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Belt and Road Initiative: Is China’s trillion-dollar gamble to transform the world working?

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BRI is a signature policy of President Xi Jinping (pic BBC)

This week, China is throwing a huge party to celebrate one of its biggest experiments in engaging with the world: its Belt and Road Initiative (BRI).

Officials and leaders from all over the globe are in Beijing to attend a high-level summit marking the BRI’s 10th anniversary. Participants expected to show up range from Vladimir Putin to the Taliban. Chinese media is awash with coverage of the BRI’s achievements, including a six-part documentary on state TV.

A signature policy of President Xi Jinping, the BRI is aimed at stitching China closer to the world through investments and infrastructure projects. With an unprecedented glut of cash pumped into nearly 150 countries, China boasts it has transformed the world – and it is not wrong.

But Beijing’s massive gamble hasn’t entirely gone the way it had hoped. Was it worth it?

From the moment the BRI was unveiled in 2013 with comparisons to the ancient Silk Road, it was clear China had sprawling ambitions.

“Belt” refers to overland routes connecting China to Europe through Central Asia, as well as to South Asia and South East Asia; while “Road” denotes a maritime network linking China to major ports through Asia to Africa and Europe.

It started off with heavy state-driven investment into hard infrastructure abroad. Most of the estimated $1tn (£820bn) has been poured into energy and transport projects, such as power plants and railways.


Kenya’s $5bn railway project, funded by Chinese loans, is in danger of becoming a white elephant (pic BBC)

Beijing touted this as an economic win-win – it told other countries these investments would stimulate development, while at home it sold the BRI as a way to help Chinese companies, boost the economy and burnish the country’s reputation.

It had limited success in meeting some goals, such as internationalising the yuan and solving Chinese companies’ overcapacity.

But China reaped a huge economic benefit in trade. A slew of agreements brought access to more resources such as oil, gas and minerals, especially as the BRI’s focus widened to include Africa, South America and the Middle East. About $19.1tn of goods were traded between China and BRI countries in the past decade.

“It’s about Chinese state-owned enterprises going abroad… to help facilitate the flow of resources that China needs,” said Jacob Gunter, a senior analyst at the Mercator Institute for China Studies. “It’s also about expanding and developing export markets as alternatives to the liberal developed world.”

This diversification has become crucial at a time when China faces greater tensions with the West and their allies.

Take soybeans for example. China, the world’s biggest importer, used to rely heavily on the US for supplies. But a tariff war with Washington forced Beijing to turn to South American sources, especially Brazil, estimated to be the region’s largest recipient of BRI funding.

Gas pipelines from Central Asia and Russia – and oil imports from Russia, Iraq, Brazil and Oman – have reduced Chinese dependence on Japan, South Korea and the US, according to the International Institute for Strategic Studies (IISS).

‘Debt trap’ diplomacy

Having become the lender of first resort for many low or middle income countries through the BRI, China is now the world’s biggest international creditor.

The true scale of the debt – thought to be at least hundreds of billions of dollars – is unknown because many of the loan agreements are shrouded in secrecy.

Now, from Sri Lanka and the Maldives to Laos and Kenya, countries are struggling with BRI debt. This puts the Chinese government in a tight spot.

A real estate crisis and liberal borrowing by local governments has already created a “debt bomb” domestically – it’s estimated to run into trillions of dollars. A sluggish post Covid economy and record youth unemployment have not helped.

China has restructured BRI loans, extended deadlines and forked out an estimated $240bn to help borrowers make payments on time. But it has refused to cancel the debt.

“For China to simultaneously engage in debt write-downs overseas while domestic economic issues are not fully resolved – it will be politically challenging internally to promote that,” said Christoph Nedopil, founding director of the Green Finance and Development Center (GFDC), which tracks BRI spending.

This has marred Beijing’s reputation. Some critics accuse China of engaging in “debt trap diplomacy” by luring poorer countries to sign up for expensive projects so that Beijing could eventually seize control of assets put up as collateral. This was the US’ accusation over the controversial Hambantota port project in Sri Lanka.

