The loans do the job -- dragging the countries into the constant cycle of debts and economic dependency. Since these countries cannot pay back hefty loans, they become indebted to the ‘philanthropic’ states, and become virtual puppets and business houses and undermine sovereignty to serve interests of the neo-masters.
God has never been fair to the third world. From being plundered by western powers to being left at the mercy of developed economies, the third world has never been truly free. Owing to their white masters, they have weak economic structures and their infrastructure and institutions have never recovered from the colonial hangover. This leaves them vulnerable, and countries like China can see right through those vulnerabilities.
Xi Jinping has carried on the ‘Chinese Dream’ -- to return China to its glory days and make it a superpower. The Belt and Road Initiative (BRI) which serves to create economic channels and connections for China throughout the world is termed by China as a “win-win” project for both China and the involved countries. The initiative includes several sub-projects being carried out in different countries throughout Asia and Africa and even some European countries in which China invests and helps develop infrastructure and trade facilities through loans so that these countries can join China as a part of the BRI. The China Pakistan Economic Corridor (CPEC) is an example of many of these projects being undertaken under the umbrella of BRI.
Most of the countries involved in the BRI are rich in resources but have underdeveloped infrastructure. So, when opportunities to develop economically, through projects like the BRI come knocking at the door, it is not an option for them to turn it down.
Most of the countries involved in the BRI are rich in resources but have underdeveloped infrastructure. So, when opportunities to develop economically, through projects like the BRI come knocking at the door, it is not an option for them to turn it down.
Since the BRI comes with loans, the offer appears lucrative for these countries desperately in need of money to survive and ultimately revive their infrastructure so that they can grow. This does not allow them to look out for neo-colonialist intentions. They cannot do much about it because this is the only option they have.
China is currently present in several Asian countries and more than 30 African countries. China currently holds 14 percent of Sub-Saharan Africa’s total stock. Moody’s warned that the countries benefiting from the BRI are at great risk of losing integral infrastructure and important natural resources. When these countries are unable to pay back the loans, they have to give up their resources, assets, and infrastructure facilities to their creditor, China. The infrastructure they took the loans for is lost to the creditor that granted the loan.
Take the case of Sri Lanka. The Sri Lankan president took loans and assistance from China to develop Hambantota Port, and as expected, the port became China’s. The president was voted out and the government, after months of negotiation, had to agree to give the port to China along with an extra 15,000 acres of surrounding land due to their inability to pay back the loans.
Further, since these countries rely on China for economic development, they have to give monopolies to China over lands and resources. China can lease acres of land in Africa at the cheapest prices. Even access to the country’s most precious resources is easily granted to Chinese companies. This not only degrades the value of African lands and resources but also threatens the local companies and their businesses since they are not granted the same privileges.
In traditional colonialism, the foreign policy of colonies used to be decided by the colonizer. Not much has changed. China has immense power over the developing countries. A country like Pakistan which has been actively vocal against Islamophobia throughout its history has not talked about the Chinese persecution of Uyghurs even once.
This monopoly is further strengthened when Chinese companies are granted exclusive economic zones. Most of these economic zones are located near or on ports and, due to this, some local fishermen have had to leave their generational professions.
In traditional colonialism, the foreign policy of colonies used to be decided by the colonizer. Not much has changed. China has immense power over the developing countries. A country like Pakistan which has been actively vocal against Islamophobia throughout its history has not talked about the Chinese persecution of Uyghurs even once. The same goes for African states. Many of the African countries have backed China on human rights. Also, many African countries reversed their recognition of Taiwan due to pressure from China. Burkina Faso broke ties with Taiwan and the Dominican Republic changed its allegiances from Taiwan to China.
The influence that China has on the foreign policies of these countries is worrisome. Djibouti had to allow China to build its first overseas military base on its land in exchange for investments and loans. The military base not only puts a question mark on Djibouti’s sovereignty but also poses a threat to its neighbouring countries. If things keep up at this rate, it would be safe to assume that this will not be China’s only foreign military base.
China’s neo-colonialist tendencies make the countries subservient. The growing dependency of these countries on China is taking away their freedom and ability to grow independently. The constant loop of debt and dependency is gradually taking away the control developing countries have over their assets, resources, infrastructure, and policies.