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ElFitzyesterday at 6:27 AM2 repliesview on HN

Belt and Road wasn’t goodwill.

A lot of it was financed through large (sometimes unsustainable) loans to recipient countries, sometimes leading to unsustainable debt burdens, irrespective of the potential ROI for the recipient (ie Sri Lanka’s port).

In many cases, much of that debt paid for Chinese companies, contractors, suppliers, and imported workers who built or operated the projects.

And the infrastructure didn’t necessarily line up with the recipient’s actual needs, mostly with China’s (ie the Laos–China railway, in large part financed by Laotian debt, which may someday bring some benefits to Laos, but mostly serves China’s regional trade ambitions).

Not to say other countries do it better or have purer ambitions or whatever. It’s just the "goodwill" part that made me twitch.


Replies

d5lt5yesterday at 6:45 AM

Can you argue that the principle of the BRI is humanitarian and it should benefit both partners, but not equally? Imho, that policy is far better for humanity than blockading Cuba, bombing Venezuela and Iran.

> A lot of it was financed through large (sometimes unsustainable) loans to recipient countries, sometimes leading to unsustainable debt burdens, irrespective of the potential ROI for the recipient (ie Sri Lanka’s port).

I see that you blame China for Sri Lanka, while China wasn't the only creditor there.

> And the infrastructure didn’t necessarily line up with the recipient’s actual needs

Easy to say in hindsight.

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fragmedeyesterday at 6:39 AM

Tales of an Economic Hitman was an instruction manual for the Belt and Road Initiative.

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