[Eric Rutkow, The Longest Line on the Map: The United States, the Pan-American Highway and the Quest to Link the Americas. Scribner. New York, 2019. 438 p.]

REVIEW / Marcelina Kropiwnicka

Though the title tries to convince the reader that they will merely be exploring the build-up to the largest link between the United States of America and its southern neighbors, The Longest Line on the Map: The United States, the Pan-American Highway and the Quest to Link the Americas covers much more. The book is written in more of a novel-fashion than a textbook-fashion. Author Eric Rutkow, rather than simply discussing the nitty-gritty development of the highway alone, is able to cover historical events from political battles in the homeland of the US to economic hardships encountered among the partner countries. Divided into three main blocks, the book chronologically introduces the events that took place during the Pan-American Highway's construction, beginning with the dream that a railway would connect the two hemispheres.

With the New World just barely beginning to grasp its potential, writer Hinton Rowan Helper's first-hand experience of traveling from the United States to Argentina in the mid-1800s made him come to the realization that there must be an alternative method of traveling between the two countries. After enduring the long voyage, he came to the conclusion, "Why not by rail?" The first quarter of the book hence explains the early attempts made towards linking the wide span between North America and Southern Argentina through the use of a railroad. Thus, when in 1890 the Intercontinental Railway Commission was created, the idea of a Pan-American railway began to flourish and preliminary work began.

The idea was passed on from one indefatigable supporter to another, keeping in mind the cooperative aim of pan-Americanism and the potential for US economic expansion. Yet still by the early 1900s, over half of the projected length of the railway remained unassembled. Despite multiple attempts and investment in building and rebuilding the rail (mainly due to logistical purposes), the project came to a final halt with the realization that the Pan-American Railway was beginning to look like what it was: an unfeasible dream. President Theodore Roosevelt had concluded similarly in 1905, when he gave preference to developing the Panama Canal, regulating the rules of the railway and building the US Navy. In the subsequent and comparatively short chapter of the book, Rutkow introduces the era when automobiles and bicycles were on the rise, causing a demand for the increased construction of roads and exhaustive efforts to build decent thoroughfare within the US. Also made note of in the book was the diverging attention from the railroad as a result of the outbreak of the First World War. These events combined would ultimately cease continuation of the railroad's assembly.

The second half of the book is dedicated to the continuation of the dream of connecting the two spheres using a different method: the building of the Pan-American Highway. Although only a sister to the railway project, the two ideas arise from the same ideal. The new project seemed especially tangible due to the growth of the 'motoring generation' and the strengthened advocacy of Pan-Americanism. The belief was that the highway would foster "closer and more harmonious relations" among the nations in the Americas. Nevertheless, the highway remains unfinished due to a mere 50-mile wide gap, known as the Darien Gap, located between Panama and Colombia ("mere" considering the highway today stretches more than 20,000 miles, connecting Alaska to the southern tip of Argentina).

The most engaging part of the book emerges in the last chapter, when Rutkow attempts at connecting the missing link between the two worlds, but isn't able to, which reminds us that the road remains unfinished. The chapter, which is committed to the Darien Gap, is able to give light to the idea that once, the two spheres had a dream of connecting, contrasting to what we see today with the pressure of erecting walls along the southern US border. Though the dream continues to overcome the gap and finish the road, a new challenge had finally emerged: Panama had changed its policy and refused to finish the pavement.

As for such a well-researched book of one of the largest projects on the American continent, there's a peculiar laxity: the coverage on South America is far less complete in comparison to all the focus that the United States' government efforts to organizing and funding the link received. In terms of critiquing the book as a literary piece, not every quotation within the book would be considered absolutely necessary to telling the story. Ironically there's a certain scarcity when it comes to describing the road itself or its surrounding environment. Perhaps the author makes up for this blunder with his meticulous choosing of maps and images to provide the reader with a context of the environment and era in which the dream was being pursued.

With its megacity and technology zone project , the Saudis are seeking to consolidate an economic alternative to oil.

NEOM, an acronym for New Future, is the name of the new city and economic-technological area , with an area three times the size of Cyprus, that Saudi Arabia is promoting in the northwest of the country, opposite the Sinai Peninsula. In addition to seeking alternatives to oil, with NEOM the Saudis intend to rival the urban innovations of Dubai, Abu Dhabi and Doha. The project also involves shifting Saudi interest from the Persian Gulf to the Red Sea and closer ties with Egypt, Jordan and Israel.

Aspect of the future NEOM megacity, agreement to the vision of its promoters [NEOM Project].

article / Sebastián Bruzzone Martínez

Middle Eastern states are seeking to diversify their revenues and avoid possible collapse of their economies in order to counteract the end-of-oil crisis expected in the middle of the 21st century. The sectors favored by the Arabs are renewable energy, luxury tourism, modern infrastructure and technology. The region's governments have found ways to unify these four sectors, and Saudi Arabia, together with the United Arab Emirates, seems to want to be at the forefront of the Arab technology degree program

While the world looks to Sillicon Valley in California, Shenzhen in China or Bangalore in India, the Saudi government has begun preparations for the creation of its first independent economic and technological zone: NEOM (short for the Arabic term Neo-Mustaqbal, New Future). The project was headed until recently by Klaus Kleinfeld, former CEO of Siemens AG, who has been replaced by Nadhmi Al Nasr as CEO of NEOM, following his appointment as an advisor to the Saudi Crown.

On October 24, 2017, at the Future Investment Initiative lecture held in Riyadh, Saudi Crown Prince Mohammed bin Salman announced this $500 billionproject , part of the Saudi Vision 2030 political program. The territory where NEOM will be located is in the border area between Saudi Arabia, Egypt and Jordan, on the shores of the Red Sea, through which almost ten percent of world trade flows, with a temperature 10ºC lower than the average of the rest of the countries of the Gulf Cooperation committee , and located less than eight hours' flight from 70% of the world's population, so it could become a major passenger transport hub.

As announced by the Saudi government, NEOM will be a special economic city, with its own civil and tax laws and Western social customs, of 26,500 square kilometers (the size of Cyprus multiplied by three). The main objectives are to attract foreign investment from multinational companies, diversify the oil-dependent Saudi Economics , create a free market space and home to millionaires, "a land for free and stress-free people; a start-up the size of a country: a blank sheet of paper on which to write the new era of human progress," says a promotional video of the project. All this under the slogan: "The world's most ambitious project: an entire new land, purpose-built for a new way of living". According to the project's website and official accounts, the 16 sectors of energy, mobility, water, biotechnology, food, manufacturing, communication, entertainment and fashion, technology, tourism, sports, services, health and wellness, Education, and livability will generate 100 billion dollars a year.

Thanks to a report published by The Wall Street Journal and prepared by the consulting firms Oliver Wyman, Boston Consulting Group and McKinsey & Co., which, according to them, had access to more than 2,300 confidential planning documents, some of the ambitions and luxuries of the futuristic city have come to light. Among them are flying cars, holograms, a Jurassic Park-style theme park of robot dinosaurs and Genetics edition, never-before-seen technologies and infrastructure, luxury hotels, resorts and restaurants, mechanisms that create clouds to cause rainfall in arid areas, beaches with glow-in-the-dark sand, and even an artificial moon.

