Pakistan-China economic corridor is a business partnership between the two powerful neighboring countries. The benefits of CPEC are far-reaching, and the world acknowledges the potential of this trade route. This not-widely highlighted economic boom will change the economy of the world forever. This peaceful and friendly approach of the Asian economic coalition is also benefitting European countries. This economic trade route will help not only the countries directly attached to it but the entire world. The shipping, losses during cargo and time efficiency will generate economic activity with minimal losses.
In this blog post on the benefits of CPEC, we will start from the first physical appearance of this Economical Collaboration, the roads network.
Importance of roads and ports
The importance of roads and safe passages is utmost for a prosperous, safer nation. The understanding about the role of roads have been around for thousands of years. The first road was in fact a dirt track, which was used by people for travelling between villages and towns. This opened up opportunities for trade as well as tourism. As most famous mean of transportation were horses, camels, mules, and carts, there was no need of roads and highways. However, times are changed now and modern means of transport require modern tracks with multiple passages, tunnels, and bridges to facilitate easy movement of people, and goods.
Dry and sea ports are also of undeniable importance for the growth of economy. CPEC will help generate economic activity in Pakistan both on dry and sea-ports. These opportunities will help create new jobs.
CPEC project invests heavily in road networks, ports, and infrastructure development. These roads have also brought many economic changes in the areas they run through, creating jobs, helping local businesses and supporting every industry with easy movement of products. A complete detail of these connecting projects can be found following this link.
Benefits of CPEC in Economic Stability
The improvement in infrastructure helps improve lives. Life improvement encourages people to engage in activities of economic importance. The growth in production leads to cost reduction and an increase in sales.
It is critical to notice that the only way of fuelling the economic cycle is by generating economic activity. The big business is for big companies, and once they make money and deposit it in the bank, there is a lesser opportunity for that money to leave the bank and become a part of the running economy.
Let’s discuss it with an example. Company X hires 1000 employees. The costs in salaries, boarding, office and operations are 1 million in total. Company X produces a high-quality product and advertises it well in the market by making it a symbol of pride and honor and spends an additional 1 million. The production cost with losses is an additional 1 million, making a total cost ranging 3 million. However, they sell the products for 50 million dollars in profit. And this is happening in the case of all the big corporations. Their expenses are lesser, and earnings are way higher. Therefore, a portion of their money never leaves the banks and increases the distance between poor and wealthy.
Economic disparity is a growing problem throughout the world, and especially in “third-world” countries. The main reason behind these problems is the lack of manufacturing or production in every field. People who make money in these countries flee and deposit the looted money in swiss banks. So, even if they want to spend their money, they spend it in wealthier countries where infrastructure is better, and pubs, casinos, bordellos, and nightclubs host them with a smile on face.
CPEC is a type of project that is generating economic activity in the country. There are hundreds and thousands of benefits of Economic Stability. The provision of better infrastructure, education, health, and other basic human necessities help people grow and achieve Economic Stability.
Benefits of CPEC in Regional Stability
CPEC is an economic triumph that ensures economic stability leading to regional stability. The ambitions of China seem economical, and it is a widely understood notion at this point of human history that nations can only grow together and not alone. The thinking of winning at the cost of the loss of others is inhumane and jungle-type. Hence, due to the non-expansionist policies and behavior of China, the countries are collaborating. The diplomatic missions and relations of China endorse their peaceful theology i-e “economic prosperity for all.” Recently China also offered a positive role in Afghan politics and left a message of peace, negotiations, and mutual growth.
The Asian region is longing for stability. It compromised the security and stability of the Middle East and Asia after the 19th century’s French Colonialism, British invasions, and world wars in the 20th century. The attacks of the crusaders affected the world population in one way or another. We saw the standards of living of prosperous nations going down after nuclear attacks, inhumane economic sanctions, drugs trafficking, human trafficking, shadow-governments, and tracheary funding during the period of the slight upper hand of Crusaders. [Crusaders is not a derogatory term]
Benefits of CPEC in International Trade
It is essential to involve a nation in economic activities. And the best outcomes are earned in the case of international trades. [This is the reason why crusaders impose economic sanctions]. The problem of Pakistan is the lack of infrastructure and corruption. Read here the Importance of Transparency and Accountability in Government. Pakistan manufactures surgical products, cash crops, fruits, stones, and other items that sell without any “made in Pakistan” stamps. The primary reason behind these problems is lack of education, resources, and commission-making mediocre thinking watchdogs.
Pakistan also doesn’t explore and utilize its natural resources. I also fear that Pakistan will never be able to profit from its mineral reserves, especially oil. And I base my fear on the changing global energy consumption patterns. Countries like Saudi Arabia and UAE are moving towards post-oil economy sustenance policies. We have found renewable energy resources like solar, wind, and Geothermal, Hydrothermal, and Biomass. Some of the renewable energy resources are expensive, but the investment of the same corporations in such technologies will realign their monopoly from non-renewable to renewable resources.
Therefore, logically and empirically, we believe that International trade, familiarity with the corporate sector, corporate thinking, and the tactics of survival and pulling out of this continuous cycle of persecution are necessary. International trading will prosper, and the economic depression of the country will come to an end.
Importance of trade routes
We can call trade routes the veins in our body that connect the heart to every other part of our body. If the connection gets blocked or destroyed, that part of the body dies to eternity. Trade is an elementary factor in the evolution and development of human society. The only time a country needs foreign reserves is when it needs to purchase something. The dependence on purchasing increases by a decrease in production and the addition of a new manufacturing system. Manufacturing is badly affected by terrorism, corruption, money laundering, power outages, undocumented wealth, poor management, and tyrannous regimes. Monetary systems like IMF and World Bank keep an account of money that we make from selling products globally in dollars and whatever we purchase. They then list the capacity of any country and decides for its future. These countries can’t legally buy any equipment, and the lack of in-house production, economic sanctions, and declining exports all put fuel on the fire.
History of silk road
The Silk Road is the name given by Europeans to a network of trade routes across the Asian continent linking China and India with the Roman Empire in Europe. It evolved from the ancient trade routes used by the Han dynasty. The Silk Road derives its name from the lucrative Chinese silk trade that flourished on this eastern route beginning in early medieval times and lasted until the late 19th century when diplomatic relations opened up between East Asia, Central Asia, and Europe. The Silk Road was one of the most successful trade routes known to man. It started in Chang’an, situated in today’s Xi’an city that the capital of China during the Tang Dynasty (618-907 AD), and ended at the Roman Empire. Silk Road became one of the famous paths connecting China with other parts of Asia for about 1,000 years. And the Europeans consider CPEC as a revival of the Ancient Silk Road.