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2020 | OriginalPaper | Buchkapitel

1. Introduction

verfasst von : Siegfried O. Wolf

Erschienen in: The China-Pakistan Economic Corridor of the Belt and Road Initiative

Verlag: Springer International Publishing

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Abstract

This chapter gives a brief introduction of the chosen topic—the China-Pakistan Economic Corridor (CPEC) as part of the Belt and Road Initiative (BRI). Starting from the notion that Economic Corridors (ECs) are able to play a key role in integrating economies, it outlines the research structure, the author’s arguments and the methods used. It’s noted that South Asia still largely lacks connectivity at both national and cross-national levels—in fact South Asia is one of the least economically integrated regions in the world. In order to address this issue, it will be highlighted that ECs can basically serve as a means to overcome both national and regional connectivity gaps, enhance economic growth within participating countries, and boost regional collaboration and integration.

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Nächstes Kapitel The Conceptual Framework Regarding Economic Corridors
Fußnoten
1
The term British Raj refers to the British colonial rule. Raj is derived from Hindi signifying rule, government, realm or sovereignty (Mitra, Wolf, & Schöttli, 2006, p. 336).
 
2
This has led critical analysts -already some decades ago- to identify the region as a part of the global ‘Arc of Crisis’ (Lenczowski, 1979; Rehman, 2013, March 7).
 
3
China and Pakistan signed their first formal bilateral trade agreement in 1963.
 
4
This is touching the question of China’s sovereignty regarding (at the expense of the autonomy and/or sovereignty of) Taiwan, Xinjiang, and Tibet. (PRC, 2000, February 21).
 
5
Also known as the ‘89 Democracy Movement’, see McCormick, et al. (1992).
 
6
More concretely, Pakistan helped to facilitate the 1971 visit by United States secretary of state Henry Kissinger to China. This led to US President Nixon’s subsequent visit to China in 1972, which helped to ‘normalise’ the relations between both countries, and to end both China’s isolation and the Vietnam war (Ladley, 2002; Zingel, 2015).
 
7
The Rann of Kutch, a coastal boarder region between Mumbai and Karachi, located in the Indian state of Gujarat, experienced a military aggression by Pakistani armed forces in early 1965. Through the start of patrol activities by Pakistani border troops, Pakistan’s goal was to provoke India so as to get it involved in a geographically limited armed confrontation and check their combat capacities and abilities. Being temporarily successful, Pakistan’s security establishment got a false sense of superiority over Indian forces and launched Operation Gibraltar, a large-scale infiltration of both regular and irregular Pakistani troops into the Indian-administered state of Jammu and Kashmir so as to launch a rebellion against New Delhi. This lead to the full-fledged war of 1965, in which Pakistan was defeated (Cloughley, 2006, pp. 54–71).
 
8
The Kargil conflict, which took place in 1999 between India and Pakistan—shortly after a summit between the countries’ then Prime Ministers based on an Indian ‘peace initiative’—resulted in more than 1000 casualties on the Indian side. This was the first conventional war since both India and Pakistan became nuclear powers. The effort to seize territory on the Indian side of the Line of Control (LoC) around Kargil in the state of Jammu and Kashmir was the brainchild of Pakistan’s Chief of Army Staff, Gen. Pervez Musharraf. It is speculated that the then Prime Minister Nawaz Sharif was not informed. However, taking into account the author’s own interviews with Pakistani military (retired) and some experts, Mr. Sharif seems to have been briefed about the operation and involved in the decision-making process regarding the Kargil operation (Mazari, 2003, pp. 57–58; Mitra et al., 2006, p. 201; Wolf, 2013g, April 1, p. 20).
 
9
Javed Jabbar quoted in Muzaffar (2015, June 18).
 
10
A July 2014 Pew Research Center survey found that 78% of respondents view China favourably but only 30% of Chinese view Pakistan favourably (Allen-Ebrahimian, 2015, April 22; Tharoor, 2015, April 21).
 
11
Concretely, the Pakistan-China Joint Committee for economic, trade and scientific and technological co-operation.
 
12
For example, apart from Pakistan’s nuclear weapon programme, China has helped Pakistan build six nuclear reactors (Economist, 2015b, April 20).
 
