China's transparency is low
US President Donald Trump is going to make a big cut with foreign aid in light of the 'United States First' policy. Due to this, the people of the philanthropists have been confused. Even warnings have been heard that it is 'death penalty' for some countries. In the new news, it is known that China wants to take its place when the United States is back. That is, he wants to be the major contributor to developing countries. But there is great concern about the transparency of China's use of this money and its impact on the recipient countries.
Aiddata, a company recently published a detailed account of China's foreign aid. Samantha Kastar, policy analyst at the company, said, "If the United States goes on the path of rhetoric and reverses global impact, then it will be possible for China to consolidate its place."
It has been mentioned in the report that the major part of China's cooperation goes to African countries. Among the Chinese-backed 10 recipients, the number of places in Africa is seven. China has a total of 704 projects. From 2000-14, Angola and Ethiopia collectively received a project of $ 3 billion, which is 10 percent of its total assistance. However, information on this large part of this helpline is not available. This report has tried to light the door.
"The Chinese government actually considers the issue of foreign aid as part of state confidentiality," said Brad Parks, Executive Director of Aiddetro. "Because of this, a large part of China's foreign aid is not known. It has been said in the report that "China's cooperation is a huge hike in growth." It also says that a large portion of China's expenditure is not very effective. It is being obstructed due to China's use of cooperation money that has democracy and political reform. From 2000-2014, China has funded $ 354 billion in more than 4,300 projects in 140 countries. According to the Aaddate report, at the same time, the amount of US aid paid by the government is more than $ 39 billion and 400 million dollars. And in this 15 years, China spent more than US for five years.
But there is no difference between the kind of support of the two countries through the sum of money. Parks said that the amount of money spent by the Chinese government in the last 15 years is almost equal to the US government. But the types of money they give are different. China's annual development assistance (ODA) is 500 million dollars annually People generally make it together with foreign aid. But the big advantage of China's expenditure is its official flow (other formal support -OOF), which does not meet the requirements of the ODA, including commercial projects. Among other things in this OOF project, grants for commercial purposes, grants for increasing exports, subsidies for private sector and financing for private development are also there.
OECD or Organization for Economic Co-operation and Development determines both classes, which China is not a member of. As a result, he is not bound by the policy of this organization. Parks said, "Why is this division so important, we showed it. Only the Chinese ODI countries bring big economic changes to the countries. "He also said that the Aiddata saw that the Chinese ODA doubled, but economic growth increased by 0.4 percent to zero percent. In comparison, the trade-oriented OOF's determining role can not be seen in economic growth. The same thing is seen in the case of donors of Western donors. But the fact is that the amount of Chinese spending in OAF is much more than ODO.
Critics have warned that since China is a big donor, it can be hampered due to Western money because of the need to reform the country in small democratic countries. There has been support for this claim even as there are two surveys taken from the primary information of the Aaddetar. Professor Shiaozun Li of the Political Department of the University of British Columbia oversees the investment of China's investment in Africa, because of unconditional support to China, conditions of Western conditions are not very effective. He said that because of the political support given by China, the acceptance of the countries is not so much that accepting countries make it more attractive. It is sometimes faster than the Western support, which is also effective.
His commentary is that African countries need to understand, not conditions, they need alternatives. China's assistance and development sector contributed to this opportunity. That is why African countries are generously accepting it. In this situation, the World Bank has reduced the conditions of credit to maintain competency with China. Diego Hernandez of Heidelberg University of Germany said that new donors appeared with interest. Therefore, the new framework may be ignored for conditions like reform and functioning, which may be unnecessary.
According to Aiddata, China has become one of the most important foreign policy players in the world from the bourgeoisie country. In the case of money expenditure and its impact, he has become a rival for the traditional and western donors. Although Beijing says this aid is politically correct, they do not have conditions like the West, their money is not totally free from politics. African countries have long been used as the battlefield for China and Taiwan. The Republic of China and Beijing have officially supported those countries who have abandoned Taiwan and recognized the Republic of China.
