Date post: | 15-Jul-2015 |
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China in AfricaIs Chinese investment in Africa an
example of neo-colonial erosion of
sovereignty?
Ok.. let’s Break it down
Is Chinese investment - i.e. money from
government of China or Chinese Transnational
corporations going into industry, mining an
agriculture in Africa..
an example of neo-colonial - like colonialism in
the past when Britain went to Africa, obtained
cheap resources from them for little money.
however it is new.. often big TNC’s who move
into countries and overuse their power are
accused of being neo-colonial.
erosion of sovereignty? - and they lost their
political independence to choose their countries
path.
Task: You are a researcher for the Minister of Finance in a small African
Country who has had long term political and economic ties with Taiwan. You
have recently been approached by a mainland Chinese delegation who have
asked you to support them in exchange for a lot of Chinese investment in
Agriculture and some mining as well as helping develop some transport..
You have been asked to create 6 slides to explain..
a) what is China doing in Africa
b) give examples of where Chinese help is really helping any specific countries in
Africa to develop. (use Angola is best)
c) Give examples of what problems may occur by allowing Chinese investment.
d) Give a short recommendation based on specific facts and figures.
You should be able to give an opinion based on your research to tell the Minister
whether you think China’s goals are aimed at helping you or whether you should
fear a neo-colonial erosion of sovereignty.
2 covers - 10 years difference
The same voices that once proclaimed the continent dead are now predicting a rebirth for
Africa, the awakened giant with nearly incalculable natural resources (around 40 percent
of the world's raw materials and 60 percent of its uncultivated arable land), fast-
growing markets and a young, highly motivated population.
No other continent has developed as rapidly in the last decade as Africa, where real
economic growth was between 5 and 10 percent annually. In oil-rich countries, such as
Angola, it was a possibly record-breaking 22.6 percent in 2007.
A World Bank study shows that 17 of the 50 national economies currently displaying the
greatest economic progress are in Africa. The gross domestic product of the continent as a
whole -- over $1.7 trillion (€1.3 trillion) -- is nearly equal to that of Russia.
The German magazine Der Spiegel describes three forces driving Africa's boom: China's
economic offensive, the digital revolution and African women's fight for a better future.
source: Der Spiegel
Up and Coming African States
China’s involvement in Africa has been since the 50s, when as part of the Cold war they were involved in help to countries that were more left leaning. An example of Chinas aid was in the development of the Tanzam railway, linking copper mines in Zambia to the East African port of Dar Es Salaam.China's recent economic offensive in Africa began before the turn of the millennium. At first, it was very gradual and inconspicuous. But, since 2000, trade volumes between China and Africa have grown twentyfold, reaching $200 billion in 2012. China has surged ahead of the old major powers - France, the United Kingdom and the United States -- to become Africa's most important trading partner.The Washington-based Center for Global Development estimates that, between 2000 and 2011, China provided about €75 billion in aid to Africa for a total of 1,673 projects, or roughly as much as the United States did in the same period.However, it is sometimes hard to tell where profitable investment ends and altruistic initiatives begin.In return for developing the infrastructure, the Chinese receive lucrative licenses to exploit natural resources and fossil fuels. For instance, Angola, a war-torn and marginalized country until not too long ago, has become one of China's key oil suppliers, competing with Saudi Arabia for the top position.
However is China merely undermining nations sovereign rights?
Aid from China or the West?China attaches no political conditions to economic cooperation, unlike the West, which, at least on paper, demands good governance, the rule of law, anti-corruption measures and protections for human rights.With Chinese economic dominance, the West's political influence is gradually being eroded. In authoritarian countries like Ethiopia, Rwanda and Uganda, the model of the Chinese development dictatorship, which prioritizes growth over freedom, has long been a welcome alternative to liberal democracy.So in this case Aid from China and investment is not attached with these provisos, and therefore not affecting the sovereign right of the govements
Much of Western Aid is aimed at
issues relating to the Millenium
Development Goals
China’s aid aims at infrastructure
Growing Resentment and Violence
Nevertheless, there is growing resentment in South Africa, where there are reportedly already 250,000 Chinese.
In the townships, the new immigrants are berated as "yellow masters." Among South Africans, the Chinese are
often seen as greedy, ruthless and racist, as people who are exploiting Africa, flooding its markets with cheap
products and ruining an already weak domestic industry.
Union leaders in Angola complain that Chinese companies are creating too few jobs for local workers. There are
rumors in the capital, Luanda, that the Chinese are using prisoners as forced laborers on construction sites.
In Zambia, there are frequent protests against the starvation wages and inhuman working conditions in Chinese-
run coal and copper mines. Chinese guards have repeatedly fired on striking miners in recent years, causing
bloodbaths. One of the miners, after being struck by a bullet in July 2006, said: "They simply don't see us as
human beings." Angry workers killed a Chinese manager during a wage dispute in August 2012.
In Zimbabwe, Chinese products are called zhing-zhong, or junk products that don't last. Chinese vendors were
recently attacked in the Kariakoo market in Dar es Salaam. "They undercut every price and are spoiling our
business," says a woman who runs a shop at the market.
Some Africans have become resentful, though, unhappy with unbalanced relationships in which China has taken
proprietorship of African natural resources using Chinese labor and equipment without transferring skills and
technology. “China takes our primary goods and sells us manufactured ones. This was also the essence of
colonialism,” Lamido Sanusi, the governor of the Central Bank of Nigeria, wrote in the Financial Times earlier
this year.
source: The New Yorker Article - The New Imperialists
Note - although China’s outward FDI has increased rapidly it is least in Africa compared to other areas, and
is in fact declining. Most FDI is related to State linked TNC’s like Sinopec (oil)
What this does not show however is Chinas financial flows in terms of aid and loans, often which are low
interest, and have no “links”. They are often for infrastructural programmes and in some cases have been
wiped out.
Guardian - China offers $20 bn in loans to African nations
What is the Reality - China in Africa - Think again - Read and try and come up with 5 points the author uses
to say that Western common opinion is not correct.
So. Which of the following is true
A reminderYou have been asked to create 6 slides to explain..
a) what is China doing in Africa?
b) give examples of where Chinese help is really helping
any specific countries in Africa to develop. (use Angola)
c) Give examples of what problems may occur by
allowing Chinese investment.
d) Give a short recommendation based on specific facts
and figures.You can also listen to the podcast on..
Some bbc articles e.g Link
This article - “Is China good or bad for Africa?”
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