13
For example, after the Great Sichuan Earthquake (the deadly 2008 earthquake in China’s southwest) Pakistan donated $2 million worth of emergency aid, including 30,000 tents (Allen-Ebrahimian, 2015, April 22).
 
14
Another FTA on trade in services was signed on 21st February 2009 and is operational from tenth October 2009 (Kamal & Malik, 2017, October, p. 4)
 
15
After the United States with 16.7% (Kamal & Malik, 2017, October, p. 3).
 
16
Pakistani companies could only export in 253 tariff lines out of the total 7550, where average export value was around $500 (Muhammad, 2016, June 26).
 
17
China-India trade rose from $5 billion in 2002 to more than $60 billion in 2010. In the recent couple of years, is has gone up to $100 billion annually, which is about eight to ten times the volume of Sino-Pakistan trade (Hussain, 2017, June, p. 13).
 
18
The CPI, rated Pakistan with 32 points in 2016. A country or territory’s score indicates the perceived level of public sector corruption on a scale of 0 (highly corrupt) and 100 (very clean).
 
19
Instead small- and medium-sized enterprises (SMEs) are suffering from restricted credit availability from commercial banks (Pasha, 2017, July 24).
 
20
Here, Pakistani expert Dr. Hafiz Pasha states that the export base has remained over-reliant on textiles as the principal export good. Subsequently, “exports of cotton yarn, cloth and value-added textiles constitute almost 60% of our total exports” (Pasha, 2017, July 24). The second dominating product in exports is rice.
 
21
For example, the massive road infrastructure is only partly helping the agriculture sector. The most suitable solution demanded by local entrepreneurs would include substantial investments in modern air cargo facilities. The air lift of products would not only ensure a timely delivery but also reduce the negative, environmental impacts of road construction. However, the central government in Islamabad has not considered these demands yet (Dawn, 2017e, March 27).
 
22
For example, regarding the CPFTA it is argued by experts that this agreement between Islamabad and Beijing was poorly prepared (and subsequently negotiated) on the Pakistani side, and only insofar as to seek the right concessions from China. In brief, Pakistan does not know how to export. Furthermore the tremendous lack in strategic planning skills, combined with a poor use of available resources, is seriously hampering Pakistani companies in adding value to their existing goods in order to make them competitive (Business Recorder, 2017c, October 11).
 
23
Since 2011, Pakistan and China are already negotiating for the second phase of CPFTA but due to different views on their bilateral trade relations the talks were either delayed or come temporarily to a hold (Muhammad, 2016, June 26).
 
24
The KKH is also known as N-35 (in Pakistan) or China National Highway 314 (G314). Furthermore, the KKH is a part of the Asian Highway AH4.
 
25
The highly glaciated mountainous range of the Karakoram.
 
26
During that occasion, Beijing and Islamabad formalized the CPEC by signing 51 agreements and memoranda of understanding on Chinese investments.
 
27
Official sources in China distinguish three categories of FAGIA: grants, interest-free loans, and concessional loans (Wolf et al., 2013, p. xii).
 
28
Also described by some experts as ‘Trade and Energy Corridor’/TEC (Subramanian, 2017, March 23).
 
29
BBC, Is China-Pakistan’s ‘silk road’ a game-changer?, April 22, 2015, http://​www.​bbc.​com/​news/​world-asia-32400091; Mateen Haider, Operations to continue till Pakistan is terror free, says General Raheel, Dawn, http://​www.​dawn.​com/​news/​1192103
 
30
Here, the CPEC planers differentiate between three types of energy projects (aiming at a capacity achievement of 17,045 MW in total): (i) prioritized energy projects (15 with the capacity of 11,110 MW); (ii) actively promoted projects (4 with the capacity of 2544 MW); and (iii) balance capacity projects (3415 MW). (Ghumman, 2018, July 14).
 
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Metadaten
Titel
Introduction
verfasst von
Siegfried O. Wolf
Copyright-Jahr
2020
Verlag
Springer International Publishing
Buch
The China-Pakistan Economic Corridor of the Belt and Road Initiative

Print ISBN: 978-3-030-16197-2

Electronic ISBN: 978-3-030-16198-9

Copyright-Jahr: 2020

DOI
https://doi.org/10.1007/978-3-030-16198-9_1