Emperor Palace Casino - Zambia

This story belongs to my uncle who works as a hotel manager, he's kind of like the hotel hell Gordon ramsay. He's last the person they employ before pulling the plug or making the hotel profitable.
Usually his placements are minimum of 5 years and should everything go according to plan at the end of that five years the hotel would not need to close. (As I can remember he has never had to close down a hotel before)
The new hotel and staff he was training up are located in Zambia as part of a 5 star hotel and casino.
Now they had some wealthy man(we'll call him B) that had come from family money and continued the family business spend about $1 million every time he came to visit, mostly he spent this at the casino. Now he really thought that money gave you permission to treat the staff how ever he saw fit. He would hail the waiting staff over using racial slurs comparative to the N word in some cases he would REALLY dress up his insults. Not something I want to repeat. Bare in mind that he is visiting an African country and addressing every single staff member that was my uncle or his own ethnicity with utmost degradation.
This really started to impact the staff negatively and you could see the motivation and happiness drain from dealing with this man. Eventually all of the staff refused to serve him or interact with him which made him act more entitled. Well my uncle called up the board of directors mentioned the situation and said he does not want to do anything too rash since the client is such a big spender but with the teams permission he kicked the guy out of the hotel that day, and he was permantly banned from an international hotel group.
2 months later he got a call from another hotel group asking him about the same customer and his poor attitude, he got permantly banned from that hotel group as well.

I was in Zambia. I needed to withdraw more than the local banks would allow me (they have very low daily withdrawal limits. ) Went to a few banks but was still short about 5000 Kwacha. (Out of 12000 needed)
We went to the local casino, they let us take out the cash and more as long as we gambled a bit.

It is long but I think very necessary for people to know. TL;DR at the end.
I was born in Zambia but I have been living in South Africa for a while. I came back with my family to visit relatives and friends this holiday. My father is very political and for the whole year he has been talking about how China has taken over the country. I thought he was exaggerating because he tends to do that. And then I saw it for myself.
Flying into the airport, you can already see a sign welcoming you in both English and Mandarin. You don't go long before you see another sign like this advertising a new hotel, mall or casino. I am still going to do research myself but it is still very hard to find details of how this came to be. Our President seemed to have made a deal with the Chinese government so that they get tenders to build all of this stuff.
Apparently our President has sold our media companies and electricity provider to the Chinese government (possibly to pay off this massive debt we are in?). One time a popular newspaper printed a entire page in Mandarin. Because of all the different languages we have, English is our official language. It was meant to bring us together. When you print an entire page in Mandarin what message are you sending to your people? You have never done this for any other language but suddenly we must do it for China?
Now I don't have anything against China or its people. They are making the best of the current economic situation (globalization) and they are very good at what they do. They deserve their credit where credit is due. What I have a problem with is my government. Just visting my relatives, you can see people really trying. They are buying land, building lodges and businesses, they are trying to educate themselves about economics and commerce. They want to know how to buy shares, start investments, make money to provide for their family and their future generations. This is both old and young people. However when they call the government for help or when they need important documents, the government drags its feet like it resents helping us. They tell us from their parties in the suits we paid for that we should become responsible citizens and work hard. But when the Chinese government calls or even one civilian, theybend over backwards to meet them, to make sure they are safe and have everything they need, give them the best deals. All of this ass kissing is going on while Zambians still have to fight with their government to get electricity.
Sometimes it is even harder if you have political opinions and then the party you supported didn't win the elections. There are so many people who were successful and contributing to the economy but then their businesses got buried because they supported the wrong person.
Zambia and many other African countries have so much potential. We have large populations of capable people, resources and the ability to learn from the mistakes of other countries. But none of this matters if our governments keep putting us down and keep on valuing the opinion and potential of foreign countries over us. We should be in friendly competition with China not in this China-centered relationship.
TL;DR The Zambian government bends over backwards to make sure China has the upper hand in our economy but drags its feet to help its citizens who are trying, with limited education, to get into business and economics.

Yesterday a modder tried to kill me in his monster truck, so I shot him after I dodged him. I instantly started getting ferris wheels on me and got set on fore and blown up countless times for about 10 minutes. After he left, I realised that all my money, 4.2 million at the time, and all my guns had disappeared. I was obviously upset, but after I joined a new lobby, they came back. However, I have been blocked from my daily spin or playing in the casino. I live in Zambia, and I am supposed to be able to play. I thi k the modder might have done so. Any advice on how to fix it?

