(THE VOICE OF EU) – In a recent address, Indian Prime Minister Narendra Modi hailed the newly unveiled India-Middle East-Europe Economic Corridor (IMEC) as a transformative force poised to shape global trade for centuries. While the IMEC undoubtedly presents a significant development, it’s vital to scrutinize its potential impact compared to China’s ambitious Belt and Road Initiative (BRI).
The IMEC was jointly announced by US President Joe Biden and Saudi Crown Prince Mohammed bin Salman at the G20 summit in Delhi. Designed to fortify transportation and communication networks between Europe and Asia via rail and shipping routes, the project not only holds regional promise but also reflects a strategic move by the US in its geopolitical interests, particularly concerning China.
However, the IMEC faces a formidable contender in the form of China’s BRI, which celebrated its tenth anniversary this year.
Despite facing some headwinds, including a slowdown in lending due to China’s economic deceleration and concerns raised by nations like Italy, Sri Lanka, and Zambia regarding debt sustainability, the BRI remains a monumental global undertaking.
With investments surpassing a staggering $1 trillion and over 150 partner countries, the BRI has transformed from a regional initiative to a near-global endeavor.
Comparatively, the IMEC may not immediately match the scale or ambition of the BRI. While the US, Japan, and the G7 nations have introduced similar initiatives like the Global Gateway and Partnership for Global Infrastructure and Investment, none have achieved the expansive reach or influence of the BRI.
The emergence of these projects over the past five years, however, demonstrates the BRI’s pivotal role as a catalyst for global economic growth.
Viewing the IMEC solely through the lens of opposition to the BRI may not provide a comprehensive understanding of its potential.
Instead, the IMEC contributes to a broader trend of transactional partnerships, where countries engage with multiple collaborators simultaneously, underscoring the complex and interconnected nature of global trade relations.
Yet, realizing the IMEC’s aspirations demands meticulous planning and execution. A comprehensive action plan is expected within the next 60 days, outlining key governmental agencies responsible for investments, allocated capital, and implementation timelines.
Establishing a streamlined customs and trade infrastructure is equally critical to facilitate seamless transit, a challenge highlighted by the Trans-Eurasian railway’s 30-country passage through Kazakhstan.
Navigating geopolitical complexities between partner countries, particularly the US, Israel, and Saudi Arabia, poses another potential hurdle.
Ensuring these nations maintain a unified strategic vision amid differing priorities and interests requires careful diplomatic coordination.
Furthermore, the IMEC will compete directly with the Suez Canal, a well-established and cost-effective maritime route.
While the IMEC may enhance relations with the UAE and Saudi Arabia, it could potentially strain ties with Egypt, prompting critical assessments of the project’s economic viability.
Beyond trade and economics, the IMEC ambitiously aims to incorporate diverse sectors, from electricity grids to cybersecurity.
This multi-dimensional approach aligns with discussions held in security forums like the Quad and, if realized, could significantly contribute to a safer, more sustainable global landscape.
As we contemplate the potential of the IMEC, it is with hope that the lofty ambitions outlined in New Delhi will culminate in a tangible and positive transformation for the world.