Why does South Asia prefer borrowing from world bank? Is it because Bangladesh, Nepal and India have a history of relative fiscal prudence to begin with?
I said South Asia prefers borrowing from multilateral institutions which include the World Bank. But also the Asian Development Bank and other mutlilaterals like the UN International Fund for Agricultural Development (IFAD).
Can you do a further post about the irrigation problems you mentioned in Africa? Is it just a lack of ground water resources? Inefficient water use? Not enough reservoirs in times of drought etc.
What proportional of foreign borrowing in Africa comes downstream from a balance of payments crisis? Do you think the rise of renewable technologies such as solar panels, batteries and EVs will result in fewer balance of payments crisises in developing countries after 2035?
A lot of African borrowing is just borrowing for consumption (imports) instead of investment. So you are right that borrowing is contributing to a BOP crisis. I think these technologies help but it depends how quickly developing countries can adopt these new technologies.
Kenya already has a significant geothermal industry which it is expanding other partners in East Africa. Fortunately solar and batteries adoption don't require the state involvement that traditional power sector requires. Especially given how sparsely populated Africa is relative to Asia.
Yep Japan leng to Iraq for oil development projects (developing oil fields, making pipelines, and etc.). China is not unique to commodity based lending.
Haiti borrowing from Venezuela, proof that two negatives don't always create a positive.
100%!!
An interesting breakdown. Some real surprises here. The Iraq from Japan was one.
This is a fantastic post, you should do another on policies and dynamics between creditors and receiving countries.
Great idea 👌 I will
Definitely the best of the five. Knowing who owns the debt helps me understand the power structure better.
Bravo!
Why does South Asia prefer borrowing from world bank? Is it because Bangladesh, Nepal and India have a history of relative fiscal prudence to begin with?
I said South Asia prefers borrowing from multilateral institutions which include the World Bank. But also the Asian Development Bank and other mutlilaterals like the UN International Fund for Agricultural Development (IFAD).
Can you do a further post about the irrigation problems you mentioned in Africa? Is it just a lack of ground water resources? Inefficient water use? Not enough reservoirs in times of drought etc.
I am currently interviewing some people to learn more about it. I feel like my understanding is still basic right now.
What proportional of foreign borrowing in Africa comes downstream from a balance of payments crisis? Do you think the rise of renewable technologies such as solar panels, batteries and EVs will result in fewer balance of payments crisises in developing countries after 2035?
A lot of African borrowing is just borrowing for consumption (imports) instead of investment. So you are right that borrowing is contributing to a BOP crisis. I think these technologies help but it depends how quickly developing countries can adopt these new technologies.
Kenya already has a significant geothermal industry which it is expanding other partners in East Africa. Fortunately solar and batteries adoption don't require the state involvement that traditional power sector requires. Especially given how sparsely populated Africa is relative to Asia.
Do you think India will have a more significant role in infrastructure lending in East Africa in the future?
They are already starting!
https://www.bloomberg.com/news/articles/2023-07-05/india-increases-africa-lending-in-the-race-to-counter-china
After a few years do you think there will be another debt forgiveness drive to help with post covid and post Russia Ukraine recovery?
I definitely think another debt forgiveness cycle on on the table this decade.
Yep Japan leng to Iraq for oil development projects (developing oil fields, making pipelines, and etc.). China is not unique to commodity based lending.