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How the Day Unfolded

12 Questions to Ministers were answered

• Transcript can be found here

1 Question to a member was answered

• 1. PHIL TWYFORD (Labour—Te Atatū) to the Member in charge of the Healthy Homes Guarantee Bill (No 2): Why did he draft the Healthy Homes Guarantee Bill (No 2)?
  ANDREW LITTLE (Labour - list)(Member in charge of the Healthy Homes Guarantee Bill (No 2)): Because, in 2016, no child in New Zealand should be living in a hovel, and it is time that New Zealand accepted a standard that no child should be getting sick or die because they cannot live in a warm, safe, dry home. This bill sets standards to ensure that every rental property is livable and will keep kids out of hospital.
  Phil Twyford: How does this bill differ from the current law?
  ANDREW LITTLE: The current law, propagated by the present Government, applies a standard for insulation that is only at the 1978 standard and requires the installation of smoke alarms. My bill requires there to be a source of heating, requires weathertightness, requires the house to be able to be ventilated, and has a minimum standard on drainage. The Children's Commissioner described the Government's current law as shameful and said that it will do little for children living in cold, damp, mouldy homes. My bill will be a whole heap better.
  

The General Debate was Held
The general debate is held every week on Wednesday after Question Time. The formal procedure for the debate is that a member move a motion that the house take note of miscellaneous business. Members have 5 minutes to speak to whatever issue they wish. At the end of the hour the motion lapses and no question is put or vote taken.
The speakers were:

Call	Member	Party	Seat	Topic
1.	Andrew Little	Labour	List	Housing, The Budget, The State of the Govt
2.	Amy Adams	National	Selwyn	The Labour Greens MOU & Government announcements in the past 4 weeks
3.	Iain Lees-Galloway	Labour	Palmerston North	Immigration
4.	Anne Tolley	National	East Coast	Welfare Reforms & Regional Development
5.	Ron Mark	New Zealand First	List	Immigration & the rise of New Zealand First at the expense of Labour and National
6.	Craig Foss	National	Tukituki	Andrew Little v Stuart Nash and East Coast development
7.	Peter Dunne	United Future	Ohariu	Children in New Zealand
8.	Sarah Dowie	National	Invercargill	Economic Growth and Development in Southland
9.	Marama Davidson	Green	List	Housing
10.	Jono Naylor	National	List	Recent Government Announcements
11.	Louisa Wall	Labour	Manurewa	Social Development & homelessness
12.	Dr Shane Reti	National	Whangarei	Government achievements and announcements

A transcript of the debate can be found – here
Private and Local Orders of the Day

• The committee stage of the Royal New Zealand Foundation of the Blind Act Repeal Bill was completed. The debate on this non controversial bill was very quick - only 3 members took a call before the bill was agreed to and reported without amendment. The bill is in the name of Nicky Wagner (National - Christchurch Central)

Member’s Orders of the Day

• The Minimum Wage (Contractor Remuneration) Amendment Bill was read a second time. This bill is in the name of Labour list MP David Parker. This Bill amends the Minimum Wage Act 1983 to extend its provisions to apply to payments under a contract for services that are remunerated at below the minimum wage. Act and National voted against the bill but the vote was won after United Future voted in favour of the bill.
  
• The first reading of the Oaths and Declarations (Endorsing the Principles of the Treaty of Waitangi) Amendment Bill was not agreed to. The purpose of this bill is to ensure that a person taking any oath set out in statute may, in addition to the words of the oath, elect to state that they will perform their duties in accordance with the principles of the Treaty of Waitangi.
  This bill saw spirited debate including the contribution of Treaty Affairs Minister and Attorney General Chris Finlayson (National – list). Arguments in favour contended that one could swear an oath on a bible to uphold the law according to their religious belief but not to uphold the principles of the Treaty that founded our nation. The counter argument was one based on the lack of need and that government agencies already uphold the principles of the treaty during their day to day activities and are required to consider them during decision making.
  The votes were:
  

  Party	Aye	Nay
  National	0	59
  Labour	32	0
  Green	14	0
  New Zealand First	0	12
  Maori	2	0
  Act	1	0
  United Future	1	0
  Total	50	71

• The Social Security (Stopping Benefit Payments for Offenders who Repeatedly Fail to Comply with Community Sentences) Amendment Bill was read a first time. The bill was passed 61 – 60. This bill is in the name of National MP for Rodney Mark Mitchell. This bill would give the Department of Corrections the power to issue warnings to persons who have not complied with community-based sentences, with the consequence of withholding benefit payments. It has been referred to the Social Services Select Committee.
  

