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• W1553936667 abstract "Understandably, Naohiro Kitano's work experience at the Japan International Cooperation Agency (JICA) has given him a comparative advantage in writing a paper on China's foreign aid. China's foray into international economic cooperation as a donor is admirably documented in his paper (Kitano, 2014). The paper provides valuable insights into the network of Chinese aid programs. It is amazing that China, a major recipient of external aid in the past (largely from Soviet sources), could emerge as a major donor in its own right with visible signs, but it is unclear if that experience has influenced its own aid programs. Amazing as it indeed is, it is unsurprising, as the Chinese economy has grown so big that it could replace Japan as the second largest economy in the world, saddled with the largest external reserves in the world. What makes China outstanding among the donor countries is that China is not a rich country in terms of gross domestic product (GDP) per capita, with millions still living below the poverty line. Foreign aid is thus no longer just a North–South affair. By this token, to be sure, China is not the only middle-income country providing such aid, but it clearly outshines India, Brazil, and South Africa. It is heartening to note that China is willing and able to undertake constructive engagements with least developed and less fortunate countries. Strictly speaking, aid by definition is an altruistic act with no expectations of any returns, although in practice external aid could have other motivations. It is not unusual for foreign direct aid to be influenced by geopolitical considerations and commercial ties. Interestingly, China has also been providing aid indirectly through multilateral aid agencies in addition to direct aid. Undoubtedly, there is more altruism in multilateral aid, not only because the donor stays behind the scene instead of taking the center stage but also, more importantly, it is free from perceptions of hidden agenda often associated with direct aid. While China's participation in multilateral aid is on the increase, it remains dwarfed by the country's direct aid in size. What is really interesting about China's aid is the new innovative approach adopted, with China seeking partnership with other like-minded donor countries in reaching out to targeted recipients. Notable examples include (i) the China–Australia initiative to help Cambodia, Papua New Guinea, and Myanmar; (ii) China–New Zealand aid to help Pacific Islands; (iii) China–US assistance for agricultural projects in Tanzania; and (iv) health projects in Liberia and Ghana. All these, however, pale in comparison with the much larger direct aid dished out by China. Although Kitano's paper is informative, revealing, and insightful, the descriptive analysis approach does not help identify the determinants of aid or address policy issues in a rigorous manner. It is unclear if China's foreign aid decisions are guided by a sound policy framework, notwithstanding the observation that there is considerable collaboration and coordination among the various designated departments in a number of ministries. The fact that the Ministry of Commerce is in charge of Chinese foreign aid is telling. Obviously, commercial considerations weigh heavily on otherwise ostensibly noble objectives. It is not by sheer coincidence that China's aid have gone mostly to resource-rich countries. This observation does not belittle the importance of the donor role that China plays. Regardless of the motivations, anecdotal evidence suggests that China is making a huge contribution to the development of some poverty-stricken countries in Africa. It would be very useful for policymakers if serious studies are undertaken (i) to investigate into the factors that influence the direction of China's foreign aid trends and (b) to assess the socioeconomic impact of China's foreign aid programs and projects. Descriptive statistics would not suffice. Very little can be gleaned from the scanty data presented in Kitano's paper. However, the references to some econometric studies on the determinants of China's aid are very helpful. Nonetheless, a fresh regression analysis is still needed, as it can help establish statistical relationships between the dependent variable, namely aid, and independent variables such as the GDP per capita of the recipients, China's foreign direct investment (FDI) stakeholdings in the aid recipient countries, the relevance of the natural resources of recipient countries to China's manufactures, and the composition of recipient countries' bilateral trade with China. Although a passing reference to Japan's role as a major donor is made in the paper, there is no attempt to draw interesting comaprisons. Perhaps, there is much that China can learn as a latecomer from Japan's experience. It is somewhat disappointing that the writer does not have much to say about the darker side of China's aid agenda. That China's aid is tainted by hidden commercial interests may not be such a sinful thing, as it is not an uncommon practice even among aid providers from the North. But, China's commercial focus on the extractive sectors in the recipient countries, with little or no concern for the negative externalities or the interest of posterity begs the question if foreign aid is no more than an atonement or compensation for foreign resource stripping activities. Some soul searching is in order." @default.
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• W1553936667 date "2014-07-01" @default.
• W1553936667 modified "2023-09-27" @default.
• W1553936667 title "Comment on “China's Foreign Aid at a Transitional Stage”" @default.
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• W1553936667 doi "https://doi.org/10.1111/aepr.12075" @default.
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