“If you want to develop, build a road,” runs the Chinese phrase. Beijing’s grand design to construct transport links between China and Eurasia represents the export of this simple philosophy. Beijing believes that building roads, railways and other infrastructure will help create a market in Eurasia for its goods.
“The Chinese experience illustrates that infrastructure investment paves the way for broad-based economic social development, and poverty alleviation comes as a natural consequence of that,” says Jin Liqun, president of the Asia Infrastructure Investment Bank (AIIB).
But potential problems abound with financing the planned $890bn in investments. The payback period is often long, construction delays are common and political instability is widespread in the 64 countries embraced by the “New Silk Road” strategy.