Debate Interrupted

• The debate on the Customs and Excise (Prohibition of Imports Made by Slave Labour) Amendment Bill was interrupted when Mark Mitchell (National – Rodney) was speaking with 9 speeches remaining. The bill is in the name of Labour’s Tāmaki Makaurau MP Peeni Henare and amends the Customs and Excise Act 1996 to make goods produced in whole or in part by slave labour a prohibited import. National have indicated they will be voting against the bill.

The Biscuit Tin of Democracy
It has been a while but the biscuit tin has been dusted off and there was space for 3 bills to be drawn today. 79 bills were entered into the ballot.
The winning bills were:

• Land Transfer (Foreign Ownership of Land Register) Amendment Bill - Mahesh Bindra from New Zealand First proposes a bill that would ensure that a comprehensive register of all foreign-owned New Zealand land is compiled and made available to the general public.
  
• Residential Tenancies (Safe and Secure Rentals) Amendment Bill in the name of Green Party Co Leader Metiria Turei. This bill amends the Residential Tenancies Act 1986 to strengthen tenants’ rights and promote secure, long-term tenancies.
  
• Airport Authorities (Publicising Lost Property Sales) Amendment Bill in the name of Port Hills based National List MP Nuk Korako. This bill will amend the Airport Authorities Act 1966 to provide airport authorities with greater flexibility when publicising the disposal of lost property.
  

Psephology Spotlight
Elections Concluded

• In South Africa the ruling African National Congress suffered massive losses in their worst election performance since the end of Apartheid. The municipal council elections (which are conducted under MMP) saw the ANC lose majority control of many battleground cities including Johannesburg and Nelson Mandela Bay and minor parties now are engaging in coalition talks between the ANC and opposition Democratic Alliance over who gets to control the council. In the last election the ANC garnered 62% of the popular vote whereas this year they mustered 54%. Corruption and economic woes are attributed to the swing away from the ANC. Famously President Zuma was found by the Constitutional Court to have benefited from $16 million worth of illegal expenditure to his personal home. In another example local corruption resulted in hundreds of toilets being built, row upon row, where houses should be instead.- see 1:20 in the video The ANC have promised to do a review in preparation for the next general election in 2019 and the position of President Zuma appears to be on shakey ground. However, many factions within the party are loyal to Zuma and it is thought that it is unlikely he could be brought down without a fight. Turnout was particularly key to the election results. Significant amounts of the population are still loyal to the ANC and so express their dissatisfaction by not turning up to vote, as they will not vote for any other party. Winning these groups back by 2019 is the new priority for the ANC and the opposition is hoping to win them over by bringing new leadership to local government.
  
• The small African island nation of São Tomé and Príncipe has a new president after their August 7 vote. The first round was held on July 17 and provisional results suggested that challenger Evaristo Carvalho, a former Prime Minister, had won but the result was annulled due to irregularities. Incumbent president Pinto da Costa boycotted the second round after claiming Carvalho engaged in fraudulent activity in round 1 meaning Carvalho was elected unopposed. Costa served as the nation’s first president from 1975 – 1991 and was elected again in 2011. He will leave office in early September.
  

Upcoming Elections

• Presidential elections will be held in Gabon on 28 August 2016. The president serves a seven year term and is elected via first past the post. The issue for the opposition is that given the multitude of candidates standing (14 are approved to be on the ballot) vote splitting may result in incumbent President Ali Bongo Ondimba sneaking back into office much like how Ondimba was first elected in 2009. Former United Nations General Assembly President and Gabonese Foreign Minister Jean Ping is considered Ondimba’s toughest competition. Ping served under Ondimba’s father who was president of Gabon from 1967 until his death in 2009 and was involved in demonstrations against Ondimba which were broken up by police.
  
