‘Belt and Road can speed up development’
China’s massive Belt and Road infrastructure drive could speed up economic development and reduce poverty for dozens of developing countries, said the World Bank on Tuesday in a new report that called for deep policy reforms and more transparency for the initiative.
The long-delayed report said that the Belt and Road — a string of ports, railways, roads and bridges and other investments connecting China to Europe via central and southern Asia — could lift 32 million people out of moderate poverty conditions if implemented fully.
Still, there were “significant risks”, said the World Bank.
“Achieving the ambitions of the Belt and Road Initiative will require equally ambitious reforms from participating countries,” said Ceyla Pazarbasioglu, World Bank vice-president for equitable growth, in a statement.
“Improvements in data reporting and transparency, especially around debt, open government procurement, and adherence to the highest social and environmental standards will help significantly,” she added.
The World Bank said real income for Belt and Road corridor economies could be two to four times larger if they ease trade restrictions and institute reforms to reduce border delays.
There was also a need to increase transparency of debt terms and conditions for Belt and Road projects to allow governments to assess the risks to their ability to sustain debt, said the report.