SILK ROUTE:

PAST, PRESENT & FUTURE

Submitted By:
Aayush Dahal
Class 10
Everest Public School,
Bardibas, Mahottari
“Over 2,000 years ago, our ancestors, trekking across vast steppes and deserts,
opened the transcontinental passage connecting Asia, Europe and Africa, known
today as the Silk Road. Spanning thousands of miles and years, the ancient silk routes
embody the spirit of peace and cooperation, openness and inclusiveness, mutual
learning and mutual benefit."
-Chinese President Xi Jinping
(In his keynote speech at the opening of BRF for International Cooperation, Beijing)

We human beings have always migrated from one place to another and traded with our
neighbors exchanging resources, skills and ideas. There’s an ancient quote in China,’’ If
you want to get rich, build roads first.”Throughout the history, the entire Asia &
Europe was intertwined with communication paths and trade routes; eventually leading
to what is known today as Silk Route. The silk route refers to a historical network of
interconnecting trade routes across the Afro-Eurasian landmass that connected East,
South and western Asia with the Mediterranean & European world as well as parts of
North and East Africa. Its starting point was the ancient Chinese capital of Chang’an
(Modern Xi’an) in china; the endpoints were a number of cities on the eastern
Mediterranean. Some of its branches ran into South Asia, while others ended at Caspian
or Black sea ports. The term ‘silk route’ was coined by the German geographer and
traveler, Ferdinand von Richthofen, in 1877 CE, who designated the 'Seidenstrasse’ (silk
road) or 'Seidenstrassen’ (silk routes).
The Silk Route, extended along 6,537 kilometers, derives its name from the lucrative tra
de in Chinese silk that began in the Han dynasty (206 BC – 220 A.D.).

The story begins with Zhang Qian. During the Han Dynasty, its arch enemies were the
Xiongnu nomadic tribes living to the north of the Han whose capital were Chang'an
(present-day Xi'an). They lived in what is now Mongolia and began raiding the Chinese
during the Warring States Period (476-206BC) This explorer and diplomat, Zhang Qian,
was sent by the Han Emperor Wudi to make ties with the Yuezhi people with whom the
Han ruler hoped he could create a common alliance against pesky Xiongnu invadersbut all
the efforts went into vain . He was captured by the Xiongnu in present-day Gansu and held
for 10 years. However, He eventually escaped with a few men and proceeded to Yuezhi
territory only to be let down as the Yuezhi had settled happily and wanted no part in
avenging themselves on the Xiongnu.Zhang managed to exchange silk for the first-time
outside China.Zhang Qian returned to Wudi with only one of his former 100 companions
but was revered by the emperor and court because of his geographical intelligence he had
gathered and the gifts he brought back (he traded silk to some Parthians for an ostrich egg
thus starting the silk obsession in Rome and "delighting the court" with such a large egg!!)
This exchange created a hunger in the West. for silk and kicked off the exchange and trade
along the routes that would become the Silk Road. From Wudi's time forward, the Chinese
patronized and protected roads through their western territories to trade goods with
kingdoms to the west. The Silk Routes served as arteries and life lines for many people of
Eurasia, the largest landmass in the planet earth consisting of 36.2% of the earth’s land area.
It was traversed by traders, pilgrims and travelers. The greatest value of the Silk Road was
the exchange of culture. Art, religion, philosophy, technology, language and scienceevery
other element of civilization was exchanged along these routes, carried with the commercial
goods the merchants traded from country to country. Along this network disease traveled
also, as evidenced in the spread of the bubonic plague of 542 CE which is thought to have
arrived in Constantinople by the way of the Silk Road and which decimated the Byzantine
Empire. The closing of the Silk Road forced merchants to take to the sea to ply their trade,
thus initiating the Age of Discovery which led to world-wide interaction and the beginnings
of a global community. In its time, the Silk Road served to broaden people's understanding of
the world they lived in; its closure would propel Europeans across the ocean to explore, and
eventually conquer, the so-called New World of the Americas. In this way, the Silk Road can
be said to have established the groundwork for the development of the modern world.

