20 May 2019
Cambodia and the Issue of China’s Debt Trap
China’s debt trap, also called debt-trap diplomacy, is a topic of significant interest which has gained increasing attention in recent years. From Africa to Asia and even in South America, the issue of the Chinese debt trap associated with China’s no strings attached aid and loans have often become news headlines.

...Despite [these] mounting concerns, Cambodian Prime Minister HE has reassured his people that Cambodia would not fall into China’s debt trap and that the country would stand to significantly benefit from China’s Belt and Road Initiative (BRI).

HE’s reassurance is valid if we consider the benefits and influence of the BRI on Cambodia’s economic growth and physical infrastructure development. Also, it is true that BRI has so far presented more economic benefits than risks to Cambodia.

However, this should not preclude Cambodia from being mindful of its embrace of the BRI and its acceptance of China’s unconditional aid and loans.

While taking advantage of the BRI and the influx of Chinese money and tourists, Cambodian leaders need to exercise prudence in their efforts to bring the country forward economically and socially.

To avoid falling into the China debt trap, it is advisable that the Kingdom work on reducing its public debt and improving debt management capacity. One way the government can do is to seriously engage in public institutional reforms to ensure that aid and loans are managed effectively.
Full article: https://intpolicydigest.org/2019/05/20/ ... debt-trap/