Zambia-China Debt.pdf

WP-51-Brautigam-Zambia-Tragedy-of-the-Commons.pdf
Preview of Zambia-China Debt
🔗 Source: sais-cari.org
📊 Size: 765 KB
📄 Pages: 37 pages
⬇️ Downloads: 104

Summary

Zambia's high level of Chinese loan commitments relative to its economy and outstanding debt is due to principal-agent problems in Chinese lending, including the tragedy of the commons and moral hazard. Multiple Chinese contractors and lenders in Zambia created fierce competition, while "fragmented authoritarianism" in Beijing and Zambia's disregard for restraints on over-borrowing contributed to unsustainable debt. Chinese reluctance to monitor Zambia's policy space and Zambia's history of debt cancellations exacerbated moral hazard risks.

Description

Zambia's high level of Chinese loan commitments relative to its economy and outstanding debt is due to principal-agent problems in Chinese lending, including...

Technical Information

  • File Format: PDF
  • File Size: 765 KB
  • Pages: 37
  • Language: EN
  • Total Downloads: 104
  • Last Updated: 3 weeks ago

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