Go back in time and be a chaebol

Chapter 1080 Cutting the leeks of the whole world (Second update, two in one)

Not every country will repay the money on time!
Li Yian picked up his cigar again and did not speak immediately, but just nodded. While smoking, he thought of the "debt trap of developing countries" often mentioned in another world. The core of it is to provide loans to developing countries, so that these countries cannot repay the loans and fall into the "trap", causing the resources and even sovereignty of these countries to be "controlled by foreign countries".

Whether it is Tangshan accusing Western countries or Western countries accusing Tangshan.

It’s just that both accuse each other of putting developing countries into a debt trap - that is, being unable to repay foreign debts.

Since the 1960s, the foreign debt of developing countries has grown rapidly. By the 1980s, any developing country that did not owe tens of billions or even hundreds of billions of dollars in foreign debt was embarrassed to go out and say hello.

But are these foreign debts really used to develop the economy?
To a certain extent, yes. With the help of international loans, urban and road construction in those countries have undergone tremendous changes. According to some people, the capitals of many African countries in the 1970s and 1980s were even more modern than the capital of the East.

What supports such construction?
Of course, it is the loans and aid from various countries.

Although the faces of those developing countries have undergone tremendous changes thanks to international loans and aid, in fact, a considerable portion of the funds have been swallowed up by the officials of those countries and turned into luxury homes in Paris, London or New York, and into their luxury cars and jewelry.

A large amount of loans were used for useless construction - spacious unused roads, luxurious urban infrastructure that rivaled Europe and the United States, and useless buildings such as stadiums - in fact, even if the money was not misappropriated, it was not spent in the right place, and the government, which lacked governance capabilities and development policies, "wasted" a large amount of money.

After entering the 1980s, as medium-term loans matured, developing countries that were unable to repay their debts defaulted one after another and announced their inability to repay matured debts, triggering the most serious international debt crisis since the war.

The most amazing thing is not here, but some white left economists later accused developed countries of seriously hindering the economic development of developing countries because they had to bear high interest rates. They even accused those loans of neo-colonialism plundering developing countries, as if lending them money was out of sheer ulterior motives.

As a result, so-called economists, politicians and social activists all called on developed countries to forgive the debts of developing countries.

Although the creditors and debtors negotiated many times and rescheduled the repayment period of some debts, there was basically no solution. Later, many small countries even refused to repay their debts. When they mentioned debts, they asked for forgiveness. Seeing that the debts were about to be paid, the officials of various countries could only negotiate to forgive the debts of various countries, but they could only borrow between governments. The problem was that those countries still owed a lot of private loans - this was the root cause of the debt crisis.

So in the negotiations, all countries asked to restructure their debts, such as setting up a repayment method or using minerals as repayment, but the problem is that those countries have borrowed too much! For example, Uganda's foreign debt exceeded 80 billion US dollars as early as the 200s. Even if the country was sold, it could not be repaid!
Recalling another world, I think of the international financial capitalists who are driven to death by the debtor countries, and those countries that owe tens of billions or hundreds of billions of dollars but are unable to repay.

Li Yian is not sure who is being exploited in international financial lending, but before the international debt crisis broke out, international financial capitalists were definitely being exploited by developing countries, and the severity of the exploitation was far beyond the imagination of outsiders - until the 21st century, many countries had not even repaid the interest.

Li Yian frowned and said:

"It's not a question of whether or not to repay on time. Some countries may not even have any intention of repaying the money from the day they borrowed it."

Holding a cigar in his mouth, Li Yian paced in the office, thinking about the experience of another world. What is the experience of another world?
Everyone has become a big enemy, not to mention the United States, Europe and other countries, even Russia has become a big enemy on the issue of international debt. It is not a problem of the ruble exchange rate, but a large amount of foreign loans cannot be recovered, and they can only force themselves to forgive the debts.

This is true even for the Russians, let alone other countries.

"Times have changed. International debt has almost no restrictions on debtor countries except for lowering their credit ratings. In the past, if a country refused to repay its debt, the fleet would come to its door. But now... this is an act of aggression. Even going to the door to collect the debt is not allowed!"

“That’s a game changer.”

Li Guoren said:
"This is the post-war world. Any military action against other countries, no matter what the excuse, is an invasion. This is the stipulation of the UN Charter, and all countries have the responsibility to prevent military invasion by other countries."

"Yes, now the rules of the world game have changed."

Li Yian said, shrugging his shoulders helplessly.

"Once those countries realize this, debt defaults will become normal. In the end, they will even negotiate debt forgiveness under the pretext of debt repayment. Not only do the creditors not make any money, they even become fat sheep, being fleeced and treated as the wronged."

After taking two puffs of his cigar, Li Yian said:

"So, we must never turn ourselves into big enemies!"

Turning around and walking to the map, he stared at it for a while, and after thinking for a while, Li Yian said:
"If we want to borrow money, we must lend it to those who have the ability to repay, such as Iran and Iraq, which have oil, and Egypt, which has a canal. If we lend to them, we must have corresponding collateral, which can be underground minerals or ports and other resources. In short, every sum of money must strictly abide by this. If they default, then we..."

Staring at the map, Li Yian did not continue speaking. What does the Nanyang fleet do?

Isn’t it just to maintain “international rules”?

I borrowed the money with my own ability, and you don’t pay it back...it’s outrageous!

Nanyang’s fleet is not a pushover. It is okay not to repay the money, but Nanyang will definitely collect the collateral - this is the experience of international financial capitalists after the international debt crisis. You can borrow money, but there must be collateral.

