Specific Features of Chinese Economic Expansion in Central America and the Caribbean

Another Asian state which could serve as a good example of steady economic development is South Korea. Its starting point was similar to Japan but in many senses it was even lower. Poor agricultural country was a colony of Japan which provided a harsh policy towards captured territories. However, it left some infrastructural base and educated local population. Till the moment the Korean peninsula divided in two parts, both Republic of Korea and Democratic People's Republic of Korea could not be called developed. After the Korean War, South Korea looked wasted, tired and hopeless. It started its way of prosperity from American aid, recovered very quickly and from the biggest receiver became one of the main investor.

Behind the Korean success laid several important factors:

• Successful Land reform - redistributed land from landlords to small farmers, increase of productivity; turned agricultural wares into industrial;

· good and abundant input in terms of labor force (cheap, relatively well-educated, good discipline) Doo W.L. The Korean Economic Development // Yonsei Univercity

• stake to maintain macroeconomic stability(no inflation and balanced government spending); Ibid

• economy was open to international trade and international investments (export orientation); Ibid

• Emphasis on technology, innovation and productivity;

• Placing investments in right industries;

• Future orientation (save money today in order to invest in future);

• Good leadership and good market allocation.

Korean case was in many aspects similar to Japanese one. It was unique and could not be copied anywhere outside this country. But still there are some aspects which could be universal and applied to other developing countries. First of all it is Export oriented model. Countries in the region under discussion may promote import substitution at first and then may do a gradual shift towards export orientation. Also they can create special funds for promoting specific industries like National Investment Fund and Korea Investment Corporation. A more complicated and controversial aspect will be to subsidize domestic industries (bank lending at low interest rates, overvalue currency, setting target industries). Authorities of developing countries should be persistent in providing policies; they must choose the path and follow it till the end. They should be oriented into the future like South Korean government always was.

Probably the most useful aspects of successful Korean policy will be the ability to find a good example for coping and an adviser. In 1970 Korea decided to develop shipbuilding industry but had no experience and technologies in this sphere. The chairman of Hundai Company which that time specialized only in construction paid a lot of efforts to convince chairman of one the leading shipbuilding companies “Ecuador” to give Korea a chance. As a result he managed to do this and an epoch of Korean shipbuilding began.

South Korean government tried to take advantage from every chance: authorities sent workers to build infrastructure in the Middle East during the oil shock and to Germany in 1950-1960 for them to earn as much money as possible and then send this money to their families in Korea.

Looking at these examples Central American and Caribbean countries may also follow this path. They may target several industries and learn from the experience from those who already succeed. However, it is easier to say than to do. So far no signs of great wish to change something are seen. There are some exchange personal programs and other events discussed earlier in this chapter but this is not enough to become a Central American or Caribbean “Tiger”. One cannot copy Korean hardworking, it rather could be raised inside the nation than imposed but there are a lot of other aspects which could show which way to go.

The story of another Asian Tiger - Taiwan is very similar to Korea. Being a former colony of Japan it had educated labor force and infrastructure and together with enormous American aid Taiwan became a well-developed state. Even lack of diplomatic recognition from almost the rest of the world did not stop it. Central American and Caribbean countries may learn a lot from the Taiwanese example like insistence and positive spirit. Taiwan is a very close friend for 10 countries from this region and it would be easier to follow the same path.

The case of Singapore and Hong Kong differs from the cases mentioned above. These two territories used to be under British rule and were organized the same way as the Dominion. It was much easier for them to start their way. However, Singaporean story teaches us that it is very important to find your own niche in the world economy. For the last 70 years Singapore became an important financial center deeply engaged in global economy. Its success was mainly dictated by profitable geographical position. Some countries of the region we study could make some benefits from their location which is pretty good. But the world does not need one more Singapore thus they must find their own way.

If one takes a look at the way People's Republic of China made for all these years, he may call it ad astra per aspera or through difficulties to the stars. There were losses, hunger, wrong strategic decisions but all those mistakes tempered it. We asked ourselves: How did China become so great and what can we learn from its example?

The story of the PRC started in the 1^st of October 1949 when Mao Zedong announced the end of the civil war and the victory of Communist party. For the late 10-15 years China will follow the way of socialist countries guided by USSR. Communes, Great Leap Forward, Cultural Revolution all of them were made in the sake of communism. However, early times only partially contributed to the future success and there are a lot of opinions that they rather harmed than helped. Death of Mao has brought significant changes to domestic and foreign policy of the PRC. From the mid 1970-s Mainland China built stable and good relations with USA. From 1980 new leader of the nation Deng Xaioping started to implement aspects of market economy into existing plan system. As a result what Chinese have now is a unique system based on symbiosis of market and plan economy, where entrepreneurs buy raw materials on state prices, sell the product on market price and pocket the profit. The whole economy functions in the so-called grey zone which many experts predict to collapse in nearest future. The system functions due to unique system of “leashes” between state and market which so far none of the sides want to cut. State stimulates the plan to create working place and employ people. It also helps to manage the economy under crises. We would rather suggest that such kind of system is impossible to implement in any other place in the world.

