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TFA mentions the big problem with "enforcing" this agreement is that the infrastructure is so poor, it's physically hard to just trade the good directly. There
by JetSpiegel 7y ago
TFA mentions the big problem with "enforcing" this agreement is that the infrastructure is so poor, it's physically hard to just trade the good directly.
There's a hierarchy of needs, and only China is contributing (not without return) on the bottom parts.
- bluGill 7y agoFree trade helps to build the roads and infrastructure needed. The cost of building roads needs to be paid for, if it isn't worth transporting things from point A to point B the road is pointless. As the cost of trade goes down it self-reinforces by making people willing to contribute to better infrastructure. Of course when the road doesn't exist at all sometimes the investment to make the road is too high for people to realize that it is worth it. China contributing is potentially a good thing (or potentially bad for reasons others have debated). This trade zone doesn't need their contribution to be successful, but it helps.