CHINA WATCHChina Has a New Global Development Initiative, but Who Will Actually Benefit from It?
China is a major player in world affairs, representing the second-largest economy in the world after the United States. A year after assuming power in 2012, President Xi Jinping announced the creation of the so-called Belt and Road Initiative, a massive infrastructure project designed to increase investment and promote economic development in many of the world’s poor nations. In the past year, Xi has advanced another idea – the Global Development Initiative.
China’s well-publicized Belt and Road Initiative to invest in infrastructure projects in other countries has helped it expand its political influence around the world. But a newer, lesser-known development program has launched with apparently similar objectives.
There is no question that China is a major player in world affairs, representing the second-largest economy in the world after the United States. In his role as a world leader, China’s President Xi Jinping periodically announces global projects designed to promote China on the world stage and to demonstrate global influence.
A year after assuming power in 2012 he announced the creation of the so-called Belt and Road Initiative, a massive infrastructure project designed to increase investment and promote economic development in many of the world’s poor nations.
The resulting bridges, ports and roads built in developing nations throughout the world have cost hundreds of billions of dollars, and questions have been raised about whether they are harming nature. By accepting Chinese loans with stringent conditions, developing nations with weak bargaining power and limited options for raising funds externally carried a large part of these costs.
In addition to this infrastructure objective, the Belt and Road Initiative was a push for China to gain more economic and political power. Many developing nations that took loans from China are finding it difficult to repay them while fighting COVID-19 and dealing with faltering economies.
As poor nations have become more financially dependent, China has attempted to expand its influence at a global scale. This state of affairs has led to criticism of the Belt and Road Initiative by the U.S. and its allies.
In the past year, Xi has advanced another idea – the Global Development Initiative.
China’s Global Plan
Xi proposed the Global Development Initiative at the opening of the 76th session of the U.N. General Assembly in September 2021. Although this initiative is described as “improving the process of global development,” its two stated and most important goals are to help the U.N. achieve its 2030 agenda for sustainable development and to help all nations, particularly developing countries, respond effectively to the shock caused by COVID-19 with a focus on “greener and healthier global development.”
