Abstract (eng)
When and under what conditions do economic inducements effectively translate into the desired policy outcome? This thesis adds knowledge to this question by analysing the Chinese economic inducement efforts directed towards the Philippines between 2002 and 2012. To this end, particular attention has been paid to the ability of the Chinese state (principal) to control its commercial actors (agents), which are responsible for implementing the inducements. More specifically, this research raises two questions: First, what was the degree of Chinese state control during its economic inducement strategy vis-à-vis the Philippines? Second, did the degree of state control impact the effectiveness of the strategy in achieving the desired foreign policy objectives? To answer these questions, this thesis builds on a broad body of literature on the effectiveness of economic inducements, the role of the sender state and its relationship with commercial actors. Drawing on a comprehensive framework for “state control”, two specific cases of Chinese economic inducements – namely the construction of the North Luzon Commuter Railway and the National Broadband Network – are analysed and evaluated. Ultimately, the findings suggest that the extent of Chinese state control can be described as mixed, mainly due to diverging intrinsic goals between principal and agent, as well as insufficient agent oversight on part of the state. This thesis furthermore highlights the importance of sufficient state control for the execution of effective economic inducement strategies and provides concrete recommendations for policymakers and researchers alike.