U.S./Western Sanctions On Syria Hamper Relief-and-Rescue Work After Earthquake

Editor’s Note: Light editing helped conform this article that originally appeared in Peoples Dispatch to TF’s style.

Protests against secessionist rule are spreading across the Sool region of Somaliland, the breakaway region of northern Somalia. Unionist protesters are calling for reunification with Somalia and Somali activists and observers opine that the protests might soon spread across Somaliland, questioning the legitimacy of its unrecognized claim to sovereignty, which the United States and the United Kingdom have been seeking to strengthen with recent overtures.

On Sunday, January 15, protests were reported from the Taleex city, where Somaliland’s tricolor flags were removed and replaced with the blue flags of Somalia. Taleex is about 160 kilometers northeast of the epicenter of the protests, Las Anod, Sool region’s capital city. Las Anod was captured by Somaliland from Somalia’s autonomous region of Puntland in 2007.

The protests began in the city on December 28. In an attempt to put them down, security forces killed at least 20 civilians over the following five days, before reportedly retreating to the city’s outskirts on January 5.

Somaliland’s commander of Armed Forces, Brigadier General Mahad Ambashe, has, however, indicated his intention to take back the city, saying that his troops “shall continue staying in Las Anod and Sool region to ensure law and order has been followed by residents.”

Defiant, the clan leaders of the region held a meeting in Las Anod on January 12, calling on Somaliland’s forces to withdraw from Sool, Sanaag, and Cayn (SSC), where a majority of the people have been historically opposed to secession from Somalia.

Pro-unionist troops under the command of the head of the Dhulbanate clan have taken over the city and sworn to defend it from Somaliland. “Everybody is waiting for the tribesmen in Las Anod to fully announce a war against Somaliland. And you will hear this very soon as they have formed a committee of 33 heads to come up with a roadmap to remove Somaliland from SSC,” Elham Garaad, a UK-based Somali activist whose unionist parents migrated out of Somaliland, told Peoples Dispatch.

The protests had spread to the city of Kalabaydh, 70 kilometers (43 miles) to the southwest of Las Anod, by January 12. Two days later, unionist demonstrations broke out in Xudun, 100 kilometers (62 miles) to the north of Las Anod, and in Boocame, 80 kilometers (49 miles) to its east. Protesters also took to the streets of Boocame’s neighboring Tukarak on January 15, and blocked a minister from visiting the city.

Badhaan, a city in Sanaag region, and Buuhoodle city in Cayn region, have also witnessed protests. The three regions together had formed the Sool, Sanaag, and Cayn (SSC) state of Somalia, before being forced into Somaliland by the secessionist Somali National Movement (SNM).

Waving the blue flag of Somalia, the protesters have been demanding the “right to self-determination” on the question of reuniting with Somalia, which was fractured after the civil war that ended with the collapse of its federal government in 1991.

‘Most Regions in Somaliland Oppose Secession’

“Until 1991, there was no such thing as Somaliland, except when the area was a British Protectorate,” Mohamed Olad, a Somali activist studying law in the United States, told Peoples Dispatch. “The idea of forming a country on the basis of this border of the British protectorate,” separating itself from the part of Somalia under Italian occupation, was opposed by two of the three original states of Somalia that came to be part of the self-declared Republic of Somaliland after 1991, he said.

Support for secession was largely limited to the North West state, a stronghold of the SNM, which fought in the war against Somalia’s federal government led by Mohamed Siad Barre. SSC and Awdal “have historically opposed” the notion of Somaliland, Olad explained, adding that Awdal was captured by the SNM with the help of Ethiopia during the civil war.

The SSC leaders, on the other hand, were tricked into signing an agreement on the guarantee that Somaliland would form itself into a single state within Somalia. “That agreement never included secession,” he said, adding that discontent against Somaliland’s rule has since been intensifying, and protests might also soon spread to Awdal.