Another goal of the project is to make NEOM the safest city on the planet, through state-of-the-art surveillance systems that include drones, automated cameras, facial and biometric recognition machines and an AI capable of reporting crimes without the need for citizens to report them. Similarly, the leaders of the urban initiative themselves predict that the city will be an ecological center of great projection, basing its power supply system solely on solar and wind energy obtained from panels and windmills, as they have a whole desert to install them.

For the moment, NEOM is only a project that is in the initiation phase. The territory where the big city will be located is a desert terrain, mountains up to 2,500 meters high and 468 kilometers of virgin coastline of turquoise blue water, with a palace and a small airport. NEOM is being built from scratch, with an initial outlay of $9 billion from the Saudi sovereign wealth fund Saudi Arabia Monetary Authority (SAMA). Apart from foreign business investment, the Saudi government is looking for workers from all professional sectors to help in their respective fields: jurists to draw up a civil, criminal and tax code; engineers and architects to design a modern, efficient and technological infrastructure and energy plan; diplomats to collaborate in its promotion and cultural coexistence; scientists and doctors to encourage clinical and biotechnological research and welfare; academics to boost Education; economists to make income and expenditure profitable; personalities specializing in tourism, fashion and telecommunications... But, above all, people and families to inhabit and bring life to the city.

As reported by the Arab newspaper Rai Al Youm, Mohammed bin Salman has submitted C proposal drawn up by a Saudi legal committee together with the United Kingdom, which consists in providing a VIP document that will offer special visas, residency program rights to investors, senior officials and workers of the future city. Contracts have already been awarded to the US engineering business Aecom and construction contracts to the English Arup Group, the Canadian WSP and the Dutch Fugro NV.

However, not everything is as ideal and simple as it seems. Despite the great interest of 400 foreign companies in the project, according to the local government, there is uncertainty about its profitability. The problems and scandals related to the Saudi crown, such as the imprisonment of family members and dissidents, corruption, unequal rights, the military intervention in Yemen, the case of the murder of journalist Khashoggi and the possible political crisis following the future death of King Salman bin Abdulaziz, Mohammed's father, have caused investors to tread carefully. In addition, in the region where the city is to be built, there are villages of locals who would be relocated and "compensated and supported by social programs", according to the Saudi government, which will be the subject of reproach by human rights groups.

In conclusion, NEOM is a unique project on a par with the Arab sheikhs themselves, who have adopted a far-sighted economic vision. It is expected that by 2030 it will be possible to live in the city, even if construction is still underway and not completely finished. According to the markets, the project, still far from completion, seems to be on track. It already has a €20 billion structural financing commitment with BlackStone, and a €45 billion technology financing commitment with SoftBank. Since such a project has never been seen before and therefore there are no references, it is difficult to determine whether the visionary plan will be successfully consolidated or whether it will remain just smoke and mirrors and huge losses of money.

management given to Chinese business prompts U.S. threat not to sell technology to Israel

The protests of the Trump Administration for having awarded the management of the port of Haifa to a Chinese business have not yet led the Netanyahu government to review the contract, which was processed at ministerial level without a plenary session of the Executive Council knowledge of its geopolitical implications. Chinese penetration in Israel - in the broader context of the Middle East - as well as the reaction of the United States, highlights a complicated triangle of relations: Israel wants Chinese investment, but fears losing American favor.

▲ container management at the port of Haifa, northern Israel [Wikipedia].

article / María Martín Andrade

The port of Haifa is one of Israel's main ports in terms of cargo throughput Issue It also has a strategic character: the port, in the north of the country, hosts the U.S. Sixth Fleet in its movements. The latter could be altered following the announcement of Israel's contract with the Chinese business Shanghai International Port Group (SIPG) to operate the port for the next 25 years starting in 2021, which has not been very well received by Washington. The company, which has pledged to invest $2 billion to expand the facility into Israel's largest port, describes its functions as including the construction and installation of equipment and the day-to-day management of port activities, classifying the project as part of the One Belt, One Road initiative.

This initiative has its origins in the Silk Road, a trade pathway that linked China with various countries on the Asian continent until it reached Europe, and which dates back to the first centuries BC. The new version is based on the early schemes and aims to boost China by creating a network of infrastructure, investment and trade, and by establishing multilateral and bilateral ties with the various states along it, as well as with international companies.

All of the above, added to the growing industrial and transportation expansion that China is experiencing, also justifies the Asian country's interest in some of the natural resources that the Middle East offers, such as oil, which imports account for 50% of the total, which is another reason why China wants to gain a presence in different parts of the region and which is manifested, among other things, in its investment in canals and ports such as those of Haifa and Ashdad in Israel, Cherchell in Algeria, Said and Alexandria in Egypt, and Kumport in Turkey. Specifically, its investment in the port of Haifa is also contributing to the development of the Israel-Gulf Economic Corridor (IGEC), whose goal is to create a railway line that runs from the port of Haifa to the Jordanian-Israeli border, linking it to the Jordanian railway system.

However, China's ambitions to gain a greater presence in the Middle East collide with the pretensions of another "robust rival", the United States, which, also motivated by economic and security interests, has landed much earlier in the region and has no intention of sharing it. Thus, after learning of the plans in the port of Haifa, the U.S. response is manifested in threats that it might stop sharing intelligence data with Israel and reconsider holding future long-term exercises by the U.S. Navy in that port.

It is important to note that this is not the first time that the United States has intervened to hinder relations between China and Israel. The conditions under which the latter country was established, added to the hostile environment that surrounds it and the need to possess weapons to maintain and protect it, have contributed to the development of its technology, especially in defense subject , whose broad scope is due in part to the United States, which has been supplying the country with the latest in military technology since the 1960s. All this has contributed to the fact that Israeli exports in technological subject , mainly in defense subject , have become the main source of income for its industry.

During the 1970s, Chinese Economics began to modernize, and the next step was to extend this modernization to the military domain, so China began importing defense developments from Israel. These relations continued to expand until 2000, when the Middle Eastern country, under U.S. pressure, decided to cancel the agreement that allowed China to obtain four Phalcon radar systems. The reason given at the time by the United States for opposing the agreement was the possibility that China would benefit from this technology in a military conflict in Taiwan. However, China is not the only country with which Israel has had difficulties exporting its technology. In 2008, Washington denied that it could submit Heron drones to Russia.

Despite all this, Sino-Israeli relations have managed to survive, with China becoming Israel's second largest trading partner in 2012, as well as developing new R&D partnership ties, consisting of a series of agreements and collaborations between academic institutions and companies from both countries.

However, considering the reaction of the United States to the Chinese involvement in the port of Haifa, it is not unthinkable to envisage a scenario in which American pressure would be repeated, in this case succeeding in abolishing the existing agreement with the Shanghai International Port business . If this happens, Israel would lose an important part of the investments it receives and trade relations with China would cool down, while Beijing could see one of its plans to create its ambitious Silk Road frustrated, although this would not mean its decline in the Middle East.

 What is unquestionable is that the United States no longer enjoys hegemony in this part of the world and has to come to terms with the idea that it will have to share influence with other great powers. That is why it may be more logical to achieve new forms of cooperation with China in order to establish mutually favorable conditions.

In conclusion, this new Chinese investment affirms what was already known: China's international presence is increasing and becoming more and more Issue, and it is wiser to adapt to the new changes than to get involved in love triangles that never have a happy ending for anyone.

