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Typically there is collaterial involved, in this case "owning" or operating the airports, railways, roads, or what have you. However, the west knows that these
by freitzkriesler2 3y ago
Typically there is collaterial involved, in this case "owning" or operating the airports, railways, roads, or what have you.
However, the west knows that these countries notoriously never pay back the loans so the investment is made back by operating this infrastructure for the benefit of western firms.
It appears China has made a strategic error in not doing the same OR China is in a far worse economic condition than they're letting on.
If they expect these countries' legal courts to hold up these agreements to pay in full, then they clearly aren't as smart as their PISA scores suggest.
- worrycue 3y ago> Typically there is collaterial involved, in this case "owning" or operating the airports, railways, roads, or what have you. If they refuse to hand over the collateral?
- freitzkriesler2 3y agoThe collateral is already handed over. It's mostly western firms operating the infrastructure which you can see is where the money is made. Countries can and do nationalize this infrastructure kicking out the western firms, this typically makes the debtor angry which leads to the classic intelligence over throw ops we see.