Chinas oda for asean countries and implications for vietnam

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Chinas oda for asean countries and implications for vietnam

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Format of the Proposal Defense of Undergraduate Graduation Thesis Topic of Graduation Thesis CHINA''''S ODA FOR ASEAN COUNTRIES AND IMPLICATIONS FOR VIETNAM Type of Topic Research Source of the Topic Nat[.]

Format of the Proposal Defense of Undergraduate Graduation Thesis Topic of Graduation Thesis CHINA'S ODA FOR ASEAN COUNTRIES AND IMPLICATIONS FOR VIETNAM Type of Topic Research Source of the Topic National Project College College of Economics Major International Economics and Trade Academic Title Bachelor Supervisor Full Name Grade Student Number INTRODUCTION LIST OF ABBREVIATIONS ABBREVIATIONS meaning of acronyms ADB AIIB ASEAN BRI CAFTA CELAC CIDCA CLMV CNY CPTPP DAC EPC EXIMBANK EU FDI FTA IMF LDCs LICs LMICs MOFCOM Asian Development Bank Asian Infrastructure Investment Bank Associasion of Southeast Asia Nations Belt and Road Initiative China ASEAN Free Trade Agreement Community of Latin American and Caribbean States China International Development Cooperation Agency Cambodia, Lao PDR, Myanmar, Vietnam Chinese Yan Comprehensive and Progressive Trans-Pacific Partnership Development Assistance Committee Engineering Procurement and Construction China Export Import Bank European Union Foreign Direct Investment Free Trade Agreement International Monetary Fund Least Developed Countrie Low-Income Countries Low Middle-income countries The Ministry of Commerce of the People's Republic of China ODA OOF SCO UMICs USD WB WTO Official Deveelopment Assistance Other Official Flows Shanghai Cooperation Organisation Upper Middle-Income Countries United States Dollar World Bank World Trade Organization With the strong rise of China, the 21st century is forecasted to ending the era of US hegemony in the world to make way for an "Asian Century" or better called the "Chinese Century" After nearly three decades of "hiding oneself and waiting for time", China Over the past twenty years, the country has implemented many strategies to pursue "The Chinese Dream", the ambition for global hegemony Not only speeding up the process modernize, bring the economy to superpower status; China also makes goods a series of new foreign policies aimed at increasing global power and influence bridge On the one hand, China embarked on the development of new institutions such as the United Nations Shanghai Partnership (SCO) and Asian Infrastructure Investment Bank (AIIB) to compete to replace existing institutions such as the International Monetary Fund (IMF), the Bank the World (WB), or the World Trade Organization (WTO), is in the hands of the US and the US Western developed countries On the other hand, China is also actively deploying Expansive diplomatic strategy, promoting the expansion of global influence in the regions: Southeast Asia, Africa and Latin America through investment programs, institutes, aid and more recently the Eurasian mainland with the "Belt and Road" initiative (BRI) Compared to Africa and Latin America, Southeast Asia is an area of influence China's tradition because of its contiguous geographical location and long history of relations Opposite to With China, Southeast Asia has an important role and has always been considered the backyard of the war comb Adjacent to the Southeast region - where special economic zones are concentrated, cities China's busiest cities and ports, Southeast Asia is a supply market supplying input materials as well as leading output markets of the economy second economy in the world In addition, Southeast Asia is a gateway with pharyngeal connectivity connecting the Pacific and Indian Oceans Therefore, in history as well as in the present, East South Asia has always been a region of special geostrategic, geo-economic and geopolitical significance important not only for China but also for many major countries in the world gender Economically, Southeast Asia holds the maritime trade artery thus, having the ability to connect, expand cooperation and link widely at the regional level and international Politically, Southeast Asia has a strategic position in defense and is an indispensable link in the process of forming cooperation/alliance mechanisms new military In particular, the area is currently being evaluated as one of the the world's leading dynamic growth force, attracting many countries in the region and around the world to participate in cooperation With this special importance, Southeast Asia becomes a place where interests intersect and compete for influence of many big names, especially the US, China, Japan and India Faced with increasing pressure from China in Southeast Asia, many countries Countries such as Japan, the United States and India in the past decade have also begun to pay attention more to the area Therefore, in recent years, China has become more and more more emphasis on Southeast Asia Prominent is China's