1 KASHGHAR GAWADAR POWER CORRIDOR. CONCEPT OF TRADE CORRIDORS Trade has always been the primary pillar of remuneration ,since prehistoric times. Even when there was no monetary or fiscal system , exchange of goods and services through sea , camels, etc were prevalent ,150,000 years back.(Watson 2006 ) DEFINITION OF ECNOMIC CORRIDOR: It is being defined as ,the culture of trade agreements and treaties ,status, delegated legislation , and customs that govern and guide trading relationships ,institutions and structures , or movement of products, services and information in a geographic vicinity among people in and across borders ,according to a matrix. 1 EXAMPLES i. SILK ROUTE It is from Africa to china is one of the oldest corridor , and is a living example of economic growth and prosperity .This corridor on one hand supported the socio-economic development of all geo strategically located countries . While on the other hand this route facilitated exchange of intellect, philosophies, and infrastructure through continental connection between Asia, Europe, Africa, and America. 2 ii. ECONOMIC CORRIDORS IN AFRICA The corridors between East, West and South regions have proved to be economic engines for activating trade ,commerce, employment opportunities and changing economic scenario on continental level .The left over areas of Africa , Asia and other areas also needs and other poor regions also need economic and trade corridors . iii. CORRIDORS BETWEEN AMERICA AND CANADA Both the countries realized its importance in 1990. Huge funds were allocated, proper legislation was adopted to facilitate the construction of trade corridor. Beacause of these measures in the year 2006 , goods worth 626 billion dollars were traded between these two countries. 3 Table 1: Major Trade Corridors on Each Continent Corridor Region Characteristic Funding Mechanism Trans-Kalahari Corridor Africa Economic Dev. Government, Private, World Bank, Aid Novadutra Latin America/ South America Econ. Dev, Trade Integration Government, Private North/South Corridor Asia Trade Integration, Econ. Dev. Public/Private Partnership North/South Corridor Africa Trade Integration Public/Private Partnership-sub-regional organizations initiatives East/West Corridor Asia Trade/Economic Integration Public/Private Source: Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World (New York: Atlantic Monthly Press, 2008) 1 D. Baker, Epstein, G., and Pollin, R. Globalization and Progressive Economic Policies (Cambridge: Cambridge University Press, 1989). 2 Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World (New York: Atlantic Monthly Press, 2008). 3 Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World(New York: Atlantic Monthly Press, 2008)
20
Embed
KASHGHAR GAWADAR POWER CORRIDOR. - Ulasiulasi.org/wp-content/uploads/2015/03/improved-first...THE KASHGHAR GAWADAR POWER CORRIDOR (Figure 2,3,4) China is a country who benefited its
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
KASHGHAR GAWADAR POWER CORRIDOR.
CONCEPT OF TRADE CORRIDORS
Trade has always been the primary pillar of remuneration ,since prehistoric times. Even when
there was no monetary or fiscal system , exchange of goods and services through sea , camels,
etc were prevalent ,150,000 years back.(Watson 2006 )
DEFINITION OF ECNOMIC CORRIDOR: It is being defined as ,the culture of trade
agreements and treaties ,status, delegated legislation , and customs that govern and guide trading
relationships ,institutions and structures , or movement of products, services and information in a
geographic vicinity among people in and across borders ,according to a matrix. 1
EXAMPLES
i. SILK ROUTE It is from Africa to china is one of the oldest corridor , and is a living example of economic
growth and prosperity .This corridor on one hand supported the socio-economic development
of all geo strategically located countries . While on the other hand this route facilitated
exchange of intellect, philosophies, and infrastructure through continental connection
between Asia, Europe, Africa, and America. 2
ii. ECONOMIC CORRIDORS IN AFRICA The corridors between East, West and South regions have proved to be economic engines for
activating trade ,commerce, employment opportunities and changing economic scenario on
continental level .The left over areas of Africa , Asia and other areas also needs and other
poor regions also need economic and trade corridors .
iii. CORRIDORS BETWEEN AMERICA AND CANADA Both the countries realized its importance in 1990. Huge funds were allocated, proper
legislation was adopted to facilitate the construction of trade corridor. Beacause of these
measures in the year 2006 , goods worth 626 billion dollars were traded between these two
countries. 3
Table 1: Major Trade Corridors on Each Continent
Corridor Region Characteristic Funding Mechanism
Trans-Kalahari Corridor Africa Economic Dev. Government, Private, World Bank, Aid
Novadutra Latin America/
South America
Econ. Dev, Trade
Integration
Government, Private
North/South Corridor Asia Trade Integration, Econ.
