Can the Belt and Road Initiative Promote the Industrialization of Developing Countries?

Abstract

While industrialization has profound implications for human well-being, the industrialization of developing countries faces multiple challenges today. Based on the theoretical framework of development economics, this article discusses how the Belt and Road Initiative (BRI) as a new model of international development cooperation can complement and improve the traditional model and analyzes how the new model can promote the industrialization of developing countries. The findings show that BRI has improved the traditional international development cooperation model in terms of emphasizing investment in developing countries, infrastructure construction, the principles of achieving shared growth through consultation and collaboration, the role of the government, and systematic and open development cooperation. At the same time, the BRI can facilitate the industrialization of developing countries by improving agricultural productivity, building infrastructure, capital formation, trade promotion, rural–urban transformation, and upgrading technology and knowledge. However, the facilitation effect depends on how developing countries formulate industrialization strategies keeping in perspective their national conditions and development needs and the international economic environment.