The Belt and Road Initiative: Economic and Financial Cooperation
serhat latİfoğlu Hedge Fund Manager
Serhat Latifoğlu is a hedge fund manager. In the first eleven years of his career, he worked in managerial positions in various banks and stock brokerage companies. He also worked on the derivatives desks of various brokerage companies. Over the last ten years of his career, he founded and managed various funds and business in several sectors. Particularly, Mr. Latifoğlu founded the first Turkish derivatives arbitrage fund in Switzerland. In addition, he is the co-founder of a London-based boutique wealth management firm Versum Wealth, which concentrates on multiple business areas. He recently co-founded a hedge fund trading in international financial markets, applying AI technology and picking patterns with behavioral finance approach. Moreover, Mr. Latifoğlu advises several firms among the top 100 Turkish companies ranked in terms of their position in the financial markets. He earned a bachelor’s degree in Public Finance from Marmara University and holds a Certificate in Behavioral Finance from Yale University and several certificates from various financial authorities worldwide. He served in the board of a number of civil society organizations such as Rumeli Türkleri Derneği/Rumeli Balkan Federasyonu, RUYİAD and Karadeniz Vakfı. E-mail: serhat@versumwealth.com
It seems that the Belt & Road Initiative’s (BRI) main strategy is wisely designed and due to the world economic crisis it will play an important role in the world economy and global financial markets. This article will mainly focus on the economic effects of BRI and provide suggestions for financial cooperation and the integration of the counties involved. Besides the financial institutions and funds that directly support BRI, various institutions such as bilateral and multilateral regional banks, and China’s public and commercial banks, wealth and pension funds could also offer financial alternatives to BRI countries. Establishing a joint clearing institution or a Clearing Bank could significantly facilitate transactions in financial markets, particularly for BRI countries interested in developing financial products specific to their needs. Establishing a joint Wealth Fund of the BRI countries will boost investment projects and support national economies.
THE HISTORY OF THE SILK ROAD, AS A Silk Road. In 2013, China referred to this route as
commercial route that connects China to the The Silk Road Economic Belt and announced its
Middle East and Europe, goes back centuries. strategy of investing in roads and railway routes,
The Silk Road is the first inter-continental com- oil and gas pipelines and other infrastructure de-
mercial route to be ever known in the history of velopments. Belt & Road Initiative (BRI) is an in-
humankind. It exerted a major economic, politic itiative that will have a great impact on not only
and cultural impact on many European and Asian China’s development but also that of many oth-
countries. er countries, particularly in terms of energy and
The Silk Road maintained its importance trade development.
throughout history and geopolitical struggles to The initiative defines five major priorities:
control this route paved the way for various polit- • Policy coordination
ical and social developments. It started to lose its • Infrastructure connectivity
importance gradually with the geographical dis- • Unimpeded trade
coveries that enabled the expansion of capitalism • Financial integration
and a shifting preference for greater use of mari- • and connecting people.
time roads. The great potential of BRI will affect the world
Over the last 30-40 years of capitalist glo- economy in both the short and long terms. It seems
balization, there has been another shift of prefer- that BRI’s strategy is wisely designed and due to the
ence away from maritime roads in international world economic crisis it will play an important role
trade. In this way, the development of alternative in the world economy and global financial markets.
transportation methods (especially airlines) cou- This article will mainly focus on the economic
pled with the rapid economic growth of Eurasian effects of BRI and provide sug-gestions for finan-
countries and the complex relations among these cial cooperation and the integration of the counties
countries, brought back the importance of the involved.
