China Pakistan Economic Corridor (CPEC) Regional Integration and Challenges

Introduction:

China-Pakistan Economic Corridor is a framework of regional connectivity. CPEC will not only
benefit China and Pakistan but will have positive impact on Iran, Afghanistan, India, Central
Asian Republic, and the region. The enhancement of geographical linkages having improved
road, rail and air transportation system with frequent and free exchanges of growth and people to
people contact, enhancing understanding through academic, cultural and regional knowledge and
culture, activity of higher volume of flow of trade and businesses, producing and moving energy
to have more optimal businesses and enhancement of co-operation by win-win model will result
in well connected, integrated region of shared destiny, harmony and development.
China Pakistan Economic Corridor is journey towards economic regionalization in the globalized
world. It founded peace, development, and win-win model for all of them.
 China Pakistan Economic Corridor is hope of better region of the future with peace,
development and growth of economy.
OBOR:

Chinese one belt one road is a huge project which will integrate the Asia, Europe and
Africa through roads and maritime routes. Sixty seven countries are the subject of this project.
Chinese one belt one road project is announced by the Chinese president Xi Jinping in
Kazakhstan September 2013. After one month Xi Jinping purposed the Maritime Silk route
project which will connect China with South Asia, Africa, Middle East and Europe via sea route.
Initially this project was proposed as ‘New Silk Road’ but was changed with ‘One Belt One
Road’ (OBOR) and after 2017, it is called belt and road initiative (BRI). It comprises the two
components, first land route which is old Silk Road from China to Europe via central Asia and
Middle East. Second route contains maritime Silk Route, begins from East Asia to South Asia
via Gwadar connects Africa and Middle and reaches from Suez Canal to Europe. One belt One
Road will connect 67 countries to enhance economic integration between Asia, Europe and
Africa (Miller, 2017). China has purposed six corridors under one belt and one road. Following
are the six corridors: Central-China and West-Asia Economic Corridor (CCWAC), China
Peninsula Economic Corridor (CICPEC), China-Mongolia-Russia Economic Corridor
(CMREC), New Eurasian Land Bridge (NELB), Bangladesh China India Myanmar Economic
Corridor (BCIMEC), and China Pakistan Economic Corridor (CPEC) (Amir, 2016). Jonathan E.
Hillman director of reconnecting Asia project estimated that the investment of this project is
from 1 trillion to 8 trillion US dollar (Hillman, 2018). It is said after the US Marshal plan it the
highest plan for spreading Chinese influence in the world.

Marshal Plan:

The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative

to aid Western Europe, in which the United States gave over $13 billion (nearly $110 billion in
2016 US dollars) in economic assistance to help rebuild Western European economies after the
end of World War II. The plan was in operation for four years beginning on April 3, 1948. The
goals of the United States were to rebuild war-torn regions, remove trade barriers,
modernize industry, improve European prosperity, and prevent the spread of Communism. The
Marshall Plan required a lessening of interstate barriers, a dropping of many regulations, and
encouraged an increase in productivity, trade union membership, as well as the adoption of
modern business procedures. The largest recipient of Marshall Plan money was the United
Kingdom (receiving about 26% of the total), followed by France (18%) and West
Germany (11%). Some eighteen European countries received Plan benefits. Although offered
participation, the Soviet Union refused Plan benefits, and also blocked benefits to Eastern Bloc
countries, such as Hungary and Poland. To combat the effects of the Marshall Plan, the USSR
developed its own economic plan, known as the Molotov Plan.

The importance of Gwadar Port:

Gwadar port is deep port and situated geo-strategically an important place which makes it
geo-strategic, geo-politic and geo-economic place. American journalist Robert Kaplan visited
Gwadar in 2007 and hoped to see Gwadar as the Dubai of Pakistan (Miller, 2017). Gwadar mean
the land of the air. Geographically Gwadar port is situated Arabian Sea with a key position
between South Asia, Central Asia and Middle East near Strait of Hormuz gate way of world’s
20% oil. Its depth is 18 to 22 meter whereas Jabal e Ali’s depth is 16 meter, Chabahar 12 meter
and Bander Abbas port is 10 meter deep. 120 big ships could be anchored at a time in Gwadar
port whereas Dubai port has capacity of 67 ships and Bander Abbas port 24 ships (Baig, Mera
Halia Doura e Gwadar, 2017). Gwadar port will connect four key regions; South Asia, China,
Central Asia and Iran. Even Russia and Mongolia can be connected though Gwadar port
(Khetran, 2015).

CPEC Vision & Mission

To improve the lives of people of Pakistan and China by building an economic corridor
promoting bilateral connectivity, construction, explore potential bilateral investment, economic
and trade, logistics and people to people contact for regional connectivity. 
It includes:

 Integrated Transport & IT systems including Road, Rail, Port, Air and Data Communication
Channels
 Energy cooperation
 Spatial layout, functional zones, industries and industrial parks
 Agricultural development & poverty alleviation
 Tourism cooperation & people to people communication
 Cooperation in livelihood areas
 Financial cooperation
 Human Resource Development
CPEC Significance/Potential
China-Pakistan Economic Corridor has Significance for the development of the region
Potential areas of cooperation/development include:
 Regional Connectivity
o Transport Infrastructure
o Energy Hub/flows
o Logistic Hub/flows
o Trade & Commerce
o Peace & development of region
o Connectivity/Harmonization/Integration of civilizations
 Diverse Investment opportunities
 Industrial Cooperation
 Financial Cooperation
 Agricultural Cooperation
 Tourism
 Educational linkage
 Human resource development
 Health Care
 People to people contact
 Increase in livelihood opportunities
 Enhance Security and stability of the region