Who’s Responsible for Africa’s Debt Trap: China or the West?
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- Опубліковано 3 чер 2024
- U.S. politicians and corporate media blame China for debt crises in African countries, yet African governments owe three times more debt to private Western lenders than to China. Furthermore, interest rates on Western private loans are almost double those on Chinese loans. Tim Jones, Head of Policy at Debt Justice in the UK, explains the reality behind the African debt and how the only just way forward is its cancellation.
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A significant difference between Chinese debt to countries participating in the Belt and Road Initiative is that almost all of the debt is realized in tangible material benefits to the peoples of those countries in the form of infrastructure (roads, railways, bridges, ports, airports, buildings, manufacturing, health and medical development, agricultural development, etc.). They even throw in free schools, housings, African CDC and African Union buildings, etc here and there. Whereas much of the Western debts which in large part aim to privatize of financial, health, education and economic/resources institutions of the borrowing countries.
The west want to create a rich individual that they can use for leverage. Thus, they give debt to private individual/company.
China, on the other hand is a socialist country and won't give money to individual. China vision of prosperity is a common prosperity in which can only be achieved by building infrastructure & public service.
Contrary to the popular beliefs, BRI projects are, for the most part, a net loss in term of investment return in itself. And interestingly, this is often deliberate on the Chinese part themselves to refrain from getting back their debts owed by African countries. Delaying the repayment further from deadline despite already provided extended repayment period + moratorium to the debtor.
Further indicating that all these infrastructure projects have always been intended as a long-term investment strategy where China would expect to reap the benefits together not from immediate investment return of their infrastructure projects, but from the resulting growth effects and developments, which are made possible by all these built infrastructures.
Sri Lanka debt were from US and western countries. Only about 10% from china. BlackRock owned a lot. The fake news from the west told you the debt trap.
@@GuyWhoLikesTheSnarkies1435 that is a win win situation for both China and the nations being helped.
@@JohnnysCafe_ Exactly!
Secretary Blinkin arrives in Africa landed on a China built airport travel on a China build road and gave a speech in a China built building warning about the China debt trap.
The USA is sick.
@@yurichtube1162 try psychotic.
Americans are full of bullshit F__ king greedy lieing propaganda hypocrites
@@richardleenders8243 in all honesty, most americans are victims of their own corporate elitist's propaganda. Many don't even realise it, and just like a lemming, they just believe and follow all things their govt throws at them, what an end to a tragic nation built mainly on blood.
@@evechurchill424 your absolutely right Eve..I grew up in America And attended school.. until I was 18..I returned to the Netherlands that's Holland living in America sense 1959 tell 1967
If 12% is deemed a lot, so how would you describe 35%?????
I thought the same thing🤔
Precisely my thoughts! This guy is clearly anti China ! I wish Rania would have put him in his place and also clarify the debt differences as Chinese debts are for Africa’s infrastructure and development while the IMF debts are for private exploitative ventures!
Not 35%. 88% 35% is only private Western lenders, the rest are Western Govts!!!
@@hclau218 It's truly amazing how these Americans or British have no shame or dignity, always accusing others of what they themselves do. Their govt are also the worst war criminals, thieves, liars and bullies. What's worse is they continue to insult the intelligence of the rest of the world but on the other hand, the majority of westerners are idiots anyway. They never believe their own MSM when it comes to their domestic issues but believe every lie about others.
The picture perfectly describes the reality! Brilliant!👍👏
A old research conducted in 2009 by Gernot Köhler on the implication of unequal exchange/UE in SSA (Sub-Saharan Africa) indicates that SSA countries suffered to UE from trade with high-income countries. With exception for trade with China, as it's characterized as equal exchange in general. Degrowth proponent Jason Hickel also found to endorse this study.
First of all Africa is a continent .The countries who owe money should be discussed directly , not lumped together.
How much does America owe ?
Utterly ridiculous
@karmaking4633 USA does not owe money, it merely prints ridiculously amounts of it.
Don't see how African governments' stop playing back debts could benefit their future business credits.
