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China Continues To Enslave Low And Middle-Income Countries With Unsustainable Debt

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by Capitalist Exploits
Friday, Feb 04, 2022 - 17:00

DEBT SERFS

If you’ve not read it yet, Confessions of an Economic Hitman by John Perkins highlights how the West via the IMF, World Bank, and CIA and in collusion with big business routinely have enslaved developing world nations.

Now it is China that leads the way employing the very same tactic. Shall we call it corruption with Chinese characteristics?

China: Is it burdening poor countries with unsustainable debt? – BBC News

Research by AidData, an international development body at William & Mary University in the US, finds that half of China’s lending to developing countries is not reported in official debt statistics.

It is often kept off government balance sheets, directed to state-owned companies and banks, joint ventures or private institutions, rather than directly from government to government.

There are now more than 40 low and middle-income countries, according to AidData, whose debt exposure to Chinese lenders is more than 10% of the size of their annual economic output (GDP) as a result of this “hidden debt”.

Djibouti, Laos, Zambia and Kyrgyzstan have debts to China equivalent to at least 20% of their annual GDP.

Case in point is, of course, Sri Lanka where recently the President of Sri Lanka, a fella named Rajapaksa, told the visiting Chinese Foreign Minister, a fella who goes by the name of Wang Yi, the following:

It would be a great relief to the country if the attention could be paid on restructuring the debt repayments as a solution to the economic crisis that has arisen in the face of the COVID-19 pandemic.

You don’t say!

Over the past decade, China has loaned Sri Lanka more than $5 billion for highways, ports, an airport, and a coal power plant. Critics say that the funds were used for white elephant projects with low returns.

Of course!

The ROI isn’t measured in project funding but in political power over the entire country. I mean jeepers, why limit yourself to the investment returns on a mere port when you can extract so much more? Why indeed.

If you need a quick reminder, Sri Lanka is a key part of Beijing’s Belt and Road Initiative, ostensibly a long-term plan to fund and build infrastructure linking China to the rest of the world but covertly a means of bringing entire countries into and under the economic and military “persuasion” of the CCP.

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