Who is the partner of choice for developing states?

The European Union have provided development and trading partnerships with nations from every corner of the globe. In doing so, the EU promotes democracy and human rights by attaching social provisions and human rights conditions to their agreements. For example, EU development partnerships in the Indo-Pacific or Central Africa will be subject to clauses regarding the internal affairs of a country.

Comparatively, China’s programs and partnerships do not bind political clauses to agreements. China promotes norms of ‘unconditionally’ and ‘win-win’ economic outcomes and will turn a blind eye to the internal affairs of the countries it partners with.  This approach allows China to be increasingly viewed as the development partner of choice as they are willing to meet the immediate economic needs of states.      

The Global Financial Crisis of 2007-2008 further elevated the status of China’s economic model.  Responding to the crisis, China unleashed substantial stimulus packages through the state-controlled financial sector and aided regional neighbours. China’s trade surpluses and currency manipulation have also led it to accumulate the world’s largest foreign currency reserves, thus becoming a central part of the international political economy. China’s performance, when juxtaposed with Europe’s response which was largely confined to bailing out poorly regulated banks, positions China strongly to extend its normative power throughout the developing world.            

The European Union’s strict criterion for its membership and programs rests on principles of democracy and the rule of law. While developing countries have traditionally been willing to make concessions in their internal affairs in return for economic benefit, China is providing ‘no strings attached’ partnerships and an economic model that outperforms that of the EU. Therefore, the EU’s normative influence to promote democracy throughout the world is waning significantly.   

To maintain a normative presence which continues to push developing nations closer towards democracy and the recognition of human rights, the EU must do more to acknowledge the role of China by allowing reform in areas of traditional EU development initiatives. Greater flexibility and inclusion in EU programs will enable a balance to be struck between economic and social development. This will also reduce the appeal of China’s development program which often leaves countries devastated by national debt and forced to maintain deferential stances towards the grand strategy of the CCP.

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