A Bird’s Eye View of the Economy of represented by both economically advanced and
Belt and Road Initiative Countries developing countries. With this heterogeneity
Since its announcement in 2013, BRI involves 65 in mind, one could argue that there is a group
countries, including Turkey. of countries focused on commodity-based pro-
The BRI area can be categorized into six duction, as compared to another group in ex-
port-based production on various scales. main regions: In terms of indebtedness (Debt / GDP ratio • East Asia: China, Mongolia less than 50-60%) and investment ratings, 35 of • Southeast Asia: Brunei, Indonesia, the countries involved in BRI stand out as low- Philippines, Cambodia, Laos, Malesia, risk countries, whereas 23 countries are part of Myanmar, Singapore, Thailand, Ti high-risk countries. In total, there are 8 counmor-Leste, Vietnam tries categorized as extremely high-risk coun- • Middle Asia: Kazakhstan, Kyrgyzstan, tries (CGDEV, 2018CGDEV (2018). The source article does not provide a separate full bibliographic entry for this citation.). Tajikistan, Turkmenistan, Uzbekistan The neoliberal policies implemented over • Middle East and North Africa: UAE, the last 30 years subjected the BRI countries to Bahrain, Iraq, Iran, Israel, Egypt, the impact of international companies and or- Kuwait, Lebanon, Oman, Qatar, Saudi ganizations. Although these policies were hoped Arabia, Palestine, Syria, Jordan, Yemen to encourage GDP growth, it is obvious that they • South Asia: Afghanistan, Bangladesh, led to the deterioration of income distribution. Bhutan, India, Maldives, Nepal, Despite the fact that the BRI area is endowed Pakistan Sri Lanka with fertile soils, neoliberalism led to the decline • Europe: Albania, Azerbaijan, Belarus, of agriculture under the yoke of global agri-busi-
Bosnia and Herzegovina, Czech ness. Moreover, small and medium-sized in-
Republic, Estonia, Armenia, Georgia, dustries went into decline and light industries
Latvia, Lithuania, Montenegro, N. became subcontractors for international com-
Macedonia, Hungary, Moldova, panies, mostly focused on low-added-value pro-
Poland, Russia, Slovakia, Slovenia, Ser- duction. This transformation –which was main-
bia, Turkey and Ukraine (OECD, 2018OECD (2018). The source article does not provide a separate full bibliographic entry for this citation.). ly driven by the by the International Monetary
Since 2019, the total population of the BRI Fund (IMF), the World Bank, the World Trade
area accounts for 4.6 billion people. Its GDP to- Organization, international companies and local
tals 29 trillion dollars. That is to say, with 61% authorities– caused resource mismanagement
of the world population and 33% of global GDP, and excessive indebtedness. A significant part of
BRI is one of the biggest political-economic ini- BRI countries adopted privatization policies due to
tiatives in human history. (CSIS, 2019CSIS (2019). The source article does not provide a separate full bibliographic entry for this citation.). external pressure. Increasing unemployment rates
With its immense markets, dynamic pop- and widespread income inequality went hand in
ulation and raw material sources, BRI is to be- hand with external economic dependency.
come the powerhouse of the world economy in Except for the socialist countries and a num-
the next 20 years. ber of BRI countries adopting a mixed-econo-
As regards the economic composition of my approach, a vast majority of BRI countries
BRI, we can see that with few exceptions it is do not rely on planned economy, which poses
Se rh at La tifoğ lu - T he B elt a nd R o a d Initia tiv e: E c onom ic a nd Fina nc ia l C o op er a tion
a great risk for the prospects of BRI. This situa- Atlantic-based funds and investors will actively
tion enables global capitalism to manipulate the pursue the newly rising investment opportu-
economy of these countries. nities offered by BRI, because their profit rates
have been continuously decreasing since the 2008 crisis and they have been looking for alter-
The mobilization of intensive native investment areas. Their pursuit for new
coordination between BRI countries investments and funds will also provide various based on a development plan will opportunities for BRI countries. In the upcomcertainly enable new investors’ ing years, it is expected that IMF and the World funds to be used as leverage and
will trigger sustainable growth in Bank would lose their impact on the region and
these countries. that these funds and investors would operate in-
dependently in the region of BRI. Despite the adverse circumstances in which
these countries find themselves, the BRI strat- The Belt and Road Initiative: Financial
egy offers great opportunities for the countries and Monetary Concerns
involved to truly develop and get out of the eco- China provided 440 million dollars credit support
nomic trap they fell into. for infrastructure projects through its own banks
The mobilization of intensive coordination to facilitate economic activities and strengthen
between BRI countries based on a development cooperation amongst BRI countries. 11 Chinese
plan will certainly enable new investors’ funds to banks opened 76 offices in 28 different BRI coun-
be used as leverage and will trigger sustainable tries, while 22 of the BRI countries opened as
growth in these countries. many as 50 offices in China (Refinitiv, 2019bRefinitiv (2019b). The source article does not provide a separate full bibliographic entry for this citation.).
In the period 2013-2019, China invested • Financial Institutions Directly
more than 100 billion dollars in BRI countries. Supporting BRI
In return, these countries invested 48 billion Besides China’s banks, many funds set up
dollars in China. From 2013 to 2018, trade be- for various purposes and financial institutions
tween China and its economic partners expand- actively support the development and growth
ed by 6 trillion dollars. As a result of all these of the BRI countries. AIIB (Asian Infrastructure
investments and commercial activities, at least Investment Bank) can be considered to be an
300,000 jobs were created in the BRI area (China important actor in this field.
