Corridor Calculus

Corridor Calculus : China Pakistan Economic Corridor & China's Comprador Investment Model in Pakistan
line is blindly endorsing, nay extolling, it as the greatest thing to have ever
happened. But the economics of the CPEC project, as well as the nuts and
bolts of the larger OBOR are just so vague that it raises questions about what
exactly it will mean, not just for China but also for the countries which are to
become part of the Belt and Road.
As for India, while it must continue to oppose the CPEC, it needn't panic over
the plan inalterably changing the strategic balance, much less the economic
pecking order in the region. For all India knows, it might well be the deathknell
of a relationship that has been a thorn in India's side for decades. On
the economic front, while the Chinese are pressing India to become part of
the OBOR through the BCIM plan, India has very sensibly resisted the
temptation and the pressure to participate in it until there is more clarity on
what its participation will entail. The manner in which the CPEC is unfolding
until now, bears out the correctness of India's stand. In fact, until clear rules
are laid down and the opacity that clouds the entire OBOR project ends, it
would be unwise for India to jump into it. If anything, the experience of
Pakistan can serve as a lesson for India on the pitfalls that must be avoided
while seeking Chinese investments. India must insist on a rules based
criteria that mutually benefit both the investing country as well as the
recipient country. This means that there must be international tendering for
projects coupled with provisions to ensure that local labour, management
and technical staff as well as use of local materials and equipment. Without
ensuring all this, India too will open itself to a comprador role to the
predatory Chinese business model.
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