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How Chinese Financing is Fueling Megaprojects Around the World

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How Chinese Financing is Fueling Megaprojects Around the World

How Chinese Financing is Fueling the World’s Megaprojects

On a mountaintop a few miles north of the bustling streets of Harare, Zimbabwe, a curving, modern complex is beginning to take shape. This building, once completed, will be the home of the African country’s parliament, and the centerpiece of a new section of the capital city.

Aside from the striking design, there’s another unique twist to this development — the entire $140 million project is a gift from Beijing. At first glance, gifting a country a new parliament building may seem extravagant, but the project is a tiny portion of China’s $270 billion in “diplomacy spending” since 2000.

AidData, a research lab at the W&M Global Research Institute, has compiled a massive database of Chinese-backed projects spanning from 2000–2017. In aggregate, it creates a comprehensive look at China’s efforts to grow its influence in countries around the world, particularly in Africa and South Asia.

Beijing has ramped up the volume and sophistication of its public diplomacy overtures, […] but infrastructure as a part of its financial diplomacy dwarfs Beijing’s other public diplomacy tools.

– Samantha Custer, Director of Policy Analysis, AidData

Below, we’ll look at three diplomacy spending hotspots around the world, and learn about key Chinese-funded megaprojects, from power plants to railway systems.

1. Pakistan

In 2015, Chinese President Xi Jingping visited Islamabad to inaugurate the China-Pakistan Economic Corridor (CPEC), kicking off a $46 billion investment that has transformed Pakistan’s transportation system and power grid. CPEC is designed to cement the strategic relationship between the two countries, and is a portion of China’s massive One Belt, One Road (OBOR) initiative.

CPEC investment China to Pakistan

One of the largest projects financed by China was the Karachi Nuclear Power K2/K3 project. This massive power generation project is primarily bankrolled by China’s state-owned Exim Bank which has kicked in over $6.6 billion over three phases of payments.

Billions of dollars in Chinese capital has also funded everything from highway construction to renewable energy projects across Pakistan. Pakistan’s youth unemployment rate sits as high as 40%, so jobs created by new infrastructure investments are a welcome prospect. In 2014, Pakistan had the highest public approval rating of China in the world, with nearly 80% respondents holding a favorable view of China.

2. Ethiopia

Ethiopia has seen a number of changes within its borders thanks to Chinese financing. This is particularly evident in its capital, Addis Ababa, where a slew of transportation projects — from new ring roads to Sub-Saharan Africa’s first metro system — transformed the city.

china ethiopia investment

One of the most striking symbols of Chinese influence in Addis Ababa is the futuristic African Union (AU) headquarters. The $200 million complex was gifted to the city by Beijing in 2012.

Though Ethiopia is a clear example of Chinese investment transforming a country’s infrastructure, a number of other African nations have experienced a similar influx of money from Beijing. This financing pipeline has increased dramatically in recent years.

chinese loans to africa

3. Sri Lanka

In the wake of political turmoil, Sri Lanka is increasingly looking to China for loans. From 2000 to 2017, over $12 billion in loans and grants have poured into the deeply-indebted country.

Perhaps the most contentious symbol of the relationship between the two countries is a port on the south coast of the island nation, at a strategic point along one of the world’s busiest shipping lanes. The Hambantota Port project — which was completed in 2011 — followed a now familiar path. Eschewing an open bidding process, Beijing’s government financed the project and hired a state-owned firm to construct the port, primarily using Chinese workers.

By 2017, Sri Lanka’s government was burdened by debt the previous administration had taken on. After months of negotiations, the port was handed over with the land around it leased to China for 99 years. This handover was a strategic victory for China, which now has a shipping foothold within close proximity of its regional rival, India.

John Adams said infamously that a way to subjugate a country is through either the sword or debt. China has chosen the latter.

– Brahma Chellaney

Playing the Long Game

Africa’s economic rise will likely be a major contributor to global growth in coming years. Already, six of the 10 fastest growing economies in the world are located in Africa. China is also the top trading partner on the continent, with the United States sitting in third place.

