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      Politics

      Can China reform int'l aid as U.S. policy shifts?

      1
      2017-02-09 09:45Global Times Editor: Wang Fan ECNS App Download

      Since Donald Trump started his election campaign, the whole world has felt shocked and uneasy about his isolationist proclivities. The unease comes from his propensity for policies that deviate from the existing international order and rules. His "America First" populist doctrine is unlikely to shake the country's value system under the diverse U.S. political framework, but the implementation of this policy will inevitably have a huge impact on the U.S. postwar global strategies.

      International development aid has been one of the main strategic tools for the U.S. to sustain its postwar global hegemony and a means for it to stand on the moral high ground.

      More importantly, Washington has set up a U.S.-centered Western development aid system that controls the UN-led multilateral global development network.

      Trump's multiple policies since he took office have not touched upon foreign aid, but the bill he signed that bans using the federal budget to support democratic activities in other countries has embodied his "America First" principle. It may indicate a change to the U.S. policies and strategies that have been in place since the Truman administration. It may also add another impetus to fundamentally change the international development aid system.

      Notably, this system has been evolving due to the rise of emerging economies such as China and India since the beginning of this century. On the one hand, the increasing number of resources provided by these countries help to enhance their clout in this field. For instance, emerging countries have established institutions such as the New Development Bank and the Asian Infrastructure Investment Bank to push forward global development.

      On the other hand, the changes in the international development aid system are a result of the long-term perplexities engulfing the Western model. Although members of the Paris Club are still the main creditors to international development aid, they feel increasingly burdened by fiscal pressures.

      Meanwhile, as the aid to developing countries after World War II has not met the expectations, developed countries are divided over whether to continue such aid programs. Last, but not the least, the West faces a dilemma in modifying aid theories and reforming the aid systems.

      The speech by Chinese President Xi Jinping at the World Economic Forum in Davos demonstrated China's determination to uphold globalization and multilateralism. It remains unknown how China's proposals would align with international aid reforms.

      But as international development aid is an important part of the global multilateral system, the changes in U.S. policies serve as an opportunity for China to participate in and reshape the international aid system.

      Whether China can utilize this chance to play a positive role in global development depends on whether it can form a new foreign aid approach that is able to lead global development.

      China has shown its willingness to take part in the global development and governance on various occasions, but the division between North-South cooperation and South-South cooperation should be bridged to form a new multilateral platform.

      Given its current heavy burden in boosting domestic development, China is unable to replace the U.S. in terms of both economic strength and experiences of being a world leader. However, China cannot shirk its responsibilities as an emerging power out of its own development need and the need of global improvement. How China should seize the opportunities available and play its due role in global development is becoming a vital factor when China crafts its foreign strategies and policies.

      Li Xiaoyun, the author, is a professor at the College of Humanities and Development Studies of China Agricultural University and chairman of China International Development Research Network.

        

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