Malaysia and Chinese Loans: Wake-Up Call To Others

[MOON Ki]

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We do not want a situation where there is a new version of colonialism happening because poor countries are unable to compete with rich countries

Story: https://www.nytimes.com/2018/08/20/world/asia/china-malaysia.html

On the other hand, there's a part of the world where the wake-up call will be heeded only when it's too late.   

[vooke]

Ndii is onto something

Read more at: https://www.theeastafricanreview.info/op-eds/2018/08/18/chinas-debt-imperialism-the-art-of-war-by-other-means/
E Review.

[RV Pundit]

The usual ndii nonsense.

[vooke]

The usual ndii nonsense.

We will rebase our gdp to lower our foreign debt to gdp ratio... EoD

[RV Pundit]

Yeah we are due for a re-basing - the recommended year is every 5yrs - and so after next year census - together with 2016 household survey - we should be due for another rebasing around 2020/2021..around 7yr cycle..we should be aiming to reduce our rebasing from 10 yr cycle to 5yrs. Huge GDP IS LEVERAGE. It is an asset we can deploy to borrow more and kick poverty & underdevelopment..by investing hugely in infrastructure.

SGR is the largest component of our foreign debt - all indicators are it will pay for itself (now into 8 cargo train) - so in short - we need to write that debt out of treasury book and transfer it to Kenya Railway Corporation. And borrow MORE...especially from CHINESE..who are giving us quality loans!

The problem previously with western aid - is most of it would end up in western capital - but Chinese have figured out how to work in corrupt countries and that western envy. Chinese do not lend their money "fwaaaaaaaaaaaaah" - they make sure the money is paid directly to chinese contractor who deliver the roads, ports, railways and name. Western Aid donors seem to oscillate btw lending to thieving Gov or thieving NGO..at the end of the day...the country is littered with huge loans, really silly small project all over i.e cattle dips or water pans and NO IMPACT.

And really we focus on what China has lend us..but never what China has given us for free....expansion of road from JKIA through Mombasa road to Gigiri..free..Kasarani stadium free....NAIROBI by-passes -FREE.

As for Dr Ndii nonsense....the evidence of Africa economic transformation in just a decade of China engagement is self-manifesting. If he cannot see it, he should try to touch it. Never before has Africa prospect been this good.

We will rebase our gdp to lower our foreign debt to gdp ratio... EoD

[Higgins the genius]

https://www.nation.co.ke/news/Treasury-warns-of-hard-times-as-debt-burden-grows/1056-4721726-rc8yfnz/index.html

[vooke]

Yeah we are due for a re-basing - the recommended year is every 5yrs - and so after next year census - together with 2016 household survey - we should be due for another rebasing around 2020/2021..around 7yr cycle..we should be aiming to reduce our rebasing from 10 yr cycle to 5yrs. Huge GDP IS LEVERAGE. It is an asset we can deploy to borrow more and kick poverty & underdevelopment..by investing hugely in infrastructure.

SGR is the largest component of our foreign debt - all indicators are it will pay for itself (now into 8 cargo train) - so in short - we need to write that debt out of treasury book and transfer it to Kenya Railway Corporation. And borrow MORE...especially from CHINESE..who are giving us quality loans!

The problem previously with western aid - is most of it would end up in western capital - but Chinese have figured out how to work in corrupt countries and that western envy. Chinese do not lend their money "fwaaaaaaaaaaaaah" - they make sure the money is paid directly to chinese contractor who deliver the roads, ports, railways and name. Western Aid donors seem to oscillate btw lending to thieving Gov or thieving NGO..at the end of the day...the country is littered with huge loans, really silly small project all over i.e cattle dips or water pans and NO IMPACT.

And really we focus on what China has lend us..but never what China has given us for free....expansion of road from JKIA through Mombasa road to Gigiri..free..Kasarani stadium free....NAIROBI by-passes -FREE.

As for Dr Ndii nonsense....the evidence of Africa economic transformation in just a decade of China engagement is self-manifesting. If he cannot see it, he should try to touch it. Never before has Africa prospect been this good.

We will rebase our gdp to lower our foreign debt to gdp ratio... EoD

[RV Pundit]

If you can't build shiet, Chinese will build it. If you cannot ran shiet, Chinese will ran it. I don't see how that is bad thing. If we hand over say LAMU port to Chinese..it doesn't mean it been annexed to China. Lamu port will remain under kenya laws...just being operated by China.

China as you rightly say have huge forex and huge construction & manufacturing machine - only a fool won't take advantage of it. US has been taking advantage of it and when they started screwing up the chinese by printing dollars (QE) - Chinese have to think about alternative investment and that could be us!!!

