Will INSTC outdo OBOR ?

Avi

Administrator
Dec 1, 2017
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340
India
Recent news of INSTC being operational from jan 2018 its interesting to note its effect on the OBOR project by China.

The International North South Transportation Corridor (INSTC) connecting Mumbai with St Petersburg and beyond – which has been 17 years in the making – is set to be operationalised from the middle of next month with the first consignment from India to Russia.
Will INSTC outdo OBOR ? In terms of economic and geo-political objectives.
 

Butter Chicken

Senior member
Dec 2, 2017
1,219
1,162
OBOR and INSTC are fundamentally different.

INSTC is a purely economic project which focuses on reducing time taken for goods from India/Iran(mainly) to St. Petersburg and then to Eastern European countries.It mostly makes use of existing infrastructure,is not dominated by one country and is much more transparent.

OBOR is China's Marshall Plan,where they offload their excess capacity in sectors like steel etc,provide big loans to small countries,and is mainly focused on creating new infrastructure using Chinese capital,Chinese labour and Chinese equipment.It provides minimal benefit for developing countries.The Chinese aim is to use the excess capacity to build around the world untill their population starts reducing in a couple of decades.

As we have seen in Sri Lanka's case,their leader was paid off to give a huge deal to China which they could never pay back,and thus affects the strategic autonomy of small,developing countries.Recent examples from Pakistan and Nepal shows that these countries are starting to fight back.
 

Avi

Administrator
Dec 1, 2017
244
340
India
OBOR and INSTC are fundamentally different.

INSTC is a purely economic project which focuses on reducing time taken for goods from India/Iran(mainly) to St. Petersburg and then to Eastern European countries.It mostly makes use of existing infrastructure,is not dominated by one country and is much more transparent.

OBOR is China's Marshall Plan,where they offload their excess capacity in sectors like steel etc,provide big loans to small countries,and is mainly focused on creating new infrastructure using Chinese capital,Chinese labour and Chinese equipment.It provides minimal benefit for developing countries.The Chinese aim is to use the excess capacity to build around the world untill their population starts reducing in a couple of decades.

As we have seen in Sri Lanka's case,their leader was paid off to give a huge deal to China which they could never pay back,and thus affects the strategic autonomy of small,developing countries.Recent examples from Pakistan and Nepal shows that these countries are starting to fight back.
Fundamental differences in their origin agreed.
Also understand that there are no absolutes , vested Geo-political interests are involved in every step , one instance may be more than the other yet the object is to reach potential zones of raw materials and energy early. In this view both of these serve the same purpose. The two most populous countries in the world needs a steady supply to burn and each one has taken steps to augment that.

In terms of trade may be both will share the pie but the game will start Geo-politically when one starts dominating the other.

INSTC vs OBOR will play out to balance each other in the way the Chinese wont go overboard in their land claiming practice because now the region will have an alternative. INSTC will give the small nations to think beyond OBOR and beyond Chinese money and engineering to develop connectivity in ASIA. Interesting to note Russian stand on the two projects because they are into 3 way connectivity trade with China , India and Arctic lines. So Russia is the swing state over both of these.
 

Shashank

Well-Known member
Dec 4, 2017
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Ban galore
If we calculate in terms of economic return of these projects for Iran and Pakistan I am damn sure Iran will reap higher benefit. Terms of investment for INSTC connectivity project is much cheaper than what it is for OBOR. In layman terms Iran will get fruits while Pakistan will get its blood sucked thanks to loss of Jobs for Pakistanis and outflow of money due to high interest rates.
 
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Abingdonboy

Team StratFront
Dec 1, 2017
149
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UK
Recent news of INSTC being operational from jan 2018 its interesting to note its effect on the OBOR project by China.



Will INSTC outdo OBOR ? In terms of economic and geo-political objectives.
Thing is, China has a LOT more to export and a LOT more resources to pour into these projects. OBOR is the CPC's key policy objective of the next 20 years INSTC isn't even in the top 50 key projects any GoI will be concerned with.

There is just too much of a disparity in focus and means to consider INSTC a serious rival to OBOR.
 

Shashank

Well-Known member
Dec 4, 2017
866
944
Ban galore
Thing is, China has a LOT more to export and a LOT more resources to pour into these projects. OBOR is the CPC's key policy objective of the next 20 years INSTC isn't even in the top 50 key projects any GoI will be concerned with.

There is just too much of a disparity in focus and means to consider INSTC a serious rival to OBOR.
I guess a fair comparison would have been CPEC vs INSTC connectivity/ business growth benefits. How much value in terms of business or revenue both projects bring to the host countries.