Is it true what they say about the Chinese? The effects of China’s lending in Africa
Jun 23, 2008
A few weeks ago we posted about the entry and growth of new aid donors. A recent paper published by the Norwegian Campaign for Debt Cancellation confirms all the popular truths about Chinese lending in Africa:
- It lends to countries that already have large debts outstanding.
- It is a risk to debt sustainability because of the lack of transparency in the loan contraction proces.
- China seems to be less concerned with human rights standards and environmental safeguards than other creditors.
- It provides an alternative to the traditional donors within the development paradigm. China’s non-interference policy implies that China does not have any conditions attached to loans apart from the requirement to support the one-China principle and to reject the legitimacy of Taiwan as a country.
Do we know enough about China’s lending policies to generalise to this extent? What do you think?