Empirical Case Studies on the Economic and Political Effects of the Belt and Road Initiative in Pakistan, Kenya, Sri Lanka, and Montenegro

The Belt and Road Initiative has had a wide range of effects on participating countries. Its economic and political implications continue to raise important questions about China’s global influence using soft power. The BRI initiative has the potential to accelerate globalization and boost domestic economies. This paper analyzes the BRI’s involvement in three geopolitical regions (Asia, Africa, and Europe) by examining the economic and political impacts of four internal BRI projects: Chinese Pakistan Economic Corridor (CPEC), Mombasa-Nairobi Standard Gauge Railway, International Hambantota Port, and Bar Boljare Highway. The analysis is conducted by examining different outcomes of each project using a predetermined rubric which considers economic (GDP, FDI, trade, social welfare, debt sustainability) and political (internal power, international relations) implications. The analysis of all four case studies conclude that Kenya and Pakistan have benefited from their respective BRI projects, while Sri Lanka and Montenegro’s BRI projects appear unsuccessful due to lack of strategy involved in their placement/creation. Furthermore, all four countries suffer from varying amounts of debt distress as a result of Chinese BRI investment. Lastly, the BRI provides outlets for Chinese involvement in internal power (especially in the case of Kenya and Sri Lanka), as well as strengthens Sino relations with participating countries.