Among the pillars of Chinese success we can name such points like vise leadership, orientation on the international trade, macroeconomic management, use of renewable energy, successful control of fertility, fighting corruption, reduction of poverty, ability to adopt the best practices and unique features of Chinese society. All of these factors contributed greatly to the present-day might of the PRC.

Competent leaders were crucial to the future success of the nation. But to our opinion the greatest achievements brought not the father of the nation Mao Zedong but his successor Deng Xiaoping. Mao leadership placed great ideas but was not so instrumental and efficient in providing domestic and foreign policy. However, he was important for the Chinese development filling people's heart with motivation, ambitions and the wish to live better. Deng Xiaoping was instrumental and responsible for modernization and reform. Kamrany N. China's Rise to Global Economic Superpower// Kamrany N., Jiang F.-Huffpost, 2015 His successor Jiang Zemin promoted Chinese openness for foreign investor and Chinese economic expansion. The current chairman of the PRC Xi Jinping continue the overall mood of his precursors. It should be noted that change of power between the leaders always was made smoothly. All candidates seemed to be modest and calm. It is hard to imagine a crazy dictator to become the leader of the PRC.

As for economic aspects, important role play: good macroeconomic management, orientation on trade and economic openness. The PRC was not the first to implement such measures. Beijing copied some of them from its neighbors all over the Asia. Special economic zones made investors interested, more and more enterprises were open, private business flourished.

In terms of social pillars which influenced on overall success one can name control over birth rate and fight with poverty. When Chinese government understood that if they did not interfere, there would be too much of Chinese population, it put some restrictions on birth. Thus they avoid possible problems with food supply, unemployment etc. Now those restrictions were weakened but they still exist. Another problem spoiling the whole atmosphere of success is poverty. There are still a lot of families especially in rural areas which live in bad conditions, have small opportunity to be educated and find a job. All these problems are familiar to authorities who don't ignore them and put a lot of efforts to eliminate them.

Thinking about Chinese mentality the first thing which came to mind is their diligence. While analyzing China's success, the cultural aspect certainly cannot be ignored. Hard work, discipline, sacrifice, moderation, shared values, focus on education, saving money, and investing for the future are all deeply ingrained in Asian/Chinese culture. Kanthan С. The Rising Chinese Dream // Activist Post,2018

Chinese are doing vise not only in their domestic policy but also make very well-thought steps in the international market as well. In order to avoid problems and disputes with trading partners it never presents itself as a threat. It promotes the image of good friend to anyone. The slogan “make trade not war” fits perfectly to Chinese position.

The constellation of all those factors made China great and part of them is quite applicable to the other countries. China can serve as a model of development for Cuba. Comparing these two states we may see that socialist regime in their pure sense are dead end story. Looking on China, Cuba may adopt some measures to make its regime more competitive. It should not isolate itself but try to be open. If we speak about Central American and Caribbean countries we may assume that if they, first of all, manage to build stable legitimate vertical of power, it will serve as base for future success. Later on they can provide the policy of import substitution and export promotion. They can open numerous SMZ's and make tax “holidays” for investors. It is clear for us that development in these countries is a hard task to do and we don't expect big changes in the nearest future. But in the long-term period some countries may achieve good results. It is not necessarily to follow the same path as Asia but there are a lot of hints that could be adopted. The proverb says “when there's a will there's a way”. Thus well-thought out strategy and development plan may create another economic miracle but in Latin American region.

Of course the starting point of Central American countries is not comparable with the one which Asian countries had. Japan was pretty developed during the late Meiji period and thus had a good potential; South Korea and Taiwan were former Japanese colonies with educated labor force and infrastructure; Singapore and Hong Kong were foreign British colonies which were ready to adopt western culture. On the opposite, Central American countries always had poor infrastructure, unskilled labor force, undeveloped political culture and absence of legitimate leaders. In such conditions there is no surprise that those countries are not the top one. If one tries to analyze their economy in detail, he or she would notice that most of them rely on agriculture. And here we must take into consideration that all of them plus minus produce the same products. Thus competing with each other. They sell fruits and vegetables to the neighboring countries and to USA. Their territories are small, prone to earthquakes. Most of them covered in rainforests. Their mineral resources are poor. So the way to sell raw materials or produce something from the minerals extruded locally is almost closed. A lot of Caribbean countries rely on tourism which is a good source of profit. But all those states which are not interesting for tourists due to poverty and lack of safety like Haiti have no way out. Some countries have become offshore centers which made them attractive for foreign investments. Others are selling their citizenship for money (Antigua and Barbuda). But despite all of these measures their resources are still limited.

