№ 10/2017

Fìnansi Ukr. 2017 (10): 63–85

INTERNATIONAL FINANCES

GAVRYLIUK Oleh ¹

¹Kyiv National Linguistic University

Global infrastructure: policy versus economics

In the near future, the reformation of the global space in geopolitical and economic aspects with a peculiar role of the improved infrastructure is likely to take place. The article reveals the specifics of functioning, causes and trends of global infrastructure. The content, motivation, strategy and tools of the implementation of the global project “One Belt, One Road” is outlined. A critical analysis of the consequences of the use of Chinese loans and investment, based on case studies, proves that improving the infrastructure simultaneously further enhances the global impact of China on the one hand, and falling into the trap and political dependence of a number of developing countries on the other. It is proved that the construction of new infrastructure objects does not always correspond to the national interests of the participating countries and sometimes threatens their national security. It uses a wide arsenal of tools – from the provision of soft loans to support inefficient functioning under construction, often resulting in a reduction of the national sovereignty of recipient countries. In order to minimize the negative effects of the relationship with the second world economy, perseverance and maximum transparency / publicity should be respected in negotiations. It is stated that at present Ukraine has ghastly chances of full-fledged inclusion in the implementation of the project. The adoption and implementation of the adequate national transport strategy of setting priorities and their implementation mechanism will facilitate integration into the global infrastructure space.

Keywords:globalization, the Belt and Road Initiative, infrastructure, indebtedness, investment, financing

JEL: F01, F21, F65

GAVRYLIUK O. . Global infrastructure: policy versus economics / O. . GAVRYLIUK // Фінанси України. - 2017. - № 10. - C. 63-85.

Article original in Ukrainian (pp. 63 - 85)

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