ON PROBLEMS OF BUILDING THE RUSSIA - MONGOLIA - CHINA ECONOMIC CORRIDOR
A. Davaasuren1, Ch. Ariunjargal2
1Mongolian Academy of Sciences, Institute of International Affairs, Mongolian Academy of Sciences, Ulaanbaatar, Mongolia
2East China Normal University, Ulaanbaatar, Mongolia
Keywords: the Belt and Road Initiative, the Path for Development program, economic corridor, Russian - Mongolian - Chinese interaction, road transport infrastructure, economic integration of Asia-Pacific countries
Abstract
This article examines the background and conditions for China’s Belt and Road Initiative, how it is perceived and reacted to in the world. We also present the results of the agreements reached by the Heads of State of Russia, Mongolia, and China. The article classifies 32 projects within the economic corridor, highlighting the most priority ones. A review of research done by scientists from these three countries in infrastructure development, regional integration, and interstate cooperation made it possible to determine the states’ potential and development levels in terms of financial and natural resource possession. In addition, we analyze and compare each party’s strategic interests and benefits from the economic corridor to be built, identify their peculiarities, and assess the existing mechanisms for trilateral cooperation. This work proves the need to work on interstate coordination mechanisms. Particular attention is paid to describing the essence, goals, and objectives of Mongolia’s Steppe Road national program, later renamed Path for Development, and the results of measures taken by the Mongolian government to create road transport infrastructure as part of the economic corridor. Examples of such measures are several road construction projects under the Path for Development, and the Tavan-Tolgoi - Gashuunsukhait and Tavan-Tolgoi - Zuunbayan railways. The problems of road transport infrastructure are related to the financial difficulties in refinancing the profits coming from the Ulaanbaatar Railbus, the lack of investment from the Asian Infrastructure Investment Bank and the Silk Road Fund, despite these financial institutions having decided to participate in financing road transport projects. There is criticism toward the fact that Chinese companies act as the principal contractors in the Mongolian-based projects financed by grant aid and a concessional loan from the Chinese government, while Mongolian ones are only involved as subcontractors. The Mongolian side has taken the initiative to attract investment from countries outside the set contracts or international financial institutions, which the other two parties, Russia and China, find disagreeable.
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