A new report released by the world bank on Tuesday indicated that China's "one belt and one road" initiative could speed up economic development and poverty alleviation in dozens of developing countries, but it needs to be supplemented by deep policy reforms to enhance transparency.
The long delayed report says that the comprehensive implementation of the "one belt and one way" initiative can help 32 million people get rid of moderate poverty. The initiative aims to connect China with Europe through Central and South Asia, involving a range of ports, railways, roads and bridges, as well as other investments.
However, the World Bank points out that there are still "significant risks".
Ceyla Pazarbasioglu, the world bank's deputy director of the fair growth, finance and system, said: "the ambitious goal of implementing the" one belt and one way "initiative requires the participating countries to carry out the same great reform. Enhancing data reporting and transparency, especially around debt issues, implementing open and transparent government procurement and upholding the highest standards of society and the environment will be of great benefit.
The new president of the world bank, Malpas (David Malpass), did not participate in the second "one belt and one way" Summit on international cooperation held in Beijing in April. Malpas, a former US Treasury official, criticized the "belt and road initiative", saying it would make some countries bear unbearable debt burden.
The analysis of the World Bank report shows that, for some countries, the cost of the "along the road" related infrastructure may exceed its potential benefits, and the income distribution between the participating countries is uneven. Real income growth in Kyrgyzstan, Pakistan and Thailand may exceed 8%, but welfare gains in Azerbaijani, Mongolian and Tajikistan may show negative growth due to high infrastructure costs.
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