Managing risk in Chinese overseas development: Lessons from the Andean Amazon

As public Chinese banks become increasingly active in the Andean Amazon region – the central Andean highlands and western Amazon basin of Colombia, Ecuador, Peru, and western Brazil – it would be prudent for China to take stock of the lessons and experiences of development finance institutions (DFIs) that have a history there. The Andean Amazon is a region that is rich in cultural and ecological heritage, a source of significant local, national, regional and global economic benefits. Key to maximizing those benefits are understanding, preventing, and mitigating the significant risks associated with development finance in the Andean Amazon. China has become a valuable and sought-after partner for development finance in Latin America. As China’s DFIs expand their presence in the region, past lessons can help ensure that Chinese development finance is beneficial for China and host countries alike