Around 200 million industrial workers, employees, farmers and agricultural laborers observed a two-day general strike in India on March 28 and 29. The strike was working people’s challenge to the far-right government of Prime Minister Narendra Modi. This video was created by People’s Dispatch.
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Cyber Censorship Hits Colombia, India and Palestine
On May 6 and 7, Instagram users in India noticed that some of their posts were starting to vanish. Gone were their COVID-19-related posts that demanded improved conditions for overworked crematorium workers, publicized volunteer-led relief efforts, and linked coronavirus deaths in the country to “abject callousness” of the government. Stranger still was the removal of private chats on the matter.
“There is a growing trend of internet shutdowns, takedown of social media content, particularly around political speech in India over the last few years,” said Vidushi Marda, global AI research and advocacy lead at ARTICLE 19, an international freedom of expression organization that has been tracking the deleted content.
In India right now, whether or not people have access to COVID-19 information on social media is a matter of life and death. Such censorship, however, is not unique to the country. Over the past month, activists and researchers have also collected numerous examples of suppressed content related to unrest in Palestine and Colombia, as well as posts related to the National Day of Awareness of Murdered and Missing Indigenous Women in the U.S. and Canada.
On May 7, Instagram said that “this is a widespread global technical issue not related to any particular topic” and that the issue had been “fixed.”
But the following day, the company acknowledged that there were issues with posts relating to unrest in Colombia and Palestine.
“We are so sorry this happened,” Instagram noted in a statement. “Especially to those in Colombia, East Jerusalem, and Indigenous communities who felt this was an intentional suppression of their voices and stories — that was not our intent whatsoever.”
But Instagram failed to acknowledge reports of censorship in India.
A representative of Facebook, which owns Instagram, wrote in response to questions about why dissent in India, Colombia, and Palestine seemed to have been disproportionately impacted: “This was a widespread global technical issue that affected users around the world, regardless of the topic of their Stories. We fixed it as fast as we could so users around the world could continue expressing themselves and connecting with each other through Stories.”
Despite the company’s claims that the takedowns were automatic and universal, Marda said there was “overwhelming evidence of the disproportionate impact these takedowns have had on political speech and dissent.”
In India, she noted that ARTICLE 19 observed “significant overlap between posts about activism, COVID-19 relief and government critique.” All of this, she said, points to “a significantly larger problem than just a single automation tool,” and noted “the opacity of content moderation practices” means that there are gaps in accountability.
Such digital suppression isn’t simply a matter of being able to speak freely. In each of these countries, thanks to government failures and limited media coverage, people have come to rely on social media to share information, track resources, and protect themselves from violence.
Part of the problem is automated content moderation, which uses machine learning to filter content. The systems are blunt instruments that often misunderstand context and remove too much or too little content, noted a report by the New Delhi-based Observer Research Foundation. These developments, adds the report, can negatively impact minority groups because these tools are often trained on English-language datasets, so they have trouble properly parsing dialects and rarely-used languages.
“[There is] overwhelming evidence of the disproportionate impact these takedowns have had on political speech and dissent,” said Marda. “[This is] precisely why… human rights organizations and defenders around the world have pointed to the dangers of automated content moderation for years.”
India’s History Of Digital Censorship
Because of the Indian government’s monumental failure in tackling the coronavirus, people in the country have come to rely on social media to seek and provide COVID-related help like oxygen supplies and vaccinations. Many people have also used social media to collate lists of supplies into a larger, searchable database.
Silicon Valley-driven censorship in India, therefore, has become a matter of survival, despite the fact that Instagram has yet to acknowledge it.
“Despite documented instances of censorship [in India] and Instagram users highlighting them very prominently, there was a complete lack of recognition [by Instagram] of what’s happening in India,” said Apar Gupta, Executive Director, Internet Freedom Foundation (IFF), a New Delhi-based organization that seeks to ensure that technology respects fundamental rights.
Digital suppression in the country isn’t new, despite the fact that the Indian Constitution guarantees the right to freedom of speech and expression.
