PNG-Sino experience

-
The recent geopolitical power play in the region is exciting. One fact that we cannot dispute is the growth of China. The Middle Kingdom has really change the rules of the game in the Asia-Pacific region.

One notable development is the fact that PNG is now the first Pacific Island nation to join China's One Belt One Road Initiative formally. The Prime Minister went to China with a mission to sign the deal and came back a victor.   

One Belt One Road
As mentioned in the Business Insider:
Cai from Lowy Institute explains that:

The Business Insider also outlines that the focuses of the policies are in infrastructure, transportation and energy. We have already seen both positive and negative changes associated with the One Belt One Road Initiative in the Asia-Pacific region.

China's industrial capacity
In reference to Morgethau's 9 elements of national power, China has developed most or all of the elements of national power. In particular, industrial capacity together with smart economic policies have really turned the country into the factory of the world.

The ability of the Chinese people to work hard must also not be ignored. This ability has turned China into an economic powerhouse.

Japan has for so long dominated the vehicle market with their brands like Toyota, Nissan, Suzuki, Mazda, Mitsubishi and Isuzu. China has now entered the market with their companies like Great Wall Motors and JMC Motors.

In a few years time, we might see competition in the market between Japan, South Korea and China. This is beneficial for PNG because it will help decrease the amount of money needed to buy a new car. If new cars are sold for a reasonable price then there is no need to buy a secondhand Japanese recondition car.

China has acquired raw materials from around the world and turned the raw materials using its industrial plants into finish products. China's national power has increased due to the development of this element and also the development of the other 8 elements.

Industrial capacity is the driving force behind the One Belt One Road Initiative. China's promise to share its technology and finance with other countries will be repaid with access to raw materials. Thus, the cycle of industrial activity will continue   

PNG-Sino experience
In energy, the Prime Minister launched a K463 million 130kv transmission lines and substations projects to service the Highlands region in June. This project will light up homes and contribute to the growth of business activities up in the Highlands.


For infrastructure, the new conference center in Waigani is iconic. Built for the APEC meeting, the building will now host a lot of other national events. Such infrastructure is needed in a growing economy like PNG.


Apart from the conference center, a six-lane highway was also opened in Port Moresby on the same day. The cost of the highway was about US$33 million according to the Post Courier.



The role played by Chinese banks is vital in the PNG-Sino experience. The EXIM Bank and the Asian Infrastructure Investment Bank (AIIB) have and will continue to fund various projects connected to the One Belt One Road Initiative.

To conclude, according to the Lowy Institute, China spent $858.4 million on 27 projects in PNG between 2006 and 2016. What about 2017-2018? 

Comments

Post a Comment

Popular posts from this blog

FPA: Organizational Process Model

-
This model centers on the fact that different bureaucracies have different standard operating procedures. These procedures are made in order to allow day to day operations to be carried out. Thus, a foreign policy decision is made based on these standard operating procedures. It is hard for a bureaucracy to make a decision or let alone function out of character or contrary to their standard operating procedure. The reading Chapter 4: Foreign policy shares a straight forward explanation of the OPM: "An alternative to the rational model of decision making is the organizational process model. In this model, foreign policy decision makers generally skip the labor-intensive process of identifying goals and alternative actions, relying instead for most decisions on standardized responses or standard operating procedures. For example, the U.S. State Department everyday receives more than a thousand reports or inquiries from its embassies around the world and sends out more than a
Read more

Commercial liberalism and the six norms

-
Image
Liberal internationalism is defined by Griffiths, O'Callaghan and Roach (2008, p.190) as a project to transform international relations so that they conform to models of peace, freedom, and prosperity allegedly enjoyed within constitutional liberal democracies. The same scholars go further by dividing liberalism into three distinct groups. They say these are the three ways to implement the project. The way they present liberal internationalism as a project makes their work interesting. Three distinct groups Firstly, commercial liberalism is about free trade between states. States bilaterally or multilaterally via a platform like APEC pursue the goal of trade liberalization. Griffiths, O'Callagahan and Roach (ibid.) argued that economic interdependence would decrease the likelihood of going to war. Republican liberalism is about democratic peace. The scholars argued that the spread of democracy among states so that governments will be accountable to their citizens makes it di
Read more

Rise and fall realism

-
Image
By Colin Elman and Michael A. Jensen Source: Williams, P. D. (Ed.). (2008). Security studies: an introduction . London: Routledge Taylor and Francis Group. What is rise and fall realism? Rise and fall realism remerge as a powerful alternative to the balance of power theories that predominated international relations scholarship during the 1950’s. Central theme Hegemony is the foundation for peace while balance is often associated with war (Organski). Dynamics Rise and fall realism emphasizes that war between major powers is least likely when the international system is dominated by a single state and when there are no rising challengers vying for system leadership. Given its privileged position, a dominant state is capable of shaping the rules and practices of the international system in such a way as to satisfy its selfish interest. Stability is a product of this hegemonic order, as states which are dissatisfied with the status quo lack the capabilities to change it.
Read more