A Pacific Island Prefers Chinese Investment to US Welfare
Mellen, Neil J. (2013-04-02). "A Pacific Island Prefers Chinese Investment to US Welfare". The Wall Street Journal. New York, NY. pp. A13.
- Has attachment: File:9MBLHIHH.pdf
Abstract: Neil Mellen discusses the percieved preference of the Pacific island of Yap, part of the Federated States of Micronesia, for Chinese investments over U.S. aid. The island is strategically located in the Pacific, near major U.S. military bases, and is expected to become a destination for Chinese tourists if a planned massive resort complex by Chinese developer Deng Hong proceeds as planned. This project is likely to bring significant cultural, environmental, and economic changes to Yap, an isolated and traditional society.
The article argues that while America’s focus has been on providing what amounts to state socialism, Chinese investments are seen -or atleast justified- as embracing capitalism, leading some islanders and local decision-makers to welcome the development as a chance to reduce aid dependency and stimulate economic growth.
The U.S. aid, historically intended to develop economic and political systems, instead has fostered dependency and funded a large public sector that stifles private enterprise. This has resulted in Yap having an oppressive bureaucracy, making business operations challenging and economic growth difficult. The article critiques the U.S. policy, suggesting it has failed to promote free-market capitalism over the past decades, unlike the approach potentially offered by Chinese investment. Although not universally popular, the Chinese development offers an alternative to the stagnation perpetuated by reliance on U.S. welfare, though it's political and strategic implications may be the true driving force and most profound implications.
