The iron silk road

 

Picture credits: Daily Sabah

The Silk Road was a network of trade routes that connected Asia, Europe, and Africa during ancient times. The Silk Road was not a single road, but a complex network of trade routes that connected China, India, Persia, the Middle East, and Europe over thousands of miles. The many populations along the path were able to exchange goods, concepts, and cultural traditions because of the Silk Road. Together with silk, traders also dealt with precious metals, pottery, jade, ivory, and spices.

The rise of civilizations along the Silk Road's course was significantly influenced by it. It promoted the expansion of Buddhism, Islam, and Christianity as well as the development of science and technology. The mastery of trade routes brought wealth and power to those who held them, hence the Silk Road also played a role in the expansion and downfall of empires.

This silk road is being revived by China now, through its Belt and Road initiative. The Chinese government unveiled its Belt and Road Initiative (BRI), a plan to develop global infrastructure, in 2013. The initiative invests in infrastructure projects like roads, trains, ports, and energy facilities in order to foster economic connectivity and collaboration among nations in Asia, Europe, Africa, and beyond.

A still from a YouTube video of TRT world

The Iron Silk Road is a term used to refer to a proposed railway network that would link China with Europe through Central Asia, the Middle East, and Russia. The proposed network would include several routes, including a southern route through Iran and Turkey and a northern route through Russia and Kazakhstan.

The benefits of the Iron Silk Road project include improved connectivity between China and Europe, which could boost trade and economic growth in the region. It could also promote greater cultural exchange and cooperation among participating countries. In comparison to conventional maritime routes, the railway network would offer a more effective and affordable means of carrying products between China and Europe. This may make it less expensive to carry commodities and boost their efficiency and dependability, making it simpler for businesses to conduct international business.

Also, the Iron Silk Road would offer a chance for the growth of new industries, particularly in the nations along the route that have historically less developed economies. These nations would have easier access to markets thanks to the railway network, which would help them draw in investment and grow their own industries.

However, there are concerns about the environmental impact of the project, Local communities may be relocated as a consequence of the extensive land acquisition needed for the railway network's construction. Concerns have also been raised regarding the project's possible adverse environmental impacts, including harm to ecological systems and wildlife habitats. Though China claims whole BRI investments to be “open, green and clean.” Also, China commits to financing green and sustainable infrastructure, to help BRI countries to decarbonize their economy.

There is a potential for participating countries to become overly reliant on China for infrastructure investment. As the countries through which this railway network will be passing are Kazakhstan, Azerbaijan, Georgia, and Turkey. Developing countries involved in this project do not have the capacity to pay for such infrastructure themselves and hence have to rely on Chinese loans. Though the railway line from Baku to Kars passing through Tbilisi Georgia is said to be financed by these countries themselves with an estimated investment of $420 million now though the network’s cost is estimated to be around $1 billion.

Picture credit: Nikkei Asia

We have seen when China, makes huge investments with other developing countries there are chances that it could be a debt trap. For example, we can take Sri Lanka, which has a crashed economy, and Pakistan which is on the verge of crashing its economy and China has huge investments in both counties for port construction.

There are also geopolitical concerns, as the project could increase China's influence in Central Asia and the Middle East, which could have implications for regional stability and the balance of power in the international system, which is a concern for India being a neighbor and the US too.

Before investing major resources in the Iron Silk Road project, it is crucial for governments and businesses to properly evaluate the possible dangers and advantages of the initiative. Despite these concerns, the Iron Silk Road project has already seen significant investment and progress in many participating countries, and time will tell whether it will be a boon or a bane for investors.