Deborah Brautigam: No Evidence of Chinese Debt Traps in Africa
Johns Hopkins University professor and director of the China-Africa Research Initiative in Washington, D.C., Deborah Brautigam, joins Eric & Cobus this week to discuss accusations that China engages in so-called "debt trap diplomacy."
The "debt trap" narrative, also commonly referred to as "predatory lending," states that China uses excessive lending to developing countries knowing full well these countries will not have the means to repay these loans. In turn, these countries, many of them very poor, will then be forced to default on the loans and handover key strategic assets to China or be forced to otherwise compromise their sovereignty to satisfy Beijing.
"The idea that Chinese banks and companies are luring countries to borrow for unprofitable projects so that China can leverage these debts to extract concessions is now deeply embedded in discussions of China’s BRI program. Critics invariably point to a single case—the Chinese takeover of Sri Lanka’s Hambantota Port—as proof of this strategy. Yet the evidence for this project being part of a Chinese master plan is thin." -- Professor Deborah Brautigam
Brautigam looked at more than 3,000 Chinese infrastructure projects around the world in an article recently published in The American Interest magazine and found no evidence to support this oft-cited charge. China's critics in the U.S. and Europe are misguided when they focus on Beijing's massive lending as some kind of political conspiracy, explained Brautigam. Instead, she contends, China exporting corruption and crony capitalism are much more worrisome.
JOIN THE DISCUSSION:
Do you agree with professor Brautigam's contention that Chinese lending is more motivated by commercial considerations than political objectives and that concerns about supposed "debt traps" are overblown? Or do you think she is misreading the situation and that Chinese lending in Africa and elsewhere really is the proverbial "trojan horse" that U.S. leaders have been warning about?
Let us know what you think.
Facebook: www.facebook.com/ChinaAfricaProject
Twitter: @eolander | @stadenesque | @d_brautigam
Email: [email protected] | [email protected]
Sign up here if you would like to join our weekly email newsletter mailing list for a carefully curated selection of the week's top China-Africa news.
Internal Auditor at The Impala Group
5 年Welcome to Tanzania I would like to hostyou
Author & Speaker Providing Africa-Focused Business Intelligence & Strategy.
5 年One thing is certain , Africa needs FDI to fuel its growth. China's investments are welcomed in Africa however, one thing I knocked China has an agenda in Africa which is to become the new dominant power. Call it political or commercial, it dies not matter. My concerns are directed toward the African MisLeaders who take these loans from China for corrupt and unstrategic personal reasons. They are the culprit in this story.
Creating an Environment of Prosperity in Agriculture to Small Holder Farmers by Educating and Promoting them.
5 年Ms. Brautigam should know that China's lending policy to Africa is encouraged dependency, utilised corrupt deals and endangered its natural resources. She is doing her job and she is paid for that.
Creating an Environment of Prosperity in Agriculture to Small Holder Farmers by Educating and Promoting them.
5 年A-ha! Let's be sincere here..... Almost 40% of sub-Saharan African countries are in danger of slipping into a major debt crisis. And the relationship between African Nations and China is often seen as a significant part of the problem. Its critics say that major infrastructure projects carried out by Chinese companies in Africa are too and very expensive, and burden the host countries with enormous debts they can't hope to repay.... Am in Africa.... I know the hell we are going through as a small holder farmer.