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2021 | OriginalPaper | Chapter

4. Chinese Development Assistance: Leveraging Deep Pockets

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Abstract

The rise of China from a recipient to a net donor is a defining feature of twenty-first-century aid architecture, where the traditional donors’ aid is dwindling and the gap left by these countries is being filled by emerging powers with their own aid programmes. With the rising economic clout, China has pushed its aid programmes to new levels, where its volume and geographic scope has expanded considerably, signifying its changing priorities and preferences. While China identifies itself as an emerging power of the Global South, its increasing role in international politics, where it is ready to take over the US in the economic realm and expanding its global influence through initiatives like the Belt and Road Initiative (BRI) brings forth the ambiguities in China’s desire for a global role and its preferred identity. This chapter argues that China is using its aid as an instrument to create favourable outcomes and trying to build its standing vis-a-vis other players, including great powers and regional powers, thereby consolidating its position in the global order.

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Footnotes
1
Even though China’s GDP per capita is increasing, it is nowhere near the GDP per capita of the developed countries of the Global North.
 
2
The Asian-African Conference of the Non-Aligned Movement (NAM) in Bandung, Indonesia (1955).
 
3
See, Annexure 1.
 
4
China provided economic as well as military aid to these countries under the colonial rule to fight for their independence (Li et al. 2014).
 
5
IATI aims at enhancing donor coordination and minimising duplication and waste.
 
6
China Exim Bank is one of three “policy banks”, the other two being the China Development Bank and China Agricultural Development Bank, both set up in 1994 “to better enable the government to directly finance its development goals as it transitioned to a market economy” (Brautigam 2010, 4).
 
7
Democracy promotion and good governance are the conditionalities inherent to OECD-DAC aid to development countries.
 
8
See, Annexure 1.
 
9
China has the maximum voting shares, 26.65%, followed by India, 7.65%.
 
10
These figures are supposedly devoid of China’s medical assistance, scholarship assistance or contributions to international organisations. Hence, if those figures were to be included in its development assistance, the amount disbursed might be much higher than projected (SAIS-CARI 2016b).
 
11
Sudan was the second-largest oil producer in Africa before splitting into Sudan and South Sudan in 2011.
 
12
China has been involved in large-scale economic infrastructure projects including Tanzania-Zambia Railway, railway projects in Botswana, the Lagdo Hydropower station in Cameroon and the Gotera interchange in Addis Ababa (White Paper 2011).
 
13
China has several agricultural projects in several African countries including, Rwanda, Burkina Faso, Ghana and Niger. In order to share agricultural technology with its partners, China has opened several institutions in Africa like the Agricultural Demonstration Centre in Tanzania and Zimbabwe (Li et al. 2014).
 
14
This includes water supply projects in Mauritania, Tanzania and Niger.
 
15
For example, Hospitals were built in different countries in Africa including the Taizz Revolution Comprehensive Hospital in Yemen and hospitals in the Guinea-Bissau, Zimbabwe and Chad.
 
16
Considering the shared history of anti-colonial struggles, China can build more friendly and symmetric relations with Africa.
 
17
Moises Naim (2009) calls countries like China, Saudi Arabia and Venezuela as “rogue aid providers” who don’t care nothing more than their self-interest and give aid to authoritarian regimes.
 
18
For example, the Karakoram Highway in Pakistan, the Greater Mekong Sub-region Information Highway in Myanmar and the No. 7 Highway in Cambodia.
 
19
For example, Gwadar Port in Pakistan and the Hambantota port in Sri Lanka.
 
20
It starts from Xinjiang region in the western part of China to Europe via Central Asia.
 
21
It is a customs union comprising of Colombia, Ecuador, Peru and Bolivia.
 
22
The mature governmental debts of some developing countries that they owe China are cancelled as a part of its debt relief programme.
 
23
It included the US, Canada, Western Europe, Australia, New Zealand, Japan, etc.
 
24
This group includes East Germany, Cuba, North Korea and Czechoslovakia.
 
25
China assisted Indonesia in expanding its electricity grid. However, China used highly polluting coal-based technology to build the power plants thereby increasing pollution in the country.
 
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Metadata
Title
Chinese Development Assistance: Leveraging Deep Pockets
Author
Chithra Purushothaman
Copyright Year
2021
DOI
https://doi.org/10.1007/978-3-030-51537-9_4