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Archive for the tag “debt”

China-Pakistan Economic Corridor: Debt-Trap Or Game Changer?

The China-Pakistan Economic Corridor, or CPEC, has been the focus of heated debate among observers of Asia — and, in particular, South Asia — since its announcement in 2013. Proponents of the project in China and Pakistan describe CPEC as a “gamechanger” that will uplift Pakistan and adjacent areas of China and perhaps even reshape the economic geography of the region.

Raed Here | CEPC Wire

The Future Of The Dollar

Photo by Pepi Stojanovski on Unsplash

The enduring dominance of the dollar is remarkable—especially given the rise of emerging markets and the relative decline of the U.S. economy, from nearly 40 percent of world GDP in 1960 to just 25 percent today. But the dollar’s status will be tested by Washington’s ability to weather the COVID-19 storm and emerge with economic policies that allow the country, over time, to manage its national debt and curb its structural fiscal deficit.

Read Here – Foreign Affairs

Africa Has A Question For Beijing: Will You Forgive Us Our Debt?

African states expect a devastating impact on their economies this year from the Covid-19 pandemic and are appealing for relief from repayments on billions of dollars in outstanding debt to cope. Most of those appeals involve China, the biggest lender to the continent, but it is unclear how Beijing will respond.

Read Here – South China Morning Post

How The Coronavirus Pandemic Has Trapped China’s Belt And Road Initiative Between A Rock And A Hard Place

Either Beijing will find innovative ways that benefit debtor nations or it will be seen as just another predatory lender in a long history of empire builders. The backlash to China’s presence in lands around the world will soon follow, along with fractured political and economic relationships that become difficult, if not impossible, to mend.

Read Here – South China Morning Post

This Is How The Coronavirus Will Destroy The Economy

In key ways the world is now as or more deeply in debt as it was when the last big crisis hit. But the largest and most risky pools of debt have shifted — from households and banks in the United States, which were restrained by regulators after the crisis, to corporations all over the world.

Read Here – The New York Times

The COVID-19 Debt Deluge

How long the COVID-19 crisis will last, and what its immediate economic costs will be, is anyone’s guess. But even if the pandemic’s economic impact is contained, it may have already set the stage for a debt meltdown long in the making, starting in many of the Asian emerging and developing economies on the front lines of the outbreak.

Read Here – Project Syndicate

How Much Money Does The World Owe China?

While China’s role in global trade is highly publicised and politically polarising, its growing influence in international finance has remained more obscure, mostly due to a lack of data and transparency. Over the past two decades, China has become a major global lender, with outstanding claims now exceeding more than 5% of global GDP. Almost all of this lending is official, coming from the government and state-controlled entities.

Read Here – Harvard Business Review

The Approaching Debt Wave

The World Bank has warned that a massive debt wave is building worldwide. There is no telling who will be hit the hardest, but if vulnerable countries, from the United Kingdom to India, do not act soon, they may face severe economic damage.

Read Here – Project Syndicate

Debt Looks Like The ‘New Normal’ For The Global Economy – Until The Next Crisis

In the “new normal” economic world, many beliefs have been turned on their head. Trade wars supposedly  do not cause lasting harm, declining corporate output, earnings and investment are no cause for alarm, stock prices can go on rising regardless, and record global debt is nothing to lose sleep over.

Read Here – South China Morning Post

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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