Belt up and panic

Re: “Belt tightening” and “Road to nowhere”, ( BP, July 30).

The experiences of country after country that have signed on to the Chinese “Belt and Road Initiative” should serve as flashing red warning lights to Thailand and others. The downsides of these costly infrastructure programmes are now clearly coming into focus in Sri Lanka, Pakistan, Laos, Montenegro, Indonesia, and a host of African nations.

The projects typically employ mostly Chinese construction workers (belying the claims of local job creation), utilise Chinese materials and equipment, and are largely financed with Chinese loans. Proponents regularly exaggerate the future benefits of the projects and cook financial projections to secure project approvals. When the projects prove financially unviable (more often the case than not), Chinese creditors demand deep-cutting additional concessions in lieu of loan repayment.

Countries around the globe need to be cognisant of the risks of these debt traps that will ultimately render many of them de facto colonies of China. Thailand is to be commended for resisting — to date, at least — the temptation of foreign loans to participate in the Belt and Road Initiative. We can be sure that pressure to sign on to these dubious projects will continue, however, and Thais would be wise to remain sceptical and cautious. SAMANEA SAMAN