Trade along China’s ‘One Belt, One Road’ won’t succeed without the currency of trust

Frank-Jürgen Richter says inherited cultural and political attitudes in Central Asian countries, which are key partners of the Chinese-initiated project, mean there is much work to be done to foster cooperation

Reading Time:3 minutes

<p>Frank-Jürgen Richter says inherited cultural and political attitudes in Central Asian countries, which are key partners of the Chinese-initiated project, mean there is much work to be done to foster cooperation</p>

Published: 4:53pm, 24 Feb 2016Updated: 4:52pm, 24 Feb 2016

The future could look bright for China, Central Asian nations and the world by nurturing trust and cooperation along the route.

The International Monetary Fund and OECD have forecast global growth will be about 3 per cent, rather than the traditional average of almost 4 per cent. This seems about right, given that the economies of most developed and major developing economies are struggling, for many reasons.

The first is due to the enmeshed cogs of globalisation which determines that, if part of the economy slows, it all slows, though not in each sector instantly.

China’s growth might soon be 5 per cent, according to some pessimists

Second, looking to a fantasy future when all nations become developed, surely global growth must be zero as all we manufacture would be for replacement. A reduction of the 4 per cent average is to be expected as the old nations are already developed and the massive Asian nations, while still claiming developing status, are in many respects developed, so they will exhibit slower growth. Thus, China’s growth might soon be 5 per cent, according to some pessimists.

However, ahead of the G20 meeting of finance heads in Shanghai this week, China has announced US$61 billion in local infrastructure investments to “fill out” earlier investments and has emphasised its economy is in good health. Goldman Sachs has chided investors, both private and institutional, saying the only real issue is “fear itself”: investors ought to stand steadfast.

Trade along China’s ‘One Belt, One Road’ won’t succeed without the currency of trust

Frank-Jürgen Richter says inherited cultural and political attitudes in Central Asian countries, which are key partners of the Chinese-initiated project, mean there is much work to be done to foster cooperation

READ MORE: Our broken economy doesn’t need more stimulus

READ MORE: Laying the foundations for China’s ‘One Belt, One Road’