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looking beyond borders

foreign policy and global economy

Archive for the tag “debt”

How China Can Offer Pakistan A Path From The Precipice

Introduced under considerable fanfare in 2015, CPEC provides much-needed financing for infrastructure and energy pipelines that Pakistan could not entice other investors to underwrite. However, the expected payoff is unlikely to compensate for the sizable risks to which these investments expose the Pakistani economy.

Read Here – RealClearWorld

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Is Sri Lanka Really A Victim Of China’s ‘Debt Trap’?

The economic reality is that Sri Lanka leased out Hambantota port to China largely due to a persistent balance of payment (BOP) crisis resulting from the reduction of trade over the years even while external debt servicing costs have been soaring. Sri Lank faced a severe shortage of foreign reserves in light of the upcoming debt servicing payments, due to the maturity of international sovereign bonds. Therefore, the country had to look for various avenues to obtain foreign currency inflows. Leasing out Hambantota port was one of the ways to increase the country’s foreign reserves.

Read Here – The Diplomat

Africa Is A Continent On The Brink … But Of What?

 

It makes sense that a continent home to 54 countries and 1.2 billion people would also house a mass of contradictory developments. Africa features several of the world’s fastest-growing economies and a burgeoning middle class. But much of the continent remains mired in debt, ravaged by conflict, disease or terrorism, and plagued by elites clinging to power.

Read Here – World Politics Review

The Belt And Road: The Good, The Bad, And The Mixed

Much of the narrative on China’s Belt and Road Initiative (BRI) has been polarised…Neither of these polarised narratives seems to fully account for the complex and heterogeneous variety of activities in the BRI.

Read Here – The Diplomat

‘China’s Manhattan’ Borrowed Heavily. The People Have Yet To Arrive.

Chinese local governments are swimming in debt. By official accounts, that debt totals $4.5 trillion. By unofficial estimates, it could be as large as $10 trillion…China has long borrowed heavily to build and then counted on breakneck economic growth to pay it back. The script: Sell vast amounts of land to developers, borrow to subsidise construction, and jobs and new cities will result. It was a model that helped China build its skyscrapers and high-speed rail lines and ushered in an era of prosperity.

Read Here – The New York Times

Saudi Crown Prince Oversees $20 bln Of Deals With Pakistan

Crown Prince Mohammed bin Salman told Pakistani Prime Minister Imran Khan to consider him the “ambassador of Pakistan” in Saudi Arabia moments after the two countries signed key memorandums of understanding (MoUs) worth $20 billion on Sunday in the fields of energy, petrochemicals, minerals, agriculture and food processing.

Read Here – Arab News

Exposing China’s Overseas Lending

Over the past 15 years, China has fueled one of the most dramatic and geographically far-reaching surges in official peacetime lending in history. More than one hundred predominantly low-income countries have taken out Chinese loans to finance infrastructure projects, expand their productive capacity in mining or other primary commodities, or support government spending in general.

Read Here – Project Syndicate

The U.S. Economy Is Great, Really, For Now

Trump haters may be tempted to conclude from all this that he is about to lead America into a sudden decline, but that is not the point. This American decade started under President Obama, continued under Mr. Trump and survived congressional gridlock throughout, showing that the economy often rises above politics. The economy is driven less by ideology than by its own internal cycles, and this cycle has been turning in America’s favor for so long that it is unlikely to last much longer.

Read Here – New York Times

China’s Coming Financial Crisis And The National Security Connection

The biggest national security issues, however, arise from the unpredictable political impact of a recession in China. We learned this, or should have, during the 1997 to 1998 Asian crisis. China may have had a disguised recession or near recession in 1998, but it was in a much smaller economy. Apart from that one episode there is no collective memory of recession and how to deal with it. As such, China is now psychologically unprepared to deal with the challenges of a recession.

Read Here – War On The Rocks

The 8 Major Forces Shaping The Future Of The Global Economy

The world is changing faster than ever before. With billions of people hyper-connected to each other in an unprecedented global network, it allows for an almost instantaneous and frictionless spread of new ideas and innovations. Combine this connectedness with rapidly changing demographics, shifting values and attitudes, growing political uncertainty, and exponential advances in technology, and it’s clear the next decade is setting up to be one of historic transformation. But where do all of these big picture trends intersect, and how can we make sense of a world engulfed in complexity and nuance? Furthermore, how do we set our sails to take advantage of the opportunities presented by this sea of change?

Read Here – VisualCapitalist

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