Daily, 2019). BRI proposes a total number of 2,631 projects, which are worth 3.7 trillion dollars. Approximately 2,600 companies or organizations will participate in these projects. 55% of the companies involved are estimated to be from the BRI countries other than China (Refinitiv, 2019aRefinitiv (2019b). The source article does not provide a separate full bibliographic entry for this citation.).
All of the previously mentioned numbers AIIB was established on January 25, 2015
intrigue the international capital market and in Beijing with the lead of China and the par-
companies. Despite the propaganda against BRI, ticipation of BRI countries. The bank’s motto is
to invest in infrastructure development, as well There are various other multilateral banks
as in the productive and sustainable sectors of and funds that were established in partnership of
these countries. BRI countries: BRICS Development Bank (with
AIIB currently has 102 members: 80 per- a capital base of 100 billion dollars), Silk Road
manent members and 22 prospective mem- Gold Fund (with a capital base of 15 million
bers. Unlike the hierarchical structure of the dollars), China-Central and Eastern Europe In-
IMF and the World Bank, AIIB is managed by vestment Fund (with a capital base of 11 billion
a highly democratic and transparent Board of dollars) and Eurasian Development Bank (with
Presidents where each member has a represent- a capital base of 7 billion dollars).
ative (AIIB, 2020aAIIB (2020a). The source article does not provide a separate full bibliographic entry for this citation.). Developing partnerships and collabo-
So far, the bank has approved 70 projects rations in certain projects based on bilateral
from many countries of the “Belt” and has made agreements can be considered to be a positive
a total investment of approximately 14 billion development for BRI countries. Even though
dollars since February 2020 (AIIB, 2020bAIIB (2020a). The source article does not provide a separate full bibliographic entry for this citation.). the worth of these bilateral funds remains small,
Silk Road Fund is another financing source their number is expected to grow rapidly as BRI
of BRI. This fund stands out as separate from develops. The list and size of the bilateral funds
traditional development banks and its flexible created until today are as follows: China-Russia
structure provides an enabling framework for RMB Investment Cooperation Fund (6 billion
investment capital funds. dollars), Russia-China Investment Fund (5 bil-
Silk Road Fund is established on December lion dollars), China-India Development Fund
29, 2014, in accordance with the Chinese public (6 billion dollars), China-Africa Development
law and with investments from the State Admin- Fund (2 billion dollars), Russia-India Develop-
istration of Foreign Exchange, China Investment ment Fund (1 billion dollar).
Corporation, China Development Band and Ex- Sovereign Wealth Funds which are com-
port-Import Bank of China. Through a variety mon in Asian countries have the potential to
of forms of investment and financing such as become the most important sources supportive
company mergers and acquisitions, shared pur- of BRI. These funds include: China Investment
chases and public offerings, the Fund invests in Corporation (814 billion dollars), China Life
many sectors of the countries involved in BRI. Insurance Company (382 billion dollars), Na-
The Fund, which has a total capital of 40 billion tional Social Security Fund of China (290 billion
dollars, so far has strategically invested in about dollars), Russian Direct Investment Fund (10
100 different projects in Pakistan and the Rus- billion dollars), China Development Bank (64
sian Federation (Silk Road Fund, 2020Silk Road Fund (2020). The source article does not provide a separate full bibliographic entry for this citation.). billion dollars).
• Other Financial Institutions and Funds Thanks to their extensive assets and expe-
Supporting BRI riences, the availability of public banks is an ad-
Besides the financial institutions and funds vantage for BRI countries and private companies
that directly support BRI, various institutions involved in BRI. such banks include: Industrial
such as bilateral and multilateral regional banks, and Commercial Bank of China (with a capital
China’s public and commercial banks, Wealth base of 3.4 trillion dollars), China Construction
and pension funds also offer financial alterna- Bank (with a capital base of 3 trillion dollars),
tives to BRI countries. Agricultural Bank of China (with a capital base
Se rh at La tifoğ lu - T he B elt a nd R o a d Initia tiv e: E c onom ic a nd Fina nc ia l C o op er a tion
of 2.7 trillion dollars), Bank of China (with a of the Yuan. RMB (Yuan) Certified Foreign Insti-
capital base of 2.6 trillion dollars) (Silk Road tute provides support for those who seek to invest
Briefing, 2019). in China’s financial products. 5 different countries
• BRI’s Financial Base in the BRI region are consulting with this institute.
