Ami Bera
China’s Belt and Road Initiative (BRI), referred to as “Yi dai yi lu” in Chinese, has reshaped global infrastructure financing and investment. It promotes a “China-centred model” of development, which often does not set terms with regard to human rights, transparency or Western legal and market-based principles. BRI emphasises flexible, voluntary cooperation without the stringent legal frameworks and infrastructure financing that host governments might find beneficial in the short term to start projects. Such a model comes with risks for participating countries. As we navigate this landscape, the US must offer a compelling alternative that prioritises transparency, rule of law and sustainable economic models.
Projects associated with BRI have frequently led to substantial financial obligations for participating countries. These arrangements typically involve long-term repayment commitments to Beijing, creating financial dependence on the People’s Republic of China (PRC or China) and giving the PRC significant leverage over host nations. This influence extends beyond loan terms and project implementation to broader political pressures China may exert on these countries.
China frequently prefers to extend or renegotiate loans rather than offer debt forgiveness, thereby maintaining or even increasing its economic and political sway over host governments. In contrast, institutions like the World Bank and IMF have shown greater willingness to forgive debt, particularly for highly indebted poor countries.
No comments:
Post a Comment