Abstract
This chapter aims to discuss the role of public-private partnership (PPP) under China's Belt and Road Initiative (BRI) in Central and Eastern European countries (CEECs) in the achievement of sustainable development goals. The purpose of this chapter is to explain more broadly major BRI-related sustainable development programs in CEE countries under the PPP model. Moreover, the neo-realist approach of study involved describing China's deeper trade and economic connectivity in this region under the BRI framework of the ‘17+1' cooperation. This chapter relies on a theoretical discussion of the soft power politics of China's successful connectivity in the CEE countries under the BRI projects. The role of the ‘17+1' framework of economic cooperation and PPP model in the infrastructural development under China's flagship economic project BRI relies on the qualitative approach to scientific study.
TopIntroduction
China’s BRI-related infrastructure projects are establishing deeper partnerships with countries in Central and Eastern Europe. As part of the BRI projects, the “17+1” economic cooperation framework enables in-depth partnership between China and the CEE countries. Since the launch of several BRI-related projects in the CEE region, the importance of the public-private partnership (PPP) model has been increased in the context of BRI projects. In infrastructure development projects, private companies win tenders for government projects and contractual models have multiplied since the liberalization, privatization and globalization (LPG) taking shape across the world. The public-private partnerships (PPPs) have become a popular approach for financing and developing projects under the Belt and Road Initiative (BRI). PPPs involve collaboration between government agencies and private sector entities to deliver public infrastructure or services. By leveraging private sector expertise and capital, PPPs can help fill the financial gap for large-scale projects (Dinwiddie, 2020). The choice of PPP model depends on various factors, including the nature of the project, financing requirements, risk appetite, and regulatory framework. Governments must carefully assess these factors to determine the most suitable approach for each BRI project. Effective risk allocation mechanisms and clear contractual arrangements are essential to ensure the success and sustainability of PPPs under the BRI.
The sustainable development has gained prominence on international policy agendas, with concepts like “green development,” “inclusive and sustainable economy,” and “sustainable investment” featuring prominently in both formal and informal statements and policies. Sustainable development considerations are increasingly integrated into trade agreements and negotiations. This includes provisions aimed at promoting environmental conservation, labor rights, and social welfare. Beijing has incorporated BRI framework of cooperation in the CEECs and their policymakers aim to foster a more inclusive, resilient, and sustainable global economy through the expansion of the new silk road projects in the former communist block of Europe (Yin, 2019). The harnessing the potential of PPPs, the BRI can play a significant role in advancing progress towards the SDGs by addressing infrastructure gaps, promoting regional integration, and fostering sustainable economic growth in participating countries (China Council for International Cooperation on Environment and Development (CCICED) Secretariat, 2022). However, it’s essential for stakeholders to ensure that BRI projects are designed and implemented in a manner that maximizes their positive impacts while minimizing potential risks and negative externalities.
PPPs have emerged as a valuable tool for governments and private sector entities to collaborate in addressing infrastructure gaps, improving public service delivery, and fostering sustainable development. As countries continue to face evolving challenges and resource constraints, PPPs are expected to remain a prominent mechanism for leveraging private sector participation and investment in addressing public needs. Many countries and regions around the world have embraced PPPs as a key strategy for infrastructure development and public service delivery (Wang et al., 2018). Governments in both developed and developing countries have established legal and regulatory frameworks to facilitate PPP implementation, and international organizations have promoted PPP best practices and knowledge sharing (Hodge & Greve, 2007). The adoption of the PPP model in China’s BRI projects in the CEECs reflects a collaborative and cooperative approach to infrastructure development and economic cooperation between public and private sector actors. By leveraging the PPP model, China and the CEECs aim to address infrastructure deficits, promote sustainable development, and enhance regional connectivity as part of the broader BRI initiative.
Key Terms in this Chapter
Sustainable Development: Sustainable development is a concept that emphasizes meeting the needs of the present without compromising the ability of future generations to meet their own needs. It encompasses economic, social, and environmental dimensions and seeks to balance economic growth, social equity, and environmental protection to ensure the well-being of current and future generations. Sustainable development aims to achieve a harmonious and equitable balance between economic development, social progress, and environmental protection, while also addressing global challenges such as poverty, inequality, climate change, and biodiversity loss. Sustainable development is a holistic and forward-looking approach to development that seeks to balance economic, social, and environmental priorities to ensure the well-being of current and future generations. It requires transformative changes in policies, practices, and behaviors at all levels to address global challenges and build a more resilient, inclusive, and sustainable future for all.
The Belt and Road Initiative (BRI): The Belt and Road Initiative (BRI), also known as the One Belt One Road (OBOR) initiative, is a global development strategy launched by the Chinese government in the late 2013. The initiative aims to enhance connectivity and cooperation between countries in Asia, Europe, and Africa through infrastructure development, trade facilitation, investment, and people-to-people exchanges. The BRI comprises two main components: the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
Public-Private Partnership (PPP): Public-Private Partnership refers to a collaborative arrangement between government entities and private sector organizations to jointly undertake projects or provide public services. PPPs leverage the strengths of both sectors to address infrastructure development, service delivery, and other societal needs while sharing risks, responsibilities, and resources. PPPs represent a collaborative approach to addressing infrastructure needs and delivering public services by leveraging the strengths of both public and private sectors. By sharing risks, resources, and responsibilities, PPPs can enhance efficiency, innovation, and quality in infrastructure development and service delivery while promoting sustainable development and economic growth.
Central and Eastern Europe (CEE): Central and Eastern Europe (CEE) refers to a region in Europe that encompasses countries located between Western Europe and Eastern Europe. While there is no universally agreed-upon definition of CEE, it generally includes countries that were formerly part of the Eastern Bloc during the Cold War, as well as those that underwent political and economic transitions following the collapse of communism in the late 20th century. The region is characterized by its diverse cultural, historical, and geopolitical dynamics. Central and Eastern Europe experienced significant geopolitical shifts during the 20th century, including the partitioning of territories, World War I and II, the rise of communism, and the Cold War division between the Eastern Bloc (led by the Soviet Union) and the Western Bloc (led by the United States).