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China Hambatota Port Project in Sri Lanka - Belt and Road Initiative,…

- - - - Increases China's reach and power to the Indian Ocean and increases China's economic gains, negatively impacting developing countries, Sri Lanka in the long run as China leaves Sri Lanka deeply in debt. Dept trap
        
        Loss of control in a national asset. fosters dependency instead of true development
        
        Not sustainable for Sri Lanka
  - - - China's investment into Hambatota port promised the creation of 83,000 new jobs for Sri Lanka, fueling Sri Lanka government to hope that the port would reduce poverty and reduce the economic imbalance in the country's south
      - Boost Sri Lanka economy and enhance trade
      - Reduce traffic at the main port in Colombo and serve as regional industrial hub. Includes highways and power plants
    - - Urbanization and globalization would promote economic development through industrialization, as it did in the global north, and these processes would be accelerated by economic interactions between rich and poor countries in the form of aid, trade and investment.
  - - - 10.9% from 2003 to 2013 compared to 4% from 1993 to 2003
- - - - The project initially promised jobs and boost the economy, however the main beneficiary is China
- - - - Political
      - Economic
- - - - $18.14 billion in 1980 to $460 billion in 2022
        
        grew over 20x in 40 years
      - Since garment industry in economic development is significant, MNCs H&M and Canada Joe Fresh pressure government to keep labor costs low and regulations/law low to exploit garment workers
        
        no equality in population as indicated with freedom house 1 out of 4
        
        garment workers earn 100usd per month = poverty level
- - - - Synthetic dyes run off to rivers a
        
        no sustainability in social development because vulnerable groups rely on rivers as source of water
        
        water being polluted increases chances of illness
- - - - Government feels they need to keep their labor costs low in order to economically develop garment industry
      - because the garment industry brings in a lot of income, corruption happens
- - - - Help econ development in all times
        
        production of sesame seeds increased by 48 times. main demand coming from china
        
        leather production increased by 41%
        
        agriculture takes up 41% of ethiopia GDP, china improved their trade logistics by building a railroad which cut down travel time from more than 3 days to less than 20 hours
        
        addis railway 4 billion from bank of china
        
        IMF to ethiopia
        
        GDP increase by 1% from 22/23 to 23/24 (7.2% to 8.1%)
        
        inflation decrease by 5.6%
        
        debt to foreign investment declined form 12% of GDP in 2011 to less than 4$
        
        John Keynes neoliberalism where both rich and poor benefit from trade and investment in international systems based on economically liberal ideals in interconnected world
      - Hurt debt/econ sustainability
        
        Through the lens of Arturo Escobar, modernization is not a form of sustainable development because because the lower developed country is compelled to follow the footsteps of the more developed countries path to development because they are economically indebted to the global north
        
        so not econ development in Arturo Escobar's view
        
        poor political soveriegnty and legitimacy as reliant on china and IMF
        
        in 2023, Ethiopia has 7.7 billion debt to foreign investment most is to china due to the BRI. + 15.6 billion debt to international finance instutitions like and under IMF
      - help social development
        
        IMF 3.4 billion investment into Ethiopia also led to creation of 67,000 digital id's for Ethiopians which can be used to open banks
        
        Government spending on health (SDG 3) was able to grow by 6 thousand from 22/23 to 23/24, and spending on education grow by 17 thousand (SDG 4), and reduction on poverty grew by more than 25 thousand
        
        China funded 1.7 billion for power generation in Ethiopia
        
        lights let kids study after dark (SDG 4) and stable power supply for hospitals for safer procedures and more stable SANITARY water supply
        
        Maslow heirchy of needs
  - - - help econ
        
        Public debt reduced by 5.4% in one year. 40% to like 35%
        
        Help Ethiopia avoid default to foreign investment
        
        GDP grew from 7.2% in 2022 to 2023 to 8.1% in 2023/2024
      - help social
        
        Inflation reduced by 5.6% from 22/23 to 23/24
        
        People can afford basic needs more
        
        Maslow hierarchy of needs
        
        spending on education went up by 17 thousand
        
        sag 4
        
        spending on health went up by 6 thousand
        
        sdg 3
        
        poverty reduction spending up by 25.5 thousand
        
        sdg 1
        
        provide digital ID to 67,000 so Ethiopians can open banks
      - idk how help environment
      - Max webber and rostow modernization theory where all countries goes through stages of development and rate gets accelerated when there are economic interactions between the rich and poor countries through trade and investment
      - foreign aid went down from 12% to less than 4% from 2011 to 2023
        
        less reliant
    - - NO HELP econ development/sustainability
        
        China Invested over 1 billion into the port with 6% interest rate
        
        Sri Lanka could not pay back so leased 15,000 acres of land for 99 years
        
        debt trap and poor debt/econ sustainability
        
        Neo marxism/Andrew gunder's dependency theory where rich get richer and poor get poorer
        
        Ian Goldin where integration of technologies across the world may not benefit everyone
        
        in 2021, Sri Lanka's public debt was worth more than their entire GDP as their public debt as a percentage of GDP was over 100%, this led to Sri Lanka defaulting their debt to china in 2022
      - NO HELP ENVIRONMENT
        
