{"id":50011326,"date":"2018-07-09T15:28:49","date_gmt":"2018-07-09T14:28:49","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=11326"},"modified":"2019-02-07T17:00:21","modified_gmt":"2019-02-07T17:00:21","slug":"11326-chinas-belt-and-road-lands-in-latin-america","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/11326-chinas-belt-and-road-lands-in-latin-america\/","title":{"rendered":"China\u2019s Belt and Road lands in Latin America"},"content":{"rendered":"
Read in Chinese\u00a0\u4e2d\u6587\u7248\u672c<\/a><\/em><\/h5>\n

 <\/p>\n

After several months of anticipation, the blueprints for China\u2019s Belt and Road Initiative (BRI) finally include Latin America and the Caribbean (LAC). As speculation gives way to reality, it\u2019s a good time to assess what we know about the BRI\u2019s arrival and what it can offer Latin America.<\/p>\n

Enter Latin America<\/h2>\n

Over the last couple of months, Chinese leaders have endeavoured to modify the Belt and Road discourse to include LAC, with noticeable success. Diplomats now consistently\u00a0refer<\/a>\u00a0to the region as\u00a0a \u201cnatural extension\u201d of the Maritime Silk Road and an \u201cindispensable participant\u201d in the BRI\u2019s construction.\u00a0This language was first\u00a0used<\/a>\u00a0by President Xi Jinping during his meeting with Argentina\u2019s President Mauricio Macri on the sidelines of the 2017 Belt and Road Forum. It was also included in the\u00a0Special Declaration on the Belt and Road<\/a>. The Declaration, signed during the Second\u00a0China-CELAC Ministerial Forum<\/a>\u00a0in January 2018, presents the BRI as \u201ca new platform for mutually beneficial cooperation\u201d between China and Latin America, and affirms that the former \u201cinvites Latin American and Caribbean countries to join.\u201d<\/p>\n

In addition to providing this open invitation to the region as a whole, China has also started formally incorporating individual LAC countries into the BRI through bilateral \u201cBelt and Road Cooperation Agreements.\u201d As of June 2018, four of the roughly 70 countries that have signed these agreements are located in the LAC region.<\/p>\n

The first Latin American country to sign one was Panama, which established ties with China just last year. This was followed by\u00a0Antigua and Barbuda<\/a>, Trinidad and Tobago, and, most recently,\u00a0Bolivia<\/a>. Although the content of these agreements \u2013 much like the proverbial \u201croads\u201d that would connect LAC to the rest of the BRI \u2013 remains unclear, their\u00a0proliferation among Latin American countries\u00a0confirms China\u2019s desire to gradually incorporate the region into its\u00a0colossal enterprise.<\/p>\n

A Belt and Road by any other name<\/h2>\n

Ironically, the importance of \u201cwho is in\u201d and \u201cwho is out\u201d of the BRI may be overstated because China\u2019s activities in Latin America have been Belt and Road-esque in substance, if not in style, for a while now.<\/p>\n

The main thrust of the initiative \u2013 infrastructure financing and development \u2013 has been a fixture of China\u2019s approach to Latin America for over a decade. Since 2005, China has\u00a0extended<\/a>\u00a0roughly US$150 billion in\u00a0state-to-state financing<\/a>\u00a0to LAC, around US$27 billion of which has gone toward infrastructure projects, including a road in Costa Rica, railways\u00a0in Argentina, and a port in Trinidad and Tobago.<\/p>\n

Even beyond state-to-state finance, a great number of other proposed projects, ranging from\u00a0a port\u00a0<\/a>in Peru to an underwater\u00a0fibre optic cable<\/a>\u00a0between China and Chile, echo the BRI\u2019s mantra of connectivity.<\/p>\n

Given these similarities, it is no wonder that critics claim that many of these projects (and to some extent the BRI itself) are just old wine in new bottles.\u00a0Indeed, a number of Chinese projects throughout the world \u2013 such as the Seventh Bangladesh-China Friendship Bridge, which both parties\u00a0agreed<\/a>\u00a0to in 2012 \u2013 are being retroactively\u00a0rebranded\u00a0<\/a>to look like Belt and Road successes.<\/p>\n

Latin America is no exception. Take the North-South link of Jamaica\u2019s Highway 2000, for example, which is now being\u00a0repackaged<\/a>\u00a0as a Belt and Road project, even though the Concession Agreement with China Harbour Engineering\u00a0predates<\/a>\u00a0the\u00a0BRI itself.<\/p>\n

The Panama-Chiriqu\u00ed Railway, which is currently\u00a0undergoing<\/a>\u00a0a feasibility study, seems to be the only Belt and Road project in Latin America to date that did not start prior to the country\u2019s participation in the initiative.\u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/strong><\/p>\n

All (Belts and) Roads lead to China<\/h2>\n

For all of Beijing\u2019s claims regarding the BRI\u2019s transformative potential, there are few signs that the seemingly all-encompassing initiative registers in the region beyond a small sector of elites and China specialists. To these elites, the BRI presents an opportunity to develop their nation\u2019s infrastructure, especially transport infrastructure, with hopes of long-term benefits in areas ranging from commerce to public health.<\/p>\n

Taken at face value, the proposition to join the BRI is an easy sell because it promises much and demands little. Even if no substantial increase in infrastructure financing were to materialise, Chinese state support for the initiative could itself incentivise other Chinese actors to engage with Belt and Road countries. This alone is likely a convincing enough reason for Latin American countries to get on board.<\/p>\n

However, as the Belt and Road paves its way across the region, Latin American leaders and policy makers would do well to examine the initiative with a critical eye. For starters, the socio-economic success of individual Belt and Road projects, like that of any undertaking, is not guaranteed. A rising chorus of\u00a0voices<\/a>\u00a0is calling attention to the reality that, once deals are inked and the cameras put away, projects are free to blunder and underperform. This was the case before the Belt and Road, and it is still the case now. In Latin America specifically, Venezuela\u2019s abortive\u00a0Tinaco-Anaco railway<\/a>\u00a0is emblematic of just how badly and quickly a project can sour.<\/p>\n

Moreover, even if the deals were to pan out as planned, the initiative\u2019s success is not without drawbacks. Its emphasis on connectivity, for example, does not challenge the centrality of extractive industries and commodities to Sino-Latin American commercial relations.<\/p>\n

Increased connectivity could also exacerbate the already asymmetrical relationship between Latin American countries \u2013 as comparatively small, individual commodities exporters \u2013 and China \u2013 as one massive commodities importer. This is to say nothing about fears regarding China\u2019s desire to control every phase of the supply chain, and its increasingly large profile in the region\u2019s critical sectors, including\u00a0energy<\/a>. Environmental concerns \u2013 a constant source of concern around Chinese engineering projects in Latin America \u2013 and concern over the rights of local communities (especially\u00a0indigenous peoples<\/a>) also remain.<\/p>\n

China has opened the door for Latin America\u2019s participation in the Belt and Road Initiative. What exactly lies beyond the door remains to be seen.<\/p>\n","protected":false},"excerpt":{"rendered":"

Joining the initiative is an easy sell for the region as it promises much and demands little<\/p>\n","protected":false},"author":40000225,"featured_media":50017117,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[510,544,556],"hashtags":[],"country":[50040758,50002592,50002599,50041227],"class_list":["post-50011326","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-china-in-the-world","tag-finance","tag-infrastructure","country-antigua-and-barbuda","country-bolivia","country-panama","country-trinidad-and-tobago"],"acf":[],"yoast_head":"\nChina\u2019s Belt and Road lands in Latin America | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Joining the initiative is an easy sell for the region as it promises much and demands little.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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