XXIII (78 Special Issue) - 2017 ISSN 1848-5782 State, Market and Infrastructure: The New Silk Road / Peter Nolan China-CEEC Cooperation: China’s Building of a New Type of International Relations / Liu Zuokui INSTITUTE FOR DEVELOPMENT AND INTERNATIONAL RELATIONS INSTITUTE FOR DEVELOPMENT AND INTERNATIONAL Towards a Balanced Synergy of Visions and Interests: Latvia’s Perspectives in 16+1 and Belt and Road Initiatives / Andris Spruds China’s Belt and Road Initiative Extension to Central and Eastern European Countries - Sixteen Nations, Five Summits, Many Challenges / Marsela Musabelliu The Baltic Sea Macro-Regional Transport Cluster as an Element of the Silk Road Economic Belt / Olga Nežerenko, Ott Koppel Using Patent Development, Education Policy and Research and Development Expenditure Policy to Increase Technological Competitiveness of Small European Union Member States / Simona Ferraro, Pawan Kumar Dutt and Tanel Kerikmäe The Security Challenges of the “One Belt, One Road” Initiative and China’s Choices / Liu Haiquan The Challenge of Different Perceptions on the Belt and Road Initiative / Ma Junchi SWOT Analysis and Related Countermeasures for Croatia to Explore the Chinese Tourist Source Market / Wang Qian Croatian International Relations Review - CIRR Editor in Chief: Guest Co-Editor: Senada Šelo Šabić, PhD Vlad Alex Vernygora, MA Lecturer, Centre for Asia-Pacific Studies, Vol.XVIII, No. 66 - 2012 Vol.XVIII, Research Associate, Department for International Departmen of Law Tallinn University of Technology, Economic and Political Relations (IRMO) Estonia XXIII (78) - 2017 Assistant Editors: Paško Bilić, PhD Ivana Keser, LL.M. Research Assistant, Department for Culture and Research Assistant, Department for Resource Communication (IRMO) Economics, Environmental Protection and Regional Development (IRMO) Assistant to the Editor in Chief: Production Editor: Mario Pallua, MA Dragana Markanović, MA Department for International Economic and Senior Associate (IRMO) Political Relations (IRMO) Advisory Board: Ioannis Armakolas Ognyan Minchev Lecturer, Department of Balkan, Slavic and Director, Institute for Regional and International Oriental Studies, University of Macedonia Studies, Sofia Stefano Bianchini Helen O’Neill Professor, School of Political Science, University of Professor, Center for Development Studies, Bologna University College Dublin Florian Bieber Jadranka Stojanovski Professor, University of Graz Assistant Professor, Department of Information Sciences, University of Zadar and Ruđer Bošković Gianni Bonvicini Institute Vice President, Institute for International Affairs, Rome Milica Uvalić Professor, School of Political Science, University Otmar Höll of Perugia Austrian Institute for International Affairs, Vienna Werner Weidenfeld Dejan Jović Director, Center for Applied Policy Research, Professor, Faculty of Political Sciences, Ludwig Maximilian University, Munich University of Zagreb Wolfgang Wessels Soeren Keil Professor, Jean Monet Chair in Political Science, Senior Lecturer in International Relations, University of Cologne Canterbury Christ Church University, UK Articles are abstracted or indexed in: Baidu Scholar Hrčak (Portal of scientific journals of Croatia) Cambridge Scientific Abstracts International Political Science Abstracts (IPSA) The Central European Journal of Social Sciences J-Gate and Humanities (CEJSH) Journal TOCs Celdes KESLI-NDSL (Korean National Discovery for CNKI Scholar (China National Knowledge Science Leaders) Infrastructure) Naviga (Softweco) CNPIEC Primo Central (ExLibris) CSA Worldwide Political Science Abstracts ProQuest – PAIS International CSA Social Services Abstracts ProQuest – Social Services Abstracts CSA Sociological Abstracts ProQuest – Worldwide Political Science Abstracts Directory of Open Access Journals (DOAJ) (WPSA) EBSCO Discovery Service Public Affairs Information Service PAIS EBSCO (relevant databases) ReadCube EconBiz Research Papers in Economics (RePEc) ECONIS ResearchGate EconLit Scientific Indexing Services (SIS) Emerging Sources Citation Index (ESCI) SCImago (SJR) ERIH Plus (European Reference Index for the SCOPUS – Elsevier Humanities and Social Sciences) Summon (Serials Solutions/ProQuest) Genamics JournalSeek TDOne (TDNet) Google Scholar WanFang Data WorldCat (OCLC) Copyright© Institute for Development and International Relations – IRMO ISSN 1848-5782 UDC 327(497.5) Contents Vol.XVIII, No. 66 - 2012 Vol.XVIII, XXIII (78) - 2017 Introductory Papers...........................................................................................6 State, Market and Infrastructure: The New Silk Road / Peter Nolan......................................................................7 China-CEEC Cooperation: China’s Building of a New Type of International Relations / Liu Zuokui.................................................................19 Articles.............................................................................................................36 Towards a Balanced Synergy of Visions and Interests: Latvia’s Perspectives in 16+1 and Belt and Road Initiatives / Andris Spruds...........37 China’s Belt and Road Initiative Extension to Central and Eastern European Countries - Sixteen Nations, Five Summits, Many Challenges / Marsela Musabelliu........................................................57 The Baltic Sea Macro-Regional Transport Cluster as an Element of the Silk Road Economic Belt / Olga Nežerenko, Ott Koppel.................77 Using Patent Development, Education Policy and Research and Development Expenditure Policy to Increase Technological Competitiveness of Small European Union Member States / Simona Ferraro, Pawan Kumar Dutt and Tanel Kerikmäe.........................................97 Discussion Papers..........................................................................................128 The Security Challenges of the “One Belt, One Road” Initiative and China’s Choices / Liu Haiquan.............................................129 The Challenge of Different Perceptions on the Belt and Road Initiative / Ma Junchi..................................................................149 SWOT Analysis and Related Countermeasures for Croatia to Explore the Chinese Tourist Source Market / Wang Qian.........................169 3 Vol.XVIII, No. 66 - 2012 Vol.XVIII, XXIII (78) - 2017 Editorial Office: CIRR, Institute for Development and International Relations - IRMO Ljudevita Farkaša Vukotinovića 2, HR-10000 Zagreb, Croatia Phone: +385 1 48 77 460 Fax: +385 1 48 28 361 E-mail: [email protected] http://cirr.irmo.hr/en/ The Croatian International Relations Review (CIRR) is an interdisciplinary academic journal published in English since 1995 and is dedicated to social sciences with a focus on political science, sociology, law and economics. Each issue includes scholarly, double-blind peer reviewed articles, and book reviews. CIRR is a member of COPE – Committee on Publication Ethics – and is published electronically by the Institute for Development and International Relations (IRMO) in Zagreb. The journal is supported by the Ministry of Science, Education and Sports of the Republic of Croatia and is published in collaboration with De Gruyter Open, the world´s second largest publisher of Open Access academic content. CIRR is indexed by 40 scholarly databases, including ESCI, Scopus, Erih Plus, EconLit and Doaj. Articles reflect the views of their authors only. 4 Vol.XVIII, No. 66 - 2012 Vol.XVIII, XXIII (78) - 2017 5 Vol.XVIII, No. 66 - 2012 Vol.XVIII, XXIII (78) - 2017 Introductory Papers Introductory 6 CIRR XXIII (78) 2017, 7-18 ISSN 1848-5782 UDC 321.01:339.1:338.49(510) Vol.XVIII, No. 66 - 2012 Vol.XVIII, DOI 10.1515/cirr-2017-0004 XXIII (78) - 2017 State, Market and Infrastructure: The New Silk Road Peter Nolan Abstract Infrastructure development, including transport, energy, buildings, electricity, telecommunications, water and sewage, as well as health and education, have been crucially important for China’s growth as well as for Chinese people’s welfare. China’s role in infrastructure development has the potential to contribute positively to growth and welfare in the countries along the Silk Road. KEY WORDS: infrastructure, development, growth, welfare 7 State, market and infrastructure1, 2 Vol.XVIII, No. 66 - 2012 Vol.XVIII, XXIII (78) - 2017 Infrastructure is crucial for development. It is necessary in order to liberate the creative energies of entrepreneurship. In countries at all stages of development, markets often fail to provide the necessary level of infrastructure provision. The requisite extent and nature of state involvement in infrastructure may vary between countries of different sizes and traditions, and at different points in history. The complex relationship between government provision of infrastructure provision and development was captured precisely by Adam Smith’s proposition: “The third and last duty of the sovereign or commonwealth is that of erecting and maintaining those public institutions and those public works which, though they may be in the highest degree advantageous to a great society, are, however, of such a nature that the profit could never repay the expense to any individual or small number of individuals, and which it therefore cannot be expected that any individual or small number of individuals should erect or maintain. The performance of this duty requires too very different degrees of expense in the different periods of society” (Smith 1776, vol. 2: 244). Infrastructure in China’s development Pre-modern China