In 2020, India had the highest number of government-instigated internet shutdowns in the world. The digital crackdowns were one of the reasons Reporters Without Borders recently ranked India 142 out of 180 countries in terms of press freedoms.
On April 28, Facebook temporarily hid posts critical of Indian Prime Minister Narendra Modi that included the hashtag #ResignModi for “violating its community standards.” A Facebook spokesperson later said that the posts were hidden “by mistake, not because the Indian government asked us to.”
“Silicon Valley platforms have a very natural interest in keeping governments happy in the regions that they operate,” Gupta said, pointing to the fact that India is Facebook’s biggest market.
The lack of institutionalized free speech protections is further compounded by laws and regulations in India that allow the Ministry of Electronics and Information to not disclose censorship orders sent to social media companies, said Gupta.
Users are therefore often given no official explanation why their posts were suppressed.
Content Moderation In Colombia
There have also been numerous reports of censorship related to ongoing protests in Colombia over proposed tax increases and the resulting police crackdowns.
“We identified a specific problem with Instagram,” said Carolina Botero Cabrera, a researcher with Karisma, a Bogotá based civil society organization that works on technology and human rights. “We have over 1,000 reports of censorship, around 90 percent of it was by Instagram and the content was overwhelmingly about the [ongoing] protests,” she added.
Deleted posts reportedly related to the national unrest, unemployment numbers in the country, and the death of a protester.
For Colombia, a country with a long-lasting civil war, such automated content moderation is all the more contentious because journalists and human rights activists often find that their content is removed, their reach is diminished, or their accounts are blocked because their content is deemed too violent.
Jesus Abad Colorado, an experienced Colombian photojournalist, recently had his Twitter account blocked after he posted photographs of an armed dispute in the Chocó Department in Western Colombia. A few days later, when an independent media outlet livestreamed an interview with Colorado about the dispute, their account was blocked, too.
Another challenge, said Botero, is that the Revolutionary Armed Forces of Colombia — People’s Army (FARC), the longtime leftist guerilla group that disarmed and became a political party in 2017, “was flagged as a terrorist organization [by social media companies at the time] even though they were in peace negotiations.”
The peace process spanned about four years, culminating in a peace agreement in 2016. “Any research about the peace process will have to deal with important problems to [understand] FARC’s position, actions, and voice,” said Botero, noting that blocked social media accounts and deleted content hamper documentation of the process.
Suppressing Palestinian Voices
As tensions escalated in Israel and Palestine, digital suppression in the region also appeared to increase.
“We have over 100 reports of censorship on Instagram,” said Alison Carmel Ramer, a researcher at 7amleh, a Haifa-based digital rights organization based in Haifa, Israel.
Ramer’s research and other reports found that most of the censored content was related to Israeli forces storming Jerusalem’s Al-Aqsa mosque. Other censored content was related to the eviction of Palestinians from the Sheikh Jarrah neighborhood in East Jerusalem.
Muslim, a media publication, also documented blocks on Instagram livestreams related to Palestine.
According to ِRamer, Facebook told 7amleh that a majority of the Instagram takedowns were mistakes because they did not violate community standards and that they have restored the content.
“This means there is a problem in the way content is moderated,” said Ramer. “Why is content which is not against community standards being taken down? [Facebook] also did not tell users under which policy the content was taken down.”
In general, Palestinian content is “over-moderated” Ramer added, noting posts are often suppressed either because they are considered hate speech, or the posts appear to be connected to terrorist organizations. Many Palestinian leaders are designed as terrorists by the United States, meaning Facebook censors content related to them. Ramer also explained how hate speech in the region written in Hebrew is not censored to the same extent as hate speech in Arabic.
A March 2021 report by 7amleh which analysed 574,000 social media conversations in 2020 showed that one out of every 10 Israeli posts about Palestinians and Arabs contained violent speech, a 16 percent increase compared to 2019. “We have sent reports like this one to Facebook for several years and every year, [but] we find that this content just remains online,” Ramer said, adding that Facebook has not informed them of what, if any, actions it intends to take.
