China Third World Development Loans Cause Stress

"An Associated Press analysis of a dozen countries most indebted to China — including Pakistan, Kenya, Zambia, Laos and Mongolia — found paying back that debt is consuming an ever-greater amount of the tax revenue needed to keep schools open, provide electricity and pay for food and fuel. "

When project fails to produce sufficient revenue to fund interest, govt often gets called in to fund loan. That depletes funds for domestic services. Hence, the economy is drive toward poverty.

Loans are often from banks in China rather than the govt. They often include escrow accounts giving Chinese lender first access to funds. That makes western countries reluctant to participate in the bailout. Too often Chinese terms are secret.

China blames US for failure to help.

The loans could help build Chinese influence in the third world but that strategy seems to have backfired due to the poverty aspect.