China’s Development Cooperation and Infrastructure Financing in Central America and the Caribbean

Abstract

Recently, the world has witnessed the exponential growth of China’s financial support for infrastructure improvements in developing countries. Considering infrastructure finance as a cornerstone of the Chinese development cooperation, the article looks at its expansion in Central America and the Caribbean. In the realm of theory, it presents a bibliographic and documentary review, accessing main principles and practices of the Chinese development cooperation. Additionally, it analyzes recent transformations in China that have corroborated to the “boom” of infrastructure finance. Empirically, it addresses the presence of infrastructure projects financed by China in the region and, through the methodology of case study, analyzes two ports rehabilitated, one in Cuba and the other in Antigua and Barbuda, offering a deeper level of detail on this process. The article argues that, despite not composing aid in the “traditional” sense, the cooperation system promoted by China in the region constitutes a mutually beneficial relation that is particularly relevant for developing countries who suffer from infrastructure bottle-necks and chronic insufficient investment.