Being a big state it is hard to balance between what you need and what you get but being a small state this task became much harder. There are a lot of theories explaining the logic states pursue playing their “game” on the international arena but there is one common defect concerning most of them. They are written by western authors and support western school of thought. In this situation one may ask: Is it relevant to look to Asian or Latin American countries from the point of view of theories which were written by westerners and for West? In this case we decided to look to the situation in Central America and Caribbean region through the paradigm of Peripheral Realism (Realismo Perifйrico)- a theory written by famous Argentinian political scientist Carlos Escudй who created his own conception of international relation on the example of Argentina.

In his work Escudй tried to explain how Latin American countries could represent itself in the geopolitical game which is dominated by more powerful states. He raised a dispute on whether it is possible to find a way for the states of this region between balancing and bandwagoning the USA. The main assumption and conclusion of this theory is that “weaker states, such as Argentina, could not seek high degrees of autonomy vis-а-vis the superpower hegemonic in their region without damaging the well-being of their citizenries”. Escude C. Peripheral Realism Revisited// Escude C.,Schenoni L.-Revista Brasileira de Polнtica Internacional, 2016 Thus according to this theory small states with limited resources will always provide their policy at the expense of citizens. But because resources are never infinite, and because extreme foreign policy autonomy also compromises human resources, unlimited autonomy necessarily leads to dictatorship and poverty even in the case of a superpower. This dilemma is summarized by Escudй in a compelling formula: Total foreign policy autonomy = Absolute domestic tyranny. Escude C. Peripheral Realism Revisited// Escude C.,Schenoni L.-Revista Brasileira de Polнtica Internacional, 2016 Tyranny occurs because the leader must control all the citizens who always will suffer in order to save his power. Thus the best way for a small state is to sacrifice its international independence in favor of well-being of citizens. His logic is simple - if it is impossible to change the rules of the game in your favor, it is better to follow the leaders and concentrate on your domestic policy.

Escudй divided countries in three categories: Rule-makers, rule-takers and rebel states. He assumes that only five states can make and break the rules - those are 5 permanent members of UN Security Council. Another group - rule-takers represents the majority. Those countries recognize the rules and have no objection. Among them he highlighted Japan and South Korea who show that the road to success lies not in sterile defiance but in cautious adaptation. Ibid P.7 The last group unites states which don't recognize rules and ignore them (North Korea, Iran). Escudй added to this group Argentina because of its participation in Falkland Islands war in 1982.

According to Peripheral Realism being a small state it is much better to follow the rules rather than to break them. Its author summarized several “advice” for developing countries:

1. A Leader should focus on well-being of his citizens but not the international affairs.

2. Developing countries should not interfere in core state international affairs if the situation has no connection with them.

3. Developing countries should not argue with core states even if they think there will be no negative consequences.

4. Developing countries should avoid expensive foreign-policy moves.

5. Developing countries should calculate advantages from bandwagoning and coalition with core states.

Escudй assures that after the Cold War most of the countries followed the path of bandwagoning. However, there were several exceptions. He mentioned Chavez's Venezuela as an example of the state which broke most of his advises. Chavez confronted the USA and tries to be independent and as a result his citizens suffered from it. It was them who paid for his ambitions. As a result they have neither well-being nor self-reliance. While Chili and Columbia took his advice and success followed. Escude C. Peripheral Realism Revisited// Escude C.,Schenoni L.-Revista Brasileira de Polнtica Internacional, 2016

Following ideas of Peripheral Realism countries of Central America and Caribbean may bandwagon Great powers and slowly but persistently, step by step develop themselves. In his theory Escudй mentioned the relationship between USA and developing countries because that time China was not perceived as a worthy competitor. But nowadays countries of the region under discussion may choose which core state they want to follow. Chinese influence in Latin America is no doubt big but no one is talking about USA going out from this region either. Thus the logical way will be to balance between those two powers and try to make benefits from the cooperation with both of them. As the Russian proverb teaches us “the slower you ride, the safer you will be”.

In terms of international relations small developing states are limited in their capacity and power. Even if in the UN every country has its representative and a right to vote, those voices are not equal in all senses. The opinion of Saint Lucia cannot be compared with the Russian one. All we can in this situation is to listen to this opinion but the final decision always will be in the hand of those 5 core states. In such conditions it is little that small countries can do about it.

