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Think about what you're saying, not only are you saying people hope deals fail (when deals that succeed benefit both parties), but also disparaging other countr
by thablackbull 7y ago
Think about what you're saying, not only are you saying people hope deals fail (when deals that succeed benefit both parties), but also disparaging other countries as being so inept they can't spot a bad deal.
The issues have been analyzed already:
From, [1],
> First and foremost is the realization that actual asset seizures are a very rare occurrence. [...] Instead, we find those debt renegotiations usually involve a more balanced outcome between lender and borrower, ranging from extensions of loan terms and repayment deadlines to explicit refinancing, or partial or even total debt forgiveness (see Figure 1).
To address the Ski Lankan port issue, [2]:
> Privatizing 70% of Hambantota to CM Ports for $1.1 billion was one way in which foreign exchange could be brought into the country, allowing a balance of payments crisis to be staved off. It was not an asset seizure.
[1] https://rhg.com/research/new-data-on-the-debt-trap-question/ https://rhg.com/research/new-data-on-the-debt-trap-question/
[2] http://www.chinaafricarealstory.com/2019/07/did-china-seize-sri-lankas-hambantota.html http://www.chinaafricarealstory.com/2019/07/did-china-seize-...
- thepaperone 7y ago>countries as being so inept they can't spot a bad deal. Yes.
- rustyboy 7y agoIt's not about economics, it's about private capital. Nations and International Institutions loan out money to small countries which seem reasonable, however when they start to slip on payments they're offered relief in exchange for privatizing their resources and government services so capital around the world can extract rent. See Latin America in the last 30 years, and Africa for the last 50. You're right though - it's just as insulting to say that these countries can't spot the trap. However some of these deals take literal armies of lawyers and economists to understand, and even when they understand, geo-politics can change around a country a lot more than a "first-world" nation.
- mola 7y agoDon't forget that it's not only about spotting a bad deal when you see it. We're not talking about a deal between two individuals. To oppose the deals, you need political power. I.e convincing the populus. These deals are backed with enormous investments in propoganda to neutralize the masses, and corruption to neutralize the politicians.
- thablackbull 7y agoThanks for your response; I was mainly aggravated by OP's original post that's essentially propaganda with no backing evidence so commonly found on Reddit. > however when they start to slip on payments they're offered relief in exchange for privatizing their resources and government services so capital around the world can extract rent. Fair enough, but consider the following. China's infrastructure is also allowing Africa to expand and build their own ecosystems in fintech [1]. Furthermore, there is actually discussion about Africa leapfrogging in to green initiatives [2], "The paper uses examples of how China managed to improve initially polluting infrastructure to help Africa leapfrog directly into cleaner solutions." Sure, I'll conceded the worries about network sovereignty, etc. But if you follow the data coming out of Africa, you'll see progress is really being made. Most people making remarks like OP literally know nothing about Africa. [1] https://www.brinknews.com/fintech-in-sub-saharan-africa-a-potential-game-changer/ https://www.brinknews.com/fintech-in-sub-saharan-africa-a-po... [2] https://saiia.org.za/research/can-africa-build-greener-infrastructure-while-speeding-up-its-development-lessons-from-china/ https://saiia.org.za/research/can-africa-build-greener-infra...