• General elections and a constitutional referendum will be held in Zambia on 11 August. At stake are 150 members of the National Assembly, the five year term of president and an amendment to the Bill of Rights. The amendment would see Economic, Social, Cultural and Environmental rights inserted alongside civil and political rights. Additionally the referendum if approved would see the rules for amendments to the constitution and bill of rights changed. In the race for president Edgar Lungu of the Patriotic Front is hoping to be elected to his first full term in office after winning the 2015 presidential by election. He is facing a rematch with Hakainde Hichilema of the United Party for National Development who missed out on victory by 27,757 votes last time in a race that still is disputed. The election method is two round first past the post. The Patriotic Front currently has a plurality of seats (60) in the multi party National Assembly who are elected via first past the post.
  

Fact of the Day – Housing the Prime Minister
All over the world Prime Ministers and leaders receive as a perk of their office a home that they can reside in throughout their tenure. In the United Kingdom it is 10 Downing Street, The French Prime Minister calls Hôtel Matignon home, The Prime Minister of Canada gets 24 Sussex Drive while the Prime Minister of India gets 7, Race Course Road (A.K.A Panchavati). In Australia the Prime Minister has The Lodge in Canberra and Kirribilli House in Sydney. In New Zealand it is Premier House but this hasn't always been the case.
In the early days of the New Zealand Parliament, premiers were required to find their own accommodation. This changed in 1865 when the capital moved to Wellington and the government acquired a simple 22-year-old wooden cottage in Thorndon’s Tinakori Road. This was a damp, flood-prone gully, but it was close to Parliament. A Wellington newspaper, elated by the city’s new status, thought the £2900 price ‘cheap’. An Auckland paper called it a ‘monstrous waste of public money’.
New Zealands sixth Premier, Frederick Weld, didn’t get to spend long in the house. Weld made many enemies by overseeing the moving of the capital to Auckland from Wellington as well as seeing the confiscation of more than a million acres of land from Waikato Maori. The finances of his government were precarious at best and his relations with the Governor soured over the withdrawal of British Troops. In October 1865 his government resigned after less than a year in the position.
With the arrival of the Vogel family in 1872 the house adopted the name “the casino” and consisted of 8 bedrooms with conservatory and ballroom. The ballroom got a hammering. They made Premier House the social centre of Wellington. In July 1876 Lady Vogel sent out 250 invitations to a calico fancy dress ball, ‘the most brilliant of its kind yet seen in this city’. The Vogels also imported New Zealand’s first lawn tennis set, though Sir Julius was too unfit to chase the ball far.
In 1884 the Vogels returned for another three years. Sir Julius was obese and gouty, so Cabinet often met in an office built in the house. In 1886 he added a lift to take him from the dining room up to his bedroom.
After the Vogels moved out, the government tried to sell the property. But the press and public fought back. Wellington people valued its spacious grounds as a public amenity. Only the furniture was sold. Some suggested turning the site into an old men’s home or a university, but it stayed empty. MPs’ salaries had been cut, and the Liberal ministers of the 1890s had to live cheaply. Premier Richard John Seddon lived in a modest ministerial residence at 47 Molesworth Street. ‘This isn’t at all a nice house; it is surrounded, like a nunnery, with a high and close and ugly wooden fence, and presents a dismal appearance’, a voter complained. Seddon’s son remembered it fondly as ‘a political house. Politics was the sole subject day after day – at breakfast, dinner and tea.’
The Tinakori Street residence, vacant since 1893, was leased out from 1896 to 1900, when it became a ministerial residence again.
The house’s fortunes recovered when Seddon’s deputy, Joseph Ward, moved in. Ward, soon to be Sir Joseph, and prime minister from 1906, named it Awarua House. Like Vogel, he enjoyed the good life. The Wards threw ‘at homes’, garden parties, receptions, garden fetes, balls and wedding receptions. Sometimes over 1000 people gathered there. When Governor Ranfurly dropped in for a chat, they served him whisky in special large glasses. Sir Joseph liked to free office hours for talking or socialising. So he spent the early morning in his study in pyjamas and dressing gown, signing the documents delivered by his chief secretaries.
William Massey, the house’s next lengthy occupant, renamed it Ariki Toa, ‘home of the chief’. During the First World War the Masseys used it for patriotic activities.
In 1925, Gordon Coates called Ariki Toa ‘a happy home … a haven of rest’. That year he rebuilt the conservatory and added an enclosed veranda above it. Four years later Cabinet again tried to sell it. ‘Sunless and damp, and the gardening costly and unnecessary’, an official sniffed. But again, public protests prevented a sale.