Many analysts argue there is little evidence of this, but it has heightened fears that Beijing is using the BRI to undermine others’ sovereignty.

China has also been criticised over its so-called “hidden debts” – governments don’t know how exposed their borrowing institutions are, which makes it difficult for countries to weigh up the BRI’s costs and benefits.

Over the years BRI projects have also been accused of creating wasteful “white elephants”, fuelling local corruption, exacerbating environmental problems, exploiting workers, and failing to live up to promises of bringing jobs and prosperity to local communities.

One recent study by research lab Aid Data found more than a third of the projects face such problems. A growing backlash has prompted some countries like Malaysia and Tanzania to cancel BRI deals.

“Poor risk management and a lack of attention to detail and cohesion” from Chinese lenders and companies are partly to blame, according to the Council on Foreign Relations.

But other observers point out the borrowing countries are also to blame, like in the Hambantota case which was partly caused by Sri Lanka’s own financial mismanagement.

They also say China gives resources with fewer strings attached, which is less onerous than offers from global lenders or the West.

“China shows up with a ‘one-stop shop’ approach: ‘Here are our banks and companies and we do everything from start to finish, and if you sign today we will finish that railway, and it will be done in time just as you campaign for your next election’,” pointed out Mr Gunter.

“It’s a huge selling point to say that you can do it in one to three years with very little paperwork. Maybe it’ll be a bit dirty and there may be labour rights violations, but your railway will be done.”

Yet China has met one of its biggest goals – extending its influence.

It is not just through railways and highways that China has created connections. Beijing projects soft power and positions itself as a leader in the Global South, paying for thousands of Chinese university scholarships, cultural exchange programmes and Confucius Institutes. The expansion of the Brics trading bloc too has been credited to China.

Pew Research found that in the past decade many middle-income countries have increasingly favourable attitudes towards China, including Mexico, Argentina, South Africa, Kenya and Nigeria.

Mr Gunter noted that increasingly, countries in the Global South do not wish to choose sides in the US-China rivalry. “China hasn’t flipped many countries from a Western orientation, but the fact it has moved the needle to a middle ground – that is already a huge diplomatic victory for Beijing,” he said.

But observers have also raised concerns of possible economic coercion, where foreign governments feel pressured to follow Beijing’s agenda or risk China pulling out investment.

One Aid Data study of Chinese state-owned entities’ loans to foreign governments found contract clauses that “potentially allow the lenders to influence debtors’ domestic and foreign policies”.

In the UN, China has “corralled other states into temporary coalitions” to oppose measures critical of Beijing, while participation in the BRI has led several EU members to block or water down policies critical of China, pointed out the IISS.

The think tank also said the BRI has become one of China’s “main instruments” in its diplomatic isolation of Taiwan. Many nations that have shifted recognition from Taiwan to China in the past decade are BRI funding recipients, it noted.

In South East Asia, Cambodia has consistently resisted condemnation of China’s actions in the South China Sea, while Laos and Thailand have been criticised for arresting or allowing the abduction of Chinese activists wanted by Beijing.

China now recognises some things need to change.

Beijing preaches the mantra of “small and beautiful” where, through low-investment, high-yield projects, the BRI can have more relevance.

Examples given by state media include bamboo and rattan-weaving programmes in Liberia, biogas technology projects in Tonga and Samoa, and promoting mushroom-growing technology in Fiji, Papua New Guinea and Rwanda.

China has also announced a new “digital silk road” focused on telecommunication and digital infrastructure. Analysts say this would be a more sustainable stream of profits for Chinese companies, while lessening the impact of Western bans on Chinese 5G equipment.

With this new strategy, China has cut down financing. It has imposed limits on external lending by Chinese banks, and investment deals are now nearly 50% smaller than they were five years ago, according to a GFDC analysis. It has also moved away from being the only creditor in the BRI, and started a platform where other countries can lend money.

