Pardee Faculty Fellow Kevin Gallagher‘s work was the focus of an April 12th article in The Economist examining the role of Chinese Lending in Latin America. The article titled “Flexible Friends” discusses natural resource investment and loan-for-oil arrangements between China and countries such as Venezuela, Argentina, and Brazil. According to Gallagher, China is a particularly important player in Latin America because Chinese banks operate in different sectors than many other multilaterals, with 85% of their investments going to infrastructure, energy, and mining since 2005.
The article drew data from the China-Latin America Finance Database, a joint effort between the Inter-American Dialogue and the Global Economic Governance Initiative at Boston University. The Initiative is cosponsored by the Frederick S. Pardee Center for the Study of the Longer-Range Future and the Center for Finance, Law & Policy and strives to advance policy-relevant knowledge about economic governance for financial stability, human development, and the environment.