Ariki Toa’s role as the prime minister’s official house ended in the 1930s when George Forbes moved out. In 1935 the new prime minister, Michael Joseph Savage, a frugal bachelor, made the break permanent by choosing a smaller ministerial home in Molesworth Street. Three years later, dying of cancer, he moved into Hill Haven, 66 Harbour View Road, in the suburb of Northland. Prime Minister Peter Fraser decided to remain in Hill Haven throughout the 1940’s preferring its scenic outlook.
Sidney Holland preferred a place with a guest bathroom. He renovated 41 Pipitea Street in Thorndon. This brick house is close to Parliament, but its surroundings were still industrial, ‘with a brewery chimney quite close, a paint factory next door, commercial offices (B.P. Ltd) on the eastern boundary.’ The section had a small lawn in front and room for a clothes line behind, but the house was too small to entertain official guests.
Holland’s National successor Keith Holyoake also lived there. In 1966 the air was still ‘sodden with the smell of hops and malt from the brewery up the street, and jackhammers are busy tearing down Victorian ruins all around.’ But the economy-minded Holyoake dismissed all suggestions of building a new official residence. The Holyoakes put buckets under the leaks in the kitchen roof whenever it rained. Today Pipitea Street is still an important part of New Zealand politics and serves as the home of the National Party offices
Holyoake was not as eccentric as he might seem. Ministerial houses were seldom very flash. Every time the government changed, prime ministers-elect trotted around these places, often still occupied by defeated ministers and their families. In November 1972, for example, Norman Kirk and his wife, Ruth, went house hunting. Because they knew Holyoake had let 41 Pipitea Street deteriorate, they did not even bother to look at it. They chose a Seatoun house recommended by their ministerial driver.
The Ministry of Works looked after ministers’ houses. As many had been bought only to be demolished for motorways and other development, it skimped on their maintenance and furnishing. Television came to New Zealand in 1960, but the Ministry waited until 1965 before providing TV aerials for ministers’ houses. Ministers paid for their own sets until 1973, when Cabinet made them free – provided the screens did not exceed 23 inches (58 cm).
In 1976 New Zealand regained an official home for its prime minister for the first time in 40 years. Ten years earlier, Jocelyn Vogel had given Vogel House in Lower Hutt to the Crown to mark 100 years of Parliament in Wellington. Designed in 1933 by Helmore and Cotterill, it was one of the Hutt Valley’s last large houses designed for a family and domestic staff.
Prime Minister Robert Muldoon rushed to refurbish Vogel House in time for a dinner for the visiting Queen Elizabeth II in February 1977. He was our first modern leader able to offer VIPs proper hospitality. David Lange, who succeeded Muldoon in 1984, never liked Vogel House and kept his family in Auckland. He ‘camped’ in a tiny first floor apartment in the house, moaning about the staff folding the edge of the toilet paper in neat triangles, hotel-style. Finding it too far from the Beehive, he saw out his term as prime minister in a flat near Parliament.
After Michael Joseph Savage rejected Tinakori Street, it became ‘the murder house’, a children’s dental clinic. The Public Works Department raised seedlings at the front of the grounds. In 1977 the dental nurses moved out, leaving the property empty. In the early to mid-1980s the Ministry of Works repiled the building and fitted sprinklers, but it remained underutilised. Some wanted to redevelop the site, but the Thorndon Society and the Historic Places Trust defended its heritage qualities. It is a Category I historic place on the Trust register. In the late 1980s, Minister of Internal Affairs Michael Bassett decided to restore 260 Tinakori Road as an official prime ministerial residence. The conservation of Premier House, as they renamed it, was a 1990 Sesquicentennial project. That year Geoffrey Palmerand his wife, Margaret, became its first official residents.
Premier House has housed every subsequent prime minister. Some made it a family home, but Helen Clark and John Key kept their families in Auckland, using Premier House as a workday squat. ‘There’s a little corner which has the bedroom and the bathroom, and … I go into the bedroom somewhere around midnight or later,’ Clark said in 2002. ‘The alarm goes in the morning, I wander along to the kitchen, I turn on the jug and make a cup of tea. Then I’m out of there.’
Nevertheless, Premier House hosts VIPs, such as Prince William, who attended a barbecue there in 2010. It is also used by politicians and officials for meetings and is the venue for events such as awards ceremonies. Premier House was one of the few Crown-owned ministerial houses retained by the government recently after it reformed ministerial expenses, terminated many leases and put ministers on to flat allowances to cover their Wellington expenses.
