Success of China’s Belt & Road Initiative depends on deep policy reforms - World Bank

Colombo (News 1st): A new World Bank Group study on China’s Belt and Road Initiative has found that the Belt and Road Initiative must be accompanied by deep policy reforms that increase transparency, improve debt sustainability, and mitigate environmental, social, and corruption risks. Through independent, empirical analysis, the World Bank's Belt and Road Economics study is designed to help policymakers in developing countries weigh the potential benefits and risks of participating in BRI projects. Outlining the risks the analysis found that the Belt and Road Initiative entails significant risks that are exacerbated by a lack of transparency and weak institutions in participating economies. According to the study, among the 43 corridor economies for which detailed data is available, almost 12 already face elevated debt levels—could suffer a further medium-term deterioration in their outlook for debt sustainability. It also added that the initiative could boost global carbon emissions by 0.3% —and by up to 7% in countries with low emissions levels.