But Beijing has even grander plans for the BRI, which it now touts as the foundation of “the global community of shared future”.

In two white papers released this month, Beijing said its form of globalisation would be fairer, more inclusive and less judgmental than the one led by “hegemonic” Western powers which seek a “zero-sum game”.

“The BRI is a public road open to all, not a private path owned by any single party,” it said. Far from seeking domination as critics say, China claimed it is “helping others to succeed while seeking our own success”.

The view from China is that “now globalisation is in danger. The West, in the name of ‘de-risking’, is actually ‘de-China-risking’,” said Wang Yiwei, a professor who studies the BRI at Renmin University of China. The main challenge “is how can the BRI build mutual connectivity and avoid a new Cold War”.

Beijing’s trillion-dollar experiment has created a powerful tool to wield influence. But the question is whether the world wants a Chinese-led world order.

(BBC)



Features

Coercive laws recipe for future misrule

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by Jehan Perera

The NPP government is going after powerful figures from the past and present who have engaged in corruption, fraud and criminal activity in a way that no previous government in Sri Lanka has done. Former ministers, politicians and senior state officials are among those facing investigations and legal proceedings. The government has placed before Parliament a document listing 50 cases involving corruption, fraud and other crimes. These include not only financial offences but also cases relating to the Easter Sunday attacks, the killings of Lasantha Wickrematunge and Wasim Thajudeen, the disappearance of Prageeth Ekneligoda and attacks on journalists Keith Noyahr and Upali Tennakoon.

The significance of this effort is that it can demonstrate that nobody is above the law, regardless of political connections or social standing, which will help restore public confidence in institutions that have long been distrusted. It could also recover public resources, improve the investment climate and strengthen the foundations for a more prosperous and just Sri Lanka. When criticised for focusing on the past and not the present, the government position is that these investigations were initiated under earlier governments, particularly between 2015 and 2019, and that it is now allowing investigators to proceed to deal with the backlog without political interference.

But there is an aspect of the government’s approach that is less justifiable. While pursuing past wrongdoing by powerful individuals, it is also advancing a triumvirate of draft laws that could give the state sweeping powers over citizens, organisations and dissent in the present and future. The draft Prevention of Terrorism legislation, the Prevention of Organised Crimes Bill and the NGO Registration and Supervision Bill raise serious questions about the over-centralisation of power. Each of these laws strengthens the powers of the state while weakening the rights and safeguards that protect people from their misuse and thus questions the basic rights of people in democracy where ‘the power of the people is vested in the government’. This is a recipe for future misrule rather than the rule of law. As the well-known saying goes, power corrupts and absolute power corrupts absolutely.

Proposed Laws

The real test of system change, for which the government obtained an overwhelming mandate, requires not only a government willing to hold others accountable, but one prepared to subject itself to the same principles of legality, transparency and restraint. The three proposed laws that are particularly important in this regard are the Protection of the State from Terrorism Bill, the Prevention of Organised Crimes Bill and the NGO Registration and Supervision Bill. Each of these draft laws has been presented as serving a legitimate purpose. Preventing terrorism, combating organised crime and ensuring that NGOs do not facilitate money laundering or terrorist financing are proper responsibilities of the state. Sri Lanka has international obligations in these areas, and no responsible government can disregard them. However, the existence of a legitimate objective does not justify every means adopted to achieve it.

The proposed Protection of the State from Terrorism Bill illustrates the problem. Although its definition of terrorism draws on a model developed by a former United Nations Special Rapporteur, the Human Rights Commission of Sri Lanka has warned that the definition of terrorism extends beyond the model and could bring legitimate political protest, trade union action and civil disobedience within the scope of counter-terrorism legislation. Its concerns also include prolonged detention, inadequate judicial oversight and restrictions on access to legal counsel. These are objections that go to the heart of the relationship between the citizen and the state. The government cannot credibly promise to protect democratic freedoms while creating powers that could be used to restrict them. It is necessary for the government to reassess the draft through transparent consultation and revise provisions that could criminalise legitimate dissent.

