Silk Road Wisdom: The “New Silk Road” is the world’s largest economic and social development project and driver of 21st Century prosperity
The New Silk Road is the most significant and influential economic development project of the 21st Century. It will define and reshape the relationships and trade between all countries going forward. China's New Silk Road promises prosperity across Eurasia. It will probably be the number one driver of prosperity for the world in the 21st Century. It is a multi-decade, multi-trillion dollar project physically touching 65 countries and 4.4 billion people with funding from a new regional development bank controlled by BRICS member states.
Silk Road Wisdom deploys a Wisdom Network to achieve the market, product and country integration for “Silk Road” faster and cheaper. Countries not on “Silk Road”, or influenced by it, could capture enormous growth by using the Silk Road Wisdom to provide virtual services, and even organise, the development and operation of the “Silk Road”. Given services, people and collaboration account for a significant part of an economy, Silk Road Wisdom has a genuine opportunity to come “Over the Top” and spread the wealth and opportunity to more countries and achieve outcomes faster and at less cost. Let’s begin with Part 1 (this article) and introduce the Silk Road. We have extracted the key parts of some quality summarising various parts of the Silk Road.
by TD Architects, 12 June 2011
- With China continuing its rise and Europe standing strong, Eurasia is rapidly becoming the world’s new economic centre. Clogged seaports and a vulnerable air transport system have shifted the focus to a network of railways – also known as the Iron Silk Road – intended to “shrink” today’s supercontinent in the coming years. The project is aimed at shortening the time of bulk consumer-goods transportation between China and Europe and, at the same time, unlock the cities at the heart of Eurasia. Thanks to their strategic position, creating better access to these cities will greatly facilitate the ability of their inhabitants to travel and do business throughout the vast area served by the new network.
- The Northern Corridor of the Iron Silk Road largely follows the existing Trans-Siberian Railway, while the Central Corridor mainly traces the route of the ancient Silk Road to Beijing. The Southern Corridor faces political barriers but will eventually connect the highly populated countries of Turkey, Iran, Pakistan and India with Europe and China. Pressing ahead enthusiastically with the Iron Silk Road project, China is not only establishing a high speed train network inside the country but also planning and building railways along the Iron Silk Road routes as far as Turkey (a contractual agreement was signed at the end of 2010), an operation that will turn Turkey into Europe’s gatekeeper.
- The Iron Silk Road will interlink approximately 75% of the world’s population in more than 40 countries across Asia and Europe. China hopes to complete its massive infrastructure project within ten years. It will include at least one line running 320 km/hour and will shorten land-transport time between London and Beijing from 15 to only two days – provided Europe agrees to connect to the network.
by Wazars, 4 March 2015
- By the 2020s, a Chinese-built railroad will link the Greek port of Piraeus to Budapest, as part of the “New Silk Road”, an integrated delivery chain stretching from China to Morocco.
- The “Silk Road Economic Belt and 21st Century Maritime Silk Road” – the most visible expression of the emerging Chinese trading empire (China surpasses U.S. to become largest world economy, FoxNews, 6 December 2014)– will interconnect 40 countries and most of the world population (We are all connected. Then and now, WazArs, 16 November 2014).
- As far as we know, this pan-Eurasian economic and logistics corridor for a stronger and faster movement of traded goods is the greatest enterprise ever undertaken by the human species (John Naisbitt says China is ‘The game-changer’, China Daily, 9 February 2015).
- It suffices to say that 30% of the cost of a laptop’s cost depends on rail transport, that a European car can be delivered by train to the Chinese market within 25 days, compared to 2-3 months by sea and that, today China is responsible for one third of the world consumption of personal luxury goods, with the average Chinese tourist in Europe spending about 4,500-5,000 euro, i.e. much more than anyone else (China and Europe: Reconnecting Across a New Silk Road, the European Financial Review, 10 February 2015).
The New Silk Road, A Chinese-style “New Deal”. The Economic and Geopolitical Consequences, Global Research
by Global Research, 31 July 2015
- Historians will remember that the Chinese President Xi Jinping officially launched the new “Silk Road” with a 30 minute speech at the Boao Economic Conference on Hainan Island on the 28 March 2015, in front of 16 heads of State or government and 100 or so ministers from the 65 countries which are on the path, land or sea, of this new trade route. For us, involved in political anticipation, what a challenge we have been given! China is suggesting that we imagine the future by stepping back several centuries, even two millennia.
- 65 countries, 4.4 billion people, 63% of the global population are affected by the New Silk Road.For the moment, these countries together only account for 29% of world output, but we are only at the beginning of a global rebalancing around Eurasia. China expects that, within 10 years, its trade relations with the countries along what it calls “the road and corridor” should have more than doubled to $2.5 trillion.
- China has sent a very strong signal: at a time when its economic growth has begun to slow, China hasn’t chosen to stimulate its economy through military spending, which would justify a possible “Cold War” with the US. It has chosen diplomacy and trade with a view to rebalancing: to depend less on the transatlantic economic relationship it seems to it that it must strengthen various relationships “in the West”. It’s a matter of literally once again becoming “The Middle Kingdom”.
