Introduction and Overview

- Recently, Brazil declined to participate in China's multi-billion-dollar Belt and Road Initiative (BRI).

- This comes after India's refusal to endorse this mega project, making Brazil the second country within the BRICS bloc to deny support.

 

Brazil's Standpoint

- Brazil intends to elevate its relationship with China to a new level, without needing to enter into an agreement.

- Joining BRI may not provide immediate benefits for Brazil and could potentially complicate relations with the U.S.A.

 

Background on BRICS

- BRICS stands for Brazil, Russia, India, China, and South Africa. It is a grouping of the five major emerging national economies.

- The acronym was first used by economist Jim O'Neill in 2001.

- Member states have met annually since 2009 to discuss critical matters under three pillars: political and security, economic and financial, and cultural and people-to-people exchanges.

 

Overview of Belt and Road Initiative

- China proposed the BRI in 2013, aiming to recreate the ancient Silk Route by connecting Asia, Europe and Africa via various infrastructure projects.

- The BRI is open to all countries, establishing partnerships with over 150 countries and 30 international organisations.

- Its two main components are the Silk Road Economic Belt and the 21st century Maritime Silk Road slated for completion in 2035.

 

India's Perception of BRI

- India perceives this initiative as a violation of its territorial integrity as the China-Pakistan Economic Corridor (CPEC) passes through the Pakistan-occupied Kashmir (PoK).

- Indian policymakers are concerned about China's increasing presence in the Indian Ocean and its investment in ports in other South Asian countries.

- Negative events in broader India-China ties have influenced India's view of the BRI, including trade deficit and border tensions.

- India criticises BRI's debt diplomacy, claiming that it traps smaller nations in a cycle of debt, leading to dependency on China.

 

Conclusion

- India was the first to resist joining the BRI and remains vocal about its criticisms towards the initiative.

- It argues that BRI projects should adhere to universally acknowledged international norms including good governance, openness, transparency and financial sustainability.

- The BRI is seen as a method employed by China to strengthen political ties with capital-importing countries using its infrastructural, intellectual and financial prowess.

- India remains alert to these realities and is eager to assert its geopolitical interests in the Indian Ocean region.