China’s Belt and Road Initiative (BRI) has left scores of lower- and middle-income countries (LMIC) saddled with “hidden debts” totalling USD 385 billion, according to new research.
The findings are part of a report published by AidData, an international development research lab based at the College of William and Mary in Virginia. According to this report, China has used debt rather than aid to establish a dominant position in the international development finance market.
The report has analysed more than 13,000 aid and debt-financed projects worth more than USD 843 billion across 165 countries. According to AidData, over 40 LMIC now have levels of debt exposure to China higher than 10 per cent of their national gross domestic product.