Three of the four major clans—namely the Dhulbahante, Warsangeli and Gadabursi—along with the smaller Issa clan, had opposed the secession from Somalia, added Elham Garaad. Only the Isak clan, which dominated the SNM and had a strong presence in the North West state, supported the secession and formation of Somaliland. Other clans have since felt marginalized by the Isak, which wields disproportionate power in the government of Somaliland.

But currently, the “Isak themselves are divided,” Garaad said. “Gaarhajis, one of the largest tribes (under the Isak clan), has been vocal about the atrocities in the SSC region.” Defending the right of the people in SSC to be unionist, they have called on the Somaliland government to stop the killings. Garaad maintains that the current spate of protests may soon reach even Somaliland’s capital city Hargeisa, which has been a historic stronghold of the SNM’s secessionist politics, dominated by the Isak.

“SNM was led by the elite and petty bourgeoisie of the Isak clan. They have neither dealt with the class contradictions within the clan, nor succeeded in integrating other clans into the secessionist movement,” historian Mohamed Hassan told Peoples Dispatch. “While the Isak is supposed to be the ruling clan, in effect, what you have in Somaliland is a one-man rule by former army Colonel Musa Bihi Abdi, whose term had already expired in October 2022. [An] increasing number of people within the Isak clan are also supporting unionist politics.”

Somalia is among the most homogeneous countries in Africa, in terms of language and religion, explained Hassan, who is also an advisor to the head of Ethiopia’s Somali state. The clan system from feudal times, preserved under colonial administration as an essential tool for divide-and-rule, remains the key fissure exploited by imperialism to ensure Somalia remains a fractured nation, he argued.

Rising Tide of Somali Nationalism

“But hundreds of thousands from Somaliland are working and staying in Somalia,” he added. Youngsters from Somaliland make up a significant portion of Somalia’s national army. The large Somali diaspora is getting increasingly politicized and organized by international exposure. All this has contributed to a surge in Somali nationalism, he said, adding that even businessmen in Somaliland, who want a larger and integrated market, seek a unified Somalia.

The tensions between clans—whose leaders choose the MPs in most of Somalia, including in Somaliland—is only a surface manifestation of the tide of Somali nationalism churning from underneath, Hassan argued. In the face of this nationalist sentiment, Somaliland’s existence as an independent entity is facing a “crisis of legitimacy” internally, he maintains.

This crisis is accentuated by the fact that Musa Bihi Abdi’s presidential term expired last October, despite which he has continued to rule without having conducted elections yet. In September, the Somaliland Electoral Commission announced that elections cannot be held for at least nine more months due to financial and technical problems.

Opposition parties, which have 52 of the 82 seats in Somaliland’s parliament, had led protests in August demanding timely elections. At least seven people were killed and several more wounded in the crackdown on these protests. It was the assassination of a popular opposition politician, in the backdrop of a spate of killings of prominent people in the SSC region over the last decade, that triggered the protests on December 28 in Las Anod, which have snowballed into a unionist movement.

While Somaliland is thus unraveling, with internal rifts between ruling and opposition parties, mounting tensions between the clans, and sa urging unionist sentiment contesting its legitimacy, the United States and the United Kingdom have been increasingly legitimizing the secessionist state.

U.S. Military Base in Somaliland? 

The then-commander of United States Africa Command (AFRICOM) General Stephen Townsend met with President Abdi in Somaliland in May, becoming the highest ranking official to visit the breakaway state, whose claims to sovereignty have no international recognition.

While not recognizing Somaliland as a sovereign state, and officially adhering to ‘One Somalia policy,’ the United States has lately made several gestures seen as a dilution of this policy. Prior to Townsend’s visit, in March 2022, the Somaliland Partnership Act was introduced in the U.S. Senate by Republicans Jim Risch and Mike Rounds, and Democrat Chris Van Hollen.