China has always been forgiving it's debts to Africa and never once seized assets for unpaid debts, this is different from Africa just stops paying back.
😂 China has only forgiven less than a billion dollars of debt meanwhile hundreds of billions are owed.
There's a HUGE difference between Western lenders and Chinese lenders to the Global South countries. The two groups have completely different objectives.
Western lenders don't really give a rat's ass about helping developing countries to develop. They want a good return on their loans. They want to exploit these countries in various ways, including imposing political conditions in return for their assistance.
Chinese lenders really do want to help developing countries develop. If the recipient nations run into financial difficulties, the Chinese lenders will try to ease the burden, either by renegotiating the terms of the loan, or outright forgiving the loans.
Chinese lenders also won't impose political conditions.
Chinese lenders also will provide actual construction and engineering assistance. That's why we see tangible results in Africa and Southeast Asia and Latin America...roads, bridges, rail lines, airports, ports, etc. *Why do we not see such tangible results from Western lenders?*
Western loans are largely squandered away without oversight.
So what do Chinese lenders get out of this if not loan interest?
1. They get to utilize their surplus infrastructure construction capacity...materials, labour, etc.
2. They get to utilize their trade surplus money which otherwise would go to waste.
3. *They expand trade* by building out new trade routes.
4. They develop new foreign markets for their goods and services. Impoverished countries cannot buy Chinese goods.
5. They find new labour pools for their low-end manufacturing, as China moves up to high-value manufacturing. Chinese labour is growing increasingly expensive.
6. Diplomatically, they gain good will internationally.
Western lenders don't think this way.
there is the perception of other origin had thought that Asian chinky people we can bully and cheat and humiliate easily but to the west, they are afraid of so everyone pointed out to Asian and try to bargain and hide what western did with Africa for centuries.🤣🤣🤣so they can see the deft trap on infrastructure and nothing else.😆😆😆 can people tell me which bank and country giving money without anything in return??? 😆😆😆even their aid is not free and paying somewhere???😃😃😃😃
there is the perception of other origin had thought that Asian chinky people we can bully and cheat and humiliate easily but to the west, they are afraid of so everyone pointed out to Asian and try to bargain and hide what western did with Africa for centuries.🤣🤣🤣so they can see the deft trap on infrastructure and nothing else.😆😆😆 can people tell me which bank and country giving money without anything in return??? 😆😆😆even their aid is not free and paying somewhere???😃😃😃😃
there is the perception of other origin had thought that Asian chinky people we can bully and cheat and humiliate easily but to the west, they are afraid of so everyone pointed out to Asian and try to bargain and hide what western did with Africa for centuries.🤣🤣🤣so they can see the deft trap on infrastructure and nothing else.😆😆😆 can people tell me which bank and country giving money without anything in return??? 😆😆😆even their aid is not free and paying somewhere???😃😃😃😃
@horridohobbies Thats what we call a win win situation...:)
The Thumb nail says it all really .
But it’s not a debt trap…especially not in the same sense as the European/US kind of debt in the form of “aid”.
LOL first thing to learn of how English words is used n Western use of language is They Never Mean what they say. When they say aid its actually Debt in Real life practice n action.
@@weiskl887 Whiteman speaks with forked tongue!
We live in a debt based financial system, so why are we surprised that nations are in debt? Money IS debt!!! Many nations all over the world are in debt.
Especially the US !
Great Information, thanks for sharing
Nice thumb nail and very apt 👏
Africa is getting every day better and there is no debt trap
Rhetorical questions are getting tiring. We all know who’s responsible so let’s stop with the word games.
Yup, Western Europe to this day is fucking over the global South.
Invert everything the US says & you have it right.
Heck, that all the West knows - word games or military action, if word games fails.
The west should also cancel the debts owed by africa.
Monthly 10% interest on millions of dollar loans is unimaginable
The guy who signed the loan then skim that money to his bank account in the us banks. who is responsible? Logic tells you the man who run away with $$ WB. should go after him or her, like for example in the case of Angola’s First Lady? Hmm I wonder?
