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The China Financial Model: China Development Bank, Politics, and China’s Global Financial Power

Thorelli, Erik LU (2014) SIMV07 20141
Department of Political Science
Master of Science in Global Studies
Graduate School
Abstract
Political analyses of the reform period China are plentiful, and for each analysis, there seems to be another version of a “China Model” or “Beijing Consensus” for economic and social development. This paper argues that these vague conceptualizations need to be rooted in empirical observations; they need to be products of induction rather than deductive processes that reiterate the preconceptions of any given author. This paper pursues the state financial side of China’s development, focused primarily on the China Development Bank (CDB) and its massive operations domestically and abroad, and their implications for international politics and economics and theories of China’s development model. The paper aims not to produce a novel and... (More)
Political analyses of the reform period China are plentiful, and for each analysis, there seems to be another version of a “China Model” or “Beijing Consensus” for economic and social development. This paper argues that these vague conceptualizations need to be rooted in empirical observations; they need to be products of induction rather than deductive processes that reiterate the preconceptions of any given author. This paper pursues the state financial side of China’s development, focused primarily on the China Development Bank (CDB) and its massive operations domestically and abroad, and their implications for international politics and economics and theories of China’s development model. The paper aims not to produce a novel and comprehensive model, but to illustrate and argue for one fundamental pillar of the model to be built on findings from modern Chinese state finance. The paper examines CDB, historically, domestically, and internationally, and suggests an essential starting point in Chinese state finance. The research uses sources from government, interviews, academia, and publicly available literature. The findings illustrate the size and importance of CDB in almost all “hot” areas of China’s foreign policy (FDI, resources, Cross-Strait relations, etc.) and the pragmatism and flexibility of China’s global financial power. Furthermore, the paper assuages some concerns about radical changes and “locking-up” of resource by China. However, the paper illustrates a very real potential for disruption of standard sovereign borrowing practices of resource-rich developing countries. The paper also examines the “theory” of good governance, and finds it lacking both in substantive powers of extrapolation and robustness as a viable theory of development for foreign recipient countries of CDB’s financing. (Less)
Please use this url to cite or link to this publication:
author
Thorelli, Erik LU
supervisor
organization
course
SIMV07 20141
year
type
H2 - Master's Degree (Two Years)
subject
keywords
China Development Bank, China Model, Beijing Consensus, Chinese Finance, Chinese Politics, Chinese Foreign Aid, Chinese FDI, Venezuela, Oil, Angola, good governance
language
English
id
4618460
date added to LUP
2014-09-04 14:25:37
date last changed
2014-09-04 14:25:37
@misc{4618460,
  abstract     = {{Political analyses of the reform period China are plentiful, and for each analysis, there seems to be another version of a “China Model” or “Beijing Consensus” for economic and social development. This paper argues that these vague conceptualizations need to be rooted in empirical observations; they need to be products of induction rather than deductive processes that reiterate the preconceptions of any given author. This paper pursues the state financial side of China’s development, focused primarily on the China Development Bank (CDB) and its massive operations domestically and abroad, and their implications for international politics and economics and theories of China’s development model. The paper aims not to produce a novel and comprehensive model, but to illustrate and argue for one fundamental pillar of the model to be built on findings from modern Chinese state finance. The paper examines CDB, historically, domestically, and internationally, and suggests an essential starting point in Chinese state finance. The research uses sources from government, interviews, academia, and publicly available literature. The findings illustrate the size and importance of CDB in almost all “hot” areas of China’s foreign policy (FDI, resources, Cross-Strait relations, etc.) and the pragmatism and flexibility of China’s global financial power. Furthermore, the paper assuages some concerns about radical changes and “locking-up” of resource by China. However, the paper illustrates a very real potential for disruption of standard sovereign borrowing practices of resource-rich developing countries. The paper also examines the “theory” of good governance, and finds it lacking both in substantive powers of extrapolation and robustness as a viable theory of development for foreign recipient countries of CDB’s financing.}},
  author       = {{Thorelli, Erik}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The China Financial Model: China Development Bank, Politics, and China’s Global Financial Power}},
  year         = {{2014}},
}