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Ed Webb

'Five years ago there was nothing': inside Duqm, the city rising from the sand | Cities... - 0 views

  • a long line of plans stretching back to the 1980s aimed at developing and populating barren parts of Oman. Around 70% of the country’s population resides within a thin 150-mile-long coastal strip in the north near Muscat. The government now sees its hundreds of miles of unused coastline as full of economic potential.
  • “Duqm is a huge industrial city being built out of thin air,” says Manishankar Prasad, a local researcher who worked on the new city’s environmental and cultural impact assessments. “It will essentially change the locus of industrial activity from the northern parts of the country, which are heavily urbanised. [Having this] huge geographical expanse with this sparse population and no industrial activity is really not the way forward.”
  • We are in the midst of an era of new cities – with more than 200 currently under construction. Remote deserts all over east Asia, the Middle East and parts of Africa are being urbanised. There’s Nurkent in Kazakhstan, Aylat in Azerbaijan, New Kabul City in Afghanistan, New Baghdad in Iraq, Rawabi in Palestine, King Abdullah Economic City in Saudi Arabia, New Cairo in Egypt … Morocco has nine new cities in the works, and Kuwait has 12.
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  • Oman is desperate to diversify away from its oil and gas dependency. Research by the US Energy Information Administration puts Oman’s known crude oil reserves at 5.6bn barrels. While this is only enough to rank the country 21st in the world, its economy is disproportionately dependent: oil and gas accounts for nearly half of the country’s GDP, 70% of exports and between 68% and 85% of government revenue.
  • “Several dozen new cities are being constructed in the Middle East, mainly to transition away from the petroleum industry to a variety of other industries, including tourism, manufacturing, education and hi-tech,” says Dr Sarah Moser, a McGill University geography professor and author of an upcoming atlas of new cities.
  • Duqm sits on the Arabian Sea near the Strait of Hormuz, the gateway to the Persian Gulf – and the world’s most glaring oil supply chokepoint. Nearly a fifth of the world’s oil currently flows through this passage, ever prone to disruption. If the Duqm project succeeds, the shipping industry would be able to dock at the gates of the Middle East without needing to go all the way inside.
  • attracted the attention of Beijing’s much heralded Maritime Silk Road. More than three-quarters of Oman’s crude oil exports go directly to China.
  • While Duqm was never very densely populated, around 3,000 Bedouin – mostly fishermen and semi-nomadic herders – called the area home before the bulldozers arrived. These villages have now been demolished and the Oman government has built a new, modern town for them to relocate to. The houses look as if they were copied and pasted from Muscat – bright, white buildings two storeys high with garages and ornate gateways. There is a mosque in the centre. The houses stand empty. The local Bedouin prefer their traditional way of life – and want space to keep camels.
Ed Webb

The Belt and Road Initiative Is a Corruption Bonanza - Foreign Policy - 3 views

  • Many countries that receive BRI investments suffer from high levels of corruption. On the TRACE Bribery Risk Matrix, most rank in the lower 50 percent, and 10 are among the riskiest 25 countries in the world. They often have opaque legislative processes, weak accountability mechanisms, compliant media organizations, and authoritarian governments that don’t permit dissent
  • China, of course, struggles with its own share of corruption. In fact, some of China’s own infrastructural marvels have been built through means that were less than scrupulous. President Xi Jinping’s anti-corruption purges have frozen some of that at home. In its construction projects abroad, however, Beijing’s approach seems to be “whatever works.” In no part of China’s lengthy declaration of the BRI’s principles is any attempt made to discourage corruption. And according to a report by Transparency International, no charges have ever been brought in China against a company, citizen, or resident for corrupt practices committed overseas.
  • While Chinese corruption at home doesn’t threaten to bankrupt the government, Chinese corruption in smaller, poorer countries sometimes does. For some of these countries, China’s BRI project is the biggest infrastructural endeavor they’ve ever attempted—a high-stakes gamble collateralized with mountains of debt. When such projects are approved by local leaders more interested in enriching themselves than in weighing the cost for their country, locals can find themselves crushed beneath the weight of white elephants.
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  • for China, the BRI is as much a foreign-policy instrument—and sometimes a domestic political move—as it is an economic program
  • Sri Lanka, where Hambantota Port was built by China under former President Mahinda Rajapaksa. When Rajapaksa faced an electoral challenge in 2015, money earmarked for the port’s construction somehow found its way into the president’s campaign coffers. In the end, Rajapaksa lost the election, and the port proved so unprofitable that the new government was forced to hand it over to China in a debt-for-equity swap.
  • The relationship between China and corrupt BRI partners is symbiotic and, often, more complex than simple bribery
Ed Webb

Beijing turns table on debt trap diplomacy claims | Article | Africa Confidential - 1 views

  • Chinese Foreign Minister Qin Gang's remarks that multilateral lenders and commercial creditors should carry the biggest blame for the debt distress of some African states comes as a thinly veiled retort to western critics who accuse China of 'debt trap' diplomacy
  • While the US and European Union will not attempt to match the size of Beijing's infrastructure investment in Africa, they are attempting to ramp up their diplomatic and economic relations in Africa, anxious to avoid losing more ground to China.
  • 'Africa should be a big stage for international cooperation, not an arena for major countries' competition', said Qin, at a joint press conference with African Union Commission chairman Moussa Faki Mahamat at the new headquarters of the Africa Centres for Disease Control and Prevention in Addis Ababa, financed by China.
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  • Financial experts interpreted Qin's inclusion of Angola, Benin and Gabon on his itinerary as a signal that Beijing's harbours plans to expand its Belt and Road infrastructure projects into West and Central Africa.
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