Debt-trap diplomacy: Difference between revisions

'''Debt-trap diplomacy''' is carried out in [[Bilateralism|bilateral relations]] between countries with a negative intent.<ref name="ps" /><ref name="nytimes_20200518_business" /> The creditor country intentionally extends excessive credit to a debtor country, thereby inducing the debtor into a [[debt trap]]. This is done with the intention of extracting economic or political concessions from the debtor country when it becomes unable to honour its debt.<ref name=":12" />&nbsp;The conditions of the loans are often not made public,<ref>{{cite web|url=https://hbr.org/2020/02/how-much-money-does-the-world-owe-china |publisher= Harvard Business Review |title=How much money does the world owe China? |author1= Sebastian Horn |author2= Carmen M. Reinhart| author3= Christoph Trebesch |date=February 26, 2020}}</ref> and the borrowed money commonly pays contractors from the creditor country. Although the term has been applied to the lending practices of many countries and the [[International Monetary Fund]] (IMF),<ref>{{cite web |last1=Syed |first1=Abdul Rasool |title=IMF's Debt trap vs Chinese debt peonage |url=https://www.globalvillagespace.com/imfs-debt-trap-vs-chinese-debt-peonage/ |website=Global Village Space |date=16 October 2018}}</ref><ref>{{cite web |author1=Abdus Sattar Ghazali |title=Victim of IMF debt trap, Pakistan compelled to seek new loan |url=https://countercurrents.org/2019/05/victim-of-imf-debt-trap-pakistan-compelled-to-seek-new-loan/ |website=Countercurrents |date=13 May 2019}}</ref> it is, {{As of|2020|alt=as of 2020}}, most commonly associated with the [[China|People's Republic of China]] (PRC).<ref>{{cite web| url= https://www.nytimes.com/2020/05/18/business/china-loans-coronavirus-belt-road.html |title=Poor Countries Borrowed Billions from China. They Can't Pay It Back. |work=New York Times | date=May 18, 2020 |author2=Keith Bradsher |author1=Maria Abi-Habib}}</ref>{{failed verification|date=July 2020}} Bilateral agreements made as part of China's [[Belt and Road Initiative]] have furthered this association, especially regarding [[commodity-backed loan]]s to [[developing nations]].<ref name="sciencedirect_136403212030" /><ref name="foreignpolicy_20190501_mining" /><ref name="AutoYD-1" />