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Begin New Search Topic Debt Political Geography China Publishing Institution East-West Center Publication Year within 25 Years

1. China’s Dilemmas in Bailing Out Debt-Ridden Sri Lanka

Author:
Ganeshan Wignaraja
Publication Date:
01-2022
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Ganeshan Wignaraja, a Non-Resident Senior Fellow at the Institute of South Asian Studies (ISAS) of the National University of Singapore and a Senior Research Associate at the Overseas Development Institute (ODI) in London, explains that "Sri Lanka is now stuck in a ‘debt trap’. However, the debt trap is not wholly Chinese."
Topic:
Debt, Development, Diplomacy, and Economics
Political Geography:
China, Asia, and Sri Lanka

2. China is Not Conducting Debt Trap Diplomacy in the Pacific--At Least Not Yet

Author:
Jonathan Pryke
Publication Date:
03-2020
Content Type:
Commentary and Analysis
Institution:
East-West Center
Abstract:
In an atmosphere of heightened geostrategic competition, China’s Belt and Road Initiative (BRI) has raised questions about the risk of debt problems in less-developed countries. Such risks are especially worrying for the small and fragile economies of the Pacific. A close look at the evidence suggests that China has not been engaged in debt-trap diplomacy in the Pacific, at least not so far. Nonetheless, if future Chinese lending continues on a business-as-usual basis, serious problems of debt sustainability will arise, and concerns about quality and corruption are valid.There have been recent signs that both China and Pacific Island governments recognize the need for reform. China needs to adopt formal lending rules similar to those of the multilateral development banks, providing more favorable terms to countries at greater risk of debt distress. Alternative approaches might include replacing or partially replacing EXIM loans with the interest-free loans and grants that the Chinese Ministry of Commerce already provides.
Topic:
Debt, Development, Diplomacy, Geopolitics, and Belt and Road Initiative (BRI)
Political Geography:
China, Asia, and Asia-Pacific