China and the Emerging Economies
- Emerging economies are widely regarded as driving global growth. Nonetheless, the role and significance of the emerging economies is subject to widespread debate. On the one hand are arguments that these economies offer a break with the past. With their own histories of colonial legacy, impoverishment, conflict, and eventual political stability, recovery, and growth, proponents claim that these countries have a closer understanding and empathy with the needs and aspirations of the Global South and the billions of people in developing countries. As a consequence, supporters believe they can bring a new approach to critical issues such as international sustainable development. On the other hand, critics argue that little is different, in practice, in the way these economies act in other developing countries, leading some political leaders and commentators in developing countries to label them as new colonialists. [p. 242]
- A core BRICS principle is non-intervention in the domestic affairs of their partners, retaining the values of mutuality and equality of relations. This principle, of course, is highly controversial and is a focus of pointed criticism from the established, “traditional” Western donors and institutions, which emphasize making assistance contingent on a list of domestic reforms. [p. 253]
- China’s role in international development and the implications of that role are subject to intense interest and debate. China’s role is immensely controversial and divides opinion in the global development community. Critics argue that, fundamentally, China is really no different from any other state when it comes to fulfilling its national economic, political, and strategic interests and goals. China’s core interest is in accessing raw materials and exporting its labour and goods, while doing little or nothing to counter human rights abuses, corruption, or structural inequalities in its trade and corporate practices. Positive commentaries, however, are more accepting of the so-called “win-win” nature of China’s development relations in Africa and elsewhere, pointing to major infrastructural investment improving the sinews of developing-country economies and improving daily lives through social welfare, health, and agricultural technical assistance. [p. 242]
- The BRI (also referred to as One Belt, One Road or OBOR) is China’s flagship initiative. It comprises a land-based Silk Road Economic Belt (SREB) and a sea-based 21st-century Maritime Silk Road (MSR). The initiative was born in September and October 2013 during President Xi’s tours of Central Asia and Southeast Asia. The SREB includes countries situated on the original Silk Road through Central Asia, West Asia, the Middle East, and Europe as well as countries beyond in South Asia and Southeast Asia. The initiative envisages the integration of the region into a cohesive economic area, which involves investing in infrastructure, widening cultural exchanges, and increasing trade. The MSR is intended to complement the SREB by building partnerships and collaborative relations with countries in Southeast Asia, Oceania, and North Africa as the “Road” traverses the South China Sea, South Pacific, and Indian Ocean. By early 2020, 143 countries had signed up to the BRI. In March 2019, Italy became the first G7 power to sign up to the initiative, joining 15 other smaller European states. Two Belt and Road Forums (BRFs) have been held since 2013. [p. 245]
- The initiative includes the following components: (1) policy co-ordination, (2) facilities connectivity improving, (3) unimpeded trade removing, (4) financial integration building, (5) people-to-people links. [p. 245]
- Global development has reached a critical turning point. Prior to the onset of the COVID-19 pandemic emergency, there were concerns growing over whether the SDGs could be achieved by 2030. In addition to achieving middle-income status, several recipient countries are also emerging donors. The emerging economies were widely seen to be integral to the delivery of the SDGs. However, the slowdown of their economies, particularly that of China and Brazil, brings up questions of financial viability. The emerging economies as development partners have influenced changes in the structures, agencies, and processes of global sustainable development and in provision of development assistance. Recognition of differences in perspectives remains central to future successful aid cooperation. Western donors and external partners must take these differentiated political roles into consideration in order to effectively pursue initiatives such as trilateral development cooperation. This point resonates with the wider themes of development addressed in this book—for example, new thinking and practice, the role of the private sector and the post-2015 international institutional development architecture, and the implications of the arrival of these new development actors for development practice. The question of what kind of development cooperation we are going to see in the future arises. The emerging economies and the new perspectives, approaches, and institutions they are bringing with them will need to be recognized because they form an important part of the global partnership. This is particularly pertinent, given the COVID-19 pandemic and its economic and development implications. This chapter has critiqued the growing importance and role of China and the emerging economies in international development. It has explained the distinctive perspectives and approaches of these new development actors, the innovations they are introducing, and the key issues and debates surrounding their expanding involvement. For the student reader, the chapter’s learning outcomes lie in gaining a greater knowledge and understanding of current development thinking and practice. [p. 255]
- The Chinese government stated that, by 5 May 2020, it had offered COVID-19 aid to more than 150 countries and four international organizations. This included personal protective equipment (PPE), innovative monitoring and tracking software, vaccine knowledge-sharing, dispatch of medical teams, and suspension of debt repayments due from 77 developing countries from 1 May 2020. This was in addition to the Chinese government’s pledge of US$50 million to the World Health Organization. China’s assistance encountered criticism over sub-standard PPE supplies, question marks over the expertise of medical personnel sent from China and claims that China’s aid was driven by strategic and political interest to further its global influence rather than motivated primarily by humanitarian commitment. The Chinese government’s introduction of a new security law for Hong Kong in late May 2020 served to exacerbate international tensions while diverting attention away from international COVID-19 cooperation. The criticisms were rejected firmly by Chinese officials. What does the COVID-19 experience tell us about China’s development? After the problems of the initial local official response, the nationally driven action of lockdowns of whole cities, transport, and international travel proved effective and has led the government to claim it has shown the world a new model to global health emergencies. [p. 255]
- Overall, the BRICS and a number of other emerging economies are making an increasing contribution to international development by providing much-needed investment, technical know-how, knowledge, and skills, as well as financial and broader economic and political support. To date, their role remains comparatively small compared to developed economies, but they are catching up rapidly. Many of these economies offer to developing-country partners a common history of colonial or semi-colonial experiences, relatively recent independence, poverty and inequality, and conflict, while also presenting recent histories of successful reform, stability, and growth that are attractive to development partners. Adherence to the principle of non-interference is controversial, particularly with regard to claims of human rights violations in or, as is often alleged, by partner states. However, along with an unwillingness to travel the path of conditionality for assistance—such as structural reforms, principles of non-interference, equality, and mutuality—and a continuing acceptance of the importance of a role for the state in promoting development, all offer a tantalizing alternative to the established sources of development assistance. [pp. 254-5]
- In addition, the BRICS members are responding individually to the increased importance of international development by restructuring their international development bureaucracies. In China, international development has taken time to become absorbed into the political agenda. It has taken hold with extensive deliberation over what international assistance means and the form it should take, with the establishment of new research and policy centres and with the publication of the two White Papers on Foreign Aid. [p. 254]
- In China, international development has taken time to become absorbed into the political agenda. It has taken hold with extensive deliberation over what international assistance means and the form it should take, with the establishment of new research and policy centres and with the publication of the two White Papers on Foreign Aid. India’s growing development cooperation was consolidated through the creation in 2012 of the Development Partnership Administration (DPA). The DPA, organized in three divisions that cover project appraisal and lines of credit, capacity-building and disaster relief, and project implementation, reaches out to countries throughout Asia as well as in Africa and Latin America. [p. 254]