A recent report in The Intercept also noted how Facebook censors the word “Zionist.”
“Zionism is a political ideology,” Ramer said. “Political speech must be protected. Words like ‘Zionist’ and ‘shahid’ [martyr in Arabic] should be protected.” Censorship in the region is especially concerning because of the longstanding lack of transparency around Israel’s treatment of Palestinians, political activist Noam Chomsky told The Daily Poster.
“Israel’s brutal repression of Palestinians for many years, with strong support from the U.S. particularly, is a shocking crime in itself and has ominous international repercussions as well,” said Chomsky. “There have been extensive efforts to block efforts to bring the facts and their significance to the general public. These efforts amount to direct participation in the crimes.”
When asked about social media companies’ ability to freely censor content, Chomsky replied, “Their enormous power should not be tolerated.”
The Path Ahead
At ARTICLE 19, Marda said that in order to align itself with international human rights standards, Facebook “must publicly and transparently acknowledge the reasons for recent takedowns” and “provide information for the substantive and legal reasons for takedown.”
Marda added that Facebook should also “restore all blocked content” and “publicly commit to not bowing to governmental or judicial pressure that requires it to act in violation of international human rights standards and jurisdiction-specific standards on freedom of expression.”
This article was originally published in The Daily Poster.
Rishika Pardikar is a freelance journalist in Bangalore, India.
Photo Essay: India’s Rural Health Workers Fell Ill As Workload Spiked During Pandemic
Prajakta Khade walked into a public health center daily for three months in early 2021, without ever receiving medical care. The healthcare worker’s 26 notebooks—containing more than 3,000 pages of community health records—point to why she couldn’t seek treatment for her ailments. She was simply too busy.
In March 2020, India’s health ministry tasked 1 million Accredited Social Health Activists (ASHAs) like Khade with COVID-19 duty in rural areas. This, in a country where 65 percent of its 1.38 billion people live outside cities. Suddenly, ASHAs’ workload increased exponentially. Yet, they remain underpaid and now suffer stress-related chronic ailments.
“If a positive case was found in the area, we had to visit the patient, contact trace, arrange medical facilities, measure their oxygen and temperature levels daily, and ensure they complete quarantine,” Khade explained about the added duties to treat the infectious respiratory disease. But all Khade was given to do her job in the assigned area in India’s Maharashtra state was a single N95 mask and 200 milliliters of sanitizer.
ASHAs, an all-women healthcare cadre, remain the foot soldiers of India’s rural healthcare. One worker is appointed for every 1,000 citizens under India’s 2005 National Rural Health Mission. ASHAs are responsible for more than 70 tasks, including providing first-contact healthcare, counsel regarding birth preparedness, and pre- and post-natal care. Plus, they help the population access public healthcare and ensure universal immunization, among other things.
The World Health Organization announced a pandemic in March 2020. But in many countries, lack of adequate healthcare and no social safety nets amid lockdowns wrecked the lives of ordinary people. In India, for example, an additional 150 million to 199 million people are expected to enter poverty in 2021 and 2022.
Chronic Illnesses Spike
One day about a year ago, while surveying people in her village of Vhannur in India’s Maharashtra state, 40-year-old Khade felt dizzy. But she couldn’t take a break. “At one point, my face was swollen, and I could barely see anything.” It turned out her blood pressure level had surged to 252/180 mmHg (millimeter of Mercury), much higher than the standard limit of 120/80. That is how she got diagnosed with hypertension.
However, a month’s worth of medications didn’t help because she continued to experience stress as her workload increased. Senior officials at the health center had early on issued an order to submit patient records daily by noon.
ASHAs, who aren’t considered full-time workers, receive performance-based incentives paid on the number of tasks completed. “For COVID duty, the government decided our worth as merely 33 Indian Rupees per day (43 U.S. cents),” she said. “We received this amount only for three months in the past two years.”