Peripheral Realism helps us to understand why Central American and Caribbean countries want to follow China. They simply have little alternative to think about. They have several options - either to be fully independent and become the pariah state or to except dominance and patronage of someone more powerful. So far most of the countries have chosen the second path. All they need to do is to focus on domestic issues, adopt and copy others and there is nothing to be ashamed of.If “the strong do what they can and the weak suffer what they must” why not to turn this suffer for the benefit of your state? Escude C. Peripheral Realism Revisited // Escude C., Schenoni L.-Revista Brasileira de Polнtica Internacional, 2016

chinese infrastructure america caribbean

Chapter 2. Chinese Infrastructural projects in Central America and the Caribbean: Case Studies

China is currently spreading its influence to the regions which used to be not so attractive to it earlier. Small and poor Central American countries together with isolated islands of the Caribbean were never in such demand as they are now. While USA paying concerns about the new “players” near its borders, countries of this region enjoy the benefits of Chinese presence there. The region itself has a good geographic location and is one of the last backstop of Taiwanese recognition which makes it highly attractive to China.

Chinese economic expansion in countries of Central America and the Caribbean is directly connected with building infrastructural projects there. By infrastructural projects we mean building roads, airports, seaports, electricity generation objects like dams and power station and socially important buildings like hospitals, schools, universities and cultural facilities. But why infrastructure is so important and why Chinese are choosing the projects in this sphere in a first term? One may assume that first of all, infrastructure is one of the most expensive areas for construction. Authorities spend a vast majority of the budget for it. At the same time, this sphere is vital and necessary for normal life and development and thus could not be ignored. Helping developing countries in this sphere China made itself a sheet anchor. Once helped it demands little in advance: loyalty and recognition of the PRC instead of Taiwan.

Infrastructure is an important step towards well-being. If you have roads, ports, airports, hospitals, schools etc. your citizens are satisfied and ready to work for the brighter future. When investors look at you and see that you have infrastructure this will attract them. Thus it is much harder to refuse infrastructural project than project in any other sphere.

In the first chapter of our research we analyzed possible interests which People Republic of China may have in Central America and the Caribbean and actions which it undertakes to conquer these countries. Now we would like to examine the biggest Chinese Infrastructural projects in the region and to analyze negative and positive outcomes for the local environment. For our study we selected the following projects: Nicaragua Canal, Highway 2000 North-South Link and Goat Islands in Jamaica, Chucбs Hydroelectric Project in Costa Rica, Patuca 3 and Aqua Zarca Hydroelectric Projects in Honduras.

2.1 Chinese infrastructural projects in Central America. The case of Nicaraguan Canal

The first project under discussion is Nicaraguan Canal. In 2013 the president of the country Daniel Ortega issued a law which became a permission to build a new canal inside the country which would connect Atlantic and Pacific oceans. In 2014 Chinese company from Hong Kong - Hong Kong National Development Group (HKND Group) won the tender for the construction of the canal. When all the legal procedures were done, the company presented a plan of the future project. According to it the canal supposed to be 275.5 kilometers long, 26.9 to 30 meters deep and 230-520 meters wide. Nicaragua Canal Project Description/ HKND Group.-2014 It should begin at the Brito River on the Nicaragua's Pacific coast, down to the Lake of Nicaragua, and exits at the eastern side of the lake in the river Tula through Punta Gorda river valley to the Caribbean Sea. But canal and its infrastructure were not the only one to construct. Investors also wanted to build two sea ports - each on the Pacific Ocean and Caribbean Sea, free trade zone in Brito, a tourism resort in San Lorenzo and Boaco, a new airport in Rivas, a transportation network and power-suppling construction to operate the canal.

At first, people saw only benefits for Nicaragua: new source of profit, opportunity to raise employment, attraction of new investors etc. But later on it raised more concerns than positive estimations. Critics of the project raise their protests in several spheres: ecological, legal and economic.

Picture 1. Nicaragua Canal Chinese billionaire funding Nicaragua's US$50b rival to Panama Canal sees fortune fall 84pc // South China Morning Post, 2015

The legal side of the project lies in violation of Nicaraguan Constitutions. During the detail analysis of Law #840 which approved the construction, critics found a lot of contradictions and misunderstandings which was the result of a hurry from the side of Nicaraguan Assembly in order to pass a law as quickly as possible. During the voting in the Assembly the law practically did not meet any resistance or opposition among the assembly leaders what could be explained not by the unity of the opinions but by no wish to resist the powerful clan of current president Ortega.

The economical part implicates the problem of how real the promised economic benefits to Nicaraguans are. Nicaragua is second poorest country in Central America. According to the economic profile issued by World Bank Doing Business 2017: Economy Profile Nicaragua//The World Bank Group.-Washington.-2017, Nicaragua occupies 127^th position with the high rate of corruption and opacity, what is a typical feature for the third world countries. Thus we face a question: who could guarantee that rapid inflow of money which would come directly to the public purse? One may suppose that the first to benefit from the project would be Chinese investors, then the president and his retinue, global corporations etc. But not the poor people of Nicaragua. Only the fact that there was no referendum on the topic of building the canal already shows a lot. Supporters might say that president at least tried somehow to change situation in his country, fight for Nicaragua to become an important transportation and business center in the world community. But this try was too unpredictably dangerous in our view.