OBOR spending has also earned China plenty of influence in the rest of Asia as well. If the ambitious megaproject continues along its current trajectory, China will be the central player in a more prosperous, interconnected Asia.

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Politics

Visualizing the True Size of Land Masses from Largest to Smallest

Maps can distort the size and shape of countries. This visualization puts the true size of land masses together from biggest to smallest.

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The True Size of Land Masses from Largest to Smallest

Is Greenland the size of the entire African continent?

No…

But looking at a map based on the Mercator projection, you would think so.

Today’s infographic comes from the design studio Art.Lebedev and shows the true size of the world’s land masses in order from largest to smallest using data from NASA and Google.

Check out the actual shape and size of each land mass without any distortions.

Distorting Reality: Mercator Misconceptions

Maps can deceive your eyes but they are still powerful tools for specific purposes. In 1569, the legendary cartographer, Gerardus Mercator, created a new map based on a cylindrical projection of sections of the Earth. These types of maps were suited for nautical navigation since every line on the sphere is a constant course, or loxodrome.

Despite the map’s nautical utility, the Mercator projection has an unwanted downside. The map type increases the sizes of land masses close to the poles (such as in North America, Europe, or North Asia) as a side effect. As a result, Canada and Russia appear to take up approximately 25% of the Earth’s surface, when in reality these nations only occupy 5%.

“Things are not always what they seem; the first appearance deceives many.” – Phaedrus

This collection of images above represents the world’s land masses in their correct proportions. Measurements are based on Google Maps 2016 and NASA Earth Observatory maps, with calculations based on the WGS84 reference ellipsoid, or more simply, a specific model of the Earth’s shape in two dimensions.

We take for granted Google Maps and satellite imaging. Making these accurate representations is no small task – the designers went through six steps and many different iterations of the graphic.

Countries are arranged by descending size and shown without external or dependent territories. For example, the total area for the contiguous United States shown does not include Hawaii, Alaska, or overseas territories.

Top 10 Largest Land Masses

Although Mercator maps distort the size of land masses in the Northern Hemisphere, many of these countries still cover massive territories.

JurisdictionArea (km²)
Russia16,440,626
Antarctica12,269,609
China9,258,246
Canada8,908,366
Brazil8,399,858
United States (contiguous)7,654,643
Australia7,602,329
India3,103,770
Argentina2,712,060
Kazakhstan2,653,464

The top 10 land masses by size account for 55% of the Earth’s total land. The remainder is split by the world’s 195 or so other countries.

Top 10 Smallest Land Masses

Here are the 10 tiniest jurisdictions highlighted on the map:

JurisdictionArea (km²)
Sealand0.001
Kingman Reef0.002
Vatican City0.5
Kure Atoll0.9
Tromelin Island1
Johnston Atoll1
Baker Island1
Howland Island2
Monaco2
Palmyra Atoll3

While the Earth’s land surface has been claimed by many authorities, the actual impact of human activity is less than one would think.

Human Impact: Humbled by Nature

Political borders have claimed virtually every piece of land available. Despite this, only 20% of land on the planet has been visibly impacted by human activity, and only 15% of Earth’s land surface is formally under protection.

The remaining 80% of the land hosts natural ecosystems that help to purify air and water, recycle nutrients, enhance soil fertility, pollinate plants, and break down waste products. The value of maintaining these services to the human economy is worth trillions of U.S. dollars each year.

While some nations are not as big as they look on the map, every piece of land counts.

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Politics

11 Cognitive Biases That Influence Political Outcomes

Humans are hardwired to make mental mistakes called cognitive biases. Here are common biases that can shape political opinion, and even elections.

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Cognitive Biases in the Political Arena

With the 2020 U.S. presidential election fast approaching, many people will be glued to the 24-hour news cycle to stay up to date on political developments. Yet, when searching for facts, our own cognitive biases often get in the way.

If this isn’t problematic enough, third parties can also take advantage of these biases to influence our thinking. The media, for example, can exploit our tendency to assign stereotypes to others by only providing catchy, surface-level information. Once established in our minds, these generalizations can be tough to shake off.

