In this paper, Dr. Oehlers states that “The current pandemic-induced economic crisis presents a unique opportunity for the United States and like-minded partners to reverse the gains China has made through its debt-led approach to acquire economic and political leverage. By addressing the debt challenges increasingly faced by some developing countries, the financial leverage China holds over any of these can be weakened significantly. Additionally, a multilateral response to the debt challenge grounded on current international rules-based norms, principles, and institutions, will counter Chinese intentions to create a parallel rival system centered on the Belt-Road Initiative. This approach will consequently also assume a crucial role helping shape the economic and financial architecture of the post-pandemic world to come.”
COVID-19, Debt, and Strategic Competition
- Alfred Oehlers,
- 21 - 2020
It is a very thoughtful article to read.
As an alumni of the APCSS and someone that have been very suspected of China’s way of doing business in the International politics. I am agreeing with the statement that Dr. Alfred has stated that it is the opportunity for the United States “to reverse the gains China has made through its debt-led approach to acquire economic and political leverage” from underdevelopment countries that the United States and the allies might have had interest as well. By providing them tools on how to address the burden which otherwise will have a significant impact on their future generation.
Mahalo for your comment and encouragement! There is some positive news. Many cooperative attempts are now underway to try to restructure the debt burdens facing developing countries. Plus many donor nations are trying to find ways to redesign their aid and assistance so that they offer compelling alternatives to the debt-centric OBOR model. We have not passed the most dangerous COVID-19 phases yet. And we have many more steps to take towards economic recovery. But these are good signs that working together, we will be able to find outcomes safeguarding our economic futures and those of generations to come.