Former Chief Economist of the World Bank and the Dean, Institute of New Structural Economics at Peking University, Beijing, China, Professor Justin Yifu Lin, has debunked the notion of “debt trap” in the cooperation between China and Africa, describing it as a carefully crafted lie.

Lin, speaking in a meeting with media representatives from Africa and other nations of the world during the week, explicitly stated that the “debt trap” narrative surrounding China and Africa cooperation projects was entirely unfounded.

He contended that China-Africa cooperation projects not only create more job opportunities and promote African exports but also contribute to increased revenue for the continent.

Most Africans have been skeptical about China’s aid to huge loans extend to African countries, and have expressed worries that the huge debt owed China might be a trap, but Lin urged Africans to see China only from the perspective of supporting Africa’s development and helping it to improve its ability to develop independently and sustainably.

Recall that the 13th Meeting of the China-Africa Think Tanks Forum, which held in Dar es Salaam, Tanzania, on March 8, jointly issued the “Africa-China Dar es Salaam Consensus” also known as “Consensus Among African and Chinese Think Tanks on Deepening Global Development Cooperation.”

The consensus had urged the international community to strengthen cooperation based on principles of mutual respect, unity, openness, win-win cooperation and common prosperity, in a bid to promote modernization and build a community with a shared future for humanity.

The consensus also advocated for the integration of effective markets and proactive governments to stimulate endogenous development dynamics.

According to Lin, “The calls for consensus have something in common with the new structural economic theory.”

He added that the purpose of economic development is to improve people’s living standards and incomes in a bid to achieve national development. To achieve this goal, he expressed the need to increase productivity and boost technological innovation and industrial upgrading.

“Meanwhile, market-based resource allocation and proactive government involvement are also indispensable. China’s development offers valuable experiences for African countries”, he said.

He added: “In the past, influential ideas and many consensuses were spread from the Global North to the Global South. However, this time, the Africa-China Dar es Salaam Consensus represents a shared vision in the Global South and serves as a guide for strengthening South-South cooperation.

“In addition to the principles advocated by the consensus itself, we also aspire to ensure that our voices are heard by the global community. This aspiration aligns with the overarching spirit that the consensus aims to convey”, Lin said.

To promote international financial system reform that will bridge development gaps between the developed and the developing nations, the Prof. proposed that multilateral development banks allocate more resources to provide greater financial support to developing countries towards improving their financial situations and financing capabilities.

“Furthermore, there is need to increase the equity, voting rights and voice of emerging markets and developing countries at the International Monetary Fund (IMF).”

To ease trade barriers, Prof. Lin urged African countries to leverage their resource endowments, enhance infrastructure development, foster trade through participation in multilateral market frameworks and try to eliminate factors responsible for trade barriers.

Further on Africa’s development, especially through foreign investment, the Professor said: “Poverty is not Africa’s destiny.”

He rather expressed confidence in the continent’s ability to change its fate through self-efforts.

Using Morocco as an instance, he identified the potential for complementary advantages and enhanced cooperation, with China providing investment and technical assistance to modernize manufacturing to the extent of exporting goods and services to the European market.