The US under the Marshall plan pumped in capital though grants and loans facilitated by the World Bank and the IMF. As an outcome, Central Europe and Japan emerged as strong economies. Thereafter, other nations joined in the league of emerging economies. To find easy access to markets, globalisation of trade was introduced and the WTO spearheaded the process to introduce cross border tariffs and facilitation. Within a period of four decades, the US and its allies emerged as the winner and so did the capitalist mode of economic globalisation.
The recent wave of 'Country first and globalisation second' starting from the UK's Brexit and moving on to 'America first' is a major shift which has jolted much of the world. Other countries in Europe may also become members of this new club. Many countries, whose substantial businesses are in the US, are in a panic. They are desperate to look into new venues and alignments to bridge their expected business gaps. China, being the second largest global economy, has taken the position to lead these nations towards new dynamics of globalisation, opening up new venues and businesses with strategic alignment and leadership moving from the Atlantic to the Pacific, Gulf and the Arabian Sea. It is reported that China seeks to cement globalisation credential at the Silk Road summit being held next month at Shanghai/Beijing. China says its Silk Road initiative is helping create "a new era of globalisation" open to all, according to a draft communiqué for a summit next month as Beijing burnishes its free trade credentials amid protectionist forces elsewhere.
Leaders from 28 countries will attend the Belt and Road Forum in Beijing on May 14-15, an event orchestrated to promote Chinese President Xi Jinping's vision of expanding links between Asia, Africa and Europe underpinned by billions of dollars in infrastructure investment.
This forum is reported to be China's biggest diplomatic event of 2017. It offers Xi a chance to flesh out China´s global leadership ambitions as US President Donald Trump promotes "America First" and voters in some European nations turn against globalisation. China is trying to build up its credentials, specially towards Western countries, ahead of the meeting to make it a success, offering the right level of comfort about sharing the benefits of economic growth and promising a fair playing field to all.
There are serious apprehensions of many business entities in some host countries that they are being sidelined out of major "One Belt, One Road" projects while China´s state-owned firms manage to carve out a major share. Many western countries also have apprehensions about the process of transparency in the project floated vide tenders and are suspicious about China´s broader political intentions behind the Silk Road.
"Our joint endeavour to promote the Belt and Road Initiative provides new opportunities and impetus for international co-operation," says the draft communiqué, as reported by Reuters but open to revisions. "It helps to usher in a new era of globalisation that is open, inclusive and beneficial to all."
It is reported that Beijing hopes to make the summit an annual event. Chinese Foreign Minister Wang Yi last week compared the project to a "circle of friends" open to all countries that share the same goals, rather than an exclusive club. But, by and large, Silk Road and how Beijing plans to use it is perceived as a challenge the West, but, accepted by the West as a refuge worth trying in these difficult times of the world's economic woes.
China maintains its pitch that 'One Belt, One Road promises to provide more inclusivity than the Western-led elite clubs which has left much of the world in a state of acute poverty. Others think the "One Belt, One Road" forum is something positive for globalisation, as the United States and parts of Europe retreat to more protectionist positions.
Moreover, the uncertainly over Trump and his 'America First' is leading countries to realise they need to be on the right side of China. "One Belt, One Road" initiative is stated to have already become "a major international public good" since its introduction three years ago. The focus was on enhancing connectivity between Europe and Asia but the scheme was "open to the rest of the world". It is reported that the communiqué for the May event expected to be published at the end of the summit, backed "upholding the rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system with the WTO at its core".
The China Pakistan Economic Corridor (CPEC) is one of the major component of One Belt, One Road initiative providing a strategic connectivity between Asia, the Middle East, Africa and Europe and is an essential part of China's endeavours of globalisation and its leadership.
So far, Pakistan has not been able to optimise its strength as it merits and appears reconciled to projects sponsored by China under its funding. The CPEC has the local and global perception of being China-Pakistan centric. Regretfully, Pakistan is passive and reconciled to this position for reasons best known to the government in power.
While China, on the strength of CPEC and other such of its initiatives is positioning itself to take up the leadership of globalisation, whereas Pakistan continues to be shy in being proactive and aggressive in opening up the CPEC and its gains to all countries and foreign investors. They appear confused and apprehensive about the opportunities, transparency and fair playing ground the CPEC offers to their countries. Pakistan has done almost nothing to address these concerns except issuing off and on idle statements of inviting foreign investors to be part of the CPEC.
Pakistan needs to move out of this Ostrich Syndrome and be proactive in reaching out aggressively to all countries and foreign investors and play a much bigger business and political role. The role carved out of the CPEC is much bigger and so are the expectations of the people of Pakistan.
(The writer is former President Overseas Investors Chamber of Commerce and Industry)
Copyright Business Recorder, 2017