Poland-Germany struggle to gain influence in the European region between the Baltic, the Adriatic and the Black Sea

The latest summit of the Three Seas Initiative (TMI) was attended by the President of the European Commission, which sample a hitherto incomplete endorsement from Brussels. It was also attendance by German representatives, although Germany is not part of this club of twelve Central and Eastern European nations. Poland, backed by the United States, wishes to lead the effort underway to reduce the region's energy dependence on Russian gas; in reaction, Germany has announced a bid, for the moment timid, to import liquefied gas from the United States.  

article / Paula Ulibarrena

On September 17 and 18, 2018, the third summit of the Three Seas Initiative, aimed at the economic development of the European Union (EU) area between the Baltic, Adriatic and Black Seas, was held in Bucharest. The meeting was attended by nine heads of state, two presidents of national parliaments, a prime minister and a foreign minister, along with several senior European officials, led by the President of the European Commission, Jean-Claude Junker, and a large German representation, as well as U.S. leaders.

The Three Seas Initiative (TMI, known in English as BABS-Initiative: Baltic, Adriatic, Black Sea) was launched in 2015 and consists of twelve countries: Austria, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Poland, Romania, Slovakia and Slovenia.

According to the Polish Institute of Foreign Affairs, the European Union's initial reticence about the MTI seems to have been overcome, as the summit was endorsed by the European Commission and the Commissioner for Regional Policy of the European Parliament. The role of the MTI in cohesion and in strengthening the EU is thus recognized.

The importance of energy supply

One of the main aspects that ITM deals with is energy. Its goal is to have an agile access to energy, but also to ensure the supply from different points, so as not to depend on a single provider, and also to try to play a diversification role in the supply to other European regions. At present, its efforts are mainly focused on the so-called BRUA project , which aims to open up the possibility of transporting gas from the Caspian Sea area to Romania's southern border, and from there to Romania's northwestern border with Hungary.

BRUA is an acronym for Bulgaria, Romania, Hungary and Austria, and aims to diversify the natural gas supply system in the region. "We are creating a distribution network ," said Miguel Arias Cañete, European Commissioner for Energy and Climate Change; "it is not just a classic large pipeline but small reverse-flow pipelines that allow gas to be sent south, east, west, so the region will have more sources of energy and cheaper energy."

The BRUA pipeline would be, to some extent, a substitute for the failed Nabucco project . This project consisted in the development of a natural gas transport capacity between existing interconnection points with the natural gas transport networks of Bulgaria (in Giurgiu) and Hungary (Csanadpalota), through the construction of a new gas pipeline with a total length of 550 km, on the route Giurgiu-Podisor-Corbu-Hurezani-Hateg-Recas-Horia, and three compressor stations located along its route (in Corbu, Hateg and Horia). It expected to reach a gas flow of 4.4 million cubic meters per year in the direction of Hungary, and 1.5 million cubic meters to Bulgaria.

The BRUA pipeline will only account for one third of the flow that Nabucco would have provided, thus minimizing the risk of market loss for Russia. The route, which crosses Romania from east to west and from north to south, is estimated to cost a total of 560 million euros. Romania anticipates that the Black Sea exploration activities of OMV Petrom ExxonMobil could lead to the finding new natural gas fields. To this end, it is envisaged to extend the BRUA gas pipeline for another 300 kilometers, from Giurgiu to the Black Sea perimeters.

Germany sent its foreign minister to the summit as an observer. Germany's interest is to strengthen its economic presence in the eastern region of the EU, in order to prevent the growing weight of China, secure its energy supply and play an important role in the gas distribution network within Europe, in a context of conflict over the supply of Russian gas, and the dependence that this entails for European countries. The construction of the second North European pipeline, known as project NS2 (Nord Stream 2), which will carry liquefied gas from Vyborg (western Russia) to Greifswald, on the Baltic coast of Germany, is currently being finalized. This project has always had the civil service examination the United States, which views with displeasure the EU's energy dependence on Russia, which is why the US is inclined to promote the ITM as an area for the development and entrance of energy sources that are not dependent on Russia.

Poland enters the game

Poland aligns itself with the US and tries to reduce the economic and energy dependence of Eastern European countries on Russia. But it is also trying to reduce Germany's weight in the region; this is reminiscent of the Intermarium promoted by Poland in the years between the two world wars. Poland's aim is to become a new gas distribution hub for the EU, where its ports would be used for the landing of liquefied natural gas of U.S. origin. These ports would be connected to the BRUA project , replacing Ukraine as a gas entrance to the EU and in turn substituting Russian gas for American gas (9).

It is precisely this ITM project , together with pressure from the U.S. president, that has provoked a reaction from Berlin. German Chancellor Angela Merkel counterattacked in October with the advertisement that Germany is once again opening the door to US gas by deciding to co-finance the construction of a 500 million euro terminal for liquefied natural gas ships in the north of the country. Germany would thus strengthen its alliance with the United States, but could also reduce its dependence on nuclear energy and greenhouse gas emissions.

The TTI projects are financed by a financial fund provided by six of the member states (Croatia, Czech Republic, Poland, Romania, Slovakia and Latvia), but open to the participation of all the countries that make up the group. Its goal is to provide financial support for the development of trans-national infrastructures in which at least three ITM member states participate. The institutional contribution exceeds 5 billion euros, and aims to attract external investment, from private funds, to strengthen the fund itself. With a thirty-year perspective, the goal is to exceed 100 billion euros.

After breaking off relations with Taipei, the Salvadoran government could give Beijing the management of a strategic port in the region.

Until a few years ago, China had no interest in Central America, basically because of the lack of raw materials. The diplomatic relationship that the region, almost as a bloc, maintained with Taiwan also diverted its attention. But the dynamic has changed. Encouraged by Chinese promises, El Salvador joined in August other neighboring countries that have been closing their embassies in Taipei. Why is China now interested in Central America? The Salvadoran case points to a desire to gain weight in an area of historic U.S. influence.

article / Jimena Villacorta

"After this careful analysis, advertisement that my government has made the decision to break the so-called diplomatic relations maintained until this day between the Republic of El Salvador and Taiwan and establish diplomatic relations between the Republic of El Salvador and the People's Republic of China". This is how Salvadoran President Salvador Sánchez Cerén announced the establishment of diplomatic ties with Beijing on August 20. The decision followed that adopted in May by the Dominican Republic and in 2017 by Panama, breaking the support of Central American countries to Taiwan.

Taiwan responded to this advertisement by assuring that the government of El Salvador had demanded an "astronomical sum" of money to finance the Salvadoran port of La Union and the campaign for the 2019 presidential elections of the government party, the Farabundo Marti National Liberation Front (FMLN), extremes that the Salvadoran government denied. The Taiwanese Minister of Foreign Affairs, Joseph Wu, presented the rupture of relations as a decision of Taipei, for the refusal to yield to those pressures, although everything indicates that the initiative was Salvadoran.

The internship of hidden payments is, of course, nothing new in the links between Taiwan and Central America, as it has been demonstrated the submission of checks to leaders of El Salvador and other countries to maintain diplomatic recognition so convenient for the Asian island. It is, in any case, a margin of corruption that, sometimes in the form of commissions, has also accompanied the landing of China in various countries.

The step taken by the Salvadoran government was criticized by the civil service examination. The mayor of San Salvador, Ernesto Muyshondt, of the Nationalist Republican Alliance (ARENA), described the decision as "terrible" and regretted that the leaders of the FMLN not only support "the repressive and murderous dictatorships of Cuba, Venezuela and Nicaragua", but also that "now they are breaking with a democratic country to establish relations with another dictatorship".