Moreover, during the peak of COVID-19 cases in 2021, salaries for Maharashtra’s ASHAs were delayed by five months, according to Khade. Netradipa Patil, an ASHA from Maharashtra’s Kolhapur district and leader of a union that represents more than 3,000 ASHAs, confirmed this.
One day last year, Khade’s supervisor asked for a list of hypertension and diabetes patients from her village of about 1,200 people—at 10 o’clock at night.
“How could I survey the entire community in the night?” she asked.
Often, such orders meant skipping lunch and staying hungry for 11 hours at a stretch. ASHAs worked four hours prior to the pandemic. Now, 12-hour days are normal.
When medications didn’t help, Khade consulted two private doctors. “After six months of hassle, the doctor doubled my dose to 50 milligrams.” Khade lost over 10 kilograms (22 pounds) of weight and was placed on medications to address anxiety. Even today, she suffers from fatigue.
“I was never this weak,” she asserted.
Chronic diseases among ASHAs are rising rapidly because of the workload, says Patil. “We protect the entire community, but there’s no one to look after our health.” ASHAs in Maharashtra, she says, average a monthly income of Rs 3,500 to 5,000 ($45 to $66 USD).
This reporter spoke to ASHAs’ senior officials from Maharashtra’s Kagal block. (In India, a cluster of villages form a block and several blocks form a district. Vhannur village is in the Kagal block of Maharashtra’s Kolhapur district.) Senior officials said they are not responsible for ASHAs’ deteriorating mental and physical health, and pointed to the Indian government’s order to submit data. The officials didn’t want to be named. Instead, they relayed that they also are overworked.
“ASHAs do the majority of the health department’s work, and they are massively underpaid for their duty,” said Dr. Jessica Andrews, a medical officer at Kolhapur’s Shiroli Primary Health Center. She has been handling mental health cases. “Without them, the health system will collapse.”
‘Not Treated As Humans’
Several ASHAs across India have worked for over a year without a break. One of them is Pushpavati Sutar, 46, diagnosed with hypotension (low blood pressure) and diabetes within seven months of COVID-19 duty in November 2020. Like Khade, she experienced constant spells of dizziness.
“Often, there was fake news of community COVID transmission in my area,” she said.
Every day, senior officials at the health center hounded her to find more details about such instances.
An ASHA for 13 years, she’s never made an error in her surveys and was sure of no community transmission. “After investigating, I found that the accused was COVID negative. Instead, two of his relatives were positive.”
She had to clear such misconceptions almost every day, answer senior officials’ questions, collect records and perform her regular duty. “For several days, I couldn’t sleep,” she remembered.
Further, fearing COVID-19 guidelines and quarantine rules, community members began demanding ASHAs hide COVID-19 cases. “People even accused us of spreading COVID as we would survey the entire village,” Sutar recounted. Moreover, she said senior officials asked ASHAs to visit the families of COVID-19 patients—instead of allowing data collection over the phone—putting them at risk of infection.
“At several places, there have been instances of community violence, where ASHAs were beaten up,” said Patil, who has filed legal complaints on behalf of the assaulted workers and is helping them mentally recover.
Kolhapur’s ASHA union has written to several government authorities, including Maharashtra’s chief minister and Indian Prime Minister Narendra Modi, highlighting the mental toll of COVID-19 duty. Still, none of their letters have garnered a helpful response.
“Forget adequate pay,” said Khade, as she continued surveying, juggling between completing her task and trying to keep her mind at ease. “We are not even treated as humans.”
Sanket Jain is an independent journalist based in the Kolhapur district of the western Indian state of Maharashtra. He was a 2019 People’s Archive of Rural India fellow, for which he documented vanishing art forms in the Indian countryside. He has written for Baffler, Progressive Magazine, Counterpunch, Byline Times, The National, Popula, Media Co-op, Indian Express and several other publications.
Real Debt Trap: Sri Lanka Owes Vast Majority to West, Not to China
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.