The “Biden Administration has limited itself to the confines of a ‘single Somalia’ policy at the detriment of other democratic actors in the country. In this complex time in global affairs and for the Horn of Africa, the United States should explore all possible mutually-beneficial relationships with stable and democratic partners, like Somaliland, and not limit ourselves with outdated policy approaches and diplomatic frameworks that don’t meet today’s challenges,” Jim Risch had said.

The act was signed into law by U.S. President Joe Biden on December 23, under the Fiscal 2023 National Defense Authorization Act, which was the first time a separate reference to Somaliland was made in U.S. law.

The Act commissions a feasibility study by the “Secretary of State, in consultation with the Secretary of Defense,” to determine “whether opportunities exist for greater collaboration in the pursuit of United States national security interests… with… Somaliland.”

It further seeks to identify “the practicability and advisability of improving the professionalization and capacity of security sector actors within the Federal Member States (FMS) and Somaliland.” While adding that “Nothing in this Act… may be construed to convey United States recognition of Somalia’s FMS or Somaliland as an independent entity,” it stops just short of doing that.

Somaliland’s port city of Berbera will also be one of the sites for the U.S.-led multinational 10-day military exercise scheduled to take place in February. On January 13, personnel from AFRICOM’s Combined Joint Task Force – Horn of Africa [CJTF-HOA] visited Somaliland and surveyed the Berbera port.

“Berbera is now an American military base without settling the secession issue,” former Somali Special Envoy to the United States, Abukar Arman, wrote in the Eurasia review. “Stakes have never been higher for all actors. Against that backdrop, President Muse Bihi was given the nod and wink to march on ahead to secure total control over his claimed territory by any means necessary. He was also granted the reassurance that neither the central government of Somalia nor Puntland will interfere militarily or otherwise.”

‘Oil Companies Want a Weak and Divided Somalia’

In the meantime, Genel Energy, listed in London Stock Exchange, claimed the right to explore and exploit the oil fields in Somaliland last month. The oil ministry of the federal government of Somalia has said it “categorically rejects Genel Energy plc’s claim to own petroleum rights in Somalia’s northern regions and calls upon Genel Energy plc to cease its illegal claim to own petroleum rights.”

Insisting that it is the only body authorized to grant such rights, it warned: “Any authorization granted in violation of Somalia’s laws and regulations is unlawful and would be considered null and void.”

Refuting Somalia’s Federal government, Somaliland’s secessionist government has claimed “the authority to engage foreign investors in order to explore and exploit the Republic of Somaliland’s potential hydrocarbons and mineral resources. No one other than the Somaliland government has the authority to claim or award an exploration license within Somaliland,” a statement issued on December 29 said, amid the crackdown on the protests in Las Anod.

Las Anod is also claimed by Somaliland’s neighboring Puntland, which has been an autonomous region within Somalia in dispute with Somaliland over the SSC region. On January 9, Puntland declared that it will be independent of Somalia until the Federal Constitution is finalized.

Disputes over the rights to enter into partnerships with foreign companies over oil and other natural resources are reported to be among the key reasons behind tensions between the Federal government of Somalia and Puntland.

“Oil and gas has been found across Somalia, including in Somaliland and Puntland. British capital is heavily invested. These oil companies want a weak and divided Somalia, because a strong and united country will be more difficult to exploit,” Hassan said.

Puntland’s state government maintains that the provisional federal constitution and the constitution of Puntland state allows it to act as an independent entity until the federal constitution is finalized, and all the states’ constitutions are harmonized with it.

Pointing out that Puntland has a constitutional right to be independent until the finalization of the federal constitution, Olad said it is Somaliland that has been blocking the finalization of the constitution. The federal government of Somalia, he said, should ensure that Somaliland will no longer hold the process of finalizing the constitution hostage.

However, a lack of confidence in the federal government led by President Hassan Sheikh Mohamud, who is seen as inept and pliable by western powers, is perceptible, despite the surging unionist politics and nationalist sentiment.

