Chinese investment and lending in the region declined last year, in part reflecting skittishness over the deteriorating situation in Venezuela. Despite the drop, Chinese state-to-state finance continues to outstrip the World Bank, IDB and CAF.
In 2015 China’s two development banks provided upwards of $29 billion in loans to Latin American governments with the promise of more to come. The problem is the region has no mechanism to constructively engage China to help direct and manage these funds. Here’s an idea.