You may not have heard of Chinese firm Transsion – but it is currently dominating the mobile phone market in Africa and the Middle East with three brands that have never been sold in China.
Chinese-made phones are calling the shots in Africa as they beat global giants Samsung and Apple::undefined
The IMF loots countries that take loans and in contrast China forgives loans. The reason Africa is aligning more with China is because they’re getting a better deal. If they really were just the same as the West then China wouldn’t be winning the continent.
Part of the reason also has to do with the fact that China will write loans for stupid crap when Western banks and the IMF won’t. You want a loan to build a giant statue in the middle of the desert? Chinese banks have got you covered. Western banks will laugh you out the door. Loan to build a new train line? Western banks want assessments, revenue estimates, feasibility studies, and ten other things. Chinese banks will ask “Are you going to hire a Chinese contractor to build it?” and if the answer is yes, they’ll write the loan.
If we assume the loans will implode either way, the Chinese model at least funnels some of the money back to their own contractors, and ends with some goodwill and infrastructure. It’s an aid programme with extra steps.
I wonder if the western model optimizes for loans doomed to fail to use them as a lever to extract structural and political concessions, or if it’s just a happy accident.
A comforting lie.
The IMF loots countries that take loans and in contrast China forgives loans. The reason Africa is aligning more with China is because they’re getting a better deal. If they really were just the same as the West then China wouldn’t be winning the continent.
Part of the reason also has to do with the fact that China will write loans for stupid crap when Western banks and the IMF won’t. You want a loan to build a giant statue in the middle of the desert? Chinese banks have got you covered. Western banks will laugh you out the door. Loan to build a new train line? Western banks want assessments, revenue estimates, feasibility studies, and ten other things. Chinese banks will ask “Are you going to hire a Chinese contractor to build it?” and if the answer is yes, they’ll write the loan.
This isn’t as absurd as it looks.
If we assume the loans will implode either way, the Chinese model at least funnels some of the money back to their own contractors, and ends with some goodwill and infrastructure. It’s an aid programme with extra steps.
I wonder if the western model optimizes for loans doomed to fail to use them as a lever to extract structural and political concessions, or if it’s just a happy accident.