Full Form of OBOR, Developments, Advantages, Objectives and Overview

The full form of OBOR is "one belt, one road."

What is One Belt One Road (OBOR)?  

OBOR, also known as the "belt and road initiative," is a strategy for global infrastructure development by the Chinese government that involves investing in nearly 70 countries and organizations.

Further, the Chinese government considers this project a bid to enhance both regional connectivity and embrace a shared future, and it is targeted to be completed by 2049.

• One Belt, One Road, or OBOR, is a project that focuses on the cooperation and connectivity among several countries in Asia, Africa, and Europe.
• In total, there were about 78 countries that fell under the OBOR project in 2020. Now, according to a report by Greenfdc.org, 146 countries are part of the project.
• This project was initially initiated in 2013 and involves building networks of railways, roadways, power grids, gas pipelines, maritime ports, and other infrastructure projects.
• On a whole, the OBOR project covers two parts: Silk Road Economic Belt and the 21st Century Maritime Silk Road

Overview

Official Benefits of OBOR

• China pitches the OBOR projects as a means for regional development, which includes infrastructural development to enhance cross regional and transnational connectivity. 
• It will allow economic and trade cooperation among countries involved in the project.
• It allows expansion of production capacity in addition to investment cooperation.
• It is also a means of exchange in cultural, social, and other fields.

The Objectives of OBOR

The objectives of One Belt, One Road (OBOR) are as follows:

• It will create a unified market for international as well as domestic markets.
• In addition to facilitation, it will facilitate cultural exchange.
• It can enhance mutual trust and understanding among member nations and can generate an innovative environment with capital inflow, technology database, and talent pool. 
• In summary, the project will address key infrastructural gaps and accelerate economic growth.

How OBOR Benefits China 

• Firstly, the OBOR project will allow China to develop its western part, which will ensure safe navigation over the sea. As a result, this will improve China’s strategic and economic relations with its neighboring countries.
• Secondly, China will secure access to both energy and mineral supplies through maritime facilities 
• Lastly, the OBOR project will allow China to strengthen its presence in the Eurasian region 

Potential Advantages of OBOR to India

• For starters, it can assist India in developing infrastructure in outlying areas.
• Receiving funds from financial institutions will be easier.
• Since it will make connectivity broader, it will improve India’s economic, diplomatic, and strategic relationships with partners and neighbouring countries.

Drawbacks of One Belt One Road (OBOR)

• One drawback is that the  implementation of this project will take years to complete. Moreover, there is an associated risk of the project failing.
• Secondly, China will benefit largely from both the financing and construction of infrastructure projects, whereas the developing countries will bear all the financial risk.
• The Center for Global Development reckons that eight belt-and-road countries are at risk of debt distress. The major countries at risk are Laos, Mongolia, and Pakistan.
• Lastly, China will acquire control over the ports if member countries fail to repay the loans.

In a nutshell, the risk lies in falling into China’s debt trap. Those countries that fail to fund or repay the project will fall under China’s influence. 

Moreover, countries who are a part of the OBOR project have accused China of credit imperialism. They do so by charging exorbitant interest rates, which forces the countries to give up important infrastructure to pay off the loan. 

Developments Related to One Belt, One Road

In 2015, Igor Shuvalov, the first deputy prime minister of Russia, said that Russia should not view the Silk Road Economic Belt as a threat but as an opportunity for the Eurasian economy.

In 2019, during the 2nd Arab Forum on Reform and Development, China engaged in a partnership with 18 Arab countries called Build the Belt and Road, to share development and prosperity.

Australia, India, and Japan joined hands to create the Blue Dot Network. This project is an alternative to the Belt and Road project, and the main motto lies in global infrastructural development. This will be done with the collaboration of governments, civil society organizations, and the private sector.

Moreover, the Blue Dot Network will act as a grading mechanism to evaluate global infrastructure based on parameters such as labour standards, debt, and environmental standards, among other key values.

In June 2021, during the G7 summit in England, B3W was announced. B3W, also known as the Build Back Better World Partnership, is a project that promises long-term and value-added infrastructure investment in low- and middle-income countries.This initiative is regarded as G7’s answer to China’s OBOR project. 

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