China’s increasingly sophisticated approach to managing and mitigating multiple forms of investment risk shows that its economic role around the world will evolve and perhaps become more conservative over time. Headline pledges of billions of dollars in project finance don’t tell the whole story.
The world needs permanent organizations that earn political power and govern, that are forced to articulate disparate interests and viewpoints, that can recruit and develop future government leaders and that monitor those already in power.
If local governments and state-owned enterprises in China systematically invest in projects that are not economically justified, to the extent that these projects are not correctly marked to market, China’s reported GDP will be overstated by that amount, as will its total wealth.
Adly is a nonresident scholar at the Carnegie Middle East Center, where his research centers on political economy, development studies, and economic sociology of the Middle East, with a focus on Egypt.
Feigenbaum’s work focuses principally on China and India, geopolitics in Asia, and the role of the United States in East, Central, and South Asia. His previous positions include deputy assistant secretary of state for South Asia, deputy assistant secretary of state for Central Asia, and member of the secretary of state’s policy planning staff with principal responsibility for East Asia and the Pacific.
Nonresident Fellow Democracy and Rule of Law Program
Steven Feldstein is a nonresident fellow in Carnegie’s Democracy and Rule of Law Program, where he focuses on issues of democracy, human rights, governance, rule of law, political reform, security, emerging economies, and Sub-Saharan Africa.
Paul Stronski is a senior fellow in Carnegie’s Russia and Eurasia Program, where his research focuses on the relationship between Russia and neighboring countries in Central Asia and the South Caucasus.
Shivnath Thukral is the managing director of Carnegie India responsible for the center’s outreach and maximizing its impact. He also oversees operations, including coordination with Carnegie’s global network and fundraising.