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China is financing infrastructure projects around the world – many could harm nature and Indigenous communities

China is financing infrastructure projects around the world – many could harm nature and Indigenous communities
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Kevin Gallagher and Rebecca Ray highlight the potential benefits, and risks, of China's massive increase in lending to poorer countries

10th Dec 20, 9:19am
By Kevin Gallagher and Rebecca Ray
According to new estimates, China now finances overseas development at nearly the same level as the World Bank. With countries currently struggling to combat COVID-19, protect the vulnerable, and mount a green and inclusive recovery, this significant increase in global development funding could potentially bring major benefits to the world economy.
But, like any huge influx of capital into the developing world, China’s financial assistance also poses large risks – especially regarding debt distress, biodiversity loss, and climate change.
A new
interactive dataset from Boston University’s Global Development Policy Center tracks the overseas sovereign loan commitments of China’s two global policy banks – China Development Bank and the Export-Import Bank of China. Between 2008 and 2019, China’s global development finance totaled $462 billion, just $5 billion short of the World Bank’s soverei ....

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