David Malpass, the President of the World Bank, has called for more transparency in lending practices between developing countries and China. He expressed concerns that countries such as Ghana and Zambia are struggling to repay their debts to Beijing, and that increasing interest rates in major economies are making loan repayments more expensive for developing countries. Malpass highlighted the need for transparency in contracts and warned against governments offering collateral to make a loan. He also praised the competition between the US and China as “healthy for developing countries” and encouraged both countries to provide different options for developing countries. China has refuted suggestions that it is exploiting other countries with its financial support and says any lending is done within international rules.
It seems that Mr. Malpass believes that the competition between the US and China for influence and economic ties in Africa could be beneficial for developing countries as it offers them different options. The collaborative approach between the US and Ghana, highlighted during Vice-President Kamala Harris’s visit, was also praised by Mr. Malpass. China has repeatedly denied accusations of using its financial support to gain political influence in developing countries. Foreign Ministry Spokesperson Mao Ning stated in a recent press conference that China “respects the will of relevant countries” and “does not seek any political self-interest” when providing loans. However, critics argue that China’s lending practices often come with hidden strings attached and may lead to debt-trap diplomacy, where borrowers become heavily indebted to China and vulnerable to political pressure. The issue remains a topic of debate and concern among international policymakers and economists.
