Gallagher and Heine Discuss Economic Policy in Joint Op-Ed
On August 9, 2023, Kevin P. Gallagher, Professor of Global Development and Director of the Global Development Policy Center at Boston University’s Frederick S. Pardee School of Global Studies, and Amb. Jorge Heine, Research Professor at Boston University’s Frederick S. Pardee School of Global Studies and Interim Director of the Frederick S. Pardee Center for the Study of the Longer-Range Future, published an op-ed in The Hill Opinion on new legislation that would limit China’s ability to win new infrastructure projects in Latin America.
Congress has recently proposed the Inter-American Development Bank Transparency Act, which would limit China’s influence within the Inter-American Development Bank (IDB). Many of China’s projects in Latin America were facilitated by the IDB, so this new legislation would limit China’s ability to begin new projects. In China’s place, bipartisan lawmakers introduced this bill to increase the United States’ contributions towards investment in Latin America.
However, Gallagher and Heine argue that this new legislation would actually hurt Latin America, instead of China. In context of Latin America’s severe economic downturn during the COVID-19 pandemic and subsequent slow recovery, infrastructure and development projects from Chinese companies are necessary to jumpstart growth in the region. Instead, Gallagher and Heine posit that, given that American companies already have the competitive edge to secure Latin American contracts, the IDB should focus on incentive-building to encourage American companies to invest in the region.
Read the full article here.
Kevin Gallagher is a professor of global development policy at Boston University’s Frederick S. Pardee School of Global Studies, where he directs the Global Development Policy Center. He is the author or co-author of numerous books, including most recently, The Case for a New Bretton Woods (Wiley, 2022). Read more about Professor Gallagher on his Pardee School faculty profile.
Ambassador Jorge Heine is a Research Professor at the Pardee School of Global Studies at Boston University. He has served as ambassador of Chile to China (2014-2017), to India (2003-2007), and to South Africa (1994-1999), and as a Cabinet Minister in the Chilean Government. Read more about Ambassador Heine on his Pardee School faculty profile.