Providing and securing money flows among As an alternative to the SWIFT transactions, CIPS
BRI countries dispersed within such a broad geog- (Cross-Border Interbank Payment System) was es-
raphy are highly critical. With this in mind, China tablished by China. It services to 50% of BRI coun-
signed mutual swap agreements with 21 BRI coun- tries. 31 different BRI countries already signed a
tries in 2018. Moreover, it signed several agree- memorandum of understanding (MoU) with Chi-
ments for local currency exchange with 8 countries na for the development of financial services and
and regional currency exchange with 2 countries. cooperation (City of London, 2018City of London (2018). The source article does not provide a separate full bibliographic entry for this citation.).
China also reached agreements with 7 countries All these data show that BRI countries are
for offshore yuan exchange. All of these agree- supported by a relatively strong banking and
ments are designated as positive development that funding infrastructure. In summary, the numbers
lower the exchange rate risk and favorably support mentioned above indicate that BRI countries are
trade between BRI countries. Chinese UnionPay exposed to increasing opportunities to complete
is actively used in 41 BRI countries and it serves new projects and making breakthroughs without
as an important tool for the internationalization the need of Atlantic-based funds.
Asia Stock Exchanges. Visual Capitalist, (2016Visual Capitalist (2016). The source article does not provide a separate full bibliographic entry for this citation.). https://www.visualcapitalist.com/all-of-the-worlds-stock-exchanges-by-size/
A Bird’s Eye View of Financial Asia in particular have low share on the stock
Markets in BRI Countries markets compared to their GDP, but they have
high potential of growth as the Belt and Road • Bond and Stock Markets in BRI Initiative projects continue to develop. If proper Countries reforms are undertaken, the share on the stock
With their large economies and high po- market of the countries in the “Belt” would rise
tential of growth, BRI countries can exert an 8 – 10 trillion dollars in the next 10 years.
important influence on global financial markets. • The Importance of Gold Reserves in BRI
Currently, their share on the world bond mar- Countries
ket, which is 102 trillion dollars, is 17 trillion Following the severe crisis that the US and
dollar. This is relatively small compared to other EU economies have been facing since 2008,
geographic regions (Asian Bonds Online, 2020Asian Bonds Online (2020). The source article does not provide a separate full bibliographic entry for this citation.). there are proposals to turn yuan and a gold
China’s low debt ratio is a virtue of its controlled based World Currency standing into an alter-
borrowing policy. Considering that the Chinese native currency. Therefore, gold stocks are likely
bond market is around 11.5 trillion dollars and to assume a great importance during economic
the debt/GDP ratio does not exceed 50%, we fluctuations to take place in the coming years. 4
can say that China and other BRI countries have of the BRI countries rank among top 10 coun-
high chances of growth in the bond market. It tries that have the largest gold reserves in the
is estimated that the actual share on the bond world. The total gold reserves of these coun-
market would rise by 5 trillion dollars with the tries are estimated at 9,617 tons and represent
intensive cooperation and integration the com- approximately 30% of the world’s total gold
ing years (Visual Capitalist, 2016Visual Capitalist (2016). The source article does not provide a separate full bibliographic entry for this citation.). reserve. After the 2008 crisis, moreover, many
Asian region stock market with their value Eurasian countries such as Turkey, Russia and
of 33% share on the world stock markets has its China have increased their gold reserves. Given
own remarkable place (Visual Capitalist, 2016Visual Capitalist (2016). The source article does not provide a separate full bibliographic entry for this citation.). the changes in the gold reserves between 2008-
Among the countries involved in Belt and Road 2020, the BRI countries that rank among top 20
Initiative, which total share counts 24 trillion countries with the largest gold reserves in the
dollars, China on its own has a share of 11 tril- world are: Russia from 520 tons to 2,299 tons
lion dollars. The countries of West and Middle (4.4 times), China from 600 tons to 1,948 tons (3
Quarterly Official Gold Reserves. (World Gold Council), (2020) https://www.gold.org/goldhub/data/monthly-central-bank-statistics
times), India from 358 tons 635 tons (1.8 times), recorded in public sectors would continue; es-
Turkey from 116 tons 485 tons (4.2 times), Ka- pecially in China and other BRI. The total value
zakhstan 67 tons 388 tons (5.8 times), Uzbeki- of wealth of the largest 2,000 companies has re-
stan has reached 338 tons from 0 tons (World ached 20% of the world total. The companies in
Gold Council, 2020). This noticeable increase of question operate in a wide range of sectors such
the gold reserves in BRI countries can potential- as banking, energy, industry and services sec-
ly enable these countries to create an alternative tors. National energy companies constitute the
currency or to undermine the hegemony of the largest companies in the world, and they cont-
current world currency. With the recent crisis, it rol more than half of the world oil and gas maris estimated that the trend of increasing the gold ket (IMF, 2020IMF (2020). The source article does not provide a separate full bibliographic entry for this citation.). It is estimated that public and reserves will continue and an increasing number private partnerships, which have a major contof BRI countries will join to this trend. ribution to national economies in areas such as • Sovereign Wealth Funds and the Power employment, fair income distribution, strategic of the Public Sector planning, sustainability, profitability and de- Another financial phenomenon specific velopment, would continue to receive a greater to the BRI countries is the Sovereign Wealth share in the world economy. Particularly after Fundss. The combined size of all BRI Sovereign the credit and demand crisis triggered and de- Wealth Funds has a world wide significance.
