As China rises to prominence as a global lender, what impact does this have on borrowing countries? In a context of deepening global financial integration and rising powers, this book examines how developing countries, specifically in sub-Saharan Africa, can use borrowing relationship to their advantage. Alexandra O. Zeitz reveals how these countries, once reliant on traditional donors, may now leverage Chinese loans and international sovereign bonds to enhance their bargaining power in aid negotiations – a strategy she terms the “financial statecraft of borrowers.” Grounded in extensive interviews with senior officials from recipient countries and donor agencies in Ethiopia, Ghana, and Kenya, and complemented by statistical analysis of aid agreements, The Financial Statecraft of Borrowers offers a comprehensive understanding of how aid relationships are changing along with the shifting landscape of international finance.

‘Alexandra O. Zeitz elevates our understanding of variations in the power of recipient governments when negotiating aid agreements with donors. By incorporating the rise of new donors, variations in international financial liquidity, dyadic relationships between ‘traditional’ donors and recipients, and the credibility of recipient governments, The Financial Statecraft of Borrowers provides essential insights into the changing landscape of foreign aid and donor-recipient relationships.’

Sarah Bermeo - Associate Professor of Public Policy and Political Science, Duke University

‘An extremely important book that explains how recent changes in global finance affect developing countries’ access to external credit. Through an impressive combination of quantitative analysis and in-depth case studies of Ethiopia, Ghana, and Kenya, Alexandra O. Zeitz shows how the availability of new borrowing options – including access to Chinese lending and finance from private international creditors – alters the political economy of sovereign borrowing for developing country governments in sub-Saharan Africa and beyond. This is outstanding research that needs to be read by both scholars and policymakers interested in the political economy of international finance, development financing, economic interdependence, and the changing patterns of financial globalization in the 21st century.’

Mark Copelovitch - Professor of Political Science and Public Affairs, University of Wisconsin – Madison

‘In the late 2000s and the 2010s, the abundance of global capital was a boon to African governments. They could borrow larger amounts, on better terms, and they could bargain with their potential creditors. The Financial Statecraft of Borrowers draws attention to the often-overlooked agency of borrowing governments. Zeitz highlights the domestic political economy of governments’ borrowing choices using an impressive array of interview as well as quantitative evidence.’

Layna Mosley - Professor of Politics and International Affairs, Princeton University

‘A groundbreaking work that illuminates the complex interplay between global financial markets and the international aid system. A must-read for scholars and policymakers alike, Zeitz's rigorous analysis and rich empirical evidence offer a fresh perspective on how African governments can use financial statecraft to exert influence and power over foreign donors.’

Haley J. Swedlund - Radboud University and author of The Development Dance: How Donors and Recipients Negotiate Foreign Aid