- To gather together the capital necessary for this new economic axis’ gigantesque infrastructure, China has launched the Asian Infrastructure Investment Bank, with 52 participating countries, including the nine leading European economies. The initial capital was originally intended to be $100 billion but, given the influx of applications, it will be higher.
- The way in which the European countries have converged on the Asian Infrastructure and Investment Bank confirms that a rebalancing towards Eurasia from the transatlantic link – the European equivalent of the Chinese move from the transpacific link towards the “New Silk Road” could take place quickly.
- The Chinese “New Silk Road” project is made possible by the new organizational age of which the Internet is one of the most striking manifestations. The Chinese leaders have undoubtedly understood faster than their European counterparts that the information revolution has exploded the old geopolitical opposition between the continental and maritime powers.
by Pepe Escoba, Global Research, Global Research, 15 May 2015
- By now we all know how that this high-speed trade/geopolitical journey is unstoppable — spanning the Beijing-led, Moscow-supported Asian Infrastructure Investment Bank (AIIB) and the BRICs Development Bank. Central Asia, Mongolia and Afghanistan — where NATO has just lost a war — are being inexorably pulled into this trade/geopolitical orbit covering all of central, northern, and eastern Eurasia.
- What could be called Greater Asia is already shaping up — not only from Beijing to Moscow but also from business center Shanghai to gateway-to-Europe St. Petersburg. It’s the natural consequence of a complex process I have been examining for a while now — the marriage of the massive Beijing-led Silk Road Economic Belt with the Moscow-led Eurasia Economic Union (EEU). Putin described it as “a new level of partnership.”
China’s “New Silk Road”. “One Belt and One Road”: Strategic Eurasia Land and Sea Transport Corridors
- “To forge closer economic ties, deepen cooperation and expand development in the Euro-Asia region, we should take an innovative approach and jointly build an ‘economic belt’ along the silk road.” Xi saw this as a “great undertaking” that would benefit “all countries along the route”. Invariably, however, the context is overwhelmingly based on a development rationale: trade is good and infrastructure should be established for that end.
- The economic belt, as Xi terms it, features such concrete manifestations as high-speed rail lines, highways, bridges, and Internet connectivity. These, in turn, will be complemented by port development that is already seeing a presence in the Mediterranean and Indian Ocean.
- There are a few consequences in this vast push. There is a large and looming currency angle. China is seeking to push renminbi in its transactional value and encourage currency swap arrangements between the People’s Bank of China and other central banks. Then comes the culture side of things, a dividend that will supposedly be richer the more money is invested in the various regional economies along the belt and maritime routes.
- The latest promise in terms of huge infrastructure visions comes in the form of a promise to fund a high speed rail line between Moscow and Beijing. The announcement came on Weibo, and is promised to cost in the area of 1.5 trillion yuan ($242 billion).
- On a first stage, the Chinese government established the strengthening of economic and political links with the rest of Asia Pacific as a priority. Now, the links of the “Silk Road” are intended to be expanded to South America.
- An enormous 5300 km rail structure will be constructed between Brazil and Peru, it will be built throughout the Amazonia and the Andes Mountains with the objective of connecting the Atlantic Ocean with the Pacific Ocean. The continental railway will cost between 10 and 30 billion US dollars and, subject to no causalities, it will be inaugurated by 2020.
- After its launch, the “Silk Road” will allow Brazil to reduce the cost of exporting grain to China by approximately USD30 per ton. In the first phase, this rail network will be able to transport 21 million tons between the Ilo Port (Peru) and the Açu Port (Brazil). In phase two, it is expected to transport as much as 35 million tons.
- Now, the question is: what type of economic integration will predominate between China and Latin America in the long run? With the exception of high benefits for a small group of “Trans-Latin-American” corporations under Brazil’s leadership, up until now, there is no evidence that leads us to conclude that the cash flow from China (linked to its infrastructure and exploitation of commodities) has privileged the massive construction of productive linkages in the region.
- In a time of panic in the periphery and rentability crisis in the core of the system (United States of America, Eurozone, Great Britain, Japan, etc.) it is important to stress that China enriches its geopolitical influence in a global scale.
- Although it is true that this South American “Silk Road” would radically transform the economic geography in the region, its promises of industrialization and development can only be evaluated in a retrospective manner.
by Market Oracle, 24 September 2015
- It is obvious that China has superpower ambitions. The "New Silk Road," spanning the entire Eurasian landmass – with links to Africa and Oceania, too is, quite literally, the map detailing how she will get there and will cement China's preeminent global status
- Such a transport corridor is an ancient concept, but what is being built will be far bigger and more lucrative than anything the old Han emperors could have ever imagined.
- Its immediate aim is to move goods, raw materials, information, and money across borders from China to Portugal (and back) with unprecedented speed, efficiency, and profitability. In fact, this is already becoming routine along the first segments of the corridor.
Realigning the world from West to East
- In the last decade, we have seen the establishment of numerous cross-border government-sponsored trade and development institutions to facilitate this project.
