China funnels its overseas aid money into political leaders’ home provinces

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Schools, stadiums or airports help the presidents of countries that receive cash from Beijing tighten their grip on power

Mahinda Rajapaksa, who was Sri Lanka’s prime minister, with the Chinese president Xi Jinping after launching a project to construct a $1.4 billion port city on an artificial island off Colombo.Mahinda Rajapaksa, who was Sri Lanka’s prime minister, with the Chinese president Xi Jinping after launching a project to construct a $1.4 billion port city on an artificial island off Colombo.

Its use of debt rather than aid to bankroll big-ticket overseas projects created new opportunities for developing countries to achieve rapid socio-economic gains, but it also introduced major risks, such as corruption, “political capture” and conflict., published by Cambridge University Press, found that in those countries that receive Chinese aid, funding for the political leader’s home province increased by 52% during the years when he or she was in power.

“There is rot in the system that Beijing created to fast-track the implementation of development projects,” said Dr Bradley Parks, executive director of theresearch lab at William & Mary college in Williamsburg, Virginia, and one of the five authors of the book.

 

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