The Prevention of Organised Crimes Bill raises similar concerns. It is presented as giving effect to the United Nations Convention against Transnational Organised Crime, which Sri Lanka ratified in 2006. The Centre for Policy Alternatives (CPA) has argued that the convention does not require many of the bill’s provisions. The proposed law extends to a broad range of offences, permits detention orders lasting up to a year, makes confessions to police admissible for purposes of legal evidence, and introduces extensive surveillance powers. A law intended to dismantle criminal networks should not create a parallel system of exceptional powers that could be applied far beyond organised crime. Nor should safeguards developed through years of experience with abuses under the Prevention of Terrorism Act be weakened through legislation bearing a different name. The government should review whether or not existing laws could be used effectively to control these crimes or whether each exceptional power is necessary.

Civil Society

The proposed NGO Registration and Supervision Bill presents another test of the government’s intentions. The government may reasonably seek transparency in the finances of organisations receiving public or foreign funds, including measures to prevent money laundering and terrorist financing. It seeks to justify its overreach on the grounds of meeting the internationally mandated requirements of the Financial Action Task Force (FATF) for the Asia-Pacific region. But these objectives do not justify placing civil society and NGOs under excessive administrative control when even the FATF ranks them as low to medium risks. The draft bill would require registration and renewal, impose extensive obligations on organisations and empower authorities to suspend or deregister them on broadly framed grounds. It is important to redraft provisions that confer excessive discretion over registration, renewal, suspension and deregistration of NGOs.

Among the concerns raised by United Nations human rights special rapporteurs with regard to the draft NGO law are provisions requiring organisations to align with government policies and restrictions that could affect advocacy, dissent and freedom of association. The implications extend well beyond organisations that engage directly with the government. Community groups, human rights organisations, independent researchers and organisations working on reconciliation or accountability could find their activities constrained by uncertainty over how these provisions might be interpreted. Organisations that criticise government policies are not thereby working against the country. Their freedom to do so is part of what distinguishes a democracy from a system in which the government determines which opinions and activities are acceptable.

The government has generated considerable public goodwill through its pursuit of corruption and criminality. It should not assume that this goodwill gives it an unlimited mandate to strengthen the coercive powers of the state. The NPP knows from its own history that governments can treat dissent as a threat and use the machinery of the state against their opponents. There is still time to correct the drafts through transparent public consultation, narrow definitions of offences, meaningful judicial control over detention and surveillance, and effective remedies against arbitrary decisions. A government that pursues corruption while weakening safeguards against state abuse risks undermining its own achievements. Besides bringing to light the abuse of power by previous governments, the NPP government needs to build a system in which no future government can abuse power in the belief they can get away with it.

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Quality assurance without quality enhancement: The irony of university QA

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By Ramya Kumar

According to the Quality Assurance Council (QAC) of the University Grants Commission (UGC), quality assurance (QA) refers to “the means (i.e. the policies, attitudes, actions, procedures, etc.), by which an institution can guarantee with confidence and certainty, that the standards and quality of its educational provision are being maintained and enhanced”.

An expansive structure has been in place since 2005 to govern and implement QA processes within the state university system. The QAC is the focal point at the UGC that implements external reviews of state universities and institutes. Each university has its own Centre for Quality Assurance (CQA) tasked with performing QA in line with QAC directives. Faculties, in turn, have Internal Quality Assurance Cells (IQAC) performing their own QA; they are answerable to the CQA.

The big question is whether this all-encompassing top-down QA system, that in many ways undermines the internal dynamics of university governance, actually supports universities to enhance the quality of education. This article highlights some concerns.