The federal government can truly reflect the widespread sentiment of Somali nationalism only when it is elected on the basis of one-person-one-vote, argues Olad. Former President Mohamed Abdullahi Mohamed, aka Farmajo, who had become a popular representative of Somali nationalism, had promised to break the stranglehold of the clans by implementing universal adult suffrage, but failed to do so. He lost the clan-controlled election last year, and the current government of Hassan Sheikh Mohamud has failed to materialize the aspirations of Somali nationalism.

Mohamed Hassan sums the situation up by citing [Italian communist] Antonio Gramsci: “The old is dying and the new is struggling to be born,” he says, adding that “the winds of change are most definitely blowing over all of Somalia.”

Editor’s Note: This podcast was originally published by MintPress News.

The MintPress podcast “The Watchdog,” hosted by British-Iraqi hip hop artist Lowkey, closely examines organizations about which it is in the public interest to know – including intelligence, lobby, and special interest groups influencing policies that infringe on free speech and target dissent. The Watchdog goes against the grain by casting a light on stories largely ignored by the mainstream, corporate media.

On May 24, an 18-year-old gunman fatally shot 22 people at Robb Elementary School in Uvalde, Texas. Police reportedly refused to confront the killer, locked him in a room full of children, physically prevented parents from getting involved, and even allegedly rescued their own children first.

The massacre has once again brought the United States’ unique obsession with firearms to the fore, with renewed calls to ban assault rifles. But even among gun-control advocates, few realize the connections between the Second Amendment and white supremacy.

Today’s guest is Roxanne Dunbar-Ortiz. Originally from Oklahoma, Dunbar-Ortiz is a writer, historian and activist, possibly best known for her 2014 classic book, “An Indigenous Peoples’ History of the United States.” She argues that the context behind the Second Amendment is that the newly-independent United States needed “well-regulated militias” of white men to “kill Indians and take their land,” or to form slave patrols that would hunt down Black people fleeing their captivity. It was out of these slave patrols that the first police departments were formed.

 

Ultimately, she argues, the need for such armed militias arose from the fact that the white colonists were on recently stolen land, surrounded by hostile groups who were trying to get their land back. As she notes, it was a crime to give or sell a gun to a Native American.

An activist for over 50 years, Dunbar-Ortiz has argued that for any progress to be made, Americans must stop worshiping a 234-year-old document written by slaveholders. Today with Lowkey, she also discussed how it was that the National Rifle Association was taken over by reactionary political actors and how it came to be that the United States is a country with 4% of the world’s population but half of the world’s guns.

“The Constitution is so embedded in white supremacy that there is no way to amend it to change that. It is everywhere…This is so obvious if you just face what U.S. history is and not leave so much out,” she told Lowkey.

A revolutionary and a feminist, Dunbar-Ortiz’s life’s work has taken her across the world, including to Mexico, Cuba and Nicaragua, where she documented the U.S.-sponsored Contra War against indigenous groups. She is Professor Emerita of Ethnic Studies at California State University, East Bay. Among her other notable books include, “Loaded: A Disarming History of the Second Amendment”; “The Great Sioux Nation: Sitting in Judgment on America”; and “Not ‘a Nation of Immigrants’: Settler Colonialism, White Supremacy, and a History of Erasure and Exclusion.”

Lowkey is a British-Iraqi hip-hop artist, academic and political campaigner. As a musician, he has collaborated with the Arctic Monkeys, Wretch 32, Immortal Technique and Akala. He is a patron of Stop The War Coalition, Palestine Solidarity Campaign, the Racial Justice Network and The Peace and Justice Project, founded by Jeremy Corbyn. He has spoken and performed on platforms from the Oxford Union to the Royal Albert Hall and Glastonbury. His latest album, Soundtrack To The Struggle 2, featured Noam Chomsky and Frankie Boyle and has been streamed millions of times.

Editor’s Note: This article was originally published by Multipolarista.

