China's development lending to already-indebted countries has provoked accusations that it is engaging in “debt-trap diplomacy." This reflects a narrow understanding of development assistance that has hampered progress in low-income countries for far too long.
BEIJING – Since the 1960s, more than $4.6 trillion (in constant 2007 dollars) in gross bilateral and multilateral official development assistance (ODA) has been transferred to low-income countries. Yet extreme poverty and stagnant growth remain widespread. The message is clear: traditional North-South aid is not nearly as effective as it could be and should be.
BEIJING – Since the 1960s, more than $4.6 trillion (in constant 2007 dollars) in gross bilateral and multilateral official development assistance (ODA) has been transferred to low-income countries. Yet extreme poverty and stagnant growth remain widespread. The message is clear: traditional North-South aid is not nearly as effective as it could be and should be.