Critics of International Economic Liberalism and Economic Globalization 355in the planning and construction. Secrecy has
prevailed in Nicaragua itself since the proj ect was
fast- tracked through the National Assembly in
one day. There was little public debate and scant
information.
Environmentalists also warn of the potential
negative side effects. Although the exact route of
the canal has not been revealed, the country’s rich
biodiversity would be threatened by whatever
path it takes. The shallow Lake Nicaragua through
which the canal must pass would need to be
dredged and 700 metric tons of rock and soil
removed, threatening the integrity and survival of
its ecosystems. The land would be taken from the
local indigenous communities that live there. Yet
there has not been an environmental impact
assess ment and indigenous people have not been
consulted.
Is this proj ect another indication of China’s
push into the Western hemi sphere? Between
2000 and 2013, Chinese trade with Latin Amer i ca
grew from $12 billion to $262 billion. China is
involved in financing major infrastructure proj ects,
including hydroelectric proj ects in Argentina and
Ec ua dor and a Brazil- to- Peru rail system. In 2015,
China promised to support a $50 billion overhaul
of Brazil’s infrastructure— roads, rail, airports—
before the Olympic Games.
Liberal economic theory asserts that competi-
tion will both lower prices and lead to more goods
flowing within the markets. But will the enormous
costs of the canal be competitive with the Pan-
ama Canal? Will a competitor canal lead to higher
levels of trade at lower cost?
De pen dency theorists would argue that the
canal represents nothing more than another
example of a rich state, or a rich individual or com-
pany, co-opting leaders in a country with promises
of riches for themselves or for their countries,
of which there are no guarantees. And the poor
people whose lands are being confiscated and
who have lost their ability to earn a livelihood
will be the ones who suffer if the proj ect is
completed.Criti Cal thinking Questions
- How impor tant is the unknown relationship between the Chinese investor and the
Chinese government? - President Ortega was once a Marxist before he became president. What explains his
dramatic change in views about economic development? - Would a new canal actually be competitive with the Panama Canal? How would you
research that question?
a. Alfonso Serrano, “Titanic Canal Proj ect Divides Nicaragua,” Al Jazeera Amer i ca, April 6, 2015.