Tuesday, February 5, 2019

China and "Debt-Trap" Diplomacy

Quartz Africa published on 5 February 2019 an article titled "The 'Debt-Trap' Narrative around Chinese Loans Shows Africa's Weak Economic Diplomacy" by Abdi Latif Dahir.

There are increasing questions about the transparency, sustainability, and commercial viability of Chinese state-sponsored lending, which has grown tenfold in the past five years in Africa. In spite of rumors that China has seized property of debt-defaulting countries, the only known case so far is a port in Sri Lanka. The author argues that the opacity surrounding Chinese deals in Africa emphasizes weak African diplomacy and the deficiency in creating institutional guard rails that take better account of taxpayer interests.

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