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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Map of Chinese lending projects around the world, concentrated in Europe, Asia, and Africa

The Problem Isn’t that Chinese Lending Is Too Big, It’s that the US and Europe’s Is Too Small

As the possibility of a new Cold War between the US and China gains traction in some foreign policy circles, the scale of Chinese development finance has taken center stage. A closer examination suggests the cost to China of this lending is distinctly underwhelming. It would be cheap for the US and Europe to match China’s lending numbers –and in the interest of global development if it was done right.

Chart showing falling US pledges to IDA and rising Chinese pledges to IDA

The US and China Have Very Different Takes on IDA and the Global Fund: Why that Matters for the Future of Multilateral Aid

When it comes to the United States, the reality is that the Global Fund is winning the fundraising game hands down. China, meanwhile, doubled its contribution to IDA—contrast that with the country’s longstanding indifference to the Global Fund. Clearly the world’s most important emerging donor views the multilateral architecture differently than the world’s most important traditional donor does.

If the Trump Administration Abandons Climate, Will China Take Global Leadership?

President Elect Donald Trump committed his first major personnel act on climate Wednesday, picking Scott Pruitt—Oklahoma Attorney General, climate change denier, and oil industry ally—to head the Environmental Protection Agency. If Pruitt is confirmed to the position, he will be responsible for looking out for not just for narrow oil interests, but all Americans. Maybe he’ll be persuaded to take a more forward-looking stance on climate by the Americans already suffering from sea level rise in AlaskaFlorida, and Louisiana. But if that doesn’t concern him, perhaps the United States losing international goodwill and influence to an ascendant China will.