Map on introduction missing Japan.
Since 1945 there is no japan anymore, just US pets.
After WWII, Japan is now the 51 state of the U.S.😉
Africa needs no help, Africa needs honest business partners. Honesty in business is achieved by enforcing competition. If the BRICS will achieve a real multipolar system, Africa will be able to sort itself out by itself.
Wow brother radovid
Well spoken and I agree 1000%
Brics is the way forward and Africans must join this new system or align them selves with Mr putin and xi and get it sorted now while those 2 alive and in office and healthy
Jubilee during Roman times before Capitalism
Babylonians had it well sussed. Rome crucified the messenger & had no mercy - a debt is a debt & must be paid. Unfortunately, we chose the Roman way.
para el algo
I dont get it. Africa is a large continent with rich resoruces. how is them not rich? they are homes to among the first civilisations, but poorest in the world. look at southeast asian, most of them are later civilisaitons but they growing by leaps and bounce. I think it is because of china, the tradewith china is many times larger than US and Europe and Japan. When you look at the cooperation they're forging, they are mostly "let's build together" policy.
Yes, it's very complex and I think this is a good video. However two issues not covered at all that are important:
1. by refusing to pay the interest owed and insisting on debt cancellation (rather than a restructuring ... yes, I know it just kicks can down the road) these countries are almost guaranteed never to be able to borrow from private lenders ever again. I hope they can raise whatever they need in the future from China cos the debt from IMF and World Bank will come with a gazillion conditions some of which will favour Western countries by depleting these countries of any real progress ie they will ensure all raw materials are refined etc elsewhere to benefit Western companies. So African countries never get their own high margin businesses. Only the West gets those.
2. Governance in these countries. The leaders and elites are corrupt and complicit. They are the ones who negotiate these loans and somehow a large portion ends up in their private hands. What they seem to do is make sure the Western businesses get their resources, no businesses are set up in their countries but instead they get their bribe money ensuring their countries never really develop. This suits them and the West perfectly.
I hope and believe that China is actually trying to help develop the businesses these countries need to grow. They need the infrastructure that China is helping to build. Something, amazingly, the West never helped with. Well it's not amazing is it? Why would they? Heavens competition? We know the West isn't keen on that. You've only got to listen to the US bleat about China.
And no I don't agree with cash reparations, but yes to fairer trade and structural changes and help in setting up proper governance and institutions in these countries. You'd think the West could really play their part in such things. This would be real reparations that made sense and didn't end up as bribes to elites.
Puppet presidents are bribed by their western cronies to represent them on a wide range of sucking African resources and manpower without benefits the continent, its well organized right from the Berling conference the so called scramble of Africa with their bloody sucker corporate organization and companies eg anglo american co looting African resources while IMF and world bank ensure that they trick African through their imposter puppet presidents maintains their debt trap. Imagine most of the central and some north African countries still under France control these countries don't have central banks their reserve banks are incorporated into French central bank whereby the get + - 50 % of their GDP and the is probably under french fiscal policy. This is ridiculous which means that the french economy is maintained by these countries again through its imposter presidents thus why the coup de tar is very rampant in those countries orchestrated mainly by France and others.👹👺 what they have looted since the Berlin conference is enough for you / them the liabilities must credited to the looters...
@@namibiaandchina9691
Yes, I agree. It's the elites in the West and the elites in Africa making sure nothing gets in the way of each getting what they want.
Usually when autocracies or dictatorships treat their people so badly and only look out for their own interests they live in fear of people rising up and a revolution taking place. I feel China is such an example. Sure the elites get pretty rich and there is corruption (like all countries) but at the same time the leadership ensures people are taken into account. China has reduced poverty significantly and more and more people have better living conditions than ever before. Things are more balanced and fairer than in many African states.
This isn't the case in these African countries whereof we speak. And that surely is down to Western interference ensuring whichever despot they favour stays in position. And as you say the West (the looters) will organise debt traps, coups whatever it takes just so they can keep looting. Desperate.
