40 billion Silk Road fund to implement the OBOR. One Belt will be a land-based economic corridor slated to run from Xian in Shaanxi province, China, and navigating through Central Asia and Europe, before terminating at Venice in Italy. The belt involves significant investments to develop road and rail sky forex nairobi through this corridor, along with other ancillary facilities like high-speed optic fibre cables for better communication and energy pipelines.
As for the maritime route, it will deal with the development of ports in participating countries along with initiatives to simplify procedures for trade. The OBOR covers about 40 to 60 countries consisting of about 65 per cent of the world’s population, generating 30 per cent of the world’s GDP. It is believed that the OBOR is likely to be completed in time for the 100th anniversary of the establishment of the People’s Republic in China, in 2049. Overall it’s a masterstroke by China, which will maintain its dominance in the new multi-polar world, both economically and strategically.
The grand plan, if implemented successfully, will also reboot the Chinese economy which has been progressively slowing down. Apart from huge infrastructure investment in development of road and rail infrastructure, high-speed optic fibre cables and energy pipelines, development of ports and establishment of trade logistics and institutions in the participant countries, the OBOR initiative seeks to achieve policy coordination among participant nations through inter-governmental cooperation, macro-policy correspondence and special communication mechanisms. Large investment will be made across infrastructure sectors which, in turn, will raise the demand for products such as steel and cement. Some of the sectors related to construction, petrochemicals, high-speed railways and wagons, telecommunications, etc, will see increased demand as well. As most of the OBOR infrastructure projects will be funded by China and institutions supported by China, such demand orders will go to Chinese companies that have thus far been saddled with unutilised capacity due to lack of demand. The Chinese economy has slowed down over the last couple of years leading to excess capacity in Chinese factories. By promoting investments in course of implementation of OBOR projects, it is expected that new opportunities and markets would be created for Chinese firms which would have a multiplier impact on production of goods and services domestically, thereby creating more jobs and higher incomes for the Chinese populace.