Large infrastructure projects promised by China are
falling short of expectations in Southeast Asia, as a result of political instability, lack of local community involvement, and failed or canceled fossil fuel projects in host countries, according to an Australian think tank report.
Released on March 28 by the Sydney-based Lowy Institute, the “Mind the Gap” report said that while China remains the region's biggest infrastructure financier, a significant gap exists between its commitments and actual delivery.
An analysis of 24 major Belt and Road (BRI) infrastructure projects in Southeast Asia revealed that eight projects worth US$16 billion have been completed; eight projects amounting to US$35 billion were on track but reduced in scope; while five projects estimated at US$21 billion have been canceled.
Part of the problem is that the ambitious scale of many BRI projects also means they face greater political and financial challenges. In Malaysia, for example, plans for its
East Coast Rail Link (ECRL) became saddled with suspensions and renegotiations under different leaders; in the Philippines, ongoing tensions with the South China Sea prompted President Ferdinand Marcos Jr. to
drop Chinese funding.
The lack of local community involvement in BRI projects stems from China’s
top-down approach with limited transparency, say critics, leading to issues like resistance and project delays. Examples include the Jakarta-Bandung railway's cost overruns due to land acquisition problems and the Phnom Penh Airport's delays triggered by protests from local landowners who felt unheard.
This is not the first time that the BRI was flagged for its impact on local communities. In 2021, the Business and Human Rights Resource Centre (BHRRC) said there were
at least 679 incidents of human rights abuses linked to BRI projects between 2013 and 2020, a third of which happened in Myanmar, Laos, Cambodia, and Indonesia.
Many of the affected communities were displaced and inadequately compensated when a disaster inevitably struck the project.
A study by Yale found that many BRI projects bear far-reaching environmental impacts as over 80 percent are powered by fossil fuels, while a
2020 research by University of Cambridge senior research associate
Elia Apostolopoulou found that many China-backed projects – while promoting modernism in cities – tend to deepen inequality between the rich and marginalized communities.
Nevertheless, Beijing appears to remain committed to pursuing a “long-lasting and more responsive” BRI by shifting away from megaprojects and focusing more on risk management, due diligence, and higher environmental and social standards, Lowy Institute said.