Debt

Is China Luring Poorer Countries Into Debt?

China has faced criticism for its lending practices to poorer countries, accused of leaving them struggling to repay debts and therefore vulnerable to pressure from Beijing.But that is rejected by China, which accuses some in the West of promoting this narrative to tarnish its image.It says: "There is not a single country that has fallen into [a] so-called 'debt trap' as a result of borrowing from China."What Do We Know About China's Lending?China is one of the world&

6 January 2022
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The Case For Chinese Foreign Aid

Since 2000, China has spent US$843 billion on bilateral aid. That is around US$39.5 billion per year, similar to the amount provided by the United States (US), the world’s largest donor of foreign aid.

9 November 2021
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The Pandemic Of Uncertainty

The next few months will tell us a lot about the shape of the coming global recovery. Despite ebullient stock markets, uncertainty about COVID-19 remains pervasive. Regardless of the pandemic’s course, therefore, the world’s struggle with the virus so far is likely to affect growth, employment, and politics for a very long time. Let’s start with the possible good news.

7 September 2020
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China’s Economic Crossroads

Back in 2013, the Chinese government laid out a policy agenda that promised real reforms to an economy laden with debt and distorted by the influence of the country’s large state-owned enterprise (SOE) sector.

21 June 2020
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The dark side of microfinancing in Cambodia

While a recent report by two civil society groups in Cambodia outlining predatory practices by local microfinance institutions (MFIs) may not paint the clearest picture of the sector, there is no denying that there are murky waters ahead.The report by the Cambodian League for the Promotion and Defense of Human Rights (LICADHO) and local NGO Sahmakum Teang Tnaut (STT) documented numerous cases of coerced land sales, child labour, debt-driven migration, food insecurity and other human

14 August 2019
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China’s malign secrecy

Secrets may be among the most valuable assets that governments have: the Trojan Horse, the Enigma code, the Manhattan Project, and surprise attacks such as Pearl Harbor, the Six-Day War, and the Yom Kippur War are just a few of the best-known examples. But in some cases, governments’ desire for secrecy is hard to square with national interest – and may even be among the most dangerous threats to it.

11 January 2019
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China may put reforms on hold to boost economy

President Xi Jinping hailed China's "reconstructive reforms" in a New Year speech, but the sorely needed changes could be put on ice in favour of averting a potentially devastating economic downturn.The way ahead is further complicated by a volatile trade dispute with the United States (US) that – if unresolved – will add to the burden of Beijing’s policymakers as they seek to fuel an economy that is running out of steam.Beijing has for years come under pressure to introduce mu

6 January 2019
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Indonesia debt in spotlight as vote looms

What’s the safe level of public debt for Indonesia?That’s the debate raging in the country as politicians ratchet up the tension ahead of campaigning for next year’s presidential election.The currency’s selloff to levels not seen since the 1997-98 Asian financial crisis is only intensifying the political wrangling as President Joko Widodo’s (Jokowi) opponents blame his debt-binge for the rout.

7 September 2018
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Is Duterte's "Build! Build! Build!" financially sustainable?

Philippines is on the cusp of transformation. When President Rodrigo Duterte assumed power, he initiated the “Build! Build! Build!” project to usher in a “golden age of infrastructure” for the Philippines. The ambitious Build! Build! Build! project is estimated to cost the country US$180 billion, with over 70 projects planned nationwide. Among the planned projects is a new Manila airport terminal, Manila’s first subway system, and a 102-kilometre railway in Mindanao.

31 May 2018
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