Tuesday, March 27, 2012

AID POLICY: Will pressure make Chinese aid more transparent?

“The culture is about face-saving: give them respect and they will be more open to listening.” (Photo: Philip Jägenstedt/Flickr)
Unfavourable attention may have prompted China to become more public about its aid policy, said Wang. “The Chinese government does care about its international image and the international media.”
LONDON, 26 March 2012 (IRIN) - Critics have long characterized China as a secretive donor in economically poor but resource-rich countries, funding infrastructure construction in an unspoken bid for business deals and access to natural wealth and land. While China disburses aid with a scant paper trail, analysts say strong-arming its government to boost transparency - and aid efficacy - may hurt countries in need.

In Southeast Asia, Chinese-funded projects have become ubiquitous in Cambodia, Laos and Myanmar, countries once passed over by traditional donors.

In river-rich Laos, a government development plan calls for 55 new dams to generate hydroelectric power, many of them funded by Chinese state-owned companies. Laotian media reported that China’s government recently signed five agreements pledging more than US$30 million to build government offices.

Cambodia’s Prime Minister, Hun Sen, inaugurated one of the largest Chinese construction projects in the country in December 2011, a dam in fertile Kampot Province in the southeast. This project comes on top of $1.2 billion the Chinese government pledged to Laos in 2010 - more than any other bilateral or multilateral donor.

Officials also welcomed Chinese aid in August 2011, when the World Bank suspended new loans to the country after finding that a Bank-financed land-titling project failed to secure property rights for residents facing eviction.

Cambodian leaders - including the prime minister - have repeatedly stated they are not worried about losing World Bank loans (which currently total $131 million) because they prefer “no strings” Chinese aid.

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