Country, estimated to be owed up to $1.5trn, is increasing penalties for late payments and cutting back on infrastructure projects
China has become the world’s biggest debt collector, as the money it is owed from developing countries has surged to between $1.1tn (£889bn) and $1.5tn, according to a new report. An estimated 80% of China’s overseas lending portfolio in the global south is now supporting countries in financial distress.
Since 2017, China has been the world’s biggest bilateral lender; its main development banks issued nearly $500bn between 2008 and 2021. While some of this predates the belt and road initiative (BRI), Beijing’s flagship development programme has mobilised much of the investment in developing countries.
But a new report by researchers at the AidData research lab at William & Mary, a public university in Virginia, found that China, the world’s second largest economy, is now navigating the role of international debt collector as well as being a bilateral funder of major infrastructure projects.
Usually when countries are founded.
Like, imagine a country living under oppression finally gains their independence and can govern themselves. Everyone alive in that country knows how bad things were and the leader they elect promises that they will no longer have to worry.
Sure they have their challenges but they get on with it and they make it work.
The person who becomes the leader 3 generations later? To them it’s just a way to gain power, make money and do what they want. They have no idea how people felt when they were being oppressed, and how desperately they wanted to be liberated.
One of my favourite quotes by G. Michael Hopf summarises this perfectly:
Doesn’t even happen all that often in those conditions.