The civil service examination criticized that the Government is moved by partisan interests and leaves in the air the treaties and agreements signed with Taiwan, which has been a strategic partner for the country for 85 years and one of its main cooperators in areas of technology, health, agriculture and Education. Thus, there has been the loss of cooperation projects, financial resources and other aid, such as the scholarship plan for Salvadoran students in Taiwan.

U.S. Alert

The change of partner will foreseeably mean the substitution of Taiwanese programs for Chinese investment projects. In recent years, El Salvador has imported much more from China ($804 million in 2016) than from Taiwan ($135 million), but has exported similarly to both countries (about $50 million to each). It is normal that Taiwan will now stop favoring the purchase of Salvadoran products, which it used to prioritize, and that China will compensate the new relationship with investment in infrastructure.

This is where the possibility that China may take over the concession of the port of La Unión Centroamericana, in the southeastern end of El Salvador, in the Gulf of Fonseca, comes in. The Government has recognized the Chinese interest in this area, while the civil service examination criticizes the lack of information in the negotiations. The U.S. Embassy has even raised suspicions about the risk that, given the lack of transparency in the negotiations, China could use the facilities as a military base. Ambassador Jean Manes stated that "China's strategy of expansion in the region, not only economically but also militarily, is alarming". In fact, Washington has been warning for some time about China's increased presence in Central America, as in the case of the Panama Canal, in principle with civilian projects but which in certain circumstances could call into question U.S. security.

The U.S. Embassy has also indicated Chinese interest in buying Perico Island, located next to the port of La Unión. Last October, Ezequiel Milla, mayor of La Unión, stated that he had met with Bo Yang, a Chinese businessman and vice-president of the Chamber of Commerce between China and El Salvador, to discuss the sale of the island to build hotels. For his part, the businessman admitted having discussed purchase intentions with the owners of the private part of the island, where several families reside, who must be willing to vacate their homes. The island contains an important reservation of flora and fauna.

Unexploited port

The port of La Union is strategically located on the Gulf of Fonseca, where El Salvador, Nicaragua and Honduras converge (it is the only access of this country to the Pacific). In addition, it can connect in a matter of a few kilometers to the dry canal that Honduras is about to complete by widening the road linking its facilities in Puerto Cortés, on the Atlantic, with the Gulf of Fonseca. Honduras' coastline in the Gulf does not meet the appropriate conditions for a deep-water port, so the natural outlet for its goods to the Pacific would be La Unión.

The port construction project began in 1994, under the presidency of Armando Calderón Sol, with the goal of becoming the future "hub of the Americas", so that ships larger than the Panama Canal could dock there. Thanks to a loan from the Japan Bank for International Cooperation (JBIC), the project was launched. The port was built between 2005 and 2008 and inaugurated in 2010.

Under the presidency of Antonio Saca, there were two decrees for its concession. The first one, in 2008, was a master concession formula, that is, there would be only one operator managing the port for 25 years; however, an agreement could not be reached in the Legislative Assembly. In 2009, the second decree was presented, which proposed a company composed of the state-owned Autonomous Port Executive Commission (CEPA) and an international operator, with a 10% and 90% shareholding, respectively. But due to the change of government and other internal complications it was not approved either.

In June 2010, with Mauricio Funes as president, the port of La Unión was inaugurated under state administration, with the hope of being able to agree on a concession that same year. Finally, it was decided to apply the master concession. In September, the Assembly approved Decree 834, which contains the port concession law. Given the lack of approval of the bidding instructions and the contract by other institutions, the port concession was postponed for a couple of years, during which time the interested companies dropped out of the talks.

The bidding process was finally launched in 2014, but the tender was declared void in 2015 because there were no bids to operate in the infrastructure. In 2017, some laws were modified to attract investors, given the urgency of operating the port, whose maintenance has cost the country almost US$20 million in the last decade.

Special Economic Zone

If to date the facilities have attracted so little interest from investors, what benefit could China see in La Unión? ARENA congressman Mauricio Vargas does not believe that Beijing has any economic interest in the port, but rather is pursuing strategic objectives, as the Gulf of Fonseca provides access to three Central American countries and is part of the area that the United States considers important for its own security.

To make the La Unión option more attractive, in July 2018 the FMLN government presented the Special Economic Zone Law for the South Eastern Region of El Salvador, an area corresponding to La Unión and a score of neighboring municipalities. Thanks to tax advantages, China could turn that Pacific point into a distribution center for its products in the Central American Northern Triangle and Nicaragua. The connection through the Honduran dry canal would facilitate connection with the Atlantic.

The civil service examination believes that the creation of this special economic zone, which in the event of a massive influx of Chinese products could negatively affect local manufacturing, has been agreed in advance with China. The ECA president, however, denies obscurantism in the process. "We have nothing to hide. The process we are carrying out is transparent; we have entered an enquiry stage. The interest of our administration is to operate the port of La Unión and we must see it as a project for the country". He assured that there are companies interested in the concession also from Europe and America, not only from Asia.

The EU has backed down on the project, but Germany still gives support to the Russian initiative

The project of a second set of gas pipelines through the Baltic Sea, in order to transport Russian gas to the European Union without crossing Ukraine, has divided the EU governments. Some Eastern and Central European countries, backed by the United States, argue against any dependency on Russian gas supplies, but Germany keeps its support to the Russian plans.

▲The routes of the Nord Stream and the planned Nord Stream 2 pipelines from Russia to Germany [Gazprom].

ARTICLE / Ane Gil Elorri

The natural gas consumption for nowadays is essential to have basic necessities covered. Therefore, it's imperative for everyday life. Nevertheless, it goes through a laborious process before it reaches the consumers. The gas needs to be extracted from the land or sea subsurface, and transported, before it reaches its destination, being pipelines the most common via of transportation.

The EU's domestic gas production has been declining and the reserves in the North Sea depleted. Therefore, in order to meet demands, the EU has turned to other suppliers; being the most important Russia, Saudi Arabia and Norway. In fact, a lot of countries in the European Union are heavily dependent on Russian imports, especially of natural gas, which often go through transit countries such as Ukraine and Belarus. The decisions are all make through the EU-Russia Energy Dialogue. Russia has the largest gas reserves in the world. With 44,600 billion cubic meters, Russia has 23.9 percent of the world's currently known gas reserves, followed by Iran (15.8 percent), Qatar (13.5 percent), the United States, and Turkmenistan (4.3 percent each).

The most prominent European energy supply is the Nord Stream Pipelines. Nord Stream are a twin set of pipelines that provide gas transportation capacity for the natural gas, which comes from the Western Russia (Vyborg) into Lubmin, Germany, for the distribution into the European gas grid. This system is composed by a set of 1,224-kilometer pipelines through the Baltic Sea, and each hold the capacity to transport 27.5 billion cubic meters of natural gas a year. Line 1 became operational in November 2011 and by October 8, 2012 the system was fully operational, having taken the construction of these pipelines 30 months.

The desire of a grand-scale gas transport between Russia and the western Europe goes back to the 1970's, to the contract between a German company (Ruhrgas AG) and Gazprom (national Russian gas company) to supply natural gas. In 2000 the European Commission recognized the need for a pipeline in the Baltic Sea. In December 2005, the North European Gas Pipeline Company was established and by October 4, 2006, the North European Gas Pipeline was officially renamed Nord Stream. It was finally completed and functional in October 2012.

