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Beyond Donation: China's Policy Banks and the Reshaping of Development Finance.
- Source :
-
Studies in Comparative International Development . Dec2020, Vol. 55 Issue 4, p436-459. 24p. 1 Diagram, 5 Graphs, 1 Map. - Publication Year :
- 2020
-
Abstract
- This paper seeks to demystify and characterize China's official development finance by examining lending mechanisms of China's two policy banks—China Development Bank and Export-Import Bank of China. Using quantitative and qualitative data, the paper shows how and why policy banks implement a peculiar means of development finance, i.e., funding projects in developing countries with relatively high-interest rate loans, differing from low-interest rate development-finance credits from industrial countries. The paper argues that China's official development finance is not only about practicing economic statecraft or facilitating export-led growth; it is also the internationalization of a development-finance model that has facilitated its own development in the past decades. In this model, the state does not play a direct role in allocating fiscal revenue; rather, it plays an indirect role in enhancing creditworthiness of projects and making them financially viable. The "state-supported, market-based" Chinese credits reshape development finance and offer an alternative option for the developing world. [ABSTRACT FROM AUTHOR]
- Subjects :
- *DEVELOPMENT credit corporations
Subjects
Details
- Language :
- English
- ISSN :
- 00393606
- Volume :
- 55
- Issue :
- 4
- Database :
- Academic Search Index
- Journal :
- Studies in Comparative International Development
- Publication Type :
- Academic Journal
- Accession number :
- 146930573
- Full Text :
- https://doi.org/10.1007/s12116-020-09310-9