing economies, including Sri Lanka, into debt crisis. To rebut such groundless accusation, the Global Times ( GT) recently conducted interviews with Sébastien Treyer, executive director of the Paris- based think tank the Institute for Sustainable
Development and International Relations ( IDDRI), who has long focused on the sustainable development of the global economy.
This is the first piece of a series of GT’s interviews with influential scholars from Western think tanks that aims to present a whole picture of BRI projects.
In recent days, the situation in Sri Lanka has garnered global attention. In addition to Sri Lanka, a number of emerging economies are also near or at debt distress. In terms of dealing with the exacerbated financial woes faced by emerging economies, the most important event was last year’s G20 summit, where there was an agreement to have a common monitoring framework about debt owed to the Paris Club, meaning the Western countries as well as to other economies like China. It was one of the efforts to monitor the debt of countries that ask for more investments and financial flows from European, from Northern American, Japanese and Chinese donors.
It is of vital importance that these countries can monitor together in a cooperative way, rather than questioning the China- proposed Belt and Road Initiative ( BRI). G20 discussion is now in danger because of the Russia- Ukraine conflict, and this may lead to the difficulty in finding agreements and solutions in the G20 context. I hope that the Indonesian presidency will be able to push forward common debt monitoring framework in this year’s upcoming G20 Summit.
I hope Western OECD donors and China could put all analytical energy and political energy to find cooperative ways on how to be cautious about the debt crisis in developing countries and how they can contribute in a cooperative manner to help them out of the current debt crisis.
It is also important to think of global cooperation from financial institutions, the central banks, the IMF and the World Bank to ensure that inflation increases in a way that does not lead to a global recession in the economies.
The impact of the Russia- Ukraine conflict on global food security, energy and finance is systemic, serious and increasing. The Russia- Ukraine conflict leads to increases in prices of gas and food, as well as raging inflation. Addressing global inflation calls for concrete macroeconomic policies that need to be coordinated between central banks and across region.
A number of infrastructure initiatives have being put forward in recent years, like the Partnership for Global Infrastructure and Investment ( PGII) and the EU’s Global Gateway scheme. PGII is an overall framework for all G7 countries. And the EU program, the Global Gateway, is within the PGII program. Those schemes are trying to build on the needs of the recipients, who are the developing countries. It is very important that we are able to monitor the realization, the imple
mentation of those initiatives, and to monitor whether or not they fit into what the developing countries really look for. It’s also very important to evaluate progress and to ensure the implementation of these projects. They should be aligned with the stability objectives and the sustainable development of developing countries.
Government and social assessment of BRI projects in the Global South showed that since 2013, there has been a lot of progress on better integrating environmental and social impact of the BRI projects in southern countries – mostly in developing countries in Africa and Asia.
If we want them to contribute to green and decarbonize economy in those countries where the BRI projects are taking place, it should also be stressed that global cooperation efforts are needed for green and standard developments in Southern countries.
In this regard, the BRI proposed by China is an important contributor to financing green and sustainable investments in Southern countries. And it is also important to monitor and improve the environment and social impact of the BRI projects.