One more topic to criticize is employment of local population. The construction of the canal demands advanced technologies and extremely skillful personal to implement the project. Chinese from the beginning said that the “core personnel” will be Chinese and international. And here one had no illusion about that. Nicaraguan people will be employed only as usual workers.

Nicaragua as a third world country lacks skilled workforce and places where this force could be educated. So, if you want a local person to be involved in the project, you need at first to teach him. And here we can ask ourselves - do Chinese really need so much unskilled workers if they can bring their own from the homeland?

Let us imagine that investors keep their word and recruited several thousands of Nicaraguans. After the canal was build they can keep several hundreds to operate the project and what could be done with the others? Will they find a job then? If not they will come to the streets for demanding better future and situation will be keeping over and over again.

One more fly in the ointment is local population living in the areas where future canal supposed to be built. The canal will cover 12 440 square kilometers which consist 13 municipalities which are, in Nicaragua's scale, 10% of the whole territory. According to the plan, HKND Group will displace about 119,298 local citizens. What territories will the canal divide and what populations will be displaced? // Envio, 2015 When first Chinese workers came to this area many people wrote “Go away Chinese” on the doors of the houses to show their protest against the project. Only a small part of people agreed to leave their houses on a free will, others refused to move out from the territory where they lived for generations. Representatives of HKND Group and project supporters, in their turn, defend their position saying that now these people live in poor conditions but they are supposed to be replaced to new cities with new hospitals, schools and developed infrastructure “with services they never had before” Daley S. Lost in Nicaragua, a Chinese Tycoon's Canal Project/ The New York Times, 2016

But the most active opponents of the project are not the local population but ecological organizations. They raise a huge polemic on the problem of saving unique Lake Nicaragua. Lake Nicaragua is the biggest source of fresh water in Central America. Moreover, it has some rare species like freshwater sharks, stingray and was once very rich for flora and fauna. The Pacific coast of Nicaragua is the place for nesting sea turtles and mangrove swamps. Biologists did not doubt that building port there would badly influence on these species. They also warn that when the route will be open alien species may come to the lake.

But what opponents fear the most is that the lake is not deep enough for the big vessels and constructors will dig it. The digging in the lake and over the rest of the canal's proposed route would generate an almost unfathomable quantity of mud and dredging spoils -- enough to cover the entire state of Connecticut with one foot of dirt. Nuwer R. Nicaragua Plans to Bisect the Country With a Massive Canal / Smithonian, 2014 On the bottom of the lake lie heavy metals, mercury and arsenic which will get straight into the water after the excavation works. Changes in water quality and temperature could cause the whole ecosystem to collapse. Also a big part of Nicaraguan territory is covered by the rainforest which is crucial for the whole ecosystem. But the project will require space and thereafter cutting down some forests.

One more point against the project - volcanic activity. The project is located in the zone of seismic activity. The last earthquake was on the September 2016 and has a magnitude of 5,5. Lake Nicaragua would serve as the reservoir for the canal's lock system, requiring dams to be constructed in an area of frequent seismic activity, which would increase the risk of local water shortages and flooding. The lake would probably suffer from salt infiltration in the lock zones, as in locks of the Panama Canal. Meyer A. Conservation: Nicaragua Canal could wreak environmental ruin/ Meyer A., Huete-Pйrez J. // Nature, 2014

If one would listen to ecologists the whole project becomes a total disaster. But we should not listen only to one side's opinion. Ecological organizations fail to take into account one thing - Nicaragua is developing poor country and natural resources were for decades the only source of profit. The rainforests were farmed and cut down for generations, the fish was angled and rare species were caught. All developed countries, and Nicaragua is not an exception, don't have extra money for saving environment. Thus some biologists argue that the rare species exist now. They think the lake itself is polluted and building a canal through it did not change the situation. And here we face the question - where were all this ecological organizations which so violently protect the Nicaraguan ecosystem now? It can be proposed that someone whose interests were hurt with the project sent activists there to stop it.

When the project just started a lot of Chinese workers came to Nicaragua and began to dig the earth but then all the works were suddenly stopped. What were the reasons for that is a disputable question? What was mentioned officially is that the project is now on the phase of discussing possible ecological problems and preparing necessary documentation. This explanation was made by HKND officials in 2015 since then there were no comment on the topic.