Top-down check-box activities

The QAC conducts external reviews of universities and degree programmes. A review team appointed by the UGC (who may or may not have experience in the institution/programme in question) examines the self-evaluation report submitted by the said institution/programme. The team then conducts a site visit to verify the claims made in the university’s self-evaluation report, clarify issues identified during the desk review, and examine how QA procedures operate in practice. The team holds meetings with the university administration, members of the Council and Senate, Deans, Heads of Departments, academic and non-academic staff, students, and others. Following the visit, a draft report is submitted to the relevant institution/programme for comment before final publication. The reviewed institution/programme then prepares and publishes an action plan addressing the recommendations, with subsequent monitoring of progress.

There are some worthy QA initiatives under implementation, such as improving facilities for students with disabilities and strengthening mechanisms to address sexual- and gender-based violence. However, for the most part, QA activities have little to do with improving the quality of education. They are mostly preoccupied with monitoring faculty and department websites, digital transformation, student feedback, subject evaluation, course evaluation, peer evaluation, and, more recently, staff appraisal. These activities, which consume an inordinate amount of time—so precious at understaffed universities—have become check-box activities completed to generate evidence for the next review. Below is an excerpt of a conversation between two academics (1 and 2) that conveys how QA plays out at universities (reproduced with permission).

1: … .it’s like social media you know, like posting things on Facebook or twitter or Instagram. When people do a lot of social media, everything they do, they do thinking, “okay I’m going to post it in this way… this I have to put on my Instagram.” QA is a little like that… everything is considered in light of, “ah we can use this for the review, as evidence… for example very recently we were encouraged to have all the things that we do in our department in the faculty newsletter so then they can put in the review. Every little thing has to be noted down….

2: And with pictures and all…

1: At the very least it has to be written so that you have written evidence .. you can’t be doing something for the sake of doing something or because it is good for the department … and sometimes people tell me “oh yea that’s a good idea we can fit that under this x, y section of the review..”

2: Yea, and nobody really thinks about the actual outcome… whether it’s actually helping anyone..

1: I also find that a lot of the words that we used in different ways have now been co-opted to the QA discourse ..including quality.. I can’t actually say what I want as an “outcome”, for example, that the outcome of this workshop is that my students “think about” … then I am told “ah but no that’s not one of the Bloom’s taxonomy words, “think about”.…

2: And the worst part is these medical and agriculture people, these types of people go around spreading it like some kind of gospel!

1: Yea, this cookie cutter way of doing things, they think is the height of innovativeness or creativity, when actually it is so mundane … for me the most awful thing about it is like some fungus of mundanity has taken over through QA reviews.

2: yea, when you say QA, my mind closes off immediately and I stop listening…

Auditing everything but power

QA leaves out crucial aspects of university governance. For instance, there is no review or assessment of the “quality” of university administrations under Criterion 1 or the integrity of procedures governing the promotion of academic staff under Criterion 6 of the institutional reviews.

The majority in the Council—the university’s executive and governing body, which is responsible for selecting the Vice-Chancellor (VC)—are appointed in ad hoc fashion. Apart from the Ex-Officio members in the Council (VC, Deans, etc.), and the two members elected by the Senate, the remainder are appointed by the UGC with no formal consultation or vetting procedure. The VC appointment process described in UGC Circular No. 03/2023 exemplifies how an ostensibly technical process can become entangled in political sycophancy. The Registrar invites applications for the position of VC through advertisement. Applicants must submit a curriculum vitae, a statement of vision for the university and supporting documents. The University Council appoints a three-member Search Committee of senior academics to encourage “eminent persons” to apply, while the UGC appoints a former VC from another university to “observe” the selection process.

A Special Meeting of the University Council is convened. Candidates are interviewed and must make a presentation to the Council Members, followed by questions. Each Council member “gives marks” for seven prescribed criteria: strategic focus (20%), effective leadership (20%), holistic thinking/conceptual skills (10%), academic and research excellence (15%), personal integrity (10%), professional communication (10%) and managerial competence (15%). Marks are averaged, and the Council recommends three candidates to the UGC in rank order. The UGC-appointed observer separately submits a confidential report on the selection process.