        2000 acres of land for elephants gone to Mattala airport displacing 200-450 elephants
      - little help social
        
        inititial promise of 83,000 jobs
        
        2018 built children kidney hospital with $295 million
- - - - developing countries owe money to international finance institutions such as world bank and IMF or foreign investors
        
        Money that could be spent on human and social development, goes to repaying debt
        
        When basic needs in Moslaws heirchey of needs is not met, social development can not progress because the fundamentals are lacking
        
        Ethiopia HDI 0.497 ranked 180/193 countries
        
        majority in poverty: global multidimensional poverty index is 68.7%
        
        Sri Lanka defaulted on foreign debt in 2022
        In 2021, Sri Lanka's public debt as a percentage of its GDP was over 100%
        0.782 HDI - this high/good tho
        24.5% of population is in poverty
        
        poor policial legitimacy and sovereignty
        
        Ethiopia is still largely in poverty because of its $7.7 billion debt to foreign country mostly china and $15.6 billion debt to international finance institutions under the IMF
        
        31.4% of GDP is public debt as of 2019
        
        Sri Lanka could not pay off its debt to China for the Hambantota Port leaving them to lease 15,000 acres of land for 99 years
  - - - ELEPHANTS
  - - - Undermines state sovereignty
      - reduces social spending
      - Economical: GDP 22/23 = 7.2% to 23/24 = 8.1%. 1% growth
        
        Inflation: 22/23-23/24 reduced by 5.6%. 32.5-26.6
        
        improved stability for households
        
        can purchase basic needs
        
        Ethiopia's public debt in 22/23 was 40.2% of GDP but in 23/24 it became 34.8%
        
        IMF support helps ethiopia avoid default to foreign investment
        
        oficial development assistance (foreign investment) into ethiopia declined from 12% of GDP in 2011 to less than 4% in 2023
        
        less aid dependent so more self reliant
      - social develoment indicators
        
        spending increased
        
        poverty reducing expenditure increased by 25.5 thousand
        
        education +17.6 thousand
        
        health +6.3 thousand
        
        2019 refugee proclamation and 2024 right to work directive create legal pathways for refugee economic inclusion
        
        allow Ethiopians to open bank accounts with digital ID, as of early 2025, 67000 Ethiopians received digital IDs
        
        they can do all sort of things with more money, fulfill their basic needs in moslows heircheny of needs and therefore can increase social development because foundation is set
  - - - super legit and has so much power because expanded china's influence so much to countries like Ethiopia and Sri Lanka. lots of trust.
        
        global prominence
      - anti corruption -> restore public trust
    - - uses state led capitalism to advance domestic and economic goals and international geopolitical ambitions
- - - - Through lens of gunder frank's dependency theory where the rich get richer and the poor get poorer
        
        China expands its economic development by extending its reach into the Indian Ocean and controlling 85% of Hambantota port. Given that the Indian Ocean is the third largest ocean in the world, it is a vital for global trade and flow, China controlling 85% of the port strengthens China's economic and geopolitical influence.
        
        Also helps Sri Lanka because China promised 83,000 job opportunities with this port ?????
      - Ethiopia
        
        John Keynes Neoliberalism where an international system based on economically liberal ideals will benefit both rich and poor
        
        Economic development
        
        Ethiopia
        
        60-70% of china sesame seeds come from ethiopia
        
        41% of Ethiopia's GDP is from agriculture
        
        2 more items...
        
        trade logistics of railway being built reduced travel time from more than 3 days to less than 20 hours
        
        1 more item...
        
        Social and human factors
        
        $1.7 billion USD investment from China for power generation in ethiopia
        
        1 more item...
        
        China
        
        China's economic and political reach increases over to more countries increasing their power
      - Sri Lanka
        
        China's investment into Hambatota port promised the creation of 83,000 new jobs for Sri Lanka, fueling Sri Lanka government to hope that the port would reduce poverty and reduce the economic imbalance in the country's south
        
        Social development
    - - Ian Goldin who states that as the world becomes more integrated through technologies, will not benefit everyone.
        
        Hambatota Port project in Sri Lanka investments made by China
        
        Economic development
        
        China invested over 1 billion US dollars to Hambatota port in Sri Lanka with around an initial 6% interest rate, however Sri Lanka's inability to repay this debt negatively led to 15,000 acres of land to be leased to China for 99 years
        
        Poor economic development for Sri Lanka because now have to focus on repaying China instead of focusing on own independent development on infrastructure
        
        Additionally, in 2025, 85% of ownership stake of the port is being to Chinese port company CMPort
        
        Low political develoment as there is a lack in soveriegnty for Sri Lanka, poor government accountability
        
        1 more item...
  - - - Sri Lanka kidney hospital
        
        2018, Sri Lanka received $295 million to build a children's kidney hospital
        
        Social sustainability - SDG 3
    - - Sri Lanka elephants
        
        Environment sustainability (SDG 15)
        
        Construction of highway and Mattala's international airport led to reduced elephant habitats displacing the elephants
        
        2000 acres of forest gone for the mattala airport, displacing 200 to 450 elephants
    - - unsustainable economically because in debt trap
        
        concerns about debt unsustainability because loans comprise about 89% of total Chinese development assistance to Ethiopia.
        
        indebted and poor political development because lack of sovereignty and legitimacy as reliant on china
        
        Ethiopia owes 7.7 billion to foreign countries most of that is to china