Path to Silk Road success depends on private investment, says analyst

MONDAY, APRIL 09, 2018
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Path to Silk Road success depends on private investment, says analyst

Reconnecting the ancient “Silk Route” with modern infrastructure could both extend China's economic reach and enhance its energy security. Ultimately, however, the success of the initiative will be measured by the extent to which private-sector investors participate, says an analyst.


That is the verdict in a special report published today by S&P titled “China’s Belt and Road Initiative: Is This The World’s Largest Venture Capital Project?”
“[The] success of the Belt and Road Initiative (BRI) will ultimately rest on whether China's initial ‘seed money’ will create creditworthy projects that attract true private sector outside money,” said Paul Gruenwald, S&P Global Ratings’ chief economist. 
“Seen in this way, the initiative is arguably the world’s largest attempted venture capital project”.
Another key measure of success is whether the Belt and Road can win local hearts and minds in the recipient countries. 
The initiative aims to connect the Eurasian supercontinent through land and sea “Silk Roads” using infrastructure and industry projects.

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