Information provided by NZhistory.net.nz
Previous facts of the day: Speaker's flat, Urgency, Jernigham Wakefield, Sidney Holland and the Suicide Squad, 1951 the last majority election, The Business Committee, New Zealand's First Parliament in Auckland, 1947 Greymouth beer boycott, So goes Hamilton so goes the nation, Australia and Compulsory Voting
Standing Order of the Day - SO311 - Recommittal
A motion to recommit a bill to a committee of the whole House may be moved after the order of the day for the third reading of the bill has been called. There is no amendment or debate on the question.
Local Elections are coming
Elections for Mayors, Councils, Community Boards, Regional Council and District Health Boards will be held on 8 October.
This election will be via Postal vote after a possible internet voting trial was scrapped. Only those correctly enrolled by Friday 12 August 2016 will get their voting papers for the 2016 local elections sent to them in the mail.
Voting papers will be sent out from 16 September and must be received by the electoral officer by noon on Election Day, 8 October 2016.
Enrolling or updating your details is easy - go online at elections.org.nz, freetext your name and address to 3676, call 0800 36 76 56 or go to any PostShop.
If you want to nominate as a candidate you have until 12 August to submit your papers. For more information visit your council website or consult Vote 2016
To see the nominations so far received for most councils and authorities click here
The next members day is expected to be on August 24
To see today's order paper click here
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Download/Listen: https://adamcarolla.com/blogs/podcast-archive/sarah-tiana-rj-s-parlay-and-eat-your-feelings
Show Summary
At the top of the show, Adam talks about his flight experience with JetSuiteX. He then rants about car services not pulling the seat up, and details why he and Mike August missed the flight home from Vegas. Adam also talks about a couple celebrity run-ins he had, and the guys go through a power ranking of the worst Uber drivers. Mike August then calls in to argue with Adam about the travel debacle, and Adam takes another call from RJ Bell to talk about this weekend’s NFL games. Before Good Sports, Gina brings in a new recipe for this week’s Eat Your Feelings.
Part 2 of today’s show starts with Sarah Tiana in studio. The guys then discuss why women like true crime, and Sarah talks about trying to spend your Casino bucks on tour, and how she got her start doing standup. Gina then starts the news talking about Whitey Bulger being beaten to death in prison. They also discuss Kanye West distancing himself from politics, and the Satanic Temple suing Netflix, which leads to Sarah sharing a ghost story. Other news stories include a suspicious package that contained a single Journey cassette tape, Twitter getting rid of the ‘Like’ button, and WeWork spaces limiting the beer they serve. As the show wraps up, the guys look at a picture of a giant emerald found in Zambia, and Adam talks about more types of guys he can’t hang with.
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One Belt, One Road: Why Trump Should Get Behind China's Economic Growth Plan
by Doug Bandow via The National Interest
URL: http://ift.tt/2shizFG
Doug Bandow
Economics, AsiaLike Hong Kong, Macau enjoys special status within China. The Special Administrative Region is effectively governed by Beijing, but retains liberal freedoms reflecting its Portuguese heritage. Much smaller than neighboring Hong Kong, Macau relies on gaming rather than finance as its economic foundation.
The Special Administrative Region took a major economic hit in 2015 in the midst of the Xi government’s crackdown on corruption and ostentatious living. The flow of Chinese “whales” to Macau’s casinos slowed and the economy retrenched. Macau has since recovered, but its leaders hope to diversify for the future. To promote that end the territory hosted the international conference on the Belt and Road Initiative (BRI) and Macau’s development.
The initiative, also known as One Belt, One Road, was proposed by China’s President Xi Jinping four years ago. A priority for Beijing, it necessarily is a priority for anyone under Beijing’s sway. And while Western states have been understandably skeptical of the program, Xi’s plans have been boosted by the Trump administration’s retreat from the international marketplace.
The U.S. government’s withdrawal from the Trans-Pacific Partnership, which it helped birth, and its talk about trashing the free trade agreement with South Korea, have encouraged America’s economic partners to look elsewhere to expand commerce. Beijing is moving to fill the void, advancing other free trade agreements along with BRI. Asian analysts and officials remain amazed at the Trump administration’s pursuit of economic isolation. No one else intends to follow the United States toward some variant of protectionist autarchy.
