Gallagher: Chinese Banks Will Learn Defaults in Latin America
Kevin Gallagher, associate professor of International Relations at the Frederick S. Pardee School of Global Studies at Boston University said that Chinese financial institutions will become accustomed to default cycles as they strengthen their ties with Latin America.
The remarks were made in the Financial Times on Jan. 8 in the article “China’s Courtship of Latin America Tested.”
In the article, Gallagher says:
“China’s state-owned banks and companies are relative newcomers to the world of international finance and investment, and have never experienced the boom-bust cycles familiar to long-term investors in Latin America.
“Everyone is watching to see how they deal with defaults. The Chinese have not experienced it yet,” says Boston University’s Kevin Gallagher.”
The article was translated into Spanish for the Mexican media outlet Milenio.
Gallagher is the coordinator of Boston University’s Global Development Policy Program. He is a faculty fellow at BU’s Frederick S. Pardee Center for the Study of the Longer-Range Future where he leads the Global Economic Governance Initiative.
Gallagher is also a research associate at the Global Development and Environment Institute of Tufts University and at the Political Economy Research Institute of the University of Massachusetts, Amherst.