Facing a deep economic crisis and bankruptcy, Sri Lanka was rocked by large protests this July, which led to the resignation of the government.

Numerous Western political leaders and media outlets blamed this uprising on a supposed Chinese “debt trap,” echoing a deceptive narrative that has been thoroughly debunked by mainstream academics.

In reality, the vast majority of the South Asian nation’s foreign debt is owed to the West.

Sri Lanka has a history of struggling with Western debt burdens, having gone through 16 “economic stabilization programs” with the Washington-dominated International Monetary Fund (IMF).

These structural adjustment programs clearly have not worked, given Sri Lanka’s economy has been managed by the IMF for many of the decades since it achieved independence from British colonialism in 1948.

As of 2021, a staggering 81 percent of Sri Lanka’s foreign debt was owned by U.S. and European financial institutions, as well as Western allies Japan and India.

This pales in comparison to the mere 10 percent owed to Beijing.

According to official statistics from Sri Lanka’s Department of External Resources, as of the end of April 2021, the plurality of its foreign debt is owned by Western vulture funds and banks, which have nearly half, at 47 percent.

The top holders of the Sri Lankan government’s debt, in the form of international sovereign bonds (ISBs), are the following firms:

• BlackRock (U.S.)
• Ashmore Group (Britain)
• Allianz (Germany)
• UBS (Switzerland)
• HSBC (Britain)
• JPMorgan Chase (U.S.)
• Prudential (U.S.)

The Asian Development Bank and World Bank, which are thoroughly dominated by the United States, own 13 percent and 9 percent of Sri Lanka’s foreign debt, respectively.

Washington’s hegemony over the World Bank is well known, and the U.S. government is the only World Bank Group shareholder with veto power.

Less known is that the Asian Development Bank (ADB) is, too, largely a vehicle of U.S. soft power. Neoconservative DC-based think tank the Center for Strategic and International Studies (CSIS), which is funded by Western governments, affectionately described the ADB as a “strategic asset for the United States,” and a crucial challenger to the much newer, Chinese-led Asian Infrastructure Investment Bank.

“The United States, through its membership in the ADB and with its Indo-Pacific Strategy, seeks to compete with China as a security and economic partner of choice in the region,” boasted CSIS.

Another country that has significant influence over the ADB is Japan, which similarly owns 10 percent of Sri Lanka’s foreign debt.

An additional 2 percent of Sri Lanka’s foreign debt was owed to India as of April 2021, although that number has steadily increased since. In early 2022, India was in fact the top lender to Sri Lanka, with New Delhi disbursing 550 percent more credit than Beijing between January and April.

Both Japan and India are key Western allies, and members of Washington’s anti-China military alliance in the region, the Quad.

Together, these Western firms and their allies Japan and India own 81 percent of Sri Lanka’s foreign debt – more than three-quarters of its international obligations.

By contrast, China owns just one-tenth of Sri Lanka’s foreign debt.

The overwhelming Western role in indebting Sri Lanka is made evident by a graph published by the country’s Department of External Resources, showing the foreign commitments by currency:

As of the end of 2019, less than 5 percent of Sri Lanka’s foreign debt was denominated in China’s currency the yuan (CNY). On the other hand, nearly two-thirds, 64.6 percent, was owed in U.S. dollars, along with an additional 14.4 percent in IMF special drawing rights (SDR) and more than 10 percent in the Japanese yen (JPY).

Western media reporting on the economic crisis in Sri Lanka, however, ignores these facts, giving the strong, and deeply misleading, impression that the chaos is in large part because of Beijing.

Sri Lankan Economic Crisis Driven by Neoliberal Policies, Inflation, Corruption, Covid-19 Pandemic

This July, Sri Lanka’s government was forced to resign, after hundreds of thousands of protesters stormed public buildings, setting some on fire, while also occupying the homes of the country’s leaders.