The Nord Stream project was very ambitious. Nevertheless, it was completed on time, on budget, and without permanently impacting the environment. The Nord Stream Pipeline system is fully operational and capable of transporting up to 55 billion cubic meters (bcm) of natural gas every year to Europe.

Now, a new project is developing based on the success of the Nord Stream Pipelines: Nord Stream 2. This project will benefit from the experience of the previous pipeline, which has set a new high for the environmental, technical and safety standards throughout its planning, construction and operation. The idea is to add a new set of twin pipelines along the Baltic Sea route to increase the capacity of gas transportation in order to meet the demands of Europe. In fact, this new pipeline will create a direct link between Gazprom and the European consumers.

The Nord Stream 2 project is implemented by the Nord Stream 2 AG project company, where Gazprom is the sole shareholder. In October 2012, the shareholders of the Nord stream project examined the possibility of constructing a third and fourth pipeline and came to the conclusion that it was economically and technically attainable. In April 2017, Nord Stream 2 AG signed the financing agreements for the Nord Stream 2 gas pipeline project with ENGIE, OMV, Royal Dutch Shell, Uniper, and Wintershall. These five European energy companies will provide long-term financing for 50 per cent of the total cost of the project.

The entry point into the Baltic Sea of the twin pipeline will be the Ust-Luga area of the Leningrad Region. Then the pipeline will stretch across the Baltic Sea. Its exit point in Germany will be in the Greifswald area close to the exit point of the original Nord Stream. The route covers over 1,200 kilometers.

The total capacity of the second twin set of pipelines is 55 billion cubic meters of gas per year. Therefore, the sum with the prior pipelines would give an outstanding number of 110 billion cubic meters of gas per year. Nord Stream 2 will be operational before late 2019.

This project is defended with the argument that it supposed a diversification of the routs transporting natural gas to Europe and to elevate the energetic security due to the instability of the transit of gas through Ukraine. For now, a lot of the natural gas consumed by Europe comes from Russia through Ukraine. Nevertheless, if this project goes through, Ukraine will lose 2,000 million dollars for the transit of natural gas, and even the proportion of gas will decrease (which is also for staff use) leading to the collapse and finalization of the transit of natural gas through Ukraine. Furthermore, if Hungary, Slovakia and Poland receive natural gas through the Nord Stream 2 pipelines instead of through Ukraine, it will be very difficult that Ukraine receives gas from the west, seeing as Gazprom along with others controls EUGAL (European Gas Pipeline Link) can reduce the supply of gas to those companies that provide gas to Ukraine.

The cost of 1,000 cubic meters in 100 kilometers through Nord Stream 2 would cost 2.1 million dollars while through Ukraine it costs 2.5 million dollars. The tariff of transportation of natural gas through Nord Stream is 20% lower than through Ukraine.

Only half of the European Union members approve the negotiations between the EU and Russia over the Nord Stream 2 Project. It is true that the natural gas demand of Europe is growing each year but some countries such as the Baltics are against anything that has to do with Russia. Besides the US, thanks to fracking, has become the biggest producer of gas, and is now looking to substitute Russia as the main gas supplier of the EU.

But other countries are in favor of this project. In January 31 this year, Germany gave its permission to begin the construction of the pipelines of Nord Stream 2 in their territorial waters. Berlin also authorized the construction of the section of 55 kilometers that will go through the terrestrial part situated in Lubmin. In April this year, Finland has also given the two permissions needed to begin the construction.

Nevertheless, Gazprom will be facing a few difficulties in order to pull through with this project. The company still needs that other countries, such as Norway, Denmark and Russia, give authorizations and permissions to construct the pipelines in their exclusive economic zone. There is a risk that Denmark doesn't authorize these new pipelines. The Danish Agency of Energy and the Foreign Office both have to give their approval but can deny the permit if Nord Stream 2 represents a danger for the environment. Another problem is purely political: the European Commission is trying to make the implementation of the project fit with the EU legislation. In November 2017, the European Commission prepared a list of amendments to its energy legislation, known as the Third Energy Package, which will pursue gas pipelines that come from the markets of countries that have the Brussels standards. Because of this, Gazprom won't be able to be the only shareholder of the Nord Stream 2 project and the pipelines will have to carry gas from other companies that have nothing to do with Gazprom.

Although, as previously mentioned, Nord Stream 2 has already received the two permits necessary in Germany and Finland in order to begin the construction, it seems that not many European countries are in favor of this project. In fact, since this April, the EU and the European Commission have withdrawn their support claiming that Nord Stream 2 does not encourage the diversification of gas supply, and they give more significance to the gas pipelines going through the Ukrainian territory in context of diversification of supply routes.
Other EU countries and of the region, such as Ukraine, Denmark, the Baltic States and Poland, have continuously spoken against Nord Stream 2, claiming that the project will increase Europe's dependence on imported Russian gas. Nevertheless, German Chancellor Angela Merkel supports this project, considering it to be an economic project which does not pose a threat to EU energy security, has is expected, seeing as the Nord Stream 2 is a joint venture between Russia's Gazprom, France's Engie, Austria's OMV AG, the Anglo-Dutch company Royal Dutch Shell, and Uniper and Wintershall, both German.

Nevertheless, the most vocally active countries against this project are the US and Ukraine. On one side, the United States believes that this project would undermine Europe's overall energy security and stability. It would also provide Russia other ways to pressure European countries, especially Ukraine. The US even threatened the EU firms to be subjected to Countering America's Adversaries Through Sanctions Act (CAATSA). On the other side, Ukraine's efforts to prevent the implementation of Nord Stream appears to be futile. They openly stated that this would conclude on the Russian monopoly on the world gas market, which would lead in Europe to an energy crisis and to an economic and political destabilization, and called for the international community to step in. Unfortunately, Germany is as headstrong as ever, stating that underwater pipeline to bring gas from Russia could not go forward without Ukrainian involvement in overland transit.

As the recent expulsion of European diplomats in Moscow shows, the global political relations have worsened considerably in the last few years. In fact, some would say that it the worst condition since the Cold War. This new political situation has had consequences on the Nord Stream 2, causing European countries to oppose to this project. The ultimate defender left standing of the programme is Germany, even the EU has backed down after Ukraine's protest. Ukraine has every right to oppose to this project, seeing as Russia has had nothing more but cold moves towards this country(cut off gas supplies in the middle of winter, Crimea), and is not outrageous to think that this project would ultimately affect the country, especially economically. Therefore, this project does not diversify the sources of natural gas, the first Nord Stream already reached this objective. The second Nord Stream, however, would grant Russia a monopoly of natural gas, which is not recommendable seeing as it would create Europe's dependence on Russia, and Russia could take advantage of it. Unfortunately, Russia will not give up this project, even with mostly everybody turns against it.

Opportunities and challenges in Sino-Panamanian relations, one year after the establishment of diplomatic relations

In June 2016, Panama inaugurated the expansion of its Canal. In June 2017, the Panamanian government decided to establish diplomatic relations with China (Central America has been a traditional ally of Taiwan), thus giving rise to the flow of new Chinese investments in a Canal revitalized with the expansion. On the one-year anniversary of the establishment of relations, here is a review of the opportunities and challenges posed by the increased Chinese presence in the isthmus.