Having said that, Li Yian turned around and looked at Li Guoren and said.

"The government development assistance program will be led by the Ministry of Foreign Affairs, with the Ministry of International Trade and Industry, the Ministry of Finance, and the financial sector all participating. You should communicate on the implementation details first to ensure that our money is not wasted. After all, it is the hard-earned money of the people. I don't want the development assistance to become a waste of money."

It is good to use "development aid loans" as a pioneer to knock on the doors of various countries' markets, but if it turns into "throwing money around", it would be like being kicked in the head by a donkey.

Fortunately, Iran's repayment ability is still very good, and these loans can not only help industrial products from Southeast Asia enter Iran, but can even intervene in Iran and other countries in the future.

No, it’s not about interfering, but about protecting Nanyang’s investment.

Thinking of this, Li Yian's mouth curled up slightly. In fact, deliberately creating some debt traps and then forcing the debtor countries to transfer assets such as mines to repay debts is also a very good method.

"And then there's the debt trap!" "Debt trap?"

Li Guoren said in surprise.

"Yes, it is a 'debt trap'. You can understand it this way. It is a sugar-coated bullet. How do you put it?"

With a cigar between his fingers, Li Yian explained as he paced.

"Nanyang is a country with serious resource shortages, from agricultural resources to mineral resources. Our economic development not only requires food imports from Africa and other places, but also requires resources from all over the world. Such resource development relying solely on ordinary commercial means may not be able to meet our requirements. Therefore, we can set up some debt traps and provide loans to developing countries. Debtor countries use strategic assets as collateral, and if they cannot repay the debt, they must hand over the strategic assets to us. The current loan interest is still very high."

Why can't Nanyang do what others can do?

Of course, the financial capitalists in Europe and the United States have not done so yet, not because they are too kind, but because they have never thought that those countries have no bottom line - some countries never thought about repaying when they borrowed money, especially African countries, when they borrowed money, they never thought about repaying the money. In other words, in their simple consciousness, they did not realize that loans need to be repaid.

What if I can’t pay it back?
Then just owe it!
In another world, free debt and debt negotiations are frequently in the news, and even in the end, many countries in the global South are basically trapped in a permanent debt trap.

What Nanyang needs is to ensure as much as possible that it does not become a fat sheep and be fleeced by others in the future wave of "debt".

"Although the interest rate is high, we need to use some special means to ensure that they cannot pay back the money. Only then will it be possible for them to hand over their strategic resources to us!"

Your suggestion made Li Guoren's eyes light up, and a word immediately flashed in his mind.

Neo-colonialism.

Isn’t this neo-colonialism?
It’s just a change of method, and even a more high-sounding name - "Government Development Assistance Program"!
I'm doing this for your own good!

It’s to help you develop!

Look at how selfless and great Nanyang is! In order to help developing countries develop their economies, we actively provide assistance in terms of funds and technology. Of course, if they can't pay back the money... there must be a price to pay.

This is the basic international business rule!

Having said that, can't those people see this "sugar-coated bullet"?

"But, I'm not that stupid!"

Li Guoren said with a frown.

"Those countries may be backward, but their political and technical elites have often studied in the West and received modern education. How could they not see the benefits and disadvantages? It may not be easy to get them to take the bait. Unless... they are given kickbacks."

There are unspoken rules in international trade, especially when dealing with officials from these backward countries. As the Minister of Foreign Affairs, Li Guoren naturally understands the key - it's nothing more than kickbacks. Not to mention backward countries, government procurement between developed countries sometimes also requires kickbacks.

As for humans... greed is human nature.

"Giving kickbacks is a normal practice."

Li Yian waved his hand and said:
"Some people love money, some love fame, some love both, and for most politicians in developing countries, they love money, fame, and a dream!"

"dream?"

"Yes, that is their dream of a strong country!"

After taking a puff of cigarette, Li Yian said seriously.

"Even tyrants have the 'dream of a strong country' in their hearts, even more than others. They are eager to use the 'dream of a strong country' to prove their correctness. What about us? We should cater to their needs - give them a chance to realize their dreams!"

A chance to make your dream come true!

Li Yian's mind flashed with the image of the three African tyrants speaking on the stage. They talked enthusiastically about their "dream", dreaming that their country would become the England, Belgium and France of Africa. Even though they had human flesh and livers in their refrigerators, it did not stop them from dreaming.

Since they are good friends of the tyrant, of course we have to give them a chance to realize their dreams. Thinking of this, Li Yian took a puff of his cigar and said:
"Together with my colleagues from the Ministry of Trade and Industry and the Construction Committee, we have come up with a package plan - a package plan aimed at helping them complete their industrialization! We want to prove to the world that we in Nanyang are helping any country in need to achieve their industrialization in our own way! This kind of help will be real and unreserved, helping them to truly achieve industrialization through hand-in-hand assistance!"

Looking at His Excellency with an impassioned expression, a thought suddenly popped up in Li Guoren's mind - why does His Excellency seem like a different person!

Your Excellency has changed...Your Excellency has become a little unfamiliar. When you dealt with those countries in the past, didn't you always take the same stance - there is no gain without pain!

Why do we have to help those people wholeheartedly now?
Li Guoren was a little confused. An opportunity to realize his dream?

It is enough to help the people of Nanyang realize their dreams in Nanyang, but it is also enough to help foreigners, or even help a foreign country realize its dream - real, unreserved help, through hand-in-hand assistance, to help them truly realize industrialization!

This... If we do this, Nanyang will suffer!

(End of this chapter)