There are a lot of rumors around the project. In 2015 the head of the company Wang Jing lost a huge part of his fortune due to the crises on Chinese stock exchange and get the title “the worst performing billionaire in 2015” according to Forbes. Wang Jing himself strongly assured world audience that this would not influence the project. And we can only guess now whether he was right.

Another opinion on the topic is that the project stopped because there is no need in it. Supporters of this idea say that there is no demand in building alternative route to the Panama Canal which will be expanded soon.

One more idea is that project is “financially unfeasible”. The sum of construction is too big not only for any country but for the world community as a whole.

What does also contribute to the rumors is lack of information. The head of the HKND Group Wang Jing was not such famous before the project started and there is little known about him. We know that he made his fortune on the communication sphere but who is he and what exactly he did is a mystery. The company itself was registered on the same year only few months before it won the tender.

One of the important sides of the project is the participation of the Chinese government in it. The question is whether it really hides behind the backs of the HKND Group or not. On December 20, 2014 Chinese Foreign Ministry's Spokeswoman Hua Chunying said: “The Chinese company's engagement in the Nicaragua project is an act of itself, and has nothing to do with the Chinese government”. Five things you need to know about the Nicaragua Canal // CCTV America.-2015 But this official announcement did not calm down neither the press nor the world community.

From the surface the whole situation with the project and Chinese authorities' involvement is very clear. It is not a secret that Hong Kong has a great deal of independence from the Beijing in many ways. Officially it is a part of China but in a form of Special Administrative region. But we should not ignore the fact that China is socialist country and state is keeping an eye on everything including business. A great deal of biggest Chinese companies is state owned. The head of the HKND Group Wang Jing, as he told himself, is not involved in politics and is not even a member of the Communist party but being billionaire in China there is no way for him to escape the state and his will. Even if he officially did not represent Chinese authorities, his action still promotes Chinese interests.

When the president of Nicaragua Daniel Ortega announced his will to build the canal, he hoped to attract investments and capital in Nicaragua. He claimed that he is thinking only about Nicaraguan people, wish to improve their living. At a first glance, he looked like national hero, a fighter for the better life of his people. But when one knows all the aspects of the project, its conditions, ecological impact, it becomes clear that the price is too high. All this altruism of Ortega and his elite became personal benefit and the thirst for profit.

When Chinese proposed the project to Nicaragua they have already place a heavy burden on it. Nicaraguans found themselves in the situation when you cannot refuse the proposal because you are poor state who badly needs extra finance but you also struggle to accept it because it will damage ecological situation in your homeland. Ortega reached the decision without much asking his people and accepted it. But here maybe the very destiny stepped in and the project became frozen.

The project was very ambitious and controversial from the beginning. Many looked on it with irony others with skepticism but Chinese strongly believed in their success. HKND Group officials gave a lot of interviews where they protect the positions of the company and justify its construction. In one of the company representative`s interview it was stated that all the measures are acquitted, ecological situation would not become worse, local population will only benefit from the project. HKND Group was presented like builders but not destroyers. All in all, all this polemic around the canal year after year became less and less relevant. Officially still not closed, now this ambitious project became a part of history. Panama now is an active Beijing supporter which hints us to idea that it will be Chinese company to involve in enlarging Panama Canal and automatically pushes us far from once great idea of Canal in Nicaragua.

2.2 Chinese infrastructural projects in Jamaica. Highway 2000 and Goat Islands Port

North-South Highway in the Jamaica became the biggest Chinese investments project in the history of the Caribbean region. In October 2010 a subsidiary of state-owned China Communication Construction Company (CCCC) China Harbour Engineering Company (CHEC) started the construction of ambitious and socially important road which connected the capital of the island located in the south with the northern coast. There were a lot rumors and concerns about that project but all in all, it was successfully opened in May 2016 and has operated till now.

The road itself is extremely important for local economy. It connected capital city Kingston with popular tourists resort Ochos Rios. It shortens driving time for this route from two hours to one which is a significant for local market and tourism. Officially named “Highway 2000 North-South Link” it quickly got a nickname “Beijing Highway”. Speaking about the sum spent on the building of this project, data are varied. One sources mentions $730 million Ruttenberg R. $730M Chinese-built highway opens in Jamaica // CGTN America, 2016, others states on $600 million. Official information from CHEC website holds the sum $610 million. Highway 2000 North-South Link // CHEC official Webpage The road was constructed in 3 different areas on the route simultaneously. The first full-scale constructions began in January 2013.

