The Rise of Chinese investment in Pakistan: Development or Track to Economic Subordination?

cross-posted from: https://lemmy.sdf.org/post/49231535

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Economic horizons in the Global South have been transformed by the emergence of Chinese investment under the Belt and Road Initiative (BRI) especially in countries that have been strategically oriented such as Pakistan. This paper will look at the economic effects of Chinese investment into Pakistan and assess whether their activities are neo-imperialism characteristics like those that were once practiced by the western multinationals in Africa and Latin America.

Key points of the study:

• Chinese companies are overrepresented in the strategic managerial positions with the local Pakistani employees holding minor and low paying jobs.
• The Chinese investment has taken over markets through the national support and foreign influence which led to the crowding out of local Pakistani businesses and reduced the competitiveness of the Pakistani industries
• Comparative study of the African and Latin American experience suggests that the Chinese Investment does not eliminate the exploitative systems of Latin American and African experience, instead it replicates them. These are labor hierarchies, monopolies and false corporate social responsibility
• The paper finds that unless policy frameworks are strong, Chinese Investment risks will entrench the economic dependency in Pakistan and not bring equitable development in the country