1. Ocean of Debt? Belt and Road and Debt Diplomacy in the Pacific
- Author:
- Roland Rajah, Alexandre Dayant, and Jonathan Pryke
- Publication Date:
- 10-2019
- Content Type:
- Commentary and Analysis
- Institution:
- Lowy Institute for International Policy
- Abstract:
- China has not been engaged in debt trap diplomacy — at least not yet. China has not been the primary driver behind rising debt risks in the Pacific, although a continuation of business as usual would risk future debt problems in several countries. There is scope for a new Australian infrastructure financing facility to provide loans to the Pacific without causing debt problems, particularly as it has adopted key sustainable lending rules. Pacific nations have an opportunity to obtain more favourable financing from official development partners but care must be taken to avoid overly geopolitical aid.
- Topic:
- Debt, Development, Infrastructure, Geopolitics, Soft Power, and Belt and Road Initiative (BRI)
- Political Geography:
- China, Australia, and Asia-Pacific