Dev.
Public/Private Partnership
North/South Corridor Africa Trade Integration Public/Private Partnership-sub-regional
organizations initiatives
East/West Corridor Asia Trade/Economic
Integration
Public/Private
Source: Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World (New York: Atlantic Monthly Press, 2008) 1D. Baker, Epstein, G., and Pollin, R. Globalization and Progressive Economic Policies (Cambridge: Cambridge University Press, 1989).
2Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World (New York: Atlantic Monthly Press, 2008). 3Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World(New York: Atlantic Monthly Press, 2008)
2
FIGURE 1: Diagram of Global Themes in Trade Corridor Development
Source: Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World (New York:
Atlantic Monthly Press, 2008)
The central theme of all the corridors is to increase ecnomic activities in the region and begin
social development on massive scale benefitting all the segements of the society through public
private partener ship .Resultantly the whole society gets prosperous and peacefull .The people
get involved in jobs, buisnesses . They enjoy new trends and themes . Thus the whole society
thrive in peacefull co-existance.
3
THE KASHGHAR GAWADAR POWER CORRIDOR (Figure 2,3,4)
China is a country who benefited its own people from the idea of ecnomic corridors .In late
1970s , china initiated various especial ecnomic zones in East of china. Through these projects
they tranfsformed its whole eastren region in all aspect of of development from technical to
technical expertise and then to managerial, social and ecnomic development .Resultantly
Shenzhen area in east china got very much developed. China thinks that WEST china felt
deprived ,that’s why seperatist movement in the form of muslim militants started .
Premier Li Keqiang was the first one from Chinese Side, who was the first who flooted the idea.
Soon after it, got support from President of China XIJINPING and President Asif ali zardari.
Now PM Nawaz Sharif is fully backing up the China – Pkistan corridor.
The short term goals of the project are named EARLY HARVEST, will take upto 5 years. In this
40 projects worth 14 billion dollars will be established in pakistan for generating ecnomic
avtivity and trade development .
The long term plan envisagates a multibillion dollar master plan with a time frame extending up
to the year 2030. It will connect Kashghar to Gawadar through the new and existing road net
works of Indus and Karakoram, and further connecting it across the border with central Asian
states..This will be the best cost and time efficient chain of supply for trade with in the
region.Upto 3 billion people of the region are expected to reap benefits from this connectivity. 4
6 Lane motorway, Railway track for 3000 KM, with links, Oil and Gas Pipe Lines, Fiberoptic
Cabel Projects, and inter linkages will be installed. Air port in Gawadar, Free Trade Zones, and
Industrial zones will be constructed. It will focus on ecnomic and trade linkages, Inreasing social
connections among the people , exchange of Political and, cultural, ideas, and exchange of
expertise between governments will be the goals achieved through this huge project .
4 Hassan Yasser Malik , ―Strategic Importance of Gwadar Port‖, journal of Political Studies , Vol 19 , p-61
4
FIGURE 2:
Chine imports oil worth US 314 $ billion Dollors per year. 60% of the oil is imported from
Hermoz, Qatar. The distance between Harmoz and Shingai is 12900 km. the distance between
Shingai and Xinkiang is 4000 km. If china gets excess to Gawadar port then the total distance from
Gawadar to Kashgar will be just 2500 km only. If china invests 100 billion dollors in the project, the
import of oil in one year will reimburse the amount. Currently china has announced investement of
45 billion dollars.Out of this, 20 billion dollars are for motorway, 2.3 billion dollars are for railways.
5
FIGURE 3:
6
FIGURE 4:
7
THE OBJECTS OF CHINA ATTACHED WITH THE PROJECT
1. The government of china plans that through this project they will make Xinkiang into a
centre of ecnomic hub . They will develope special ecnomic zones in Kasshghar and Horgus
of xinkiang.It will be the main centre for processing of regional and international goods . It
will be the logistic centre too. By connecting the region to Gawadar , the west china will
become the bastion for economic growth and prosperity.In brief China has been pushing GO
WEST, policy to take the ecnomic development to the restive Western china province of
Xinkiong .
