Philippe Maystadt, president of the European Investment Bank (EIB), admitted that the EIB is losing projects in
The World Bank reported that Chinese investment has positively impacted African economies, but Maystadt is critical of the Chinese loans, which provide unconditional financing. This contravenes the approach of the EIB and other Western lenders, who condition financing on political, fiscal, ethical, and environmental reforms.
Maystadt blames the lower Chinese lending standards for taking business from the EIB and warns that abandoning conditionality would reduce the incentive to reform and encourage African nations to take on unsustainable levels of debt. Maystadt admitted that Chinese lending is necessary to meet
Given the need for lending in Africa, should African nations be given as many lending options as possible, without respect to conditionality? If China agrees to talks with the EIB, what types of conditionality might the the parties agree to support in light of their different understandings of human and environmental rights?