8. The New Silk Road
• The new Continentalism
• Eurasian integration
• Middle-East, Russia, East Asia, South Asia
• From 1970s – present
• Energy interdependence
• Energy producers (Middle East, Russia, Central Asia
• Energy consumers (East Asia , South Asia)
• The major producer nations (Russia, Kazakhstan, Iran, Saudi Arabia)
• The major consumer countries(China, India, Japan , Korea)
• Largest energy producers-most ravenous consumers
• The Gulf produces more than 30% of the world’s oil
• Saudi, Iran, Iraq have nearly half of the world’s entire proven oil
• Russia has a quarter of global reserve of gas
• The New Silk Road of gas and oil
9. Factors
• Oil shock! + nationalization of middle-east energy away from
western major oil company (Aramco-Saudi Arabia,) 1973-1975
• China’s Four Modernization under Deng Xiaoping
• India’s 1991 financial crisis and subsequence reforms (1991)
• The Collapse of Soviet Union (1991-1992)
• Iranian Revolution 1979
• Putin
• Geographical proximity
• Share common history
• Shift on locus of economic growth of China from east coast region
to inland area (Chengdu, Xian, Chongqing, Urumqi, Kashgar)
• China don’t want to depend on sea lanes dominated by US Navy
10. How Eurasian countries integrate
• SCO –Shanghai Cooperation Organization-China, Kazakhstan, Kyrgyzstan, Russia,
Tajikistan, Uzbekistan,(India, Afghanistan, Iran, Mongolia, Pakistan, Belarus, Sri
Lanka, Turkey, ASEAN,CIS , Turkmenistan
• Asia-Middle East Dialogue (AMED)
• Gas Exporting Countries Forum
• Eurasian Union
• China’s strategy of economic integration with neighboring countries
• The New Silk Economic Belt (China+Central Asia
• China-India-Myanmar-Bangladesh Economic Corridors
• Asia Infrastructure Investment Bank
• New Development Bank (Russia, China, India)
• Intercontinental pipeline of oil and gas
• Railway, roads, highways
• Russia-China oil and gas pipeline
• TAPI pipeline
• Turkmenistan-Uzbekistan-Kazakhstan-China gas pipeline