▲Container ship of Chinese shipping line COSCO, making transit issue 2,000 in the expanded Canal, in September 2017 [Panama Canal].

article / Ximena Barria

In the last decade, the People's Republic of China has made efforts to increase its presence in different regions of the world. China's projection as a global power has meant that no region is alien to it and there are hardly any countries that do not actively seek commercial exchange with the Asian giant. Therefore, it is not surprising that China has wanted to increase its activity around the Panama Canal, and that this Central American country has established diplomatic relations with Beijing, breaking the traditional relationship with Taiwan.

Panama's privileged geography and its rapid economic growth in the region are two important aspects taken into account by China. The Panama Canal offers advantageous access to the Atlantic and Pacific oceans and about 6% of global maritime trade passes through it. At times there has been talk of Chinese interest in building a canal in Nicaragua, something that was never really on Beijing's diary . China sees Panama as an important geostrategic point from which to project its foreign policy in Latin America, which undoubtedly unsettles Washington.

On June 13, 2017, the Republic of Panama and the People's Republic of China announced the establishment of diplomatic relations. With this, Panama recognized the government of Beijing as the legitimate Chinese government and broke the previous diplomatic relations established with Taipei. The new Sino-Panamanian relations gave way to 19 agreements in various areas.

Chinese projects in the isthmus

In a country as open to trade and transactions of all subject as Panama is, the Chinese population has always had a relative presence. The Chinese community in Panama is made up of some 135,000 people, which represents 4% of its 4 million inhabitants.

Since 1911, Panama had maintained diplomatic relations with China. However, after the defeat of the Chinese Nationalist Party and the victory of Mao Zedong's communism, the Panamanian State decided to maintain diplomatic relations with Taiwan, due to its capitalist stance, during the Cold War. Since 1949, Panama remained one of Taiwan's major allies until its rupture in 2017.  

Despite the recognition of Taipei, trade relations between Panama and the People's Republic of China have been increasing in recent years, generating an exchange Issue greater than that recorded between the Central American country and Taiwan.

Panama's most important economic engine is the Canal, which links the Atlantic and Pacific oceans and constitutes one of the most important routes for world trade. Canal revenues generate one third of Panama's Gross Domestic Product. Over the years, China has become an important customer of the Canal, becoming its second largest Username after the United States. The first ship to cross the expanded Canal, at the inauguration held in June 2016, was a vessel of the Chinese shipping company COSCO, which was awarded the honor by lottery.

China is the largest provider the Colon Free Zone (CFZ), located on the Caribbean coast of Panama, next to the northern mouth of the Canal. It is the most important free zone in the Americas and the second largest in the world, with an annual import and re-export Issue of $16.16 billion. In the first semester of 2017, the FTZ imported $1.344 billion worth of goods from China. Likewise, important Chinese companies have sought to establish themselves in the FTZ, taking advantage of the strategic advantages it offers.

China has also announced the construction of a container port in the Colon area , which will have facilities for receiving liquefied natural gas. The planned construction is estimated to cost $900 million. The construction will result in the first container terminal designed to handle Neopanamax ships, which have the maximum dimensions to transit the canal.

In the area of communications, the People's Republic of China expressed its interest in building a railway infrastructure connecting the capital of Panama and the province of Chiriqui, covering a distance of 400 kilometers. As for air transportation, the Air China airline committed to operate the Panama City-Beijing route twice a week. Panama has the most important air hub in Latin America and having a direct flight to Beijing represents an important opportunity to bring Asian markets closer to Latin America.

In addition, Panama has an important and diversified financial center that is attractive to Chinese banks as a strategic gateway to establish themselves in the region. The presence of Bank of China, with more than 30 years in the country, and future establishments of other entities such as Banco Industrial y Comercial, Exim Bank and China Development Bank will contribute to increase the flow of Chinese capital to Panama. This, in turn, will diversify and make Panama's banking sector increasingly dynamic.

The Panamanian challenge to seize the opportunity

Ensuring that this increased relationship with China and the Asian market structurally benefits Panama and does not degenerate into a future dependency status presents important challenges for a country that is in the process of development. Panama must increase productivity in sectors such as agriculture and industry, train more staff and create a transparent framework of financial institutions.

The agricultural sector presents marketing difficulties and a lack of agricultural policies to produce and sell crops at fair prices. In recent years, there has been a shortage of land for crop marketing purposes as a result of droughts and floods. Another challenge is food imports, since many imported foreign products are cheaper and this causes a drop in the prices of domestic products, which makes their production unprofitable for the farmer.

The increase in industrial productivity goes hand in hand with the effort to training better human capital. Currently, in the Panamanian Republic there is a lack of preparation of people who can manage important companies. In 2015, the issue of people enrolled in universities reached only a meager 160,000 students. The Panamanian government should promote technical training projects and scholarships to increase this issue so that in the long term there will be more qualified staff for the new companies that will arrive.  

The Panamanian financial structure should also be prepared to create new legislation that will contribute to legal certainty. In order to harmonize the financial sector with international anti-money laundering conventions, the Panamanian government should establish tax reforms that promote fiscal transparency. The entry of foreign banks should be regulated more effectively. The discussion of considering tax evasion as a tax crime will present an important challenge for the country to consider.

A new north-south highway on the eastern edge of the EU aims to be the entrance to Europe for goods from China

Seven European countries have joined forces for the Via Carpatia project , a highway that will run from Lithuania to Romania and Greece, increasing the interconnectedness of the EU's eastern region. Its promoters envisage that this infrastructure will be integrated into the new Silk Road, as a gateway to Europe for goods arriving from China and the rest of Asia.

▲Polish highway section that will be part of the Via Carpatia project [Generalna Dyrekcja Dróg Krajowych i Autostrad Oddział w Rzeszowie].

article / Paula Ulibarrena

Via Carpatia is a European route; it is actually an ambitious interstate highway project that will link the Baltic Sea and the Black Sea. The route will start in Lithuania, in the city of Kaunas; it will then continue through Poland, following the Bialystok-Lublin-Rzeszów route; it will then enter Slovakia to cover the Presov-Kosz section, and in Hungary it will run through Miskolc-Debrecen.

On the Romanian territory, the route will be divided in two directions, one towards the port of Constanta, on the Oradea-Arad-Timisoara-Lugoj-Deva-Sibiu-Pitesti-Bucarest-Constanta route, and the other entering Bulgaria through the future bridge over the Danube at Calafat-Vidin, with the possibility of extending the project to Greece, in the Mediterranean, at the southern border of the European Union.

The Via Carpatia project was launched C 2006, when the transport ministers of Poland, Lithuania, Slovakia and Hungary signed a joint declaration to extend the trans-European transport network by creating a route to connect these four states along a north-south axis. In 2010, the project was also joined by Romania, Bulgaria and Greece to extend the new route through their respective territories.

Andrzej Adamczyk, Poland's Minister of Public Works, said in May 2017 that the total route of such infrastructure in Poland, comprising 600 kilometers, will be completed by 2025. As he stated, Via Carpathia "will allow the full potential of the provinces it crosses to be developed, providing a boost for the poorer regions of eastern Poland and the economies of the area."

The purpose of the project is to promote the economic development of the region, providing facilities for the development of small and medium business and the creation of technology parks, which should contribute to the creation of employment and enhance research and innovation.