The protests were driven by skyrocketing rates of inflation, as well as rampant corruption and widespread shortages of fuel, food, and medicine – a product of the country’s inability to pay for imports.

In May, Sri Lanka defaulted on its debt. In June, it tried to negotiate another structural adjustment program with the U.S.-dominated International Monetary Fund (IMF). This would have been Sri Lanka’s 17th IMF bailout, but the talks ended without a deal.

By July, Sri Lankan Prime Minister Ranil Wickremesinghe publicly admitted that his government was “bankrupt.”

Sri Lankan President Gotabaya Rajapaksa, who spent a significant part of his life working in the United States, entered office in 2019 and immediately imposed a series of neoliberal economic policies, which included cutting taxes on corporations.

These neoliberal policies decreased government revenue. And the precarious economic situation was only exacerbated by the impact of the Covid-19 pandemic.

Facing an out-of-control 39.1 percent inflation rate in May, the Sri Lankan government did a 180 and suddenly raised taxes again, further contributing to popular discontent, which broke out in a social explosion in July.

Media Falsely Blames China for Sri Lankan Debt Default

While 81 percent of Sri Lanka’s foreign debt is owned by Western financial institutions, Japan, and India, major corporate media outlets sought to blame China for the country’s bankruptcy and subsequent protests.

The Wall Street Journal pointed the finger at Beijing in a deeply misleading article titled “China’s Lending Comes Under Fire as Sri Lankan Debt Crisis Deepens.” The newspaper noted that the crisis “opens a window for India to push back against Chinese influence in the Indian Ocean region.”

U.S. media giant the Associated Press also tried to scapegoat China, and its deceptive news wire was republished by outlets across the world, from ABC News to Saudi Arabia’s Al Arabiya.

Many corporate media outlets in India, including the New Indian Express, Business Standard, India Today, The Print, as well as Japan’s media conglomerate Nikkei published similarly fallacious reports.

U.S. government propaganda outlet Voice of America, which is closely linked to the CIA, employed the same spurious tactics in an article in April titled “China’s Global Image Under Strain as Sri Lanka Faces Debt Trap.”

VOA accused Beijing of “pursuing a kind of ‘debt-trap diplomacy’ meant to bring economically weak countries to their knees, dependent on China for support.”

China's Global Image Under Strain as Sri Lanka Faces Debt Traphttps://t.co/gqWbe5PGdz

— Voice of America (@VOANews) April 26, 2022

On social media, the Western propaganda narrative surrounding the July protests in Sri Lanka was even more detached from reality.

A veteran of the Central Intelligence Agency (CIA), Defense Intelligence Agency (DIA), and National Security Agency (NSA), Derek J. Grossman, portrayed the unrest as an anti-China uprising.

“China’s window of opportunity to one day control Sri Lanka probably just closed,” he tweeted on July 9, as the government announced it was resigning.

After working for U.S. spy agencies, Grossman is today an analyst at the Pentagon’s main think tank, the RAND Corporation, where he has pushed a hawkish line against Beijing.

China’s window of opportunity to one day control Sri Lanka probably just closed. pic.twitter.com/WOLIb3SUTf

— Derek J. Grossman (@DerekJGrossman) July 9, 2022

BBC Reluctantly Admits the ‘Chinese Debt Trap’ Narrative in Sri Lanka Is False

China has funded several large infrastructure projects in Sri Lanka, building an international airport, hospitals, a convention center, a sports stadium, and most controversially a port in the southern coastal town of Hambantota.

The UK government’s BBC sent a reporter to Sri Lanka to investigate these accusations of supposed “Chinese debt traps.” But after speaking to locals, he reluctantly came to the conclusion that the narrative is false.

“The truth is that many independent experts say that we should be wary of the Chinese debt trap narrative, and we’ve found quite a lot of evidence here in Sri Lanka which contradicts it,” BBC host Ben Chu acknowledged.

