The alternative to Chinese debt for Africa from India and Japan

Discussion in 'Africa' started by Vikrant, Dec 2, 2018.

  1. Vikrant
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    Vikrant Gold Member

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    African countries should think long and hard before falling into Chinese debt traps. I think India or even Japan will be much safer option for them.

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    China's sprawling Belt and Road Initiative has made developed nations anxious about losing influence in the developing world. The U.S. and the EU are each advancing their own new strategic initiatives to support development in emerging economies.

    Meanwhile, in a development that has so far attracted little publicity, Japan and India have been gradually fleshing out their own joint program to support African development -- the Asia-Africa Growth Corridor plan -- which offers real potential to bring economic benefit to Africa.

    The push by Tokyo and New Delhi is motivated in good measure by their concerns about China's rising global influence and a desire to cement the strategic partnership between two of Asia's largest democracies. But making the AAGC effective will require the two governments to pitch their plan as complementary to the BRI so that African nations are not asked to choose sides.

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    The alternative to Chinese debt for Africa from Japan and India
     
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  2. Dan Stubbs
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    Dan Stubbs FORGET ---- HELL Gold Supporting Member Supporting Member

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    As report prior China and Russia are going to go to the gold standard on their money, this will replace the US dollars in the OIL patch, and in other material. This is going to make people like Soros Buffett and Gates in a good position. How to correct this is shut down the tech transfer.
     
  3. Vikrant
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    Vikrant Gold Member

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    Gold has always been gold and is always going to be gold.

    As far as China is concerned, it decided in 70s to piggyback on dollar instead of strengthening its own currency. Maintaining a large dollar reserve is the backbone of China's economic strategy. So I do not think China is going to dump dollar anytime soon. At the start of this so called trade war, China did threaten to dump dollar but Trump called their bluff. Russia on the other hand is realizing the importance of trading in an alternate currency and they are moving in that direction.
     
  4. anotherlife
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    anotherlife Gold Member

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    The challenge for Africans is how not to pay household income into loans that their governments take, be it from China or India or Japan. CurrentLy, they are well protected by the lack of infrastructure and lack of technology. All these Asian profit seekers know, that in their competition with each other, it is the African infrastructure that they need to modernize, to pull one on each other faster.
     
  5. Vikrant
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    Vikrant Gold Member

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    Infrastructure development is a good thing. As long as it is done within budget. China's debt trap is about entrapping countries into taking loans that are beyond their means.
     
  6. anotherlife
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    anotherlife Gold Member

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    No. It is the government that makes them pay. So the less infrastructure they have, the less power the government has to make them pay. Infrastructure is a bad thing for them.
     

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