😮😮😮😮
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The west
Wow, wondered if this guy pay for his personal debt😅
Urdumafdood
The moneylenders have the upper hand because of the backwardness created in old colonialism
.🔍🎓👌
What a stupid comment. It is great that Zambia stop paying for the loans they took from different lenders - absolutely ridiculous.
Why pay back any loans that you take from any banks then? Just borrow millions from the banks to buy your dream house and you are deem a "hero" by this panel for defaulting on your loan.
some debts are not just. it would be the bank's fault to lend you a million dollars if it is obvious you cannot repay it. if they lend you a million dollars knowing you cannot repay, then force you to repay or give them servitude, then that would be unjust (a debt trap). most loans to the global south, especially those from western institutions, are like this.
we are taught and assume that repayment of debt is always moral, but this is not true. i recommend reading "debt: the first 5000 years" by david graeber
@@foxyr4bbit So, it becomes the lender fault if you come up with a proper credible business proposal yet you squandered the borrowed money on gambling, women and cars?
And banks or lending institutions do not follow the borrower 24/7 to ensure all money borrowed are for the sole purpose of the proposed business.
For me, if you borrow money, then you MUST pay back period.
@@ignatiuschua5268 no, what i am saying is that it would be the lender's fault to lend you money if they know that you are unable to repay it, and entrapping you in a cycle of debt. this would be malicious lending. this was a common racket for the mafia (loan sharking), for example. this is also what western institutions typically do to global south governments. if the lending was not based on moral standards, then the debt is not morally justified either.
@@foxyr4bbit Nobody lends money to someone who can't pay up. Do you think that a hundred million is a small change? It is always the borrower who is at fault and after their failure in their business due to various factors, they want loan forgiveness? I also wish I can do it to our banks and borrow a million dollars.
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YALL HAVE A GREAT INFORMATIVE FORM...MAY GOD CONTINUE BLESSING YOUR PROGRAM EFFORTS...AMEEN...ME SENIOR CEE MAN X, HERE INSIDE THE BELLY OF THE BEAST ( AMERIKKKA) ...HEAD OF ALL PROBLEMS ON EARTH...AMEEN
Both
incorrect! lose 5 points
Wrong!!!
Both. The answer is both.
The answer: it is over for The West in Africa. Leave.
incorrect! lose 5 points
Wrong!!!
I'll never quite understand why people who dislike America so much dont just leave it. Or why people rank country's. What race does China think its in?
China's not the one thinking it's in any race. That's the US. The US excluded China from the "international" space station so they made their own. And now the US is knocking on China's door demanding to be let in and still under the pretext that the US inspect it up to their standard.
And if you haven't figured that the west is the one who habitually encroaches on the borders of other countries, then clearly your white supremacists ideology prevents you from getting any sort of clue on the matter. You're like an abusive cop husband that the wife left but insist on harassing her and her boyfriend along with your coworker cop goon squad.
People have tried to kick you out, making their own currency even. You're like the sole bakery who blew up everyone else's and you think people are buy from you because you have the best bread.
And you "don't get it." Really? You're an insufferable narcissist.
Same reason why white South Africans complain so much about South Africa yet refuse to leave it.
Why would an American who can criticize America (because they're not an indoctrinated illiterate sheep) go to another country with it's own problems? People rank countries because they keep records and statistics for comparable purposes.
Race isn't real, it's a social construct like binary gender used to manipulate people's perception of reality in service of financial elites.
Urdumafdood
Well, saw this reply from an American who was asked why if he dislike the US - why doesn't he emigrate to another country. His classic reply: "I don't want to be the victim of America's foreign policy."
@@PhiloSurfer 😂😂😂 nice
Lend to poor family is a very high risk than lend to rich family.
Maybe chinese needs to stop helping africa from now, the people are not welcome.
Maybe you need to stop being jealous and learn from China.
Never heard an African say Chinese aren't welcome...but I've heard a lot of them say piss off to the white man. Lol