Such tactics can have a powerful influence on public opinion if applied consistently to a broad audience. To help us avoid these mental pitfalls, today’s infographic from PredictIt lists common cognitive biases that influence the realm of politics, beginning with the “Big Cs”.

The First C: Confirmation Bias

People exhibit confirmation bias when they seek information that only affirms their pre-existing beliefs. This can cause them to become overly rigid in their political opinions, even when presented with conflicting ideas or evidence.

When too many people fall victim to this bias, progress towards solving complex sociopolitical issues is thwarted. That’s because solving these issues in a bipartisan system requires cooperation from both sides of the spectrum.

A reluctance towards establishing a common ground is already widespread in America. According to a 2019 survey, 70% of Democrats believed their party’s leaders should “stand up” to President Trump, even if less gets done in Washington. Conversely, 51% of Republicans believed that Trump should “stand up” to Democrats.

In light of these developments, researchers have conducted studies to determine if the issue of confirmation bias is as prevalent as it seems. In one experiment, participants chose to either support or oppose a given sociopolitical issue. They were then presented with evidence that was conflicting, affirming, or a combination of both.

In all scenarios, participants were most likely to stick with their initial decisions. Of those presented with conflicting evidence, just one in five changed their stance. Furthermore, participants who maintained their initial positions became even more confident in the superiority of their decision—a testament to how influential confirmation bias can be.

The Second C: Coverage Bias

Coverage bias, in the context of politics, is a form of media bias where certain politicians or topics are disproportionately covered. In some cases, media outlets can even twist stories to fit a certain narrative.

For example, research from the University of South Florida analyzed media coverage on President Trump’s 2017 travel ban. It was discovered that primetime media hosts covered the ban through completely different perspectives.

Each host varied drastically in tone, phrasing, and facts of emphasis, […] presenting each issue in a manner that aligns with a specific partisan agenda.

—Josepher, Bryce (2017)

Charting the ideological placement of each source’s audience can help us gain a better understanding of the coverage bias at work. In other words, where do people on the left, middle, and right get their news?

cognitive bias in media and politics

The horizontal axis in this graphic corresponds to the Ideological Consistency Scale, which is composed of 10 questions. For each question, respondents are assigned a “-1” for a liberal response, “+1” for a conservative response, or a “0” for other responses. A summation of these scores places a respondent into one of five categories:

Ideological CategoryRanking
Consistently conservative+7 to +10
Mostly conservative+3 to +6
Mixed-2 to +2
Mostly liberal-6 to -3
Consistently liberal -10 to -7

Overcoming coverage bias—which dovetails into other biases like confirmation bias—may require us to follow a wider variety of sources, even those we may not initially agree with.

The Third C: Concision Bias

Concision bias is a type of bias where politicians or the media selectively focus on aspects of information that are easy to get across. In the process, more nuanced and delicate views get omitted from popular discourse.

A common application of concision bias is the use of sound bites, which are short clips that can be taken out of a politician’s speech. When played in isolation, these clips may leave out important context for the audience.

Without the proper context, multi-faceted issues can become extremely polarizing, and may be a reason for the growing partisan divide in America. In fact, there is less overlap in the political values of Republicans and Democrats than ever previously measured.

In 1994, just 64% of Republicans were more conservative than the median Democrat. By 2017, that margin had grown considerably, to 95% of Republicans. The same trend can be found on the other end of the spectrum. Whereas 70% of Democrats were more liberal than the median Republican in 1994, this proportion increased to 97% by 2017.

Overcoming Our Biases

Achieving full self-awareness can be difficult, especially when new biases emerge in our constantly evolving world. So where do we begin?

Simply remembering these mental pitfalls exist can be a great start—after all, we can’t fix what we don’t know. Individuals concerned about the upcoming presidential election may find it useful to focus their attention on the Big Cs, as these biases can play a significant role in shaping political beliefs. Maintaining an open mindset and diversifying the media sources we follow are two tactics that may act as a hedge.

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