Chinese prescription

International creditors must evolve a proactive lending policy and developing states be provided with space to operate

Beijing’s outlook of world view is in contrast with the Western perceptions. Though China is very much part of the global capitalist entrepreneur economy, it takes a departure when it comes to fundamentals of poverty alleviation and development. This is why a spokesperson for the Chinese Foreign Ministry took no qualms in stating that ‘certain developed countries’ have not lived up to the expectations of buckling up underdeveloped states, and their policies had rather led to stagnation in growth. This is no new synopsis, and is evident from the approach that China has for interacting with developing countries as its aid and assistance does not come with strings attached. Whereas, the West is in with an agenda and behind the excuse of reforms, there is much that the poor recipient members have to suffer in the long run.

It is not clear as to what entailed China to come up with such a categorical utterance at this point of time. While it referred to Pakistan, the assumption is that it is hinting at the plethora of conditionalities that Islamabad is being made to accept by the IMF, as the former goes on to strike a new deal in restructuring its loans. As Pakistan sits on the edges of an imminent default, and with Western credit rating agencies simply writing off the country’s tangibles, there is a fear that it could lead to severe ramifications on the international financial index. On the other hand, China, which has rolled over its cash tranches with Pakistan to help it avert bankruptcy, has pointed out the enigma of walking away as the Fund and other lenders are accustomed to. It is an undeniable fact that the US, despite being an ally, has not pumped in any succour and that is what the communist giant has pointed out.

There is a cue to be picked from China i.e. all international creditors must evolve a proactive lending policy, and developing states must be provided with space to operate. There is no tailor-made prescription, and developing countries should be free to reorient their policies as per their needs and requirements.

Published in The Express Tribune, March 4^th, 2023.

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