Belt and Road Initiative important to globalization: Nobel prize winner

The Belt and Road Initiative proposed by China is of great significance in the process of globalization, Christopher Pissarides, professor of economics at the London School of Economics, told a financial forum in Beijing on Sept 15.

The 2010 Nobel economics prize winner said the international export-import expo that China recently held, and some action plans on cooperation related to the Belt and Road Initiative that China will implement after 2018 can better help its industrialization and realize the vision depicted in the Made in China 2025 action plan.

He believed the Belt and Road Initiative could effectively lower trade costs. Not only could Chinese transport enterprises handle more cargo than before, but the land transport system, especially railways, would finally begin to deliver more freight than that transported by sea. 

It means the landlocked countries, such as those in Central Asia, Central and Eastern Europe, will have more investment opportunities, which is good for the development of both Europe and China, he added.

Pissarides pointed out the Initiative meant China would divert its focus of development from coastal regions to its vast inland areas, such as Xinjiang and Gansu in Northwest China. The Initiative targets regions weak in infrastructure but offering strong investment returns. However, it is necessary to ensure good risk assessment and management.

He said the Belt and Road Initiative would strengthen international cooperation and coordination in science and technology, especially in transport infrastructure, agriculture, innovation and green energy.