- Already armed with hundreds of billions in funding, and even more on the way, China's "road builders" have been enabled to achieve these goals - and the first components of the New Silk Road are already in place.
- In November 2014, the Yiwu to Madrid railway line, now the world's longest at 6,111 miles, was opened for business. This means that goods can be shipped overland from eastern China to central Spain in just 21 days – twice as fast as the quickest sea route, and with three times less CO2 emissions than surface roads.
- The revival of this ancient trade route, famously traveled by Marco Polo, will boast all the modern advancement of multimodal transport infrastructure. Trains, planes, ships, and trucks will crisscross the Eurasian landmass in new record times.
- Within a decade, it Is expected that super-high-speed trains will get tens of thousands of tons of materials from London to Beijing… in only two days.
- Cell towers and fiber-optics will provide virtual connections right across Europe's Atlantic coast to Asia's Pacific coast.
- The scope of this mega-project demands unprecedented financial resources, organization, and logistics.
- It is all part of an unstoppable trend that will see the "developing world" establish unbreakable infrastructure, trade, and financial links with the West, even as it grows more competitive with it.
A New challenger to Old Institutions
- In 2014, the BRICS nations – Brazil, Russia, India, China, and South Africa – were setting up the New Development Bank (NDB).
- NDB is a rival to the World Bank and International Monetary Fund (IMF), both dominated by America and Europe. Its goal is to fund infrastructure projects in developing nations. Reinforcing the inclusion approach, the NDB has an Indian leader whilst the institution is headquartered in Shanghai, China.
- Consider that grouped together, these countries' economies represent a total population of 3 billion and GDP of $16 trillion. And although membership is open to other UN member countries, the BRICS' share is not to dip under 55%, allowing them to effectively retain control.
- Then in January, the free-trade zone known as the Eurasian Economic Union, comprised of Russia, Kazakhstan, and Belarus, became reality. Even Armenia, where 27% of total trade is with the European Union, and whose in-country delegation has been trying for years to coax the South Caucasus nation into joining its Western neighbors, has linked with its Eastern suitor instead.
- And just this past April, traditional U.S. allies including Germany, France, and Italy announced they'd join almost 60 nations as members of the new Chinese-led Asian Infrastructure Investment Bank (AIIB).
- Even the IMF and World Bank have declared their support.
- The AIIB's core shareholders are China along with India and Russia. And chief among its goals are to finance development projects along the New Silk Road.
by Fu Ying, Chairperson of Foreign Affairs Committee, National People’s Congress published published in The World Post, 31 July 2015
- For centuries the historical Silk Road connected Asia and Europe by land and by sea. The new proposal of China, while reviving the ancient concept of the Silk Road, aims to carry forward the spirit of peace, cooperation, openness and inclusiveness for shared benefits.
- There has already been a warm response from more than 60 countries and a number of international organizations. And there are ongoing discussions at bilateral, multilateral and regional levels on how to take the initiative forward through concrete projects, such as the China-ASEAN upgraded Free Trade Area, the Bangladesh-China-India-Myanmar economic corridor, dovetailing with the Eurasian Economic Union and the setting up of the Asian Infrastructure Investment Bank. All of these fit together with many other domestic programs.
- By developing more arteries for connectivity, we should be able to build new blood vessels of development for disadvantaged economies in Asia's hinterlands to create prosperity and opportunities and improve the competitiveness of the whole region.
- China is now the No. 1 trading partner of most Asian countries.
- Among those countries which have announced their support for President Xi's initiative, trade with China has mostly been growing by double digits. We hope when the initiative is translated into more cooperation projects in those countries, trade will grow further.
- The Silk Road Fund set up by China of $40 billion, and the AIIB with an initial capital of $100 billion, will help jumpstart the region's infrastructure and the overall development drive.
- In China, we say that connectivity is the shortcut to prosperity. That is what we have experienced in recent decades. Now China would like to share this experience crucial to success with other countries.
- The Silk Road initiative is an open and inclusive program geared toward common development from day one. It is therefore important to nurture the comfortable level of trust in order for the initiative to be successful.
- .... we need to be aware of security and other risks. Infrastructure projects are long-term and slow to show immediate returns. The success of projects depends entirely on the sovereign countries for ensuring the necessary environment and conditions while the companies themselves should base their decisions on proper risk assessment. Of course, good connectivity programs will also, in return, reinforce stability.
- I hope I'm not overstating the case to say that the region has never been so united and so full of hope for connectivity in all fronts and at all levels.
- Should we achieve the success of the Silk Road initiative, it will not only create new development opportunities but also prosperity for hundreds of millions of people. There is no doubt in my mind that, if we cooperate as equal partners to build connectivity, everyone will benefit. "Let's work together" ought to be our guiding motto.
In Part 2, we will explore the opportunity for Silk Road Wisdom. “Silk Road Wisdom” Network has a genuine opportunity to come “Over the Top” and spread the wealth and opportunity to more countries and achieve outcomes faster and at less cost.