The Silk route creates a mystical and fabulous impression in people even today. Despite the
fact that its economic and cultural significance has vanished, however; in recent
decades, its revival has been on the agenda again. Recently, the concept of One Belt
One Road was unveiled by Chinese president Xi Jinping in September and October
during his visits to Kazakhstan and Indonesia. It is a developmental strategy proposed
by People’s Republic of China that focuses on connectivity and Co-operation among
the countries primarily in Eurasia, which consists of two main components; Silk Road
Economic Belt & Maritime Silk Road. The Belt and the Road initiative will take
advantage of international transport routes as well as core cities and key ports to
further strengthen collaboration and build six international economic cooperation
corridors. These have been identified as the New Eurasia Land Bridge, China-
Mongol-Russia, China-Central Asia-West Asia, China-Indochina peninsula, China-
Pakistan & Bangladesh-China-India-Myanmar. OBOR (One Belt One Road) foresee
complete openness in geographical and country-specific reference. They may trace
but not limited to, the past silk route; plus, all countries along the land and the
maritime silk roads as well as all friendly neighbors of China can get involved. The
Belt & the road initiative look at the ideas and suggestions for cooperation and
development. They are not about building an entity or creating new mechanisms. The
initiatives will rely on existing bilateral and multilateral mechanisms between China
& other countries and use effective platforms of regional cooperation that have
proven effective. Till now, China has signed co operational document on the belt and
road initiative with 126 countries and 29 international organizations. In terms of
infrastructure construction, China and the countries along the Belt and Road have
carried out effective cooperation in ports, railways, highways, power stations, aviation
and telecommunications. The Plan, though short on details, sets out its broad
priorities as; a) Rail connection from China to European via Economic corridors
across Mongolia, Russia, Central Asia. b) Construction of oil & natural gas pipelines,
regional power grids & transmission line. c) Investment in fiber optics networks,
information technology, new energy & bio technology. d) The Mekong River region
which China has previously identified for economic cooperation is to become an
international transport corridor connecting Yunnan province with South East Asia.
Financing is expected to come from china led multilateral Asian Infrastructure
Investment bank, BRICS Development Bank & Silk Road Fund.

Though the OBOR project seems a completely different project than ancient silk
route; however there are some connections between ancient silk route & present
OBOR. Both the silk route and the modern one transported goods and commodities
from China to Central Asia & beyond to Europe. The only differences are that old silk
routes were travelled by caravans and traders on camels while modern silk route is
travelled by trains. Similarly, primarily traded goods were mostly silk while the good
that is primarily traded of the modern silk route is laptops. Both of the trade routes
went through the same general area having some overlaps & crisscross. A difference
is that the original Silk Road had many branches while the modern day follows on
definite variable path. Both trade routes went along the same trade routes that
eventually reached Europe. The difference is that the original supplied Europe with
inventions, spices, silk and ideas while the modern version supplies Europe with
laptops made in China.
The belt and the road initiative features links & focus on result oriented & project
based cooperation and all aimed at bringing tangible benefits to the people in the
region. The first and foremost link is Road. As mentioned earlier, roads are
considered as the parameter of prosperity of a country in China. There is a need for
china and its neighboring countries to improve their cross border transportation
infrastructure; to put in place a transportation network linking Asia’s Sub regions and
connecting Asia with Europe & Africa; and to effectively address the existing
inadequacies of connectivity & transportation in regions targeted by the project.
The second link is trade. We should study issues of trade and investment facilitation
while making proper arrangements accordingly, remove investment barriers, promote
economic circulation & improvement in the region, unleash still greater trade and
investment potential of participating countries and make the regional cooperation still
bigger. The third link is currency. We should promote greater trade settlement in
local currencies & more currencies swap schemes; strengthen bilateral and
multilateral financial cooperation, setup financial arms for regional development,
bring down the transaction costs, enhance capacity to reduce financial risks through
regional arrangements that make the region’s economy more competitive globally.
The fourth link is people. Unity among people holds the key to sound relations among
states. China & the neighboring countries need to shore up popular support for their
state to state relations, promote inter civilization dialogue, enhance exchanges &
friendship among different people especially; those at the grass root level.
The fifth link is Policy. Countries can discuss strategies & policies on economic
development and in the spirit of seeking common ground while shelving differences;
harmonizing their positions through consultation, formulate corresponding plans &
measures for cooperation & give regional economic integration and their policy a
legal” green light”.

