This year’s G20 Summit was held in New Delhi, the capital of India, on 9-10 September 2023. [1] The summit was held with the theme “One World, One Family, One Future”, [2] very large participants in global geoeconomics and geopolitics One of the notable developments [3] developments is the announcement of a new corridor at the summit that aims to compete with China’s Belt and Road Project. [4]
At the top; In the statement signed by India, the United Arab Emirates (UAE), Saudi Arabia, the European Union (EU), France, Italy, Germany and the United States of America (USA), the “India-Middle East-Europe Economic Corridor (IMEC)” was launched. It was decided to pass.[5]
The corridors in the project will consist of a ship-to-rail network to facilitate cost-effective transportation routes for countries. According to the statement in the memorandum of understanding, “The transit of goods and services to India, UAE, Saudi Arabia, Jordan, Israel and Europe will be ensured between these countries.” Countries are also planning to install pipelines for the export of clean hydrogen, as well as a cable network for electricity and digital connectivity [6]
At first glance, it can be said that the project has a high potential for success. When the countries involved in the project are examined, a very important economic potential is seen. Because the USA is the world’s largest economic power. In this ranking, Germany is 4th, India 5th, France 7th, Italy 10th, Saudi Arabia 17th and the UAE 28th. [7] The EU is a huge economic power in its own right.
The eight countries that have signed IMEC account for approximately half of the world’s economy and 40 percent of its population. For this reason, when the actors in question allocate sufficient resources and energy, they have the potential to transform both this corridor and global trade and development. This corridor has an increasing effect on the US’s regional and global geopolitical and geoeconomic influence. The project, which particularly emphasizes energy trade, is based on the region’s potential to provide cheap and reliable energy to the rest of the world
At the same time, the project will be developed within the scope of the Global Infrastructure Investment Partnership (PGII) initiative of the G7 countries. PGII aims to close the infrastructure gap in developing countries. The new IMEC project is seen as a response to China’s Belt and Road Initiative. While the cost of the project has not been officially disclosed, reports indicate that countries could spend around $20 billion on developing the corridor [8]
On the other hand, it is known that developing countries constitute the important and key countries of the Belt and Road Initiative. In this context, IMEC may not be the top priorities of the countries in question. Because these states can first aim to strengthen their national economies and prioritize projects that have concrete consequences and where their place is fixed. For this reason, they may stay away from new projects and avoid undertaking new adventures in the short and medium term. As a result, it can be said that this project is important for the global economy and trade, but the possibility of its implementation is weak.
[1] “G20 Summit Closes with Russia, Brazil and India Boasting Success”, France 24, https://www.france24.com/en/asia-pacific/20230910-g20-summit-closes-with-russia-brazil-and-india-boasting-success, (Erişim Tarihi: 11.09.2023).
[2] “What is the G20 and why Does the Delhi Summit Matter?”, British Broadcasting Corporation News, https://www.bbc.com/news/world-48776664, (Erişim Tarihi: 11.09.2023).
[3] “Kazakh and Chinese Experts Reflect on First Decade of Belt and Road Initiative”, The Astana Times, https://astanatimes.com/2023/09/kazakh-and-chinese-experts-reflect-on-first-decade-of-belt-and-road-initiative/, (Erişim Tarihi: 14.09.2023).
[4] “G20 Summit: Will India Successfully Counter China’s BRI Project With Middle East-Europe Economic Corridor?”, Outlook Business Money, https://business.outlookindia.com/economy-and-policy/g20-summit-will-india-successfully-counter-chinas-bri-project-with-middle-east-europe-economic-corridor, (Erişim Tarihi: 14.09.2023).
[5] Aynı yer.
[6] Aynı yer.
[7] “The World’s Largest Economies”, World Data Info, https://www.worlddata.info/largest-economies.php, (Erişim Tarihi: 13.09.2023).
[8] “G20 Summit: Will India Successfully Counter China’s BRI Project With Middle East-Europe Economic Corridor?”, a.g.e., (Erişim Tarihi: 14.09.2023).