strong use of strong card "economic diplomacy", "gift diplomacy" for regional countries to increase the dependence of these countries on China as well as in exchange for China's support on political and diplomatic issues Although the grants China's official development assistance (ODA) is contributing to changing the of Southeast Asian countries, especially investments in infrastructure construction and energy development, but this capital also leaves many negative impacts and doubts towards ODA recipient countries One of the characteristics of ODA China has no attached conditions such as commitments on institutional reform, protect the environment or open the market, instead, the goal is to penetrate the market and towards political agreements For example, China tends to pour ODA for countries in the region such as Cambodia and Laos to take advantage of the support of these countries in the East Sea issue In addition, the properties and effects the use of Chinese ODA is still limited due to the lack of transparency, especially many ODA projects must be accompanied by implicit conditions that Chinese companies win tender… Currently, some countries have refused or even canceled ODA projects of China such as the US, UK, Mexico and Japan in the face of concerns about security issues national security and the quality of these projects Meanwhile, Vietnam is also one of the countries receiving the bloc substantial amount of ODA from China These grants are a difficult problem solution for Vietnam when there are more and more problems related to progress, quality, the quantity and efficiency of this capital The most obvious are ODA projects in the field of infrastructure construction, typically the Cat Linh - Ha Dong railway line in Hanoi, Van Don - Mong Cai Expressway Project, Dinh Vu Industrial Park Project This project not only leaves economic risks, but also causes many serious consequences important to the environment and society Meanwhile, Vietnam is still quite confused before China's proposals on cooperation mechanisms as well as aid activities development aid At the same time, the reception of aid from China has also raised concerns fear of dependence and put Vietnam in a difficult position in its efforts to protect defend territorial sovereignty However, Vietnam has a great need for capital investment in construction and development of infrastructure If you refuse Chinese aid, Nation means we will pass up the opportunities and benefits that this capital brings Therefore, it is necessary to avoid extreme views, instead consider how Vietnam can take advantage of ODA aid without doing detrimental to the country's socio-economic development and political stability This fact shows that the study of the actual situation, characteristics, methods, spending China's ODA to Southeast Asian countries, including Vietnam is absolutely necessary However, current studies strategic importance of China's ODA for ASEAN countries is still incomplete and lacking in totality, especially in the context of China's drastic adjustments in foreign strategy for the region and Vietnam Because of the above reasons, the thesis chooses to research the topic "ODA of China for ASEAN countries and implications for Vietnam” in order to build and perfecting the scientific basis of China's ODA in Southeast Asian countries in general and Vietnam in particular; thereby giving some implications for Vietnam before the projects China's ODA project in our country today Objectives The overall objective of the thesis is to clarify the current situation of China's ODA in China ASEAN countries, thereby giving some implications for Vietnam in dealing with China's ODA The task of the thesis: For the purpose of the above research, the thesis will focus on solving solve the following main tasks: i) Understand the theoretical basis of ODA including the development of ODA concepts, characteristics and classification of ODA; analyze the drivers of this aid and its effects its impact on the receiving countries At the same time, the thesis will clarify the real basis China's ODA flows, focusing on understanding foreign strategy China's foreign aid delivery and strategy, the current state of China's ODA China for developing countries in comparison with other donors ii) Studying the current status of China's ODA in ASEAN countries, Analyze China's strategic goals in the region and make joint assessments in terms of size, objectives, and quality of this aid to countries in the bloc, especially the four least developed countries in Laos, Cambodia, Myanmar and Vietnam iii) On the basis of studying China's aid motives and the current situation China's ODA in Vietnam in the period from 2000 to 2019, thesis The project will point out opportunities, challenges and give some implications for Vietnam in applying dealing with Chinese ODA entering our country in the near future On that basis, the thesis will answer the following research questions: - How has the current viewpoint and theory on ODA developed? - What are the characteristics