The riddle of why some nations are wealthier than others is one that economists have struggled with since the dawn of the dismal science. One factor is access to capital.
If one country cannot finance the building of infrastructure, then how can it hope to prosper from trade? In the case of poorer areas in Africa and elsewhere, the answer is often to seek support from foreign governments including China.
The Belt and Road Initiative, coupled with loans from Beijing’s development banks, mean China has usurped western nations as the continent’s biggest government creditor. Research from Stephany Griffith-Jones of Columbia University and Marco Carreras of the University of Sussex shows China accounts for 13 per cent of all bilateral lending since 2015. The next biggest creditor, the US, holds just 4 per cent.