This initiative currently reinforces other policies that also goal to development infrastructures in Eastern Europe, such as the 3 Seas Initiative. But it also opens the door to other more ambitious projects, such as the 16+1 and the new Silk Road, both launched by the People's Republic of China.

Connection with China

The 16+1 mechanism is a Chinese initiative aimed at intensifying and expanding cooperation with 11 EU member states from Central and Eastern Europe (CEE) and 5 Balkan countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia) in the subject of investment, transport, finance, science, Education and culture. In the framework the initiative, China has defined three possible priority areas for economic cooperation: infrastructure, high technologies and green technologies.

The Riga Declaration, a document issued in November 2017 at the China-ECO summit, sets the roadmap for such cooperation. In the Latvian capital, Chinese Premier Li Keqiang and the leaders of Central and Eastern European countries agreed to enhance internship cooperation and increase people-to-people exchanges. In particular, the leaders reaffirmed their desire to achieve effective connectivity between ports on the Adriatic, the Baltic and the Black Sea, through roads and the use of inland waterways.

"The Adriatic-Baltic-Black Sea port cooperation will be a new engine for China-ECO cooperation," said Chinese Academy of Social Sciences researcher Liu Zoukiu, who added that the combination of Chinese equipment, European technology and ECO markets will be a great model for cooperation between the Asian country and these 16 nations.

Trade between China and Central and Eastern European countries reached $56.2 billion in 2015, up 28 percent from 2010. Chinese investment in these 16 nations exceeded $5 billion, while in the opposite direction investment was $1.2 billion.

The data also show that the issue of freight train lines between China and Europe has risen to 39 since connections began in 2011. 16 Chinese cities regularly operate these convoys to a dozen European cities. Precisely Beijing's interest in the CEE countries lies in the fact that they are Europe's gateway to the new Silk Road.

The European Gateway to the New Silk Road

The 21st Century Silk Road, which the Chinese government has dubbed One Belt One Road (OBOR), is not an institution with clearly defined rules, but rather a strategic vision: it alludes to the ancient Silk Road, the commercial and cultural link between East and West for more than two millennia. The new route aims to be a connectivity network composed of maritime and overland economic corridors linking China and the rest of Asia with the Middle East, Europe and Africa. In this way, OBOR contact continents, oceans, regions, countries, cities, international and regional organizations.

The new diplomatic language appears as a seductive tool of Chinese soft power, exported through the routes of trade and diplomacy that reach the gates of Europe. Evoking the historical framework of harmonious coexistence and mutual cultural enrichment, Chinese officialdom defines the "Five Principles of Peaceful Coexistence" as fundamental values of OBOR: (1) mutual respect for sovereignty and territorial integrity; (2) mutual agreement of non-aggression; (3) mutual agreement of non-intervention in internal affairs; (4) equality and mutual benefit; (5) peaceful coexistence.

China seeks to diversify its trade routes and partners, opening up new consumer markets. At the same time, it is securing supplies of energy and raw materials. Finally, it is expanding its logistics structure and building a China-centric trade network .

Beijing created in 2014 a state investment fund, the Silk Road Fund, with a capital of US$40 billion, earmarked for One Belt, One Road investments. China insists that such financial institutions are not intended to replace existing ones, but to complement and collaborate with them in a spirit of inclusiveness and mutual benefit. However, voices from the United States and the European Union have raised some fears.

U.S. and U.S. suspicions

U.S. analysts speak of the Chinese European Century (and warn that as investment and trade with Europe grows, so will Beijing's influence on European policies. In fact, the Asian Infrastructure Investment Bank (AIIB) already has funds of $100 billion, or 50% of the World Bank's capital.

The 16+1 platform was launched to the chagrin of the EU, which was not consulted on the matter beforehand. Brussels observes a dependency status on the part of some of the continent's poorest countries, caused by a trade asymmetry in favor of China: trains arrive in Warsaw with tons of Chinese products, but return half-empty. The creation of infrastructures and new production and distribution centers for Chinese products sometimes progresses beyond the control of the EU. Consequently, EU legislative compliance and even European unity itself may be affected. 

For the most part, the national interests of European countries seem to be dominated by the pure logic of Economics and lack strategic vision. They have so far made a common and coordinated EU policy towards OBOR impossible. In the absence of unity, Europe is throwing stones at itself and ironically applying to itself the effective "divide and rule" strategy described by the Chinese philosopher Sunzi 2,500 years ago. 

New international order

The international order is changing: OBOR, which in paternalistic embrace now encompasses almost all European countries, is presenting itself as the Chinese alternative to the Western model that had hitherto dominated the world.

The US is being replaced as the world's leading Economics and losing its political hegemony to the rise of China. This is demonstrated by the reactions of Washington's most faithful allies in Europe, London and Berlin, in joining the OBOR initiative without great hesitation and despite US warnings.

China proposes to create together with Europe a new international economic and financial order. The most notorious milestone of this close partnership is the Chinese injection of up to €10 billion into the EFSI, a decision agreed between Beijing and Brussels in April 2016, making China the largest investor in the so-called Juncker Plan. Together, they can generate economic growth and employment creation by building and modernizing infrastructure networks that improve intra-European connectivity. This can facilitate the opening up of European products and services for export to new markets and improve their entrance conditions to China's own market. Europe can benefit from improved connectivity with other hitherto remote regions.

Introduction to the cooperation project of 12 EU countries located between the Baltic, Adriatic and Black Seas.

In addition to the East-West integration efforts inherent in the enlargement of the European Union, several North-South connection initiatives have been added between the countries of Central and Eastern Europe, such as the Three Seas Initiative. The goal is to overcome the deficit in road infrastructure and improve connections between these nations, which will enhance cooperation in the region and in the EU as a whole.

▲First meeting of the new forum, in the Croatian city of Dubrovnik, in August 2016 [i3].

article / Paula Ulibarrena

What is it and what is its purpose?

It is an initiative of Poland and Croatia that brings together 12 countries located between the Baltic, Adriatic and Black Seas and is therefore also known as the Baltic, Adriatic, Black Sea (BABS) Initiative.

The main goal is to promote greater cooperation between these countries of the European Union in the development infrastructure, economic development , economic cooperation and, above all, in energy resources. Polish President Andrzej Duda expressed the hope that the Three Seas Initiative will contribute to the modernization, integration and unification of Central Europe, Eastern Europe and the entire European Union.

How and where was this forum born?

Since the fall of the Berlin Wall, much progress has been made towards a united, free and peaceful Europe. The entrance of Central European countries entrance the European Union and NATO has contributed to the security, stability and prosperity of the entire continent. But this work is far from complete. And the cohesive role played by infrastructure will be crucial in achieving this.

For more than half a century, efforts to develop European connections and infrastructure focused on the East-West axis. After the fall of the Wall, governments in the region focused on integrating their economies into Western markets, leaving the development of a North-South interregional infrastructure on the back burner. After decades of disinvestment, a major effort has been made in the last twenty years to catch up: 5,600 kilometers of freeway have been built. But the imbalance between the two Europes is still notorious: a citizen of old Europe has, on average, twice as many kilometers of freeway as a citizen of Central Europe.

With the goal of reversing the status, the presidents of Poland and Croatia, Andrzej Duda and Kolinda Grabar-Kitarović, respectively, launched in 2015 a project for the construction of energy, transport and telecommunications infrastructure in Central Europe. They called it the Three Seas initiative.

