## 2 Comparison of BRI with Other Global and Regional Infrastructure Initiatives
### Quality and Transparency of Investments  
Upholding the quality of infrastructure investments is important to ensure that projects are executed transparently, safely and reliably under good governance and that fiscal2, social and environmental sustainability standards are met. BDN complements PGII and FOIP projects by assessing and endorsing infrastructure that meets high standards of transparency, sustainability, and developmental impact, providing them with an external certification of quality. The OECD took over the technical and operational responsibilities for the global certification process of BDN in June 2021. The OECD's credibility as an authority stems from its perceived neutrality--neither closely aligned with neoliberal orthodoxy nor fully committed to Keynesian interventionism, allowing it to be broadly accepted across diverse political and economic contexts ([PERSON], 2021). In contrast, where EU funds are involved, the EU embeds its standards into the funding and approval processes of GG and relevant 3 SI projects, without relying on a separate certification mechanism.  
The BRI has been criticised to be relatively less transparent in terms of the magnitude, scale and clauses of its projects and their financing. China's official GDP growth data was also suspected to be significantly overstated at times as lower-level officials have an incentive to over-report to show that they have attained high economic growth rates in their respective provinces. Therefore, China's GDP indicator alone may provide a misleading signal of its economic health in financing its BRI in the meantime ([PERSON], 2019). Moreover, it was reported that creditors command large control over foreign borrowers, giving the latter less flexibility to restructure their debts, default on their loans without risking the collateralisation of strategic assets, or introduce more stringent environmental and labour standards in contractual terms ([PERSON] et al., 2022). The \"hidden debt\" incurred by developing BRI countries was estimated to be USD 385 billion by 2017 ([PERSON], 2021). Another example concerns the USD 1.5 billion Chinese loan taken to finance the construction of the BRI's Belgrade-Budapest rail line, which aims to improve connectivity between China and Europe. This project was awarded without a competitive bidding process, i.e., a public tender, which potentially constituted illegal state aid by bypassing EU legal frameworks that emphasise transparency and competition in public procurement ([PERSON], 2019).  
A lack of transparency not only increases the likelihood of infrastructure projects being opposed as NIMBY facilities due to diminished public trust but also imposes additional costs on firms bidding for such projects, stemming from information asymmetry, corruption, and ill-defined property rights. Generally, the degree of transparency in economic policymaking has been shown to be highly and positively correlated with a country's attractiveness to foreign direct investment (FDI). Based on a transparency index ranking of various countries that assesses \"the level of corruption, law and order, bureaucratic quality, contract viability and the risk of government appropriation of private assets\", it was found that a one-point increase in transparency ranking is associated with a 40% increase in FDI ([PERSON] and [PERSON], 2002). Increased FDI not only injects capital but also promotes knowledge transfer, job creation, and productivity gains. These dynamic spillover effects can significantly amplify the economic benefits of infrastructure projects beyond their initial investment costs, especially in developing economies where such benefits are most critical. Consequently, initiatives like PGII/BDN and GG, through their emphasis on transparent project standards and contractual terms, may offer greater long-term economic gains by strengthening investor confidence. However, potential shortcomings in assurance and implementation remain and will be addressed in subsequent sections.