Is the BRI Delivering?

Abstract

Promising the hope of a brighter future, in 2013 China launched the Belt and Road Initiative (BRI) across the world. The economic strategy of the BRI lies in partnering with countries through the signing of Memorandum of Understandings (MoU). President Xi Jinping’s foreign policy is aimed at investing in countries to provide greater infrastructure and development. This analysis will examine whether the BRI is actually delivering on its promises in Latin America by examining the five priorities set forth by China: policy coordination, infrastructure connectivity, unimpeded trade, financial integration, and connecting people. The findings of this paper suggest that no major gains have been made in Latin American countries that have partnered with China. We will explore the potential risks and interdependence that has been established as a result of the BRI. Some may suggest that there has not been enough time since the signing of the MoUs to truly know whether the BRI will benefit Latin America, and we address this by making suggestions on the continuing monitoring that will need to take place in the region. The analysis will provide Latin American policy makers with suggestions on how to negotiate future deals with China to achieve the best possible outcomes for partnering with China.