Latin America: The East Wing of the New Silk Road

Abstract

As the Belt and Road Initiative (BRI), or the New Silk Road, as commonly known in Western countries, continues to grow in size and scope, some questions remain unanswered. Most skepticism arises about the primary purpose of the project, the contribution of members countries to the overall initiative, or the involvement of those territories that are neither touched by the land or the maritime side of the project. Latin America, for example, has significant interaction with China, but few countries may soon join the project. After taking a glance on the history of the Silk Road and the new project, we look at the current status of the BRI, and one of the main issues of concern which is the lack of homogenous contribution to the initiative. For that matter, we propose a much-needed adjustment to the BRI, using a new tool for evaluating the participation of member countries. Comparisons take into account the five collaboration variables established as the building blocks of the BRI: policy coordination, facilities connectivity, unimpeded trade, financial integration, and people-to-people bond. To make a more detailed analysis, we include two measurement criteria per variable, which can be used either to test for suitability of new or existing members of the New Silk Road. A second issue under study is the feasibility analysis of the extension of the initiative into Latin America. We use the proposed mechanism comparing 10 active members of the BRI versus 10 countries in Latin America. Results show the adequacy of the region to join the initiative. Indeed, we demonstrate that Latin America is suitable to be the East Wind of the BRI.