|+ How the West ceded infrastructure to China
Why did the West give up on infrastructure?
"China’s planned Belt and Road Initiative (B&R) could further shift the global strategic landscape in Beijing’s favor, with infrastructure lending as its primary lever for global influence
," writers Francis Fukuyama and others in Foreign Affairs.
"The Chinese tend to overvalue the beneficial economic spillover effects of infrastructure projects, while undervaluing the potential harms, whether economic, social, or environmental.
"The Western approach, by contrast, is more transactional and focuses on painstaking due diligence concerning the economic, social, and environmental consequences of a given project. These safeguards are in the interests of ordinary people in developing countries. But Western institutions have become so risk averse that the cost and time to implement such projects have skyrocketed."
In other words, the West's risk-averse approach to development is not only holding us back, its leaving the field open to others, like China, who are only too happy to step in.
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