“Belt and Road Initiative: A Comparative Study of Nepal and Sri Lanka

Abstract

China’s Belt and Road Initiative projects a win-win approach to everyone participating in it including China. This paper addresses the China’s motivation and the impact of BRI especially in developing states focusing mainly on two South Asian states; Nepal and Sri Lanka relying on the liberal school of thought. Furthermore, the main objective of the thesis is to comparatively analyse the impacts, benefits, opportunities and threats entailed by BRI regarding two geographically different developing states. Belt and Road Initiative intends to fulfil the massive infrastructure gap and produce huge development opportunity through economic cooperation and interdependence. Nepal and Sri-Lanka, both have shown their interest in participating in the Chinese initiative and have signed their respective MoU with China.The study attempts to analyse the positive and negative impact promised by BRI and compare the economic benefits and opportunities it can bring in the two countries. Therefore, there search has projected the historical relationship,economic agreements,selection of projects, China’s aid and investment status with regard to Nepal and Sri Lanka.Similarly, while analysing China’s relationship with South Asian states, the role of India and the sphere of influence its holds towards its neighbouring states needs to be accessed. Therefore, the research incorporates the view of India towards BRI and the power it can exert towards Nepal and Sri Lanka against their engagement with China’s ambitious project. Nepal and Sri Lanka both view BRI as an opportunity to move towards economic independence from India and use this as a means of “balancing strategy” to balance the influence from other regional and global powers. These states strategize to work through dual approach while attaining developmental benefits on the one side and balance the manipulation from other states like India, China and United States.China’s multi-million initiative promises numerous benefits along with few threats. If Nepal and Sri Lanka can enhance their capacity to divide the China’s policy towards their national interest, the benefits proposed by the initiative can outweigh the drawbacks it holds.Thus, the research compares the opportunities and threats these states face and analyses the similarities and differences they have regarding BRI’s scope in their respective country.