of China's ODA? The characteristics of the aid source How does this manifest in Southeast Asia? - The development situation of China's ODA in ASEAN countries in the period How was 2000 – 2019? Can general assessments of this aid be made? how? - What are the opportunities and challenges for Vietnam in attracting and using ODA? China? What is the best solution for Vietnam to deal with ODA from? China? Objects and research scope of the thesis Research object: The object of the thesis is Chinese ODA National for ASEAN countries, focusing on clarifying China's ODA for Cambodia, Laos, Myanmar and Vietnam Research scope: Regarding the spatial scope, the thesis focuses on studying China's ODA for ASEAN countries, in which focus is mainly on three countries with many similarities to Vietnam and are the least developed countries in the Southeast region Asia, including Cambodia, Laos, and Myanmar In addition, the thesis only studies the line ODA from Mainland China, excluding ODA from territories such as Hong Kong, Macao and Taiwan Regarding the time range, the thesis chooses the research period from year 2000 until 2019, these are the first two decades of the 21st century, which is also a time of proof witness the spectacular rise of China and important strategic adjustments its importance to the region However, due to data limitations and to ensure maximum reliability as well as uniformity when comparing research and data China's ODA for ASEAN countries is mostly encapsulated in the period 2000 – 2014 However, the thesis still integrates updated data and observations China's ODA for the region until 2020 through analysis some of the ongoing ODA projects or the Government's ODA funding plan China in the near future On that basis, the thesis predicts and proposes a number of solutions Measures to enhance the effectiveness of China's ODA attraction and use in Vietnam in the period 2021 – 2025 and a vision to 2030 Regarding the scope of content, the thesis will focus on researching the theoretical and practical basis China's ODA for ASEAN countries; thereby giving some implications for Vietnam Methodology 4.1 Methodology The thesis applies basic research methodologies such as the theoretical approach systems theory, economic theory, political economy theory, relational theory international, the views of the Party and State on the use of foreign capital, foreign capital budget and international economic integration in the region This is the basic basis for understanding the nature and motivations of countries when providing ODA as well as the effects of impact of this aid to the recipient countries Specifically: Political economy theory and international relations theory have put forward a number of theories Explaining the motivations of countries for ODA aid, Realism: The First and Most Widely Accepted Idea widely since the end of the Cold War are the views of modernism real Advocates of this school argue that the decisive factor The aid policies of those countries are "strategic interests" with daily goals The first is to ensure national security and the second is to provide humanitarian and development assistance economy However, realism itself also has two opposing streams of thought with differing views on national security Accordingly, communism Traditional reality sees national security from a political-military perspective given that aid priorities are driven by a strategic military role - politics of the countries receiving ODA, or in other words, the goal of ODA aid towards the formation of military alliances On the contrary, the new realism views national security in terms of trade strategy, according to which priority is given to aid will go to countries with economic potential Idealism: Idealists have a look very positively towards grants and their potential to contribute in promoting economic development in the donor as well as the recipient countries aid Idealism also sees the potential of ODA in ending poverty and slow development in the Third World Contrary to communism realism, idealism holds that "humanitarian assistance" is the main goal, is the leading engine of ODA aid; At the same time, ODA aid is a tool promote cooperation between donor and recipient countries This school also emphasizes that ODA aid is often directed towards promoting population sovereignty and human rights in host countries Political economic theories, especially Marxist and political economic theories Engels tied economics to politics, using economics to explain politics Termites The relationship between economy - politics is clearly shown in foreign policies, ideology, foreign policy ideals and practices of nations Therefore, the decision to institute support will not be outside the economic space and the political space, ideological and objective strategic goals of politicians New Marxism: This school holds that for donors, The main determinant of aid policies is the economic engine This idea is based on assumes that the nature of capitalism is exploitative, so that aid will to