While the total value of world’s Sovereign Wealth epened by the recent COVID-19 pandemic, the
Fund is 8.2 trillion dollars, the share of the BRI public sector will take on an increasing relevan-
countries is as much as 6 trillion dollars (SWFI, ce in the world economy. The IMF (2020IMF (2020). The source article does not provide a separate full bibliographic entry for this citation.) report
2020). This situation provides alternative financ- admits the failure of privatization policies, which
ing for BRI countries and supports the growth rose to prominence in the 1990s, and signals the
of national wealth in these countries. Before the return of the public sector. The fact that public
crisis in 2008, these funds were raised primari- companies are expanding rapidly is interpreted
ly by commodity-based economies. Other BRI as a disturbing development by multinational
countries turned to this model after the crisis companies and their representatives such as the
and evaluated their wealth in a more planned IMF. It is estimated that China would become a
way. This approach provides a great advantage role model for other BRI countries so that these
for BRI countries to develop meaningful pro- countries would increasingly favour the public
jects and intensify their cooperation. sector. Public companies, which operate directly
Lately, it is acknowledged that the public under public institutions or public-private part-
sector plays important role in certain BRI count- nership (provided that the public share is 51%
ries. A recent report published by the IMF indi- and above), will be an important foundation
cates that the share of public companies doub- for sustainable growth and the success of BRI
led in the world economy over the last decade, countries. Put differently, the development of
reaching a value of 45 trillion dollars, which public sector in BRI economies will encourage
represents 50% of global GDP (IMF, 2020IMF (2020). The source article does not provide a separate full bibliographic entry for this citation.). This sustained economic growth and increased coo-
report emphasizes that the tendency of growth peration between these countries.
Suggestions for the Improvement and Furthermore, the BRI countries could issue
Increased Coordination of Financial exclusive bonds and bills (e.g. Silk Road bonds
Markets in the BRI Area and bills). Considering the high gold reserves in
In this section, we will discuss the needed steps these countries, it is also possible to issue com-
and suggestions to be taken in order to establish mon bonds and bills based on gold. All these bor-
a stronger infrastructure in which financial mar- rowing instruments would be controlled by the
kets will be able to support the real economy in Belt and Road Initiative Index, under the heading
the BRI countries. Financial markets de-signed Bonds and Bills.
to support the real economy are conducive to Many among the BRI countries have econo-
economic growth. Otherwise, financial markets mies based on raw material production. On a plat-
would become a playground for speculative ac- form under the Belt and Road Initiative Index, it
tivities by global financial actors. One could no- would be an important step to start a headquarters
tice that certain BRI countries have accumulated for managing financial derivates. As such, derivate
considerable experience in global financial mar- products could be developed and insurance sche-
kets. This experience will be of great benefit for mes could be used against the price fluctuation.
each country to address its own problems, espe- Derivate products that support hedging
cially in overcoming these problems in coopera- transactions for the development of trade betwe-
tion with other BRI countries. en BRI countries would also be useful. Both
• The Belt and Road Initiation Index, crossrates and indicator rates set by these count-
Bonds, Stocks and Other Markets ries could be included in the Belt and Road Ini-
Establishing a joint clearing institution or a tiative Index. This would minimize the exchange
Clearing Bank could significantly facilitate trans- rate risk and encourage trade.
