Evaluating megaprojects from a sustainability perspective: a case of China-Pakistan economic corridor (CPEC)
| DOI | https://doi.org/10.1108/JCEFTS-10-2021-0063 |
| Published date | 10 March 2022 |
| Date | 10 March 2022 |
| Pages | 150-170 |
| Subject Matter | Economics,International economics |
| Author | Masoodul Hassan,Zeeshan Mahmood,Saleem Janjua,Numra Asif |
Evaluating megaprojects from a
sustainability perspective: a case
of China-Pakistan economic
corridor (CPEC)
Masoodul Hassan and Zeeshan Mahmood
Department of Commerce, Faculty of Commerce, Law and Business
Administration, Bahauddin Zakariya University, Multan, Pakistan, and
Saleem Janjua and Numra Asif
Centre of Excellence for China-Pakistan Economic Corridor, Islamabad, Pakistan
Abstract
Purpose –This paper aims to examinethe impact of various economic, social and environmentalissues on
the sustainable developmentof Pakistan, both directly and indirectly through the sustainability dimensions
of China–PakistanEconomic Corridor (CPEC), a multi-billion-dollarmegaproject.
Design/methodology/approach –Using a quantitative(deductive) methodological approach,data were
collected using a strategyof an online questionnaire survey from diverse stakeholders of CPECin Pakistan.
Partial least squares-basedstructural equation modeling technique was used to testthe relationship between
observedand latent variables.
Findings –The results confirmedthe positive impact of various economic, socialand environmental issues
on the sustainable development of Pakistan directly and indirectly through the partial mediation of
sustainabilitydimensions of CPEC.
Practical implications –Sustainabilityperceptions of stakeholders about CPEC andits relationship with
sustainable development are critical issues for governments and policymakers. This paper suggest how
economic, social and environmental dimensions of CPEC can enhance the positive perception which is
necessaryfor stakeholder involvement and support for megaprojectssuch as CPEC.
Originality/value –This study evaluated the megaprojects of CPEC from a sustainability perspective
through stakeholders’perceptions by proposing and testing a parsimonious research model that has never
been examinedin the existing literature.
Keywords One Belt One Road, China–Pakistan Economic Corridor, Sustainable Development
Goals, Sustainability, Megaprojects
Paper type Research paper
1. Introduction
Recent economic crises have provided several justifications for proposing megaprojects in
South Asia, as they boost productivity and competitiveness. Megaprojects contribute
(positively or negatively) to sustainable development (Asghar et al., 2021;Zhuang et al.,
The authors would like to acknowledge cooperation extended by the participantsof this study. The efforts
of Mr. Zeeshan Iqbal (M.Phil Scholar) for helping us in data collection are also acknowledged. The authors
are thankful to the editors and anonymous reviewers for their constructive comments and suggestions.
Funding: Research reported in this paper was supported by the Center of Excellence for
China-Pakistan Economic Corridor (CPEC) under Competitive Research Grant - 2017/18.
JCEFTS
15,2
150
Journalof Chinese Economic and
ForeignTrade Studies
Vol.15 No. 2, 2022
pp. 150-170
© Emerald Publishing Limited
1754-4408
DOI 10.1108/JCEFTS-10-2021-0063
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1754-4408.htm
2021;Menhas et al.,2019). This is because the infrastructure that is developed throug h
megaprojects impacts economic, social and environmental activities (Sturup and Low, 2019;
Kakar and Khan, 2021). The global investments in megaprojects have surpassed $9.5tn in 2015
which accounts for 14% of the global GDP (World Economic Forum, 2017). The projection s for
global infrastructure spending on megaprojects ar e about US$3.7tn per year between 2016 and
2035 or $69.4tn total to 2035 (Woetzel et al.,2017). Unless the escalation in megaprojects is
vigilantly rechanneled and managed, the whole effort may become fruitless and unsustainable. In
the absence of representative controls, investors may personalize profits and socialize losses,
while interlocking in carbon-intensive and other environmentally and socially spoiling modes
(World Economic Forum, 2015). Therefore, the progressing and expansion of megaprojects is
calling for evaluating megaprojects from a sustainability perspective (Sturup and Low, 2019;
Levitt, 2007;Shen et al., 2010;Aarseth et al., 2017).
China is leading global investments in megaprojects (Woetzel et al.,2017). China’sBeltand
Road Initiative (BRI) development vision could see up t o $8tn invested across 68 countries from
the edge of East Asia to East Africa and Central Europe. China–Pakistan Economic Corridor
(CPEC), part of BRI, is expected to generate $62bn investments, mostly in infrastructure including
railways and roads and power production(Wor ld Economic Forum, 2017). These investments are
expected to stimulate inclusive growth for millions of people, especially the underprivileged in
coping with an anticipated increase in the demand for food, energy and water. Through CPEC
and other mutual investments and trade, both China and Pakistan are expecting to bring their all-
encompassing, socio-economic cooperation to an unprecedented height (Long Term Plan for
CPEC, 2017–2030; State Bank of Pakistan, 2018). However, some critics warn of the adverse
impact of these investments. Researchers from both China and Pakistan are also taking a keen
interest in this area. Numerous published research papers are available on highlighting the
importance of CPEC (Billington, 2018), various aspects of CPEC (Akber, 2015), benefits and
suggestions for improvements (Avais et al.,2016), challenges faced by implementing CPEC
projects and current developments in CPEC (Aslam et al.,2016) and regional integration and
future prosperity of CPEC (Ali et al.,2016).
Pakistan is facing many sustainability issues. Currently, Pakistan ranked 106 out of 119
developing countries in Global Hunger Index-2017, and more than 58% of Pakistanis are
suffering from food insecurity (Ramay, 2018). Moreover, Pakistan is ranked 147 out of 188
countries in the Human Development Index (HDI, 2016). The country ranked 122 out of 157
nations on the sustainable development goal (SDG) index (2017). Besides, Pakistan is most
vulnerable to environmental problems and climate change and is ranked as seventh out of ten
most vulnerable countries to climate change by the Global Climate Risk Index (GCRI-2018).
Environmental pollution is one of the biggest sustainability concerns in the country. Paki stan has
been also ranked as one of the most water-stressed nations in the world (Kochhar et al.,2015).
Drinking water safety and water pollution are major sustainability concerns in Pakistan as 16
million people in Pakistan do not have access to safe water. Furthermore, over 68 million people
do not have access to adequate sanitation (WaterAid, 2016). Biodiversity is also another issue
where Pakistan has the least variety of animals and plants per representativeun itof area (World
Bank, 2017). Besides, due to continuous engagement in the war on terror, which has destroyed the
socio-economic fabric of the country, both local and foreign direct investments have been
hampered. Therefore, by securing 8.4 out of 10, Pakistan ranked 5th out of 10 most affected
countries on the Global Terrorism Index (GTI-2017). Finally, the Global Competitiven ess Report-
2017–2018, which compared governance in 137 countries ranked Pakistan at 115th –still lowest
as compared with its regional peers (India –40th, Bhutan –82nd, Sri Lanka –85th, Nepal –88th
and Bangladesh –99th).
Evaluating
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