increase the power/power of the elites in developed economies and industrialized countries Aid will widen the gap Economic disparities already exist between rich countries and third countries Approaching from the perspective of the impact of ODA on the receiving countries, Classical theory, modernization theory, Eurocentric theory, and dependency theory have Some points are emphasized as follows: Classical economic theory: From the point of view of its proponents Classic, grants will contribute to growth and development The reason is like So because economic growth depends on the rate of investment – this factor is influenced by savings and imports Aid will increase saving (additional domestic saving) local and trade (complementary to exports), which improves investment rates and thereby economic growth for the host countries Donations are not only contributed to improving the macroeconomic picture thanks to foreign currency growth, but also increased effective enhancement of domestic resources, made possible by technical aid In addition, foreign aid also provides financial support for investment and transfer projects techniques (sending foreign experts, training staff), balancing the budget and eradicating hunger poverty alleviation However, this theory also warns that aid only effective if the receiving country has good policies, but vice versa will become threat of delaying and hindering reform efforts if the host country has a good governance weak treatment The big push theory also has the same opinion when giving that aid is a necessary catalyst for investment and economic growth Modernization theory: Modernization theory was born as a result of the process polarized the world in the face of the rise of the United States as a superpower America believes that need to design a development plan for third countries instead of letting countries This fell into the hands of the communist bloc In 1949, US President Harry Truman divided the world is divided into two groups: developed and underdeveloped countries In it, Mr argued that developed countries should provide development aid to developing countries development, allowing these countries to reorient and redistribute productive resources from the traditional area to the modern area This process will contribute to promoting progress industrialization or economic modernization in developing countries Development theory affirms that developing countries need to follow path of the developed world – achieving social and cultural progress first then comes the promotion of economic development Eurocentrism – an important doctrine important in development theory also emphasizes the role of the West/Europe in with countries not included in this group (usually least developed economies development) NonWestern countries themselves often consider values of Europe is the benchmark by which to measure its progress on most aspects from market, economic, social to political or ideological In spite of Thus, Zia argues that forcing the adoption of the Western development model for underdeveloped countries will never succeed Dependency theory: Dependency theory deals with concerns about the dependence of ODA recipient countries on donor countries, the system as a result, aid will not contribute to the development of the host country After receiving sponsors, great powers and transnational corporations will hold power supreme in developing countries Aid recipient countries will lose the ability to protect protect their own interests, thereby leading to the loss of the ability to control the country Governments will unable to maintain the country's management functions such as conserving infrastructure systems, provide basic public services without foreign aid financing as well as a team of consultants Therefore, large aid is not the result This is the main cause of poor governance These theories are used throughout all chapters of Thesis to compare and refer to the motivations and impacts of ODA in theory in general with the specific motives and impacts of Chinese ODA 4.2 Research Methods The thesis uses qualitative research methods, which apply the Specific methods are as follows: * Data collection method: The thesis uses secondary data sources which are statistics and reports of relevant departments between China and other countries ASEAN (bilateral and multilateral), policy documents of each relevant country related to ODA Secondary materials are research works, reports of announced organizations related to foreign aid and ODA.10 Data on China's ODA used throughout the thesis are mainly used collected from the data source of China AidData Organization - one of the data sources The most up-to-date and reliable data on China's ODA today New dataset The most about China's foreign aid published by Aiddata Foundation 2017 based on more than 350 billion USD of official financial capital of China, which includes more than 4,300 aid projects from the country to 140 countries and regions territory in the period 2000-2014 * Methods of data analysis