Out of the aforementioned $141 billion in policy bank loans from 2005 to 2017, $96.9 billion (68.5 percent) has gone into energy-related projects, $25.9 billion (18.3 percent) into infrastructure development, $2.1 billion (1.5 percent) into mining projects and $16.2 billion (11 percent) into other ventures (including government bonds, trade financing, business development and more).
A more recent report from the Inter-American Dialogue and Boston University’s Global Economic Governance Initiative puts the loan amount at over $150 billion, which exceeds the combined lending of the World Bank, the Inter-American Development Bank and the caf-Development Bank of Latin America. Between 20, according to Red-ALC China, Chinese companies invested over $109 billion in Latin America separately, the Inter-American Dialogue’s China-Latin America Finance Database estimates that, since 2005, Chinese policy banks (the China Development Bank and the Export-Import Bank of China) have disbursed more than $141 billion in loans, with 87 percent of those funds directed towards energy and infrastructure projects. gdp growth has averaged nearly 10 a year-the fastest sustained expansion by a major economy in history-and more than 850 million people have lifted themselves out of poverty.” It is a track record that speaks for itself, and one that many developing nations wish to emulate.Ĭhina took up the invitation of Latin American governments and immediately got to work. And so, with China signaling that it could commit to substantially increase its presence in the region, and that it stood ready to deploy billions of dollars to promote much-needed trade, investment and infrastructure development, how could Latin American governments possibly turn Beijing down? After all, this is a country that since 1978 has, according to the World Bank, “experienced rapid economic and social development. But while the United States must convince private companies to invest down south, China, with its state-owned enterprises (SOEs), can move and build faster. investment opportunities available in Latin America, especially in infrastructure. It was only a few years ago that, in the 44th Annual Washington Conference on the Americas, then-Commerce Secretary Penny Pritzker noted that there are significant U.S. The United States is certainly aware of Latin America’s needs. The best way to start this journey is to examine what, precisely, China has achieved down south.
#LATIN FOR POWER TO THE PEOPLE FREE#
Doing so will require overcoming a long-held aversion to state-led economic initiatives and the notion that the free market holds unquestionable authority over matters of economics and finance. In defending its preeminence over the New World, the United States will have to do more than merely recalibrate its regional policies: Washington’s political establishment will have to confront its own ideological assumptions-particularly those that inform its approach towards geo-economics. These have been so successful that they have lifted millions of people out of squalor and have enabled China to compete with the United States in economic development, high-tech industries and more. policymakers must face: China has proven that government-led industrial policies can work. But beyond the day-to-day whims of the Oval Office, there is a much deeper internal conundrum that U.S. government has imposed tariffs, cut off aid to countries that do not do more to stop migration to the United States, and is seemingly determined to build a literal wall along the southern border with Mexico. Yet despite this new attitude, American policy towards the region has not seen much of an improvement. Beijing wields sizeable economic and diplomatic influence in the region, much to the consternation of a Washington that is now thoroughly hawkish on China.
Now, over a decade later, China’s efforts have borne fruit.
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