Picture 2. Highway 2000 North-South Link SourceЈєLaville S. Beijing highway: $600m road just the start of China's investments in Caribbean // The Guardian.-Kngston, 2015

When the project only was announced locals pay a lot of mistrust to Chinese company. All concerns were divided in two groups: ecological and social. From the ecological point of view local and foreign scientists were worried about project's safety. Jamaica as the rest of the region occasionally suffers from earthquakes and hurricanes and thus the project itself should take into consideration both disasters. But many experts argue that Chinese were negligent perusing the wish to start construction earlier. Geologists are worried about the middle section of the route where soil deposits are not stable. Some of them warn that in case of earthquake the highway may partially fall off killing thousands of people. Simon Mitchell, professor of geology at the University of the West Indies made the following comment to the Guardian about the geological base of the route: “There is a big issue with the middle section of the road and what is going to happen when there's an earthquake? That part of the road crosses two faults, there are gigantic soil deposits sitting on top of them and then the road is on top of all that. The government showed me the plans that the Chinese company used and I am still not convinced that the solution is safe”. Laville S. Beijing highway: $600m road just the start of China's investments in Caribbean // The Guardian.-Kngston, 2015

Social concerns include factors like employment of Jamaican workers into the construction. We already discussed the African statistics concerning involvement of local working force into the Chinese projects there and after that we may say that these worries have a strong right to exist. According to the statements of CHEC Chinese workers were enabled only in advanced tasks which require qualification, high skills and knowledge. Another source CGTN America states that “The project included more than 1,000 Chinese workers and 1,000 local Jamaicans” Ruttenberg R. $730M Chinese-built highway opens in Jamaica // CGTN America, 2016. A big obstacle in this problem creates lack of official data. We could not know for sure how many working places were occupied by whom and thus could not surely accuse China in giving job preferences to its citizens while construction.

Despite the critics from locals, project brought significant changes in the island. Among positives outcomes one can name reduction of car crashes because the road was built according to modern standards with the prop on safety; benefits for tourists like time saving which develop this strategically important for island industry; reduction of production cost - transportation expenditures would be decreased together with the final price which may make the products more attractive to the customers and finally it created more than 2000 working places for service sector for locals. Zhong N. Jamaica highway rated a success/ / China Daily, 2016

Negative outcomes of the project are also important topic to discuss. In order not to lose such an important investor like China Harbour Engineering Company Jamaican government have to make this project attractive for it. Together with the project CHEC has a right to use the land alongside the highway for building hotels, restaurants, shopping malls etc. Authorities gave more than 1200 acres of land for building luxury real estate. And none of the sources writes about government selling this land for money. Except that Jamaica gave the China Harbour Engineering Company a 50-year concession to recover its costs. Ruttenberg R. $730M Chinese-built highway opens in Jamaica // CGTN America, 2016Thus the Jamaican authorities would not receive profit from all those infrastructural projects which will be built alongside the route. It just will be enjoying the fact that the highway exists. From that perspective the deal looks contradictory. Did Jamaican people need this highway so badly to accept such a tough agreement? Judging by now when the route is functioning and everybody is happy, they did. But what would be the long-term consequences of this deal? Now advantages are obvious but later one Jamaican government may look at the land it granted earlier with envy.

According to the China Daily Europe for the period from opening in May 2016 till the March 2017 one million cars went through this road which is a big amount taking into the consideration that there are 1.2 million cars in the island in total. Zhong N. Jamaica highway rated a success//China Daily,2016 The road turned out to be very significant and successful and Jamaican authorities decided not to miss good opportunities and agreed on further expansion of the road. For the next couple of years the route will be extended to the Midwest of the country. Besides Highway 2000 Chinese are in charge of several other projects like road to the airport and improvement of current routes. According to CHEC official website from 2010 up till now the company is working with 4 projects: Jamaica Development Infrastructure Program (JDIP) (rehabilitation of current roads and bridges), Rio Grande Bridge Project, The Christiana Development Road Project and Westmoreland Bridge Project Jamaica Development Infrastructure Program (JDIP)//CHEC Official Webpage. In February 2017 Jamaica has signed a US$326 million loan with Chinese ExIM Bank for the construction of a new Southern Coastal Highway Improvement project and the extension of the tolled east-west highway. Together with the loan Jamaican government in its turn will grant $57 million to this project.

North-South Highway strengthened the friendship between China and Jamaica. This project seems to be beneficial for both sides: Chinese got a profitable land and opportunity to build real estate there; Jamaican got high-quality route which connects south and north. Of course, there could be hidden dangers like flash of the soils but so far in short term perspective advantages overbalance the disadvantages. Jamaican authorities have little alternative. Being a small state without much resource they are glad for every investor and China is not the bad choice in this sense. And if there is no place for altruism there, mutual benefits do exist.