The Silk Road economic belt & 21st century maritime Silk Road also known as One
Belt One Road proposed by China has been hailed as a landmark development in
increasing connectivity & cooperation among countries of Europe and Asia. Being a
Nepali, I would like to point out the beneficiaries of OBOR in regards to Nepal.
Firstly, if the infrastructure is build under OBOR, it will open up more economic
opportunities for Nepal. If the connectivity is maintained with Asia & Europe as per
the vision of the new silk route, it will open up more doors for business, tourism &
cultural exchanges. Secondly, enhanced connectivity to be brought by the initiative
will bring down transport costs for both export and import transactions for Nepal.
Nepal’s lengthy shipment cost has eroded our competitiveness in the global market. If
the proposal sees the light of the day, it will greatly reduce Nepal’s shipment costs.
Similarly, Tourism is one of the sectors that Nepal can take the most benefit from and
it will also facilitate trade and investments here. Likewise, Nepal can attract
investment in industries and infrastructure building by taking advantage of its
geostrategic locations between China & India. Currently, as Chinese economy is
slowing down, increasing number of Chinese are looking to invest outside of China.
Nepal can be a potential destination for such investment once necessary infrastructure
is developed here. This will help to increase setting up manufacturing base here as we
can export and import goods from various countries. Similarly, as a landlocked
country with poor infrastructure, Nepal’s cost of trade is higher compared to other
countries so, it will greatly reduce the time and the cost of Nepalese International
trade.

In summary, The OBOR has three major goals; infrastructure building, regional trade
promotion & RMB internationalization. The first goal in particular may present broad
opportunities for companies looking to th strategies into the momentum of China's
 OBOR initiative. The government has focused on transportation infrastructure
between the two nations, which would all support greater land based, air based & sea
based exchange of goods and people. Tourism, financial services, clean energy &
communications infrastructure –including logistics centers for airports, sea ports &
other transportation hubs- have also been cited as prior as priority areas by the
government. A number of sectors-defense, constructions & building materials,
equipment materials & financial institutions- all have the potential to play the roles in
the initiative.

A great philosopher once said," Life is full of ups and down. A straight line
even in an ECG means you're dead." As much enormous the project is, more the
challenges. If I have to quote some of the major challenges, then security will be one
of the major challenges. For eg; as a part of One Belt One Road, China will build
81,000 km of high speed railway, more than the current world total, involving 65
countries. So the question arises, who is going to protect so many projects covering so
many countries? Similarly, the route passes through some of the world's most
vulnerable & conflict ridden territory. Many recipient countries in Asia have poor
credit, which means many projects may be promising at the beginning but will be
difficult to pursue agreement and consensus are reached at the top levels of the
government; but implementation is at the local level. Local governments often don't
care about the central government's policies & don't always cooperate with foreign
investors. Similarly, conflicts in various parts of the project may also be the
challenge. It is likely to be successful unless there is peace in Gwadar. The district is
enrolled in conflicts with militant organizations like B Liberation Front. These groups
haven't only opposed the developmental projects but have even attacked Chinese
Engineers working on the port. The Silk Road initiative can be a long drawn-out
project and it can lose momentum, especially if there is no sustained investment of
diplomatic, political and economic resources. Hence, the initiative is not without
challenges; cooperation & coordination with partner countries over the long term are
paramount for it to be a lasting legacy. Some worry that china has is for naval
expansion & energy security. TO ease worries, President XI Jinping has emphasized
"Three No's." a) No interference in the internal affairs of other nations b) No seeking
to increase the so called sphere of Influence. c) No strive for hegemony or dominance

At the first China Eurasia Expo on September 16, 2014, Chinese Vice-Premier Wang
Yang delivering the key note speech said," We are ready to work with other countries along
the Silk Road economic belt to open more business cooperation zones in order to provide an
enabling environment for the development of industrial clusters." He further said," As long
as we take a long term perspective & work in unison, we will make the pie of regional
economic cooperation bigger."

Asia known as the engine of global growth and a key driver for world multipolarization and
economic globalization plays a critical & increasing role in the shaping of international
landscapes. The Belt & Road initiatives linking the past with the present and covering China
& other countries have a highly inclusive scope that bears witness to the history of great
glory in Asia, provide an important source from which Asians draw confidence & pride for
their history & cultures, and stand as a symbol of Asian unity & commitment to cooperation.
The Belt & the road initiatives enhance infrastructure development & systematic innovation,
which are conductive to an improved business environment in relevant countries and the
region as a whole; to an orderly and unimpeded flow of production factors and their
improved distribution; to the development of landlocked countries; to lowering costs & trade
and investment barriers & to provide greater drive for reform & opening up into various
countries. The major aspect of the Silk Route is connectivity which will remain forever. In
the present day world, interdependence and interconnectedness would help remove barriers
created by mistrust and misunderstanding, open up new areas of cooperation, amity and
friendship. Valuing other’s cultural sensitivity would create amiable environment for overall
economic development and cooperation. As one of the former IMF director superbly said in
regards to the silk route, "It's about connecting culture. It's about connecting
communities, it's about enriching economies & improving the standard of the people."