Cross-posted from: https://feddit.de/post/10302481
The head of the African Development Bank is calling for an end to loans given in exchange for the continent’s rich supplies of oil or critical minerals used in smartphones and electric car batteries.
“They are just bad, first and foremost, because you can’t price the assets properly,” Akinwumi Adesina said in an interview with The Associated Press in Lagos, Nigeria, last week. “If you have minerals or oil under the ground, how do you come up with a price for a long-term contract? It’s a challenge.”
Linking future revenue from natural resource exports to loan paydowns is often touted as a way for recipients to get financing for infrastructure projects and for lenders to reduce the risk of not getting their money back.
So exactly the same as the World Bank/IMF. Yeah, that’s bad.
Last year a group of international researchers conducted a study investigationg China as an International Lender of Last Resort.
TLDR: World Bank and IMF are not good, but China’s system is much worse.
But it’s a very good read, absolutely worth the time.
A US-based and financed research organization with researchers who work at the World Bank saying that the Chinese imperialistic financial system is worse than theirs, why am I not surprised?
