Asia is rising as new epicenter of economic growth. The 21st century belongs to Asia, and global power is shifting in that direction. These are common slogans we hear from time to time.
Various institutions and initiatives are promoting this idea and working to make it a reality. The Boao Forum (BF) is one of them. An analysis of past forums shows it has focused on multiple areas and helped bring people closer. It has created opportunities for cooperation and collaboration. Building on Boao Forum’s past successes and strengths, this year’s forum will explore the shared future of humanity in Asia.
It would be intriguing to observe and evaluate how the forum contributes to this goal, especially as world is undergoing extraordinary changes. Western hegemonic forces and aspirations are creating instability globally, with Asia being a key targeted point. They have resurrected the age-old “divide and rule” strategy and instigated conflicts.
On one hand, they are enticing several major Asian countries to align with Western interests, undermining any efforts at collaboration within Asia. Regrettably, some nations are more than eager to participate in these endeavours. On the other hand, they are exacerbating tensions in Asia, particularly in China’s neighbourhood, as seen in conflicts like those in Ukraine.
In these circumstances, striving for a shared future and common prosperity presents a Herculean task. However, BF can play a positive role in this endeavour by establishing links with programmes and initiatives that can attract investment to Asia, improve connectivity, enhance trade and facilitate exchanges.
Fortunately, an excellent opportunity is available for BF in China. Beijing has launched many such initiatives, with the most relevant being Community with a Shared Future, Asian Infrastructure Investment Bank, Belt and Road Initiative (BRI), China International Import Expo, etc. Let’s try to explore how these initiatives can assist BF and Asia.
China created Asian Infrastructure Investment Bank (AIIB) as a multilateral financial and development institution with the goal of assisting Asia in building a prosperous future. The AIIB works with the slogan to build infrastructure for tomorrow by adopting principles of sustainability, innovation, and prosperity for the people. The AIIB is motivated to assist countries in venturing into innovative solutions and technology for building future infrastructure, which can generate economic activities and enhance connectivity. It also tries to present solutions that can meet the needs and demands of clients without dictating terms.
Although AIIB has the mandate to work for Asia and Oceanics, but it has a wider membership worldwide. Since its creation, AIIB has ventured into multiple sectors and provided funding to numerous countries and companies, either governments or private firms. According to data, it has financed 134 projects and programmes. Forty-nine projects are under approval. It has also extended a special grant to 14 cases. Moreover, it has approved $26.45 billion and committed $21.43 billion. It has also extended $30.14 million for project preparations.
The most distinguished characteristic of AIIB is that President Xi discourages geopolitics and is working to ensure AIIB does not follow politics. AIIB follows President Xi’s vision, which is evident from disbursement of funds. For example, India is largest borrower of AIIB. As of 2020, it had borrowed around $4.3 billion. This is happening despite China and India engaging in a border conflict, which is a sign of non-interference based on political matters and interests.
The analysis indicates Boao Forum and AIIB share same goal of building a prosperous Asia. Thus, Boao Forum can benefit from AIIB’s investment opportunities.
Links should be created with the China International Import Expo. This will assist BF in achieving its goal of promoting trade, helping members benefit from huge Chinese market. Moreover, it can help promote an innovation culture, as the CIIE attracts leading tech companies to showcase and sell their innovative products.
The Belt and Road Initiative (BRI) provides an excellent opportunity for the BF to achieve its shared future goal. The BRI includes all the key elements that align with primary objectives of Boao Forum, such as economic cooperation, exchange, environment and connectivity.
First, BRI can help boost economic cooperation, linkages, trade and exchanges by building infrastructure. For example, in 2019, World Bank conducted a series of studies to decode the potential benefits of BRI.
According to studies, once BRI is completed, world will experience a notable decrease in travel times (12pc for BRI countries and 3pc for non-BRI countries). The improved infrastructure will benefit multiple sectors, including trade (2.7-9.7pc for BRI countries and 1.7-6.2pc for non-BRI nations) and real income (1.2-3.4pc for BRI economies and 0.7-2.9pc for non-BRI economies, respectively).
The global GDP is projected to grow by 3.4pc in BRI economies and 2.6pc in non-BRI economies. It was estimated a 1pc increase in GDP would equate to $930 billion, based on the year 2014. Asia, being home of investments, is a major beneficiary.
Besides, it is essential to note these studies were conducted based on an investment of $585 billion. In 2023, China’s total investment exceeded $1 trillion, and it has mobilised $2.45 trillion in investments from other countries and sources. Thus, the benefits would have been increased accordingly.
Second, BRI emphasizes environmental protection and addressing climate change, which is another key goal of Boao Forum. President Xi asserts development, without safeguarding the environment and reducing GHG emissions, would have limited benefits. Therefore, immediately following the launch of BRI, President Xi tasked the NDRC with creating a comprehensive policy under BRI to encourage climate-compatible and environment-friendly development.
Numerous initiatives were launched under BRI to pursue goal of a green BRI, including BRI International Green Development Coalition (BRIGC), Silk Road Environment Programme, Green Silk Road Envoy Program, and Big Data Platform.
China is equally dedicated to taking concrete steps to implement green BRI vision. Initially, it began directing investment towards green energy, infrastructure and industry. For instance, in 2020, investment in renewable energy resources reached 58.2pc, up from 19.6pc in 2014. In 2023, China invested nearly $7.9 billion in green energy projects. It also worked with 29 BRI countries to build low-carbon demonstration zones to strengthen their capacity to combat climate change-related challenges.
Therefore, Boao Forum should strive to establish official connections with Belt and Road Initiative (BRI). This appears to be challenging at the moment, as some Boao Forum members, like India, oppose BRI. This opposition is unsustainable, as it negatively impacts economic growth and development opportunities. Economic growth and development are vital for developing countries, such as India and others. Consequently, there should be no resistance to forming official linkages. These connections can indirectly enable non-BRI members to take advantage of opportunities BRI offers and the extensive market of BRI countries.
The discussion above suggests China can help create a prosperous Asia. However, to achieve this, Boao Forum and its members must encourage dialogue instead of confrontation and promote win-win cooperation over a zero-sum game to fully benefit from Chinese initiatives.