actions in financial markets, particularly for BRI Considering that the Islamic geography is countries interested in developing financial predominant in the BRI area, Islamic financing products specific to their needs. A management and investment products could also be collected and contribution model such as AIIB can be repby the Index. Thus, the volume of the Islamic filicated in this area. In other words, establishing nancial products in Western banks would deca Clearing Bank would ensure fast and secure rease and a safe alternative would be offered to transactions, while also attracting new investors. investors who are interested in using these pro- The stock markets –as the barometers of caducts more frequently. pitalist economies– in the BRI area are of an hete-
rogenous character. They are either relatively de- Private Equity funds could also be collected
veloped or underdeveloped. The establishment of by the Index. These funds could support projects
a joint stock index in BRI countries –which would in BRI countries and serve as an important foun-
rank the BRI companies–would support the na- dation to BRI-based manufacturing companies.
tional stock markets of these countries. It would It is also possible to classify the funds by creating
also provide supplementary funding and enable different indices, based on both sectors and asset
the diversification of investment instruments for sizes, and present them to investors. The Belt and
BRI-based companies. Road Initiative Index, with arrangements such as
tax benefits and various supports, could be a new system. Combining or harmonizing both
powerful tool to encourage private equity tran- systems could create a very strong synergy.
sactions between BRI countries. • Other Institutions to Support the
• Institutions Supporting Trade and Local Financial Markets in the BRI Area
Currencies in the BRI Area Sovereign Wealth Funds s are one of the
The contribution of commodity exchanges most efficient tools for collecting and managing
to the real economy, especially to the national national assets. The trend of growth recorded in
agriculture, is significant. These exchanges cre- Sovereign Wealth Funds over the last decade will
ate a more transparent supplydemand balance continue, especially among BRI countries. Es-
for agricultural products, ensure the right qual- tablishing a joint Sovereign Wealth Fund of the
ity standards for production and also promote BRI countries will boost investment projects and
manufacturing activities. As regards the devel- support national economies. This fund, which is
opment of agriculture in the BRI area, it would worth 6 trillion dollars in total, will be a strong
be an important step to establish a platform that leverage for investments. Firstly, all these funds
unifies the commodity exchanges within the BRI should be presented on a common platform;
area. Supported by a technological infrastruc- then all funds can create a new legal entity based
ture, the Commodity Exchange Platform would on their value and assets and create the Sover-
support the national agriculture, develop the eign Wealth Fund of the BRI countries with the
mutual trade and facilitate the use of national deposition of certain shares. The high priority
cross currencies. The fact that many countries of this fund could be both supporting the infra-
in the BRI area are under a heavy debt burden structure projects and financial investments in
increases the importance of these countries' the BRI area.
mutual swap agreements. More frequent swap As regards financial markets, rating agen-
agreements between the Central Banks of the cies are of great importance for governments
BRI countries would be of strategic use for BRI and companies in need of borrowing. The crite-
economies, especially in times of crisis. China ria and ratings determined by these institutions
has already signed 33 swap agreements and sup- significantly affect the borrowing methods and
ports the international use of Yuan. Therefore, costs of companies. American companies play
signing swap agreements among BRI countries important role in this sector. However, their re-
would support the local currencies and protect liability and impartiality have become contro-
the national reserves. versial, especially after the crisis in 2008. Thus,
In order to facilitate trade and financial establishing a joint credit rating company for
transactions among the countries involved in the BRI countries and companies is necessary. Hav-
CIPS and SPFS systems developed by China and ing one in the Eurasian region will be beneficial
Russia could be integrated as an alternative to both for financing regionbased countries and
the SWIFT system. This would eliminate all the companies and for all investors seeking alterna-
potential sanction threats. The widespread pres- tive investments.
ence and infrastructure that CIPS has reached Think tanks, especially Atlantic-based re-
is noticeable, but it is not sufficient to become search institutions, perform detailed research on
an alternative to SWIFT yet. SPFS is a relatively topics such as politics, foreign policy and econ-
omy. They exert great influence on the formu- CSIS (Center for Strategic International Studies).
(2020). Will China’s push to internationalize the lation of state strategies. There are many staterenminbi success? Retrieved from https://
owned or autonomous research institutions in chinapower.csis.org/china-renminbi-rmb-
BRI countries. All these institutions, especially internationalization/
those specialized in economics, could be unit- IMF (International Monetary Fund). (2020).
Fiscal monitor, state-owned enterprises: The other
ed under a joint platform. In this way, it would government. Retrieved from https://www.imf.org/~/
be helpful to create a research institute to follow media/Files/Publications/fiscal-monitor/2020/April/
English/ch3.ashx?la=en the economic developments resulting from BRI OECD (Organization for Economic Cooperation and
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