and synthesis: The thesis uses the method qualitative analysis, which includes: - Methods of summarizing and systematizing research documents: Methods This is used in Chapter to understand research results from other companies previous scientific papers on ODA in general and China's ODA for the region Southeast Asia in particular, thereby identifying gaps and issues that need to be continued research and clarify to system redefine the concepts and perspectives on ODA - Case study method: This method is used to provide a more specific lens on Chinese ODA for ASEAN countries The thesis selects three typical research cases, which are three countries ASEAN includes Laos, Cambodia and Myanmar These are the three countries with the most points similar to Vietnam: i) compared with other countries in the region, the economies of other countries Cambodia, Laos, Myanmar and Vietnam (CLMV) are assessed as underdeveloped and political institutions still have many problems ii) are the next countries China's largest ODA recipient and is under a lot of national influence this iii) these three countries and Vietnam both have geo-economic and geo-war interests great strategy for China - Comparative research method: This method is used in three thesis chapter In particular, is used to Compare the characteristics, size and quality of China's ODA with Japan's ODA India and Western countries as well as comparing the difference between China's ODA countries to developing countries around the world In addition, this method to compare China's ODA and ODA from other donors in Southeast Asia as well as in Vietnam - Synthetic method: the synthesis method helps to re-systematize the previous research results and issues that need to be further exploited and formed important scientific basis for the thesis to inherit and promote the achievements of the previous research as well as filling in the research gaps The thesis summarizes the development of conceptions of ODA over each period period, period, evaluation of aid effectiveness and management of China's ODA This method helps to make assessments about the status of attracting and using Using China's ODA in Southeast Asia, identifying China's aid motivations Country for these countries The thesis summarizes opportunities and challenges as well as solutions to promote the effective mobilization and use of Chinese ODA in our country in the near future - Analytical method: The thesis analyzes China's ODA data for ASEAN countries and Vietnam, in terms of size, structure and goals of aid At the same time, The thesis also analyzes the impact of China's ODA on the receiving countries, including Vietnam and evaluate the actual effectiveness of this capital (1) Theory and practice of China's ODA: The concept of China's ODAcountries, the characteristics of this aid, and China's ODA practices States in the first two decades of the 21st century (2) On the basis of China's ODA evaluation criteria: evaluation on three aspects in terms of size, aid purpose and quality of China's ODA for the host country, in particular identifying its economic, political, and strategy of aid sources from China (3) Analysis of China's ODA for ASEAN countries: current situation in general and for the three least developed countries in the region including Cambodia, Laos and Myanmar by structure: foreign political-economic relations assignment, status of ODA, evaluation of effectiveness (4) On the basis of the analysis, learn about China's ODA in general and for ASEAN countries in particular, especially for the three CLM countries, will make it clearer status of China's ODA for Vietnam, identifying opportunities and challenge from this source of capital, learn the direction of China's aid and Vietnam's orientation towards receiving ODA, there by giving some implications for Vietnam South in the treatment of China's ODA New scientific contributions of the thesis The thesis has some new scientific contributions as follows: - Systematize the traditional views on ODA as well as update asome new perspectives on ODA in the current context; - Assess the current status of China's ODA for ASEAN countries based on the Better Aid Scorecards, thereby clarifying the motivation and impact of the resources This support is for ASEAN countries, especially the three countries of Laos, Cambodia and Cambodia, Myanmar, determine the trend of this aid in the coming years; - Assessing the current status of China's ODA for Vietnam, Vietnam's opportunities and challenges in attracting Chinese ODA in the new period when Vietnam began to prepare for "graduation from ODA", thereby giving some implications for Vietnam in dealing with ODA from China Theoretical and practical significance of the thesis The thesis systematizes the theoretical basis of ODA in general and China's ODA in particular, which includes concepts (traditional and new concepts), characteristics, impacts, set of evaluation criteria, ODA management institutions In addition, the thesis also analyzes and evaluates the current situation of