By whom is it formed?

The initiative aims to modernize economic links between the twelve EU nations located between the Baltic, the Black Sea and the Adriatic Sea (Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia). This region accounts for 28% of the European Union's territory and 22% of its population. But it accounts for only 10% of its GDP.

In 2016 Poland and Croatia were joined by most Eastern European countries: Austria, Bulgaria, Slovakia, Slovenia, Estonia, Hungary, Latvia, Lithuania, Czech Republic and Romania. Thus a north-south axis that, with the exception of Austria, corresponds to the former communist countries.

The so-called Three Seas Initiative held its first session on August 25-26, 2016 in Dubrovnik and ended with a declaration of cooperation in economic subject , especially in the field of energy, transport and communications. In addition to the member countries, representatives of the Chinese Ministry of Foreign Affairs and the US National Security committee attended as guests.

The second meeting took place on July 6-7, 2017 in Warsaw, with US President Donald Trump as a guest. In fact this visit meant a certain snub to other EU countries.

The third meeting will take place in Romania in 2018, although the city has not yet been fixed.

How is it financed?

150 billion from the Structural Funds, plus additional money from the Connecting Europe Facility and the European Investment Bank. However, more than 384 billion still needs to be invested in another 2,000 projects to fill in or modernize these corridors.

An investment of this amount is beyond the possibilities of public institutions, so both infrastructure companies and financial institutions will have to play a fundamental role. To date, this subject of financing has been much less important than state contributions. However, the increase in public debt makes it increasingly interesting to rely on sources that minimize the impact on public accounts.

Projection

Faced with this magnitude of resource requirements, the question arises as to whether Central Europe is really an attractive market for investment. In this respect, two points can be made. This is a region with, firstly, very good economic growth prospects (it is expected to outpace Old Europe over the next five years), and secondly, with a construction sector that is expected to grow at an average annual average of 3.1% (compared to 2.3% for Western Europe), according data BMI Research. This is certainly attractive for investors.

The other side of the story is that we are still an emerging region. And, of course, this not only generates reserves, but also carries a higher level of risk. In this sense, we also have very different situations depending on which country in the region we are looking at. For example, Estonia is currently what investors call a "sweet spot", with very high returns and low risk. But it is the only country in the region in this category. There are countries - such as Lithuania, Croatia, Slovakia and Slovenia - where the risks are equivalent to those of Greece or Italy, but the returns are relatively low. And others have the opposite problem: high returns but too much risk.

The experience of those players already present in this area -some of them Spanish, such as Ferrovial, Bankia or BBVA-, shows that although each country presents important peculiarities, some common risks can be mentioned. To mention them briefly: lack of political support; non-transparent regulatory regimes; very complex contracting processes -such as PPPs and concessions-; lack of projects with the necessary level of maturity to arouse the appetite of investors, and the lack of skill of the public sector in these countries to take advantage of private-sector funding schemes, among others.

In an increasingly competitive and global Economics , the prosperity and well-being of a united Europe will depend on how quickly it adapts to today's world. In this process, building a connected, safe, affordable and sustainable transport network that connects the EU from north to south is a core topic. Doing so will have a direct impact on increasing the competitiveness of all European countries and, consequently, on the economic growth of Europe as a whole.

One Belt-One Road' project aims to consolidate China's rise as a superpower

The ambitious initiative launched by Xi Jinping to connect China with the rest of the Eurasian continent may prove costly and difficult. But unlike the overland route through the Central Asian republics, the sea route may not take long to become a reality on certain stretches, as China has already built some ports on part of the route.

▲The land and sea lanes of the Chinese initiative [yourfreetemplates].

article / Jimena Puga Gómez [English version].

Following Chinese President Xi Jinping's 2013 speech on the revitalization of the ancient Silk Road, the initiative that started out as just an idea has become the Beijing government's biggest economic challenge: a revolution that, if carried out, will change the Asian continent's passenger, freight and hydrocarbon transport infrastructure, as well as high-tech. Dubbed OBOR-OneBelt-One Road, the plan is intended to be the core topic of China's rise as a regional superpower.

The OBOR initiative is a grand plan to redesign China's strategic environment, project Beijing's economic power, secure the communist country's access to energy and mineral supplies, and boost economic growth in the west of the People's Republic. OBOR seeks to achieve these goals by fostering greater and faster connectivity between China and Europe through intermediate points in Central, West and South Asia, as well as with Russia.

For its part, the maritime route that will form one of the core topic of the OBOR initiative, also known as the Silk Road of the 21st century, counts on the fact that seven of the ten largest ports in the world are in China and, as is well known, these infrastructures make the Asian giant an important exporter of port management services. 

The Eastbound Maritime Silk Road will start in Fujian province and pass through Guangdong, Guangxi and Hainan, before heading south to the Strait of Malacca. From Kuala Lumpur, the Route will continue to Kolkata and Colombo, then cross the rest of the Indian Ocean towards Nairobi. From there, it will travel along the Horn of Africa, seeking to cross the strategic Gulf of Aden until it reaches the Red Sea. Beijing's plan aims to create sufficient infrastructure to enable Chinese ships to safely reach the Mediterranean after sailing through the Suez Canal. But the ambition of the People's Republic does not stop at the gates of the European Union, since China wants to reach Athens by sailing the Aegean and from there to Venice, where it will look for land routes that will make it possible to move its goods throughout the Union. Chinese investment has focused, among other things, on the port of Piraeus, with a new logistics center, and on the development of a network of logistics infrastructures through the Balkans and Hungary.

The South Pacific has also been included in this strategic map of routes devised in Beijing. Thus, the maritime Silk Road has two routes. The first, as mentioned above, originates on the east coast of China and, via the South China Sea, aims to establish strategic control of the Spratley Islands, the Strait of Malacca and the entire Indo-Pacific area, including the Bay of Bengal, in order to reach the heart of Europe. The second sea route will also cross the South China Sea to direct its ships to the coastal ports of the South Pacific. With this, China would also control the routes of the essential raw materials that come from Latin American countries.

Although this is a long-term economic project , the Chinese government has already begun the construction of certain infrastructures and the necessary negotiations with various countries. A clear example is Germany. The European Union is China's largest trading partner , while the People's Republic is the Union's second-largest provider . Germany, for sample , not only enjoys an excellent reputation as a reliable partner for China, but is also regarded as "Europe's trade gateway". test of this is that, at a meeting in Duisburg, the world's largest inland port and an important transport and logistics hub in Europe, Chinese President Xi Jinping proposed to Germany "to work together to realize the ambitious project of the revival of the economic belt of the new Silk Road of the 21st century". Germany and China are currently connected by the Chongqing-Xinjiang-Duisburg international railroad line.

The ports built by China at Hambantota and Colombo in Sri Lanka; the China-Suez Economic and Trade Cooperation Zone in Egypt; Kazakhstan's negotiation of the right to clear its imports and exports through the Chinese port of Lianyungang; and a new alliance between ports in China and Malaysia are additional examples of China's ability to leverage its newfound skill as a port modernizer and manager to support its strategy.

The New Silk Road initiative is a project that will require multi-billion dollar investments in order to build smooth, safe and efficient transport infrastructures. The effects of this economic network ensure benefits not only for China, the leader of the OBOR initiative, but also for all the countries affected by it. However, the financing of the project is still an unknown quantity that should be clarified.