This procedure is expected to guarantee quality, but does it? Applications are submitted to the Council Members, who have been appointed on questionable bases, and who are expected to review the applications and give scores, based on objective assessments. But, in reality, most Council Members are manipulated by VC candidates, who often have personal ties with them. The UGC-appointed observer usually has no genuine interest in the outcome. And there is no way for anyone to actually question the Council’s decision once it is made. Although the highest-ranked candidate may ultimately be appointed, the selection remains a political decision made by the President, who retains the discretion to appoint any one of the three.

External reviews also do not look into the promotions of academic staff, except to scrutinise whether there are policies and procedures in place to govern promotion. Academic staff may apply for promotion to Professor once they satisfy the prescribed eligibility requirements, which typically include the period of service, academic qualifications, research and publication achievements, teaching experience, and contributions to the university and wider community. Applications are evaluated against specified criteria, with research output and academic contributions assessed through documentary evidence and expert evaluation. Under the UGC’s scheme for Professors, two experts from outside the applicant’s institution assess specified aspects of research and knowledge dissemination. Again, beneath this technical process, which is externally evaluated, lies a problematic points-based scheme that can be manipulated and abused with impunity.

Rethinking university QA

Like the VC election process and the schemes of promotion for academic staff, QA reviews are open to manipulation. Before a review, there is a chaotic rush to complete evidence gathering and reporting. Academics leave all other work aside, including at times their teaching, to focus on completing documentation and preparing reports. The standardised criteria in the review manuals and scoring sheets often do not reflect differences in disciplines and institutional contexts. But this does not really matter because any serious problems experienced by institutions or programmes are hastily brushed under the carpet to conceal any evidence that could taint the review. The goal is to obtain an A or at least a B grade at whatever cost.

QA may result in positive change if it moves beyond top-down check-box activities towards internally designed and owned processes encompassing all aspects of university governance, led by departments and faculties, and supported by adequate resources. The current QA system needs to be dismantled and replaced by procedures that are accountable, not to the UGC, but to our students and the communities we serve.

(Ramya Kumar is attached to the Department of Community and Family Medicine, Faculty of Medicine, University of Jaffna)

. Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.

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Down Memory Lane — the Grand 20th Edition!

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Down Memory Lane: Ready to sing again

Yes, Down Memory Lane, the beloved Sing-Along concert series that first struck a chord, way back in 1997, returns for its landmark 20th edition this Saturday, 17th October, at the beautiful Bolgoda Grand Resort, Moratuwa town centre.

Having celebrated its glorious 25th anniversary with the show in 2023, this milestone 20th concert promises to be even more special.

The organisers, the ever-popular Moratuwa Arts Forum, are pulling out all the stops to present yet another unforgettable evening, brimming with camaraderie, fellowship, and pure nostalgia.

Get ready for two-and-a-half hours of non-stop singing as veteran vocalists, from the Moratuwa Arts Forum, will take the stage to lead and inspire the happy audience to sing, sing and sing to their hearts’ content.

The repertoire? Absolutely magical, according to the organisers.

Veteran Arun Dias Bandaranaike: Will handle the evening’s proceedings / Priya Peiris: Event Conceptor

Around 40 golden oldies — from timeless English vintage evergreens and hits from the 50s to the 90s, to toe-tapping calypsos, soulful American plantation melodies, rousing cowboy and Dixieland favourites, aa well as cherished Sinhala standards. All to be sung with much gusto!

This year’s dedicated organising committee comprises Brian Coorey (Chairman), Priya Peiris (Event Conceptor), Hiran Fernando, Suranga Fernando, Viranjan Perera, Hemka Fernando and Neelesh Silva. Guidance and support comes from Moratuwa Arts Forum President Sarana Guneratne and Secretary Chandani Silva.

Adding his signature charm to the evening, as Master of Ceremonies, will be the veteran Arun Dias Bandaranaike.

Don’t miss this landmark celebration of music and memories!

For further details, contact Hiran Fernando on 0772636446 or WhatsApp 0783636446.

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