The IMF and China’s Policies Towards Developing countries: Changing Lending Dynamics in the International Arena

Authors

  • Mayar Yahia Mansour Institute of National Planning / Arab Republic of Egypt

DOI:

https://doi.org/10.58298/782024613

Keywords:

China, Sri Lanka, Indebtedness, Developing countries

Abstract

The study conducted a comparative analysis of the lending patterns of the International Monetary Fund (IMF) and China towards developing countries. This was done by applying comparative approach focusing on three key indicators: the strategies, policies adopted by each model, and the outcomes of applying these policies, to discover whether China can act as a viable alternative to the IMF or not, especially amid escalating criticisms towards the IMF due to its conditionalities and negative impacts within developing countries. Despite China's diverse lending instruments, it cannot be solely relied upon by developing countries for financing development processes. Concerns have arisen regarding the debt sustainability, coupled with a lack of transparency concerning terms, interest rates, and maturity dates. Moreover, a link has been identified between lending policies and the risks of acquiring natural resources and assets in debtor countries in case of non-repayment, as exemplified in the case of Sri Lanka. The study also revealed that China's competition with other creditors, such as the IMF, added complexity to the lending landscape in terms of loan conditions. This competition contributes to the fragmentation of the global financial system, complicates debt restructuring efforts as was demonstrated in Zambia

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Additional Files

Published

2024-09-30

Issue

No. 78 (2024): Political Issues

Section

Original research papers

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Copyright (c) 2024 ميار يحيى منصور

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This is an Open Access article distributed under the terms of the creative commons attribution (CC BY) 4.0 international license which permits unrestricted use, distribution, and reproduction in any medium or format, and to alter, transform, or build upon the material, including for commercial use, providing the original author is credited.

How to Cite

The IMF and China’s Policies Towards Developing countries: Changing Lending Dynamics in the International Arena. (2024). قضايا سياسية, 78, 181-207. https://doi.org/10.58298/782024613

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