In fact, participants at the Macau conference wanted the United States to be involved, which is one of the reasons for why I was invited to attend the conference. In May, President Xi spoke of creating “a big family of harmonious coexistence.” Whatever his ultimate ambitions, local officials, with an eye to expanding economic opportunities, believe the more the merrier.
BRI harkens back to the fabled “Silk Road” of ancient times. Imperial China once was a dominant presence in Asia, before choosing isolation. The weakened state lost territory to Western “concessions” and Japanese conquest. Last century’s communist revolution created a new, even more malign form of isolation, until Deng Xiaoping took control and opened the People’s Republic of China to the world.
Since then the People’s Republic of China (PRC) has revived the best of its ancient commercial heritage. BRI offers an extension of Beijing’s already expansive commercial network, with the potential of placing China even more firmly at the center of the global economy. Weirdly, “Belt” refers to land transport while “Road” represents sea lanes. Nevertheless, the basic idea is to enhance old and create new infrastructure to promote commerce among Asia, the Middle East, Africa and Europe.
Nearly seventy countries have signed agreements with the PRC to participate. At its most expansive, the program envisions $4 trillion in spending and could touch two-thirds of the world’s people responsible for a third of the world’s GDP. However, so far Western countries and companies have been hesitant to join China’s BRI parade.
The initiative has multiple objectives. It is a geopolitical attempt to extend Beijing’s influence. It could enhance China’s international economic stature. BRI projects also could strengthen the PRC’s energy supply chain. The program might boost an economy that has been losing altitude. It offers projects for underperforming, even underwater state enterprises and employment for workers who have few obvious alternatives. Similarly, the initiative could help soak up some of the PRC’s infamous industrial surplus, particularly in steel and cement. BRI could increase trade opportunities as China faces protectionist pressures from America and Europe. Some Chinese even claim a hint of enlightened self-interest, comparing BRI to the Marshall Plan, only at thirty times the size.
To the extent that such a program succeeds in expanding global commerce, it will be good for China and the latter’s trading partners, as well as other nations which participate in BRI projects. The initiative also offers opportunities for Macau, which is why the latter hosted the forum. Having historically relied on gambling and tourism and with its trade overwhelmingly linked to China and Hong Kong, Macau is looking for additional economic options. The Special Administrative Region also has some unique advantages: a special relationship with the half dozen Portuguese-speaking nations, an entree into Europe from its Portugal connection, a specialized if small financial industry, and close ties with China and Hong Kong.
Although BRI’s ambitions are grand, so far its successes have been modest. And holding back from participating are major economic and geopolitical players who could help make the program a global reality. For instance, European countries have responded with varying levels of enthusiasm to Beijing’s plans; most did not send heads of state or government to last month’s Beijing forum.
Russia also has exercised caution. Although hostility toward Washington has helped draw Russia and China together, the latter two compete for political influence and business deals in Central Asia. Moreover, Moscow, under Western sanctions, may lack the capital necessary for full participation in BRI.
India has been ostentatiously hostile. New Delhi was angry over China’s planned $55 billion investment program in Pakistan, which would include disputed territory in Kashmir. The Hindi newspaper The Pioneer, tied to the ruling BJP, warned that the program’s goal “is to establish Chinese mastery over oceans and connecting routes across Asia and between Asia and Europe.”
The United States has given off mixed signals. Last year the Obama administration offered a tepid endorsement. Former Deputy Secretary of State Tony Blinken said the initiative was “consistent” with U.S. goals and could be “complementary” with U.S. efforts. However, the Trump administration’s Dan Coats, Director of National Intelligence, warned of the Chinese desire to “expand their strategic influence and economic role across Asia.” The administration sent a lower-ranking delegation to last month’s Beijing forum.
Washington’s reluctance in part reflects concern that the PRC is using its economic strength for political purposes. The Obama administration similarly refused to join the Asian Infrastructure Investment Bank. To this issue now must be added President Trump’s protectionist tendencies, even though BRI theoretically offers commercial opportunities for America firms. However, realization of those possibilities depends greatly on the rules and terms governing projects at a time when United States firms feel increasingly unwelcome in China.
