Essay Sample on the Topic of the Globalisation - One Belt One Road

OBOR (One Belt One Road) is an initiative that was started by China, and it has been able to be adopted by some countries that have found it useful when looked at from a broader perspective. The initiative currently encompasses South East Asia, Europe, Middle East and Russia. The initiative is a process that entails some roads, pipelines, rail networks and sea networks that are used by the countries as they are taking part in an international form of trade. In that case, about over 70 countries have been part of the activity in that the Asian Infrastructure Investment Bank has agreed to fund it. This is a system of other banks such as the World Bank, the IMF, the Asian Development Bank and also the domestic banks that are distributed in different parts of the country.

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The initiative was set up with both implicit and explicit objectives, but both of them are still revolving around the idea of globalization and making sure that all the countries that are part of it are benefiting. The explicit objectives of the initiative were, therefore, to be able to enhance or promote regional forms of connectivity and also to make sure that there is a bright future when looked form the kind of transactions that have been taking place among the countries (James, 2018). This can be seen while focusing on business as it is one of the ways the states are interacting to improve the kind of connections that they have globally. The explicit objective of the initiatives was to make the counties to be able to take part in global affairs and get in touch with the trading networks that China wanted to form. This means that the countries would gain by taking part in foreign trade and the income would be gain in the form of foreign reserves.

The initiative has been implemented by most of the countries that are part of it as they are currently participating in trade. The Asian countries are taking part in the business using road and rail transport as this has proved to be the most effective. On the other hand, the trade between the Asian and European countries is taking place with the sea acting as the main channel of transport. This means that globalization has been realized having in mind that these are countries that are in broad geographic proximity and they are therefore trying to make sure that they gain by being in contact with each other (Joshi, 2016). The evaluation of the activities is usually done after each financial year to check on the areas that have recorded failures and therefore there will be the facilitation of funding by the banks to make any changes that are needed.

The initiative has been taking place smoothly, but it still has some challenges that have made a part of it not to be successful. One of the challenges that have been imminent in the initiative is based on the fact that the countries have put up different rates of tariffs and quotas on the number of goods that can be imported or exported (Xinhua News Agency, 2015). This means that a lot of commodities are blocked because the amount of money that is needed in the form of tax is high and the AIIB has not been able to fund for the same. The flow of money among the countries occurs in the form of repatriation having in mind that most of the companies in that channel are multinational. The 15th national strategy was put in place to be able to provide a remedy for the barriers of trade, and it has been successful in a number of the member countries.

References

James, G. (2018). "Just what is this One Belt One Road thing anyway?" CNN

Joshi, P. (2016). "The Chinese Silk Road in South and Southeast Asia: Enter Counter Geopolitics." IndraStra Global.

Xinhua News Agency. (2015). "China unveils action plan on Belt and Road Initiative." The State Council of the People's Republic of China.