2. China wants to reach to the hot water of the arabian sea.
3. The issue of distance /cost effectiveness.
China imports 60% of oil from middle east through strait of Har muz .Its the second biggest
consumer of oil after the USA. By 2025 china will need 75% oil through the Indian ocaen
and strait of Malacca. China will remain vulnerable in this rout because of assertive Indian
Navy and 5th
fleet of US.
Xinkiong province of China as can be seen in the above map can linked to the warm waters
of Arabian sea through this Corridor as the shortest possible distance for its energy as well as
trade. The distance between Gawadar and Xinkiong is only 2500 kilometers. While the
distance between Xinkiong and east China root is 4500 KM, Shingai of China is 14500 km
away from Hurmoz.
4. Regional Angle; This corridor can transform TAP into reality while IPI can easily become
IPC .Through connection of all ecnomic zones, this corridor can also benefift Afghanistan,
Uzbakistan,Tajikistan via afghanistan .According to estimates of Master plan , the corridor
has the potential to attract 25% of international and national supply chain by 2020.
For the export of liquid cargo of Kazkistan, Turmenistan and Uzbakistan, the Mediterraniana
SEA is 1800 KM long, while this corridor will be 1400 KM only.Caspian Sea is supposed
tohold the future energy needs of the world all the way from US, Europe and Japan and it
will account for more than 80% of the oil needs in future. However what is more
important is that the old cargo route will no longer be the central point of oil tansportation
and center of gravity for oil will move towards this corridor.
8
5. Agglomeration or cluster theory
World wide extensive research on corridor proves that Kasghar Gawadar corridor fits into
category of Cluster corridor.According to this theory ,clusters of interlinked buisness, or
industries foster competition in multiple ways.
Its presumed that three billion people will be benefited from this project.
5 “Pakistan-China Friendship bedrock for Economic Cooperation‖”, the Express Tribune, 6 July 2013.
6 Shabir Ahmad Khan and Zahid Ali Khan, “Pakistan-Kazakhstan Relations: Future Prospects”, PUTAJ Humanities and Social Sciences 19 (2012).
THE BENEFITS OF KASHGHAR GAWADAR PROJECT FOR PAKISTAN.
1. Paksitan is in a turmoil. Its almost in the state of political, economic and social isolation.
Terrorisom, energy crises, unemployment and various other tensions are prevelent in
pakistani society. This project will be a blesing in disguise. The initial investmnet of 14
billion dollor will imedietly boost it economy.
2. Being a cluster corridor, pakistan will get the meximum benefits. In cluster corridor there are
three ingridients. First ,it enhances the production of the companies, secondly ,brings in new
ideas and innovation in the field ,and finaly,gives birth to new range of buisness activities.
There is general consenses that cluster usher into immense ideas which are further facilitated
by informal exchange of ideas. Well-constructed clusters attrac more firms, and expand
business domain having added advantage in bringing in more innovative business ideas.
3. This corridor will be a source for generating income in services sector ,ie banking, travel,
electrical, shipyard, and real estate. This corridor will provide employement opportunities to
people from shades, labour, professionals,and skill opening from avenues. The corridor will
change the life style of the region and will inrease percapita income and GDP . 8
4. According to estimates 100 million dollars per anum can be generated from transit of oil and
gas through this route .
5. As presumed that total number of people benifited from the project will be 3 billion. It means
that if the project is allowed on its natural route then every citizen of pakistan will be the
beneficiary.
6. The under developed areas like Fatah Jang, Mianwali, Khyber Pakhtunkhwa, FATA and
balochistan will get developed.
9
7. The untaped resources of FATA, Khyber Pakhtunkhwa and balochistan will be utilized. On
one hand it will change the fortune of the people while on the other the whole country will
get prosperous. The per capita income of pakistan will increase many fold. The growth rate
of pakistan will shoot vertically up.
7 Saleem Shahid, ―Review of economic corridor :Feasibility Report p-9
8 ―Economic Zones to be built in Xinjiang by 2020‖, China Daily, 6 November 2013,
http://www.chinadaily.com.cn/china/2011-11/06/content_14044111.htm (accesses 10 April, 2014).
James R. Holmes, ―Gwadar and the String Of Pearls‖, February 9 2013, http://thediplomat.com/2013/02/gwadar-and-
the-string-of-pearls/comment-page-4/ (accessed 15 May 2014), 9.
THE MAP OF THE NATURAL KASHGHAR GAWADAR ROUTE AND THE ONE