Chinese debt, aid and trade : opportunity or threat for Zambia?
Author: .
, . 2010. "Chinese debt, aid and trade : opportunity or threat for Zambia?." Occasional Paper 72 16. Braamfontain: http://www.saiia.org.za/wp-content/uploads/2010/12/saia_sop_72_chileshe_20101214.pdf
This paper looks at the threats and opportunities of China’s involvement in Africa and
Zambia, specifically relating to aid, trade and debt sustainability aspects, and offers policy
recommendations that may enable ‘China in Africa’ to be beneficial for sustainable and
pro-poor development in Zambia. China is a rising player on the world stage and is set
to shape the 21
st
century in very significant ways. The ripple effects of China’s economic
ascendance over the past two decades have reached various aspects of the global
economy. It cannot be ignored by countries such as Zambia, where this growing influence
is strongly felt in the country’s social, economic and political economy.
The three aspects of the China
–
Zambia relationship discussed are: 1) Zambia’s
debt, which is crucial because of the country’s bad history of indebtedness and difficulty
in managing and paying back external debts. 2) China as one of the major sources
of financing for Africa, involved in over 35 aid projects in Zambia, including agricultural
initiatives and infrastructure developments. 3) Since 2008, the People’s Republic of China
has increased two-way trade to $106 billion, making it Africa’s second largest trading
partner.Published: 2010Typ: report