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All good points. First things first... I assumed you're an American. If you're Kenyan, then I was wrong and you're coming from a more educated perspective. Plea
by beat 8y ago
All good points. First things first... I assumed you're an American. If you're Kenyan, then I was wrong and you're coming from a more educated perspective. Please understand that Americans have some wild assumptions about the rest of the world.
The articles on Kenya's debt situation were very enlightening, thank you! It looks offhand like it's problematic, but not unsolvable. See where things are in another ten years. But a debt crisis isn't any better for lenders than it is for debtors. What good does it do China for Kenya to default on its loans?
As for 5% growth... that's really good. Maybe not the best in Africa, but far better than the mature economies of the West (most of Europe has hovered around 1% for the same period, and the US is 1.4%). That makes for an attractive investment opportunity, especially by non-state actors who are even less interested in defaulted loans than nations are.
As for China's interest... well, their manufacturing-based economy needs a steady supply of raw materials. Africa has those. And China is not interested in military occupation to enforce resource extraction, colonial style. That leaves trade, and trade has to be mutually beneficial over the long term, or one party will just stop participating.
(edit: As an aside, it's absurd and annoying that your comment is getting downvoted. I really wish people would stop using downvoting as a "disagree" button, especially for things they don't understand.)
- demarq 8y agounderstood, and sorry if I came off very angry. It's a topic I feel very strongly about.
- beat 8y agoSure, that's understandable. I hope you get where I'm coming from. The question, to me at least, is whether Chinese activity in Kenya does Kenya more good than harm, and I think it probably does. I also believe it's in China's best interest that Kenya becomes economically successful, and not default on its debt, and that China knows this. If China is using economic relations to become a dominant player in Africa (as opposed to American gunboat diplomacy or British colonialism), they need to be perceived as a better deal for the countries involved. Which isn't that hard!