He explained, “The Hambantota port, well, that was instigated by the Sri Lankans, not by the Chinese. And it can’t currently be used by Chinese military naval vessels, and actually there’s some pretty formidable barriers to that happening.”

“A lot of the projects we’ve been seeing, well, they feel more like white elephants than they do Chinese global strategic assets,” Chu added.

In our latest film from Sri Lanka, which faces financial collapse as the global Big Squeeze bites, Ben Chu examines the effect that Chinese loans and investment are having on the country:#Newsnight https://t.co/GBFZ1ItP0G

— BBC Newsnight (@BBCNewsnight) June 22, 2022

The British state media outlet interviewed the director of Port City Colombo’s economic commission, Saliya Wickramasuriya, who emphasized, “The Chinese government is not involved in setting the rules and regulations, so from that standpoint the government of Sri Lanka is in control, and it’s up to the government of Sri Lanka’s wish to flavor the city, the development of the city, in the way it wants to.”

“It is accurate to say that infrastructure development has boomed under Chinese investment, Chinese debt sometimes, but those are things that we’ve actually needed for a long, long time,” Wickramasuriya added.

Chu clarified that, “Importantly, it’s not debt but equity the Chinese own here.”

“So is the debt trap not all it seems?” he asked.

Mainstream U.S. Academics Debunk the ‘Chinese Debt Trap’ Myth

Mainstream Western academics have similarly investigated the claims of “Chinese debt traps,” and come to the conclusion that they do not exist.

Even a professor at Johns Hopkins University’s School of Advanced International Studies, which is notorious for its revolving door with the U.S. government and close links to spy agencies, acknowledged that “the Chinese ‘debt trap’ is a myth.”

Writing in 2021 in the de facto mouthpiece of the DC political establishment, The Atlantic magazine, scholar Deborah Brautigam stated clearly that the debt-trap narrative is “a lie, and a powerful one.”

“Our research shows that Chinese banks are willing to restructure the terms of existing loans and have never actually seized an asset from any country, much less the port of Hambantota,” Brautigam said in the article, which was co-authored by Meg Rithmire, a professor at the stridently anti-socialist Harvard Business School.

The Chinese "debt-trap" narrative is a false one which wrongfully portrays both Beijing and the developing countries it deals with, Deborah Brautigam and Meg Rithmire write: https://t.co/FagExsdeNT

— The Atlantic (@TheAtlantic) February 7, 2021

Brautigam published her findings in a 2020 article for Johns Hopkins’ China Africa Research Initiative, titled “Debt Relief with Chinese Characteristics,” along with fellow researchers Kevin Acker and Yufan Huang.

They investigated Chinese loans in Sri Lanka, Iraq, Zimbabwe, Ethiopia, Angola, and the Republic of Congo, and “found no ‘asset seizures’ and, despite contract clauses requiring arbitration, no evidence of the use of courts to enforce payments, or application of penalty interest rates.”

They discovered that Beijing cancelled more than $3.4 billion and restructured or refinanced roughly $15 billion of debt in Africa between 2000 and 2019. At least 26 individual loans to African nations were renegotiated.

Western critics have attacked Beijing, claiming there is a lack of transparency surrounding its loans. Brautigam explained that “Chinese lenders prefer to address restructuring quietly, on a bilateral basis, tailoring programs to each situation.”

The researchers noted that China puts an “emphasis on ‘development sustainability’ (looking at the future contribution of the project) rather than ‘debt sustainability’ (looking at the current state of the economy) as the basis of project lending decisions.”

“Moreover, despite critics’ worries that China could seize its borrower’s assets, we do not see China attempting to take advantage of countries in debt distress,” they added.

“There were no ‘asset seizures’ in the 16 restructuring cases that we found,” the scholars continued. “We have not yet seen cases in Africa where Chinese banks or companies have sued sovereign governments or exercised the option for international arbitration standard in Chinese loan contracts.”

Benjamin Norton is founder and editor of Multipolarista.