If Xi’s program is going to attract greater participation from these important international players, BRI must focus on economics, not politics, and promote projects which make economic sense for lenders/builders as well as borrowers/recipients. BRI also needs to take into account the often complex and fragile politics within participating states.
There are many potential pitfalls which need to be avoided. One is that the program may have too many objectives: China and fellow participants need to set priorities. Such a program, with high geopolitical goals, risks encouraging projects of little economic value. The pressure to find projects may grow particularly acute in the least developed BRI nations, many of which remain in poverty because of their own counterproductive policies. Indeed, nearly half of countries eligible to participate have been judged “high risk” by Oxford Economics, while half of those which have accepted projects have credit ratings below investment grade. To the extent that projects are treated more as assistance than commerce, BRI risks repeating the unhappy experience of manifold failed aid programs over the years.
Many of the governments involved are incompetent, unpopular and corrupt, undermining any program. Moreover, economic projects often have political overtones. China has found itself subject to protests and even treated as an election issue in such nations as Myanmar, Sri Lanka and Zambia. As noted earlier, Beijing’s Pakistan investment has drawn it into the Kashmir imbroglio. Russia may not react well if through BRI the PRC further attracts countries once part of the Soviet Union.
The program’s development might suffer from China’s own economic problems, such as banks with dangerously high-debt burdens and the temptation for companies and provinces to relabel most any economic development as BRI-related in order to win subsidies and other official support. Beijing’s increasing geopolitical aggressiveness may deter some states from participating out of fear of exploitation. Environmental issues are certain to arise, as well as risks of increased terrorism as potential targets, both people and projects, spread to more at risk countries. Finally, implementation issues are monumental: to manage so many projects in so many nations poses unprecedented challenges.
What of the future? There’s reason for skepticism, but problems can be overcome. However, doing so will require restraint and responsibility from Beijing’s nationalistic and aggressive authorities. One step would be serious economic reform at home, especially of state enterprises and banks, as well as ending what appears to be a systematic campaign to harass and disadvantage Western concerns. China also should join developed nations by paying off debts to the World Bank and IMF, which are artifacts of an earlier era.
The PRC should use BRI to empower poor nations. Beijing could open its capital markets, ease import barriers and enable more foreigners to work and do business in China. Also, Beijing should directly address the concerns of its greatest critics, emphasizing BRI’s economic purpose, focusing on private investment and participation rather than government enterprises, and structure deals to maximize international participation. The PRC could offer formal discussions over issues of concern, such as technical standards for projects.
Finally, China should seize the opportunity to share global economic leadership. Beijing should point out to the Trump administration that BRI offers the potential for the sort of “deals” that President Trump appears to value and look for ways to use the program as a means to expand trade with other nations in the wake of the Trump administration’s economic retreat.
In pushing BRI, President Xi spoke of the “great rejuvenation of the Chinese nation.” That already has occurred. China accounts for half of Asia’s economic activity. The PRC is the globe’s largest merchandise trader. In recent years it has been the largest contributor to world economic growth. Total Chinese foreign direct investment is estimated at a trillion dollars.
But challenges remain to Beijing’s program, most seriously the suspicion that BRI is a political maneuver intended for the PRC’s global advantage rather than the economic benefit of others. China should address its critics.
Last month President Xi called on conference attendees to “build an open platform of cooperation and uphold and grow an open economy.” Properly structured, BRI could advance that end. Then Beijing would be well positioned to challenge the United States and Europe, as well as India and Russia, to join China’s efforts. If they took up such a challenge, much could be accomplished for the benefit of all.
Doug Bandow is a senior fellow at the Cato Institute and a former Special Assistant to President Ronald Reagan. He is the author ofForeign Follies: America’s New Global Empire.Image: Transporter freighter ship. Pixabay/Public domain