Britain can counter China by helping the developing world trade its way to growth

capx.co
4 min read
fairly difficult
Foreign Secretary Liz Truss today sets out a vision for global development based on the fundamental principle that free trade is the way to raise people out of poverty. Not everyone working in development shares this belief in the importance of trade liberalisation, competitive markets and property rights protection. So it is up to the […]
Share It's crucial to give poor countries an alternative to the siren calls of autocratic regimes

It's crucial to give poor countries an alternative to the siren calls of autocratic regimes A premier league of nations which have the best regulatory environments will emerge

A premier league of nations which have the best regulatory environments will emerge The actions the UK is now taking demonstrate the kind of leadership that is needed

Foreign Secretary Liz Truss today sets out a vision for global development based on the fundamental principle that free trade is the way to raise people out of poverty.

Not everyone working in development shares this belief in the importance of trade liberalisation, competitive markets and property rights protection. So it is up to the community of nations that does share these values, this 'network of liberty' as the Foreign Secretary describes them to bring more countries into their orbit and away from the pernicious and corrosive orbit of authoritarian or corrupt countries – the most obvious example of which is China's Belt and Road initiative.

To achieve this, the UK has become the first country develop a serious and comprehensive architecture to counter the effect of China's investment initiatives in Asia, Africa and Latin America. It starts with a revamped British development finance institution that will invest billions in infrastructure and technology in low and middle-income countries across Asia, Africa and the Caribbean.

The new body, British International Investment (BII), will be a key part of the Government's wider plans to mobilise up to £8bn a year of public and private sector investment in international projects by 2025. This will include BII partnering with capital markets and sovereign wealth funds to scale up financing and help the private sector get involved. This will provide developing countries with alternatives to financing from China,…
Shanker Singham
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