Dr. Josh Gellers
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China in Sri Lanka: Emerging Donors in the Developing World

6/21/2017

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My Fulbright research project was inspired by an article I read in the New York Times back in July 24, 2015: "China's Global Ambitions, Cash and Strings Attached." I had recently returned to the US from my first visit to mainland China, specifically Xi'an, where I taught international relations at Shaanxi Normal University. My research up to that point had focused on countries in South Asia, namely Nepal and Sri Lanka. But my trip exposed me to the sheer immensity and impressive speed of China's domestic development. Forget "everything is bigger in Texas." China made Texas look like Rhode Island. But it wasn't until I read this NYT article that I began to ponder China's role in the development of other countries.

There are basically two schools of thought regarding the intentions and impacts that so-called emerging donors like China, India, Iran, and Saudi Arabia have on other developing states. One camp argues that emerging donors have nefarious designs on exploiting their fellow industrializing nations. These skeptics contend that emerging donors use some of their newfound wealth to fund development projects abroad that are primarily intended to benefit the lending country through the cultivation of new markets for exporting goods, acquisition of natural resources for manufacturing and energy, and extension of political spheres of influence. Unlike traditional donors such as the US, World Bank, Japan, France, Germany, and the UK, these new actors on the scene do not impose strict human rights, labor, rule of law, or environmental standards on recipient states, thus enabling anti-democratic governments and retarding progress toward Western conceptions of development (Naím 2009). 

The other camp argues that claims of ill intentions and attempts to subvert democratization on the behalf of these emerging donors are overblown. China, for example, does not have a readily identifiable development assistance reform package like the Washington Consensus model that prescribed specific institutional and economic changes that countries would need to undertake in order to obtain funding from traditional donors. Some have even declared the idea that a separate "Beijing Consensus" (Ramo 2004) exists a "myth" (Kennedy 2010). Furthermore, empirical scholarship on the relationship between political factors and aid distribution has demonstrated that China is no more likely than Western donors to steer money toward countries based on their politics, and the Asian giant does not deliberately invest in countries based on their availability of natural resources (Dreher and Fuchs 2015; Gellers 2017). 

Among emerging donors, China has grown to become a force on the world stage. In 2011, China overtook the World Bank to become the largest lender to developing countries in the world. Interestingly, however, China has a long history of working with or lending to other less-industrialized states. For instance, China has provided development assistance to other countries since 1950, and its approach to foreign aid (i.e. mutual benefit, respect for sovereignty, and self-reliance), was articulated by Premier Zhou Enlai in 1964.

The Sino-Sri Lankan relationship dates back to 1952, when China signed its first trade agreement with a non-communist state, Ceylon (the previous name for Sri Lanka). This Sino-Lanka Rubber Rice Pact signaled the beginning of an important economic partnership in Asia. Today, China is the largest lender to Sri Lanka. In 2016, China loaned Sri Lanka over $440 million, $100 million more than the World Bank and almost $300 million more than the next largest lender, Japan (see below).
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Returning to the island in 2017 after a 4 year absence, I have observed signs of growing Chinese influence. As shown in the photos above, China is deeply involved in the development of large infrastructure projects and increasing business opportunities for Chinese living in Sri Lanka. My own research on environmental impact assessments has revealed Chinese funding for road construction, hydropower, and real estate development, most notably the controversial Colombo Port City project. It remains an open question as to what kinds of social, environmental, and economic consequences China's financial stake in Sri Lanka might have. While some believe Chinese investment is "crucial" to the country's development, others ponder whether reliance on Chinese loans will lead to unsustainable debt and land grabs. Only through further research and careful monitoring of impacts will Sri Lankans be able to determine whether and to what extent the 65-year-old Sino-Lankan relationship bears the fruits of improved living and economic conditions that can be enjoyed by all.
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Back to Sri Lanka, the Resplendent Isle

5/15/2017

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Welcome! I am reviving my blog to bring a refreshed look at one of the most interesting and understudied countries in the world- Sri Lanka. I previously came to Colombo, the capital of Sri Lanka, back in 2013 in order to conduct the second leg of field work for my doctoral dissertation on constitutional environmental rights. This time I have returned to Sri Lanka (or Ceylon, as it was formally known until 1972) on a Fulbright Postdoctoral Scholar grant to study the environmental impacts assessments (EIAs) of development projects. In particular, I will be evaluating whether, and to what extent, the quality of these reports varies depending on who funds a given project (i.e. emerging donors like China, India, and Iran, or traditional donors like the U.S., Japan, and World Bank).

​I am stationed primarily in Kandy, which is located in the Central Province, because I have an affiliation with the Department of Geography at the University of Peradeniya. I will also be making occasional trips to Colombo, located in the Western Province, so that I can conduct archival research at the library of the Central Environmental Authority (CEA), which is Sri Lanka's equivalent of the U.S. Environmental Protection Agency.

Reading my previous posts, I'm shocked by how long and detailed they were! This time around, however, my posts will focus briefly on one aspect of life in Sri Lanka. For this first post, I want to highlight transportation. The images below depict my primary means of getting around in Kandy- public buses.
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​The national and local bus systems are surprisingly extensive and, compared to Western standards, very inexpensive. I regularly take the Bowalawatta bus from my temporary housing in the Heerassagala neighborhood to the downtown area of Kandy. This ride takes anywhere from 30-45 minutes depending on the time of day and traffic, and costs 24 Sri Lankan Rupees (LKR) each way, about $0.16 in U.S. Dollars (USD). The current exchange rate is approximately 152 LKR for $1 USD (for a helpful currency exchange tool, check out XE Currency Converter). As you can see from the photo on the right side, the buses are lavishly decorated with cultural and religious (mainly Buddhist) items. Some buses have televisions at the front that display movies, advertisements, or music videos. Others play Sri Lankan music over separated speaker systems affixed to luggage racks near the ceiling. The doors to the bus usually remain open throughout the drive, allowing people to jump on or off haphazardly. It is not uncommon to see people boarding the bus while it is in motion (this has happened to me a couple times so far!).

What I find most interesting, however, is the system by which bus fare is collected. Every bus has a driver (who sits on the right side and drives on the left side of the road, a relic of British colonial influence) and at least one fare taker. If you get on the bus at the beginning of the route, you might be surprised to find that no one immediately asks for your bus fare. It isn't until a certain location or critical mass is reached that the fare taker inquires as to your final destination and informs you what your fare will be. This is not a strict process with consistent fares. For instance, I have paid 20, 24, and 25 LKR to travel the exact same distance on the Bowalawatta bus. When I pay 25 LKR, I do not get change back, even if the fare is 24 LKR. This is just how the fare takers seem to operate (at least with respect to foreigners). The fare takers keep mental record of every single person who gets on and off the bus, and they regularly squeeze up and down the aisle to collect fares from new passengers. Sometimes the fare taker writes down the transaction in a journal of sorts and tears off a receipt for the passenger. Other times the fare taker is equipped with a wrist-bound digital receipt machine, which prints out the receipt. I would be interested to know about the efficiency of this system. More specifically, I am curious as to whether rendering the fare taker obsolete by installing an automated bus fare machine like those in U.S. buses is more or less economical than maintaining a staff of manual fare takers. Are the wages of the fare takers detracting from the wages of the drivers? What would be the social cost of installing automated bus fare machines, thus resulting in significant job losses? Is the bus fare taker a likely casualty along the road to sustainable development? What are your thoughts? Feel free to share them in the comments section below!
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