By Kevin P. Gallagher, Boston University
As Western-backed development banks and the private sector are on the retreat from Latin America, China’s development banks are coming to the rescue, at least for now.
China’s two development banks, the China Development Bank and the Export-Import Bank of China, provided upwards of $29bn to Latin American governments in 2015, according to new estimates published by Boston University’s Global Economic Governance Initiative and the Washington-based think tank The Inter-American Dialogue.
A three-fold increase from 2014, China’s 2015 finance to Latin America was more than the World Bank, Inter-American Development Bank, and the Development Bank of Latin America combined. Read more
By Gregory Chin and Kevin P. Gallagher
Former US Secretary of State Dean Acheson famously wrote that his generation was ‘present at the creation’ of the world order that ushered in US leadership. We may now be present at the unpicking of that order; the fate of the US Ex-Im Bank is set to be decided by the US Congress this month amid predictions that it may be scrapped.
After putting in place the pieces for domestic recovery after the Great Depression, the United States laid the foundation for a series of financial institutions that sought stable international economic and financial growth, and the export of American goods and values. Read more
For Chinese, Africa is the new El Dorado. An estimated 1m Chinese have moved to Africa in the last two decades in pursuit of a more prosperous life. They are opening shops, buying land, and exploiting mines. But how welcome are the Chinese in Africa? And is their arrival a force for good?
Looking for answers to these timely questions, Howard French, a former Shanghai bureau chief of the New York Times, undertook a grand voyage through the African continent. He met with a diverse array of Chinese merchants, entrepreneurs and business men and asked them about their practices, methods, and outcomes. Read more
When it comes to loans, Africa has a clear preference: lots from China, a little less from the World Bank please.
According to data compiled by rating agency Fitch, loans from China’s Exim bank to Africa in 2011 were double that of the World Bank, cementing a trend which started around 2005. Read more