China is Highlighted Regarding the Belt and Road Program: Debt Trap Diplomacy or Development Contribution?

Saturday, March 4, 2023

NAVADENEWS - China is Highlighted Regarding the Beltand Road Program: Debt Trap Diplomacy or Development Contribution? - As one of the countries that provide the largest loans in the world, China through its Belt and Road program provides financial assistance to poor and developing countries. Initially, this program was aimed at helping infrastructure development in these countries, but now it is being highlighted as debt trap diplomacy. According to AB Solissa, a senior researcher at the Center for Indonesian Domestic and Foreign Policy Studies (Centris), almost all countries that are indebted to China have difficulty paying off their debts.

Solissa said that poor or developing countries that are indebted to China have tried to restructure their debt in order to get out of the economic difficulties that occurred during the Covid-19 pandemic. However, this method has not helped them escape from China's debt bondage which has increasingly burdened their country's finances.

Solissa suggested that China should follow the example of the United States and India by granting debt amnesty to poor or developing countries. According to Solissa, this is a morally and financially sound act. He also said that currently the world's countries are discussing the best solution to help poor or developing countries that are having difficulty paying their debts. One solution being discussed is to reduce significant debt, after which international organizations such as the IMF and World Bank can step in to provide much-needed low-cost loans and assistance.

However, Solissa criticized China's stance which only offered to suspend debt payments for a few years, which was clearly inadequate. Solissa added that China is using poor or developing countries as pawns in an effort to increase Beijing's influence in the world. According to him, this tactic is called 'debt trap diplomacy'.

Solissa emphasized that inviting China to participate in global problems in the world economy is a basic problem that must be overcome. He said that by bringing China to the negotiating table when the time is right, it can discuss debt settlement of poor or developing countries. Solissa added that this little thing became a big thing for China, because Beijing insists that poor or developing countries that owe China must repay their debt in full with interest.

Solissa said that poor or developing countries in the world will face at least US$ 35 billion in debt to official and private sector creditor countries by 2022. However, more than 40 percent of the total debt is due to China. Solissa asked who should pay for it, because the direction is poor or developing countries

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