SGR is not white elephant - let deal with facts.

China has developed by doing exactly what they are trying to help other countries. Building new rails, cities, ports....when everyone was out there saying..ohoo that is not sustainable..ohoo why do you need bullet trains? why do you need huge cities....but look at china now.

Chinese are very smart and very hardworking. Only a fool would listen to western world when evidence of Chinese miracle is there to see.

Now China are working towards become a developed world - avoiding middle class traps - by not banking their dollars at home - and that is the money that is crying for anyone to take it. We need to grab it. China has trillion of dollars waiting for anyone with half-arsed proposal and they could be coming out with shiny airports, ports, railways, cities and name it.

[vooke]

If you can't build shiet, Chinese will build it. If you cannot ran shiet, Chinese will ran it. I don't see how that is bad thing. If we hand over say LAMU port to Chinese..it doesn't mean it been annexed to China. Lamu port will remain under kenya laws...just being operated by China.

China as you rightly say have huge forex and huge construction & manufacturing machine - only a fool won't take advantage of it. US has been taking advantage of it and when they started screwing up the chinese by printing dollars (QE) - Chinese have to think about alternative investment and that could be us!!!

SGR is not white elephant - let deal with facts.

China has developed by doing exactly what they are trying to help other countries. Building new rails, cities, ports....when everyone was out there saying..ohoo that is not sustainable..ohoo why do you need bullet trains? why do you need huge cities....but look at china now.

Chinese are very smart and very hardworking. Only a fool would listen to western world when evidence of Chinese miracle is there to see.

Now China are working towards become a developed world - avoiding middle class traps - by not banking their dollars at home - and that is the money that is crying for anyone to take it. We need to grab it. China has trillion of dollars waiting for anyone with half-arsed proposal and they could be coming out with shiny airports, ports, railways, cities and name it.

Kung Fu grew by promoting manufacturing and export. Infrastructure is simply a byproduct.

But the most important thing is how low their external debt has been at no more than 16%

https://www.ceicdata.com/en/indicator/china/external-debt--of-nominal-gdp

[RV Pundit]

The country with strongest currency against usd in africa has forex risk.That is nonsense.We have 3b..more forex..than what imf are promising.SGR is already a roaring success.we are hitting 5yrs projection in 1yr.We just need the courage to diplomatically tell imf off.Kibaki left us with 45%..Jubilee added mainly the sucessfully sgr.Great job.Uhuru need to stop misguided war against the economy and nurture confidence in the future prospects..allowing cops to seize goods willy nilly or destroying building is surest way to poverty..not debt.we dont need umagufuli here...we need pro business policies...not lynch mobs against private sector.

[Gumzo]

Yeah we are due for a re-basing - the recommended year is every 5yrs - and so after next year census - together with 2016 household survey - we should be due for another rebasing around 2020/2021..around 7yr cycle..we should be aiming to reduce our rebasing from 10 yr cycle to 5yrs. Huge GDP IS LEVERAGE. It is an asset we can deploy to borrow more and kick poverty & underdevelopment..by investing hugely in infrastructure.

SGR is the largest component of our foreign debt - all indicators are it will pay for itself (now into 8 cargo train) - so in short - we need to write that debt out of treasury book and transfer it to Kenya Railway Corporation. And borrow MORE...especially from CHINESE..who are giving us quality loans!

The problem previously with western aid - is most of it would end up in western capital - but Chinese have figured out how to work in corrupt countries and that western envy. Chinese do not lend their money "fwaaaaaaaaaaaaah" - they make sure the money is paid directly to chinese contractor who deliver the roads, ports, railways and name. Western Aid donors seem to oscillate btw lending to thieving Gov or thieving NGO..at the end of the day...the country is littered with huge loans, really silly small project all over i.e cattle dips or water pans and NO IMPACT.

And really we focus on what China has lend us..but never what China has given us for free....expansion of road from JKIA through Mombasa road to Gigiri..free..Kasarani stadium free....NAIROBI by-passes -FREE.

As for Dr Ndii nonsense....the evidence of Africa economic transformation in just a decade of China engagement is self-manifesting. If he cannot see it, he should try to touch it. Never before has Africa prospect been this good.

Am NOT very happy when Dr Ndii take on matters economy are dismissed as nonsense by some funny funny online  character

[RV Pundit]

Ndii long seized being an economist and became a politician.

Am NOT very happy when Dr Ndii take on matters economy are dismissed as nonsense by some funny funny online  character