Debt-trap diplomacy is carried out in bilateral relations between countries with a negative intent.....
The creditor country intentionally extends excessive credit to a debtor country thereby inducing the debtor into a debt trap.Debt-trap diplomacy is carried out in bilateral relations between countries with a negative intent.
The creditor country intentionally extends excessive credit to a debtor country thereby inducing the debtor into a debt trap. This is done with the intention of extracting economic or political concessions from the debtor country when it becomes unable to honour its debt. The conditions of the loans are often not made public,and the borrowed money commonly pays contractors from the creditor country.
Although the term has been applied to the lending practices of many countries and the International Monetary Fund (IMF), it is, as of 2020, most commonly associated with the People's Republic of China (PRC). Bilateral agreements made as part of China's Belt and Road Initiative have furthered this association, especially regarding commodity-backed loans to developing nations.
No comments:
Post a Comment