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China's Foreign Aid and Government

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China's Foreign Aid and Government CHILDREN AND FAMILIES The RAND Corporation is a nonprofit institution that EDUCATION AND THE ARTS helps improve policy and decisionmaking through ENERGY AND ENVIRONMENT research and analysis. HEALTH AND HEALTH CARE This electronic document was made available from INFRASTRUCTURE AND www.rand.org as a public service of the RAND TRANSPORTATION Corporation. INTERNATIONAL AFFAIRS LAW AND BUSINESS NATIONAL SECURITY Skip all front matter: Jump to Page 16 POPULATION AND AGING PUBLIC SAFETY SCIENCE AND TECHNOLOGY Support RAND Purchase this document TERRORISM AND HOMELAND SECURITY Browse Reports & Bookstore Make a charitable contribution For More Information Visit RAND at www.rand.org Explore the RAND National Defense Research Institute View document details Limited Electronic Distribution Rights This document and trademark(s) contained herein are protected by law as indicated in a notice appearing later in this work. This electronic representation of RAND intellectual property is provided for non-commercial use only. Unauthorized posting of RAND electronic documents to a non-RAND website is prohibited. RAND electronic documents are protected under copyright law. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents for commercial use. For information on reprint and linking permissions, please see RAND Permissions. This report is part of the RAND Corporation research report series. RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. All RAND reports undergo rigorous peer review to ensure high standards for re- search quality and objectivity. China’s Foreign Aid and Government-Sponsored Investment Activities Scale, Content, Destinations, and Implications Charles Wolf, Jr., Xiao Wang, Eric Warner NATIONAL DEFENSE RESEARCH INSTITUTE China’s Foreign Aid and Government-Sponsored Investment Activities Scale, Content, Destinations, and Implications Charles Wolf, Jr., Xiao Wang, Eric Warner Approved for public release; distribution unlimited The research described in this report was prepared for The Smith Richardson Foundation, The Hoover Institution, and The Bradley Foundation—and by the Director of Net Assessment in the Office of the Secretary of Defense (OSD). The research was conducted within the RAND National Defense Research Institute, a federally funded research and development center sponsored by OSD, the Joint Staff, the Unified Combatant Commands, the Navy, the Marine Corps, the defense agencies, and the defense Intelligence Community. Library of Congress Control Number: 2013949539 ISBN: 978-0-8330-8128-5 The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. Support RAND—make a tax-deductible charitable contribution at www.rand.org/giving/contribute.html R® is a registered trademark © Copyright 2013 RAND Corporation This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of RAND documents to a non-RAND website is prohibited. RAND documents are protected under copyright law. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents for commercial use. For information on reprint and linking permissions, please see the RAND permissions page (www.rand.org/pubs/permissions.html). RAND OFFICES SANTA MONICA, CA • WASHINGTON, DC PITTSBURGH, PA • NEW ORLEANS, LA • JACKSON, MS • BOSTON, MA DOHA, QA • CAMBRIDGE, UK • BRUSSELS, BE www.rand.org Preface With the world’s second largest economy, China has the capacity to engage in substantial programs of development assistance and govern- ment investment in any and all of the emerging market countries. In the first decade of the 21st century, it has expanded and directed this capacity in 93 countries for both the benefit of the recipients and its own interests. Up until the early 2000s little was known about the extent of China’s activities but this has been changing in recent years. Thomas Lum of the Congressional Research Service offered an initial estimate of China’s aid and government-sponsored investment activities in Africa, Latin America, and Southeast Asia. This study expands those findings. Using several data sources and aggregation methods, RAND researchers built a database to describe these programs. It assessed the scale, trends, and composition of these programs in six regions: Africa, Latin America, the Middle East, South Asia, Central Asia, and East Asia. Finally, it derived inferences and insights from the analysis that may enhance understanding of these programs and policies pertaining to them. This research was sponsored by several private institutions—The Smith Richardson Foundation, The Hoover Institution, and The Brad- ley Foundation—and by the Director of Net Assessment in the Office of the Secretary of Defense. It was conducted within the International Security and Defense Policy Center of the RAND National Security Research Division (NSRD). NSRD conducts research and analysis on defense and national security topics for the U.S. and allied defense, iii iv China’s Foreign Aid and Government-Sponsored Investment Activities foreign policy, homeland security, and intelligence communities and foundations and other non-governmental organizations that support defense and national security analysis. For more information on the International Security and Defense Policy Center, see http://www.rand.org/nsrd/ndri/centers/isdp.html or contact the director (contact information is provided on the web page). Contents Preface ............................................................................. iii Figures .............................................................................vii Tables .............................................................................. ix Summary .......................................................................... xi Acknowledgments ............................................................. xvii Abbreviations .................................................................... xix CHaptER ONE Introduction ....................................................................... 1 CHaptER TWO Foreign Aid Literature Review ................................................. 3 Differing Definitions of Aid: OECD and China ............................... 3 Academic Literature on Foreign Aid ............................................. 4 Literature on Chinese Aid: Forms, Scale, and Scope .......................... 5 Forms of Chinese FAGIA and Comparison to OECD ODA/ODF ....... 6 Research into the Scale and Scope of Chinese FAGIA ...................... 7 Summary ............................................................................ 8 CHaptER THREE Structure and Management of China’s Foreign ‘Aid’ and Government-Sponsored Investment Activities ........................11 CHaptER FOUR Worldwide Scale, Trends, and Composition of China’s FAGIA .........17 Pledged and Delivered FAGIA: Scale, Trends, and Assessment .............18 v vi China’s Foreign Aid and Government-Sponsored Investment Activities CHapTER FIVE China’s FAGIA in Six Regions and Selected Countries ...................25 Latin America .....................................................................25 Pledged and Delivered FAGIA: Scale, Trends, and Assessment .......... 26 Categories and Purposes of FAGIA Projects: Elaboration and Assessment ................................................................. 26 Africa ...............................................................................29 Pledged and Delivered FAGIA: Scale, Trends, and Assessment ...........29 Categories and Purposes of FAGIA Projects: Elaboration and Assessment ..................................................................31 Middle East ........................................................................33 Pledged and Delivered FAGIA: Scale, Trends, and Assessment ...........33 Categories and Purposes of FAGIA Projects: Elaboration and Assessment ..................................................................35 South Asia ......................................................................... 36 Pledged and Delivered FAGIA: Scale, Trends, and Assessment .......... 36 Categories and Purposes of FAGIA Projects: Elaboration and Assessment ................................................................. 38 Central Asia ........................................................................39 Pledged and Delivered FAGIA: Scale, Trends, and Assessment .......... 40 Categories and Purposes of FAGIA Projects: Elaboration and Assessment ..................................................................41 East Asia ........................................................................... 43 Pledged and Delivered FAGIA: Scale, Trends, and Assessment .......... 43 Categories and Purposes of FAGIA Projects: Elaboration and Assessment ................................................................. 44 CHaptER SIX Inferences, Insights, and Related Issues .....................................47 Future Prospects for China’s Foreign FAGIA ..................................51 Some Related Issues: Confucius Institutes and Arms Transfers
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