ABSTRACT
The key geo-economic concerns for the BRI has been its financing and implementation. Many BRI projects have either been criticised for their design of putting low- and middle income economies in a so-called “debt-trap” or faced implementation hiccups like those associated with CPEC. However, the different corridors envisaged under the BRI is poised to upgrade infrastructure, increase investments, develop ports, improve trade facilitation, enhance regional connectivity, and reduce trade costs. The chapter discusses these aspects, and argues that the BRI is therefore perceived by many low- and middle-income economies as a flagship project which has the intent and capacity to build and upgrade their manufacturing and other trade-related rudimentary infrastructure. Moreover, there is no doubt that the international financial institutions (IFIs), including the World Bank and the IMF, have struggled to maintain their legitimacy in the recent decade. The NDB and the AIIB have been an effort to strengthen the Southern voice in the global financial architecture by creating parallel institutions which do not compete with – but complement the Bretton Wood institutions. The chapter also discusses about the Glass-Steagall Act of 1933 which aimed at separating investment banking from commercial and conventional banking.