China's ODA development for Southeast Asia and for Vietnam, the advantages and limitations of this capital flow On that basis, the thesis contributes to raising awareness about China's ODA, giving a more diverse perspective on this capital source, and at the same time limiting extreme thinking about investment capital from China The research results of the thesis contribute to providing scientific arguments for government agencies, relevant ministries and agencies, especially the Ministry of Planning and Investment, and local government organizations such as the Department of Planning and Investment Planning and Investment, Departments of Natural Resources and Environment, Departments of Labor, Invalids and Social Affairs in provinces/cities in considering and approving China's ODA projects in particular and ODA projects in general, ensuring fairness, publicity and maximum efficiency of the project Reference AidData 2017 AidData’s Global Chinese Official Finance Dataset, 2000– 2014, Version 1.0, Aiddata 2018 “Connective Financing: Chinese Infrastructure Projects and the Diffusion of Economic Activity in Developing Countries” Working Paper WPS64_connective_financial_chinese_infrastructure.pdf147 Alesina, Alberto, and David Dollar 1998 Who gives foreign aid to whom and why? NBER Working Paper 6612 Cambridge, MA: National Bureau of Economic Research (NBER) Apodaca, Clair 2017 “Foreign Aid as Foreign Policy Tool”, World Politics Online Apr 2017 DOI: 10.1093/acrefore/9780190228637.013.332 Arvin, M and Choudry, S 1997 “Untied aid and exports: untied disbursements create goodwill for donor exports?”, Canadian Journal of Development Studies, Vol 18(1), pp 9-22 ASEAN 2015 Plan of Action to Implement the Joint Declaration on ASEAN-China Strategic Partnership for Peace and Prosperity (2016-2020) Bandyopadhyay, Subhayu, Todd Sandler Javed Younas 2011 “Foreign aid as counterterrorism policy”, Oxford Economic Papers, Volume 63, Issue 3, July 2011, pp 423–447 Bandyopadhyay, Subhayu & Katarine Vermann 2013 Donor Motives for Foreign Aid, Federal Reserve Bank of St Louis Review, July/August 2013, 95(4), pp 327-36 10 Bräutigam, D 2011 “Aid ‘With Chinese Characteristics’: Chinese Foreign Aid and Development Finance Meet the OECD-DAC Aid Regime”, Journal of International Development 23(5): 752– 764 11 Cambodia Construction Association (2019) Will Cambodia fall into the Chinese infrastructure debt trap? 12 Carter, B 2017 A literature review on China’s aid, Helpdesk Report September 2017 13 Carter, Paddy 2016 ‘Five ways to deliver UK aid in the national economic interest’ ODI Briefing Note London: Overseas Development Institute 14 Center for Global Development 2018 The Quality of Official Development Assistance (QuODA) 15 Charles, Jr 2015 “China’s Foreign Aid Offensive”, 16 Charnoz, Olivier & Jean-Michel Severino L’aide publique au développement Paris: La Découverte 17 China Eximbank 2009 Chinese Government Concessional Loan 18 China’s Ministry of Commerce (2018) Forge ahead to improve the Level of Economic and Trade Cooperation with the Countries around Asia, January 12 2018 18 CIBM ASEAN Research Institute & LSE IDEAS 2018 China’s Belt and Road Initiative (BRI) and Southeast Asia, October 2018, Kuala Lumpur: CIMB Southeast Asia Research Sdn Bhd 19 Clarke, G 1998 ‘Non-governmental organizations (NGOs) and politics in the developing world’, Political Studies XLVI: 36-52 20 Copper, J 2016 China’s Foreign Aid and Investment Diplomacy, Volume II: History and Practice in Asia, 1950 – Present, New York: Palgrave Macmillan 21 David R 2014 “Straightening the Measuring Stick: A 14-Point Plan for Reforming the Definition of Official Development Assistance (ODA).” CGD Policy Paper 44 Washington, DC: Center for Global Development 22 David Shambaugh 2015 “China’s soft power push The search for respect” Foreign Affairs 23 Davies, Penny 2007 China and the End of Poverty in Africa – towards Mutual Benefit? Diakonia, Alfaprint, Sundyberg, Sweden 24 Development Initiative 2017 ODA Modernization, Background Paper September 2017 25 Dreher, Axel & Andreas, Fuchs 2011 Rogue Aid? The Determinants of China’s Aid Allocation 26 Economic Institute of Cambodia 2008 Managing Public Expectation: Cambodia’s Emerging Oil and Gas Industry, Phnom Penh: Economic Institute of Cambodia 27 Eleanor, Albert 2019 “China Digs Deep in Landlocked Laos: China’s presence is growing in strategically located Laos, but the trend is often overlooked, The Diplomat 24 April 2019 Outline of thesis INTRODUCTION Objectives Objects and research scope of the thesis Methodology  Methodology  Research Methods New scientific contributions of the thesis Theoretical and practical significance of the thesis Reference Supervisor Opinion Supervisor signature: Date: Note : Type of topic : Basic type 、 Application-based type 、 Application type 、 Research type; Source of the topic : National projects 、 provincial and ministerial projects, Horizontal cooperation projects、school projects and optional projects

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