Reasons why CPEC will not be another EIC

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CPEC Gwadar

It is only natural for people with a history of subjugation and being colonised to become wary of any kind of foreign involvement – be it positive or not. So naturally, concerns regarding China-Pakistan Economic Corridor (CPEC) were raised by a few politicians while some even warned about CPEC potentially turning into a new East India Company (EIC) – the infamous British trading firm which came to the sub-continent for business but eventually began to rule large areas of the country with private armies, exercising military power and assuming administrative functions.

However, to suggest that CPEC is similar to or would eventually turn into another EIC is farfetched and seems unlikely for a couple of reasons.

Different economic policies

China itself has a history of being a victim of imperialist aggression. Although it ostensibly is a communist country, practically the Chinese state functions through the principles of capitalism. While it is true that under capitalism, the primary purpose of enterprise is to make profits and not some altruistic goals to serve others, it is fundamentally different from “All for us, nothing for them” approach. It rests on bringing some amount, if not the ideal amount, of economic prosperity to the indigenous population in order to bring stability and sustainability.

China in Africa

China has been contributing to Africa’s economic growth, both in terms of trade and with building infrastructure. All over the continent, it has built roads, railways, ports, airports, and more, filling a critical gap that western donors have been shy to provide just as in the case of Pakistan.

The concern that CPEC will strictly create jobs for Chinese nationals can be answered by the fact that rising Chinese wages in certain sectors may lead to Chinese manufactures to export jobs to Pakistan if it can find cheaper labour. One such example is Zambia, where some 300 Chinese companies now employ around 25,000 people. Ethiopia’s shoemaking sector has also benefitted from Chinese investment that has created jobs and exports. Likewise, according to government estimates, CPEC will create around 2 million new jobs directly and indirectly.

Pakistan is no ‘golden sparrow’

A third reason why CPEC is different from EIC is that there was no yearning for foreign investment at the time by the Mughals when EIC worked its way in. In fact, it was the other way around, as the British had their eyes on the riches of the sub-continent, whose share of the world income stood at 27% in 1700 AD (compared to Europe’s share of 23%) – which plummeted to 3% in 1950 when the British finally decided to leave.

However, prior to the investment that CPEC brought in, Pakistan was no ‘golden sparrow’ for China to eye. Along with its dwindling economy, massive energy shortages, grave security concerns, Pakistan had an image problem which had kept foreign investment far away from reach hence the need is Pakistan’s.

Local checks and balances

Fourth are the checks and balances which formal institutions such as courts and regulatory authorities will provide. While Pakistan might not possess ideal institutional checks and balances, however, it does retain a fairly independent political and institutional structure which did not exist in colonial period.

Whilst the likelihood of another EIC in this modern age and time seems unlikely for the reasons discussed above, it does not mean that important questions regarding the transparency and effectiveness of the project should not be asked because it is awareness in the masses that serves as the most potent force which will ensure that CPEC will not become another mechanism of economic exploitation.

 

2 COMMENTS

  1. When the court passes an order, if that order is ignored or remains pending for a long time, the next step the court takes is to summon the negligent authorities to submit a credible explanation of thier failure to comply with that order. In the absance of a satisfactory explanation, or failure to obey after being granted sufficient time to do so, the court initiates contempt of court charges. WHY DO THE COURTS SHY AWAY FROM WHAT CANNOT BE IGNORED INTEREST OF JUSTICE AND CREDIBILITY AND POWER OF THE COURT TAKE THESE FURTHER STEPS.

  2. What was a desperate need for China to have an alternative supply route to ensure the security and transport their life blood of oil and gas, in the event the west resorts to its old tricks and imperial mischief mongering, choking China's shipping at the narrow Malacca straits, CPEC became a god given gift for Pakistan out of the blue. Musharaf, Ziradari and Nawaz Sharif all claim credit for it, when they had nothing to do with it in reality. China was aware of its vulnerability for along time and CPEC was devised a viable solution to implemented if and when the perception of risk became compelling. With Obama's pivot to Asia and things heating up in south China sea, China felt the danger lurking in the shadows, it decided to act by implementing CPEC at a fast pace.
    Going back a few years, China had another choice, to construct a supply route through Myanmar, but with Aung San Suu Kyi and west involved in Myanmar's political environment, along with emergence of US India axis, this route lost its viability in terms of all weather security at all times. China was left with just one choice to trust its all weather friend Pakistan, which translated in to reality means Pakistan army, even a half wit Chinese politician does not trust Pakistan's pathatic political setup.

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