Would Cpec Spur Economic Growth?

Research Brief 01:2019
Publication Year : 2019

The China Pakistan Economic Corridor (CPEC) Is A Multifaceted Program Ranges From Energy Generation To Development Of Infrastructure Including Port, Road, Railway, And Communication. Officials Are Squarely Portraying Cpec As Something That Will Spur Economic Growth, And Will Improve Living Standards. To Evaluate Official Claims It Is Wise To Look Into The History Of Related Projects Because, “History Offers Much Evidence Of The Impacts Of Transformational Infrastructure Successes And Failures”, As Stated By Mccartney (2018). Special Economic Zones (Sezs) And Trade Facilitation Are Two Important Channels Through Which Cpec Is Envisioned To Spur Economic Growth, However, It’s Implementation Mechanism Is Limitedly Backing Economic Considerations? Low National Savings, Increasing External Debt, Low Tax Revenue, And Deteriorating Exports Are The Foremost Challenges That Need To Be Considered Solely Relying On Cpec To Contribute To Economic Growth. If These Factors Are Not Considered, Cpec Initiatives Would Be Similar To Those Linked To The Panama Canal And Suez Canal, And Greater Mekong Sub-Regions That Did Not Contribute To Sustainable Economic Growth Despite Generated Revenue For Their Respective Economies. These Projects Too Had Significant Geostrategic Importance Like The Cpec.

Research Brief 01