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East Coast Rail Link (ECRL) |
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UPSC Syllabus: Prelims: Current Affairs of National and International Importance Mains: GS-I, II: Geography, International Relations |
Introduction:-
- Chinese Premier Li Li recently indicated that China is ready to study a plan to link its railway project to Southeast Asian countries under the Belt and Road Initiative (BRI).
- The plan is important to enhance regional connectivity and boost economic growth.
What is East Coast Rail Link (ECRL)?
- The East Coast Rail Link (ECRL) is a major infrastructure project in Malaysia that aims to improve links between the country’s east and west coasts.
- The ECRL is part of Malaysia’s broader efforts to enhance its transport infrastructure and boost economic growth.
ECRL construction
- Start: 2017.
- Challenges: Lack of financing and domestic political issues delayed the project.
- Restart: 2020, after renegotiating the deal at a lower cost.
- Expected completion: 2027.
Overview of ECRL
- Route and length: The ECRL stretches for approximately 665 kilometers, linking Port Klang on the west coast to Kota Bharu on the east coast, passing through key economic regions in the states of Selangor, Pahang, Terengganu and Kelantan.
- Objective: The primary purpose of the ECRL is to reduce travel time between the east and west coasts, facilitate the movement of goods and people, and stimulate economic development in the east coast states.
- The project is funded and constructed by China Communications Construction Company (CCCC) and is a key part of Malaysia’s cooperation with China under the Belt and Road Initiative (BRI).
Importance of ECR:-
- The ECRL is expected to boost local economies, create jobs, and attract investment along its route.
- It aims to enhance trade and logistics efficiency by providing an alternative to congested land routes and ports on the west coast.
- The ECRL is a key component of Malaysia’s vision to improve regional connectivity, link major industrial centers and ports, and integrate with other transport networks in Southeast Asia.
Belt and Road Initiative (BRI)
Definition:-
- The Belt and Road Initiative (BRI) is a global development strategy adopted by China under President Xi Jinping in 2013.
- Involves infrastructure development and investment in about 70 countries.
- It aims to increase global trade and stimulate economic growth across Asia and beyond by developing trade routes similar to the ancient Silk Road.
Objective:-
Build infrastructure and broaden trade links between Asia, Africa, and Europe, promoting economic cooperation and connectivity.
Key Components
Silk Road Economic Belt:-
- Land-based corridors:- These corridors link China to Europe through Central Asia, thereby enhancing land connectivity.
- Infrastructure Development:– Construction of roads, railways, and energy pipelines to facilitate trade and economic integration.
21st Century Maritime Silk Road:-
- Sea-based routes: These routes link China to Southeast Asia, South Asia, Africa, and Europe through maritime routes.
- Port Development:- Investment in port infrastructure to support maritime trade.
Why is China accused of “Debt Trap Diplomacy”?
- Debt trap diplomacy refers to China’s alleged strategy of lending excessive debt to countries through infrastructure projects under the Belt and Road Initiative (BRI), which they may struggle to repay.
- This may give China political or economic leverage over debtor countries.
Examples and criticisms
- Sri Lanka: One of the most cited examples is the Hambantota Port, where Sri Lanka leased the port to China for 99 years due to its inability to repay Chinese loans.
- Pakistan and Djibouti: Similar concerns have been raised about massive Chinese loans leading to economic dependency.
- Criticism: Critics argue that this strategy undermines the sovereignty of debtor countries and can lead to long-term economic challenges.
China’s defense
- China claims that its loans are intended to promote growth and infrastructure development, and insists that allegations of debt trap diplomacy are exaggerated or politically motivated.
What are India’s concerns about BRI and ECRL?
Sovereignty issues
- India’s main concern about BRI is the China-Pakistan Economic Corridor (CPEC), which passes through Pakistan-occupied Kashmir (PoK). India considers it a violation of its sovereignty.
Geopolitical implications
- India is concerned about China’s growing influence in the Indian Ocean and neighboring countries.
- Projects such as the BRI and ECRL enhance China’s strategic presence, which could potentially encircle India geopolitically.
Economic concerns
- India is concerned that the financial burden of BRI projects on participating countries could lead to economic instability in the region, affecting overall regional security and economic dynamism.
Strategic response
- India has not supported the BRI but participates in the Asian Infrastructure Investment Bank (AIIB), which focuses on multilateral infrastructure investment without compromising its strategic interests.
Pan-Asian Rail Network
- The Pan-Asian Rail Network is an important part of China’s Belt and Road Initiative (BRI), which aims to enhance regional connectivity by linking Southeast Asian countries.
Goal:-
- The Pan-Asian Rail Network aims to link Southeast Asian countries through three main routes:
- Western Line: From Kunming through Myanmar and Thailand.
- Central route: From Kunming through Laos and Thailand.
- Eastern line: From Kunming through Vietnam, Cambodia, and Thailand.
Current Status
- Operational Segment: Only the Laos-China segment, operational since 2021.
- Challenges: High cost, varying track width.
What is the importance of ASEAN for India?
Economic Importance
- ASEAN (Association of South-East Asian Nations) is one of India’s largest trading partners.
- The trade volume between India and ASEAN is increasing, contributing significantly to India’s economic growth.
- Trade Volume: In 2023, India-ASEAN trade reached US$98.39 billion.
- Trade and Investment: Free trade agreements and investment promotion.
Example: India-ASEAN Free Trade Agreement (FTA)
- Implementation: The agreement came into force in January 2010.
- Impact: Trade and economic relations got a boost, leading to increased market access and investment opportunities.
Strategic Partnership
- India sees ASEAN as a key partner in maintaining regional stability and security, especially in the context of rising Chinese influence.
- The “Act East Policy” emphasizes strengthening ties with ASEAN countries to balance China’s dominance.
Cultural and Historical Ties
- India shares deep historical, cultural, and civilizational ties with ASEAN countries.
- These ties enhance people-to-people ties and promote mutual understanding and cooperation.
Cooperation Areas
- Joint naval exercises and cooperation to ensure freedom of navigation in the Indo-Pacific region.
- Collaborative projects to enhance connectivity and economic integration.
- Partnerships in higher education, research, and technology transfer.