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Adaptive governance along Chinese-financed BRI railroad megaprojects in East Africa

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  • Carrai, Maria Adele

Abstract

As part of its Belt and Road Initiative (BRI), China is increasingly investing abroad and has become an important country for development financing. Many commentators have expressed concern that the country is defying the Western path of sustainable development guided by the rule of law and good governance standards. Yet, studies of the real existing articulation of the BRI are lacking. Through a comparative case study of Chinese loans for infrastructure in East Africa (the Standard Gauge Railroad in Kenya and the Ethiopia-Djibouti railroad), this article offers a consolidated and more systematic assessment of what kind of governance China is in fact practicing through the BRI and the reasons behind what I argue to be its ‘adaptive governance’ approach. Specifically, it examines the attitude of Chinese state-owned enterprises (SOEs) toward corporate social responsibility (CRS) in light of the regulatory frameworks of the Chinese central government and host governments. Through a combination of document analysis and in-depth interviews with relevant stakeholders, this paper compares the railroads China has financed and built in Kenya and Ethiopia as part of the BRI with a focus on CRS and their economic, social, and environmental impacts. It argues that the reason for the differing CRS in the two case studies is that China is not forcing upon host countries any specific type of governance, because its approach is above all adaptive and conforms with its core principles of sovereignty and non-interference. Such an approach, however, has generated several negative externalities that may reinforce poor governance standards and ultimately undermine the sustainability and developmental outcomes of the BRI. By looking at concrete cases from the ground, this article sheds new light on China’s emerging development paradigm along the BRI and addresses some of the concerns related to China’s rise as a great power.

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  • Carrai, Maria Adele, 2021. "Adaptive governance along Chinese-financed BRI railroad megaprojects in East Africa," World Development, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:wdevel:v:141:y:2021:i:c:s0305750x20305167
    DOI: 10.1016/j.worlddev.2020.105388
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    2. Xia, Ying & Chen, Muyang, 2023. "The Janus face of stateness: China's development-oriented equity investments in Africa," World Development, Elsevier, vol. 162(C).
    3. Alves, Ana Cristina & Gong, Xue & Li, Mingjiang, 2023. "The BRI: A new development cooperation paradigm in the making? Unpacking China’s infrastructure cooperation along the Maritime Silk Road," World Development, Elsevier, vol. 169(C).
    4. Artur Colom-Jaén & Óscar Mateos, 2022. "China in Africa: Assessing the Consequences for the Continent’s Agenda for Economic Regionalism," Politics and Governance, Cogitatio Press, vol. 10(2), pages 61-70.
    5. Fredrik Sjöholm, 2023. "The Belt and Road Initiative: Economic Causes and Effects," Asian Economic Papers, MIT Press, vol. 22(1), pages 62-81, Winter/Sp.
    6. Tritto, Angela & Camba, A., 2022. "State-facilitated Industrial Parks in the Belt and Road Initiative: Towards a framework for understanding the localization of the Chinese development model," World Development Perspectives, Elsevier, vol. 28(C).
    7. Yunnan Chen, 2024. "Technology Transfer on the Belt and Road: Pathways for Structural Transformation in Ethiopia’s Standard Gauge Railways," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 668-694, June.
    8. Qiong Miranda Wu, 2024. "The embrace and resistance of Chinese battery investments in Hungary: The case of CATL," Asia Europe Journal, Springer, vol. 22(2), pages 201-223, June.

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