One more ambitious project which was supposed to be constructed soon is a container port in Goat Islands located not far from the capital of Jamaica Kingston. In 2014 Jamaican Prime Minister Portia Simpson during her official trip to Beijing announced that Chinese would build new deep-water container port in Goat Islands. The project involved dredging and land reclamation activities as well as the construction of a coal-fired electricity generation plant. Lumsden A. Jamaicans must read China's record, not just its lips // Coha,2015 Thus Jamaica will be able to serve as a transportation hub for big ships on their way to Panama Canal.

China Harbour Engineering Company was very firm in their decision to build a new port there however, numerous environmental movements and protests did not make it happen. The project from the beginning had a huge environmental component. From 1999 Goat Islands territory was a part of Portland Bright Protected Area which made it similar with national preservation parks.

Picture 3. Portland Bright Protected AreaGoldenberg S. Iconic Jamaican iguana under threat from $1.5bn Chinese port project // The Guardian, 2014

Goat Islands are an ecologically sensitive area, which is home to a large population of critically endangered and endemic species of birds, fish, and reptiles. Environmentalists welcome scrapping of Goat Island project//Jamaica Observer, 2016 It is home for nearly 50 000 people and a lot of rare species. Ecologists made a fuss from the very announcement of the project. A lot of scientists worked there for decades to save the rare Jamaican iguana and coral reefs. Project could ruin the life of local inhabitants both human and animals. Fish, Lobsters, Conch, Shrimp would extinct in this area.

Local Activists created a website “Save Goat Island” and published numerous petitions and documents calling to stop negotiation around the project. Comparing this feedback form local and ecological organizations with the one Nicaragua canal received, it is several times more. That time the polemics about the projects made Jamaican authorities to announce its cancelation in 2016. The representative of Jamaican government mentioned their commitment to saving unique and delicate ecosystem and propose to move this project to another place. So far there are little talks about possible relocations of the port and this fueled the rumors about its total cancelation. We believe that China Harbour Engineering Company would not refuse this project. It agreed to its relocation simply because it has huge strategic importance. We believe that it is a lull before the storm.

Looking at those two projects pessimists would see lack of transparency, violation of rights and damage of the local ecosystem. Optimists, in their turn, would see at least 14 000 working places for locals, new investments and opportunity to make money from port operation. But conducting this research we could not be neither optimists nor pessimists. We must stick to reality and be objective. In our opinion both projects contain more pros than cons. The first project even with all violation of working rights and domination of Chinese business alongside the route possess a huge base for development. Building a highway from the ground is a big and costly deal; Jamaicans could never afford it without external help. If not Chinese, other investors could occupy this place and they, we claim, would make the same way Chinese did or even worse. No one would take this project in case it brings no profit. Jamaican government had to come to terms otherwise it would not have resources to realize this project. There always will be discordant people but the task of leader is to listen to the voice of majority and think about the interests of the nation in long-term perspective.

The situation around Goat Island project is a bit different form the one with the highway. It contained a time-bomb and its relocation was a good decision. The Jamaican nation would never forgive its leader for ruining the ecosystem of this area. It is always pleasant to know that there are such kinds of people who are ready to protect the environment not counting the cost. In contrast to Nicaraguans who, in our view, were less worried about ecological damage, Jamaican did a great job and won this battle. Jamaican so far did not lose a lot from its refusal to use exactly this territory, even if the project being silent for a while, we believe that it would be resumed by Chinese in the place more suitable for every participant.

2.3 Chinese Hydroelectric Projects in Central America. The case of Costa Rica and Honduras

In May 2011 famous Chinese state-owned corporation Sinohydro started the construction of the Chucas Hydro Project in Costa Rica. The project was a necessary step for Costa Rica having reduced the amounts of CO₂ remissions and injecting the capital San Jose and its suburbs with 50 MW of power. In October 2016 the first part of the project began to operate and now year and a half later the whole system functiones properly.

Picture 4. Location of Chucбs hydro plant Chucбs hydro plant// BN Americas,2018

The project included building of the 63 m high dam, a penstock and a powerhouse. Chinese were in charge of diversion tunnels, intaking towers for power generation, civil engineering of the plant and mechanical and electrical equipment installation. Costa Rican Chucas Hydropower Station integrated with power grid // Power China, 2016 The owner of the project is Italian corporation Enel which later employed Sinohydro as a main construction.

Building the dam Chinese engineers faced a lot of problems. First of all when they came to the Tarcoles river where the project is located they found themselves surrounded by the bushy rainforest. They have to enlarge the existing roads near the project almost twice to make sure the heavy machinery could get through it. Also Sinohydro provided special measures for the soil under the dam not to erode. Its representatives created flood control system to protect the soil and settlements which often suffer from rainy seasons from May to November.

The company faced another problem which is accommodation for the Chinese workers. Sinohydro senior management decided to rebuild the old dormitory of Costa Rican University of Science and Technology located not far from the project. After the project has been finished the dormitory passed to the university.