Wednesday, 13 April 2016

China & Africa: A Ravenous Dragon’s Unrelenting Push

China & Africa:
A Ravenous Dragon’s Unrelenting Push into the ‘Dark’ Continent
Public Lecture, CXXV, MMXI

Costantinos Berhutesfa Costantinos, PhD,
Professor of Public Policy, School of Graduate Studies,
College of Business & Economics, AAU
Abstract
     China has shifted from a centrally planned to a market based economy and experienced rapid economic and social development. It has lifted more than 500 million people out of poverty. On December 4 and 5, 2015, South Africa hosted Chinese President Xi Jinping in Johannesburg for the Forum on China-Africa Cooperation. Notably, going beyond its tradition of doubling financing to Africa at each of these meeting, China tripled it this time. Sino-African trade has increased rapidly, since 1999. Combined with China’s tolerance of African states’ human right records, this has contributed to Beijing’s highly successful diplomatic scuffle in Africa. Beijing has moved in rapidly with the necessary resources that have so far been the subject of lengthy negotiations with the Bretton Woods funders, many times at the cost of project redundancy.
     What can Africa learn from China? The political economy of Chinese reforms and the shared gains between political elites and the private sector can be partially transplanted to the African context. Rural reforms in China helped accelerate economic take-off through a restructuring of property rights and a boost to both savings rates and output. China has experimented with a degree of decentralization that could yield benefits for many Sub-Saharan African countries. Africa can learn from China’s policies toward autonomous areas and ethnic minorities to stave off conflict and China’s experiences and conduct developmental experiments for poverty alleviation goals. There are four developments in particular that merit attention: a focus on quality and not just price, the push to employ more local talent, greater interest in building local capacities and diversifying risk.
     Today, a more vigorous debate has begun about the nature of African ties with China. Hyperactive Chinese involvement is undoubtedly helping address the infrastructure shortcomings that hold up growth. Meanwhile, in some countries, the flood of Chinese émigrés already far surpasses that of European settlers during colonial times. With Chinese dominance of the African economic and political landscape, powerful forces and trends of unity and disunity, chaos and order mark this moment of globalism. Considering the drive, characteristics and dynamics of the Chinese economic assault, the fundamental question facing African nations is not whether they have options for participating in the process of balanced benefits in the spirit of true globalism; it is indeed how they wish to integrate into the process and at which speed, to be partners and actors.
Key words: Africa, China, trade, infrastructure, diplomacy, human rights
See lecture here

1 