Debt trap policy of china
For the past few decades, China has been providing funds to most countries of the world for aid or infrastructure development. In this way, it has provided loans of $ 1.5 trillion to 150 countries.
You will also be shocked to know that till now the World Bank and the International Monetary Union have provided loans of about 200 billion dollars to various countries of the world. In this way, China also left behind these two world-class institutions in the process of lending.
China owes the maximum debt to the countries of the continent of Africa. The biggest reason for this is the poverty of these countries and the mineral resources found in them. In 2010, China had a debt of $ 10 billion in African countries, which increased to 30 billion in 2016. The dollar has reached. The debt of Djibouti, the country of the African continent, is 80% of its total GDP, with the debt from China being 77%.
Not only the countries of Africa are buried under China's debt, but Sri Lanka and Pakistan are also under the debt of China. According to the International Monetary Fund, by 2022, Pakistan has to pay $ 6.7 billion to China.
Sri Lanka had borrowed $ 1.26 billion from China between 2007 and 2014. About 85% of China is involved in the construction of Sri Lanka's Hambantota port.
The impact of this policy of these countries,
China, in the name of this loan giving policy, over a period of time, establishes its dominance over the land, development projects, and mineral resources of such countries. This policy is known as debt-trap diplomacy.
What does date trap diplomacy mean?
In this diplomacy, the lending country first provides funds for infrastructure development and indirectly takes possession of that country due to the non-payment of debt. China is currently following this policy.
Under this policy, China acquired Sri Lanka's Hambantota port on lease from Sri Lanka for 99 years and also took possession of about 15,000 odd acres of land.
Likewise, there is every possibility that it can also take over the China-Pakistan Economic Corridor, built with Chinese funds in Pakistan, as it seems unlikely that Pakistan will be able to get out of its debt trap economy. The eye is also on the Pyra port of Bangladesh. Financial assistance is being provided by China for the construction of this port.
Kenya has also fallen completely into China's debt trap. It is forced to give its Mombasa port to China due to non-payment of the debt and there is a possibility that inland container depot in Nairobi may be taken over by China.
Belt and Road Project
China's belt and road project is also a means of getting various countries into China's debt trap. The project aims to increase economic activity by linking Asia to Africa and Europe via land and sea. The project was announced in 2013 by Chinese President Xi Jinping.
The project is being funded entirely by China. Through this project, it is also indirectly controlling most countries.
The road ahead
China was successful in its debt-trap diplomacy because the World Bank and International Monetary Fund could not provide loans for development to under-developed countries and developing countries. Therefore, it is necessary to make these institutions more transparent and provide more rights to third countries.
Recently, countries like India and Japan are trying to meet the needs of their poor infrastructure and other development in Africa.
Europe and America should also come forward to help poor and developing countries.
SOURCE BHASKAR DOT COM, THE NEW INDIAN EXPRESS