Murad Ali
Dr Murad Ali is Assistant Professor at the University of Malakand (Pakistan). He is currently the Alexander von Humboldt Postdoctoral Research Fellow at the German Development Institute in Bonn, Germany.
DOI: http://DOI Number
Keywords: China, global stage, Belt and Road initiative (BRI), China’s foreign policy aid, Organisation for Economic Cooperation and Development (OECD), concessional loans, China-Pakistan Economic Corridor (CPEC), demand driven, objectives
Abstract
With the rise of China as a leading development actor at the global stage, especially following the launch of President Xi’s signature foreign economic plan under the Belt and Road Initiative (BRI), there is an unprecedented focus on China’s model of international development financing. This paper aims to unpack China’s foreign aid policy and practice. Unlike traditional donors belonging to the Organisation for Economic Cooperation and Development (OECD), where most development assistance is in the form of grants prioritising social sectors, China’s model of economic cooperation is a blend of aid, investment, and concessional loans. Similarly, unlike most traditional aid donors, China does not attach specific policy conditionalities while providing aid and concessional loans and also avoids interference in the domestic affairs of its development partners. Focusing specifically on the China-Pakistan Economic Corridor (CPEC) within the framework of the ‘gift theory’ and the financing model of the initiative, the paper illustrates that besides bringing socio-economic benefits to Pakistan, the corridor is aimed at addressing China’s domestic concerns and bringing development to its less developed regions. Mostly, China’s aid and development financing are demand-driven, where partner countries’ priorities are addressed. At the same time, there is also evidence both in the existing academic literature, as well as in the case of its increasing engagements with Pakistan under CPEC, that China’s trade and commercial interests are also promoted along with its political and strategic objectives.
First Published
September 25, 2017
How to Cite
Murad Ali, “Is CPEC Really a Gift? China’s Model of Development Cooperation and its Rising Role as a Development Actor in Pakistan,” Regional Studies 35, no.4 (Autumn 2017): 29-51, https://regionalstudies.com.pk/wp/article/is-cpec-really-a-gift-chinas-model-of-development-cooperation-and-its-rising-role-as-a-development-actor-in-pakistan/
Issue
Volume 35, Issue 4