1. OBOR and Cultural Exchanges
Danyang Xie
Professor of Economics, HKUST
Dean, Economics and Management School of Wuhan University

2. An Initiative Proposed by China
One Belt, One Road
An Initiative Proposed by China

3. Global Positioning of the Chinese Economy
My Personal Assessment
RMB to become one of the top 3 major currencies
World Knowledge Center
GDP to reach $60 trillion（2000 PPP） /4 of the World GDP

4. For developing countries, keep Opening up is a pre-requisite for catching up and sustainable growth
One Belt, One Road is an initiative that contains a set of strategies that counter the increasingly protectionist thinking

5. Catching up is not automatic

6. Opening Up is a pre-requisite
Lucas: Trade and Diffusion of the Industrial Revolution, NBER August 2007

7. Benefits of One Belt, One Road
Strengthen connections across countries
Freer movement of goods and talents
Learning more advanced and efficient management know-how
Broader markets for all, which will lead to finer specialization and higher efficiency
Open and fair competition will enhance efficiency
Returns to capital to be improved

8. Challenges of One Belt, One Road
One Road: Oceangoing “21 Century Maritime Silk Road”
Infrastructure: Convention of the High Seas
Freedom of Navigation
High Seas as a public good is well maintained and protected world-wide
One Belt: The land-based “Silk Road Economic Belt”
Infrastructure: to be constructed
Territorial disputes and Religious diversity
Hold-up problems (change of governments)
Rise of China (mistrust from the West)

9. To respond to the challenges
Multiple Belts
North Belt, Central Belt and South Belt
Joint Financing: Asian Infrastructure Investment Bank (expanded to include European countries)
Think outside the box
Need OBOR countries to make institutional arrangements to secure access to the trade routes
Need to improve understanding between people across countries through cultural exchanges in general, and exchanges and collaborations in education of business and laws in particular

10. OBOR and Factor Mobility
OBOR is not just for the liberalization of the flow of goods, services, capital and skilled labor. It should also bring the liberalization of human capital through mutually accepted college and professional training degrees, through joint degree programs, through exchange of students and faculty members

11. OBOR and Cultural Co-existence
The world is often described as confrontational
Clash of Civilizations (Samuel Huntington, 1997)
OBOR aims at Cultural Coexistence
Das zusammenleben der Kulturen: ein Gegenentwurf zu Huntington (Harald Müller, 1998)

12. Exchanges and Collaborations in Education of Business and Law (1)
Hong Kong
A natural stepping-off point for Maritime Silk Road
Hong Kong – Shenzhen cooperation in Qianhai Free Trade Zone which will help attract enterprises from other OBOR countries to Qianhai
Hong Kong University of Science and Technology
In 2013, HKUST Business School and Saudi Aramco Joined Forces to Offer MBA Program in Saudi Arabia
HKUST leadership is thinking about broadening a similar program to other OBOR countries.

13. Exchanges and Collaborations in Education of Business and Law (2)
Wuhan
Hub of China’s High Speed Rail system
It reaches 80% of China’s population within 4-5 hours of high speed travel
“Switzerland in the East”
Number 1 in China (Forbes Talent Index)
1.2 million college enrollment
Wuhan University: Strong in Business Education (EQUIS) and Law
1141 International students from 45 OBOR countries
190 International students in Economics and Management School from 35 OBOR countries such as Kazakhstan, Vietnam, Thailand, Pakistan, Indonesia, Malaysia, Turkey, etc.
Our EMBA programs for example contain courses such as China-Western Culture, Confucianism & Enterprising Spirits, and Arabian Culture and Middle East Issues

14. High Speed Rail Network

15. Remember to Invest in Wuhan ……
World
City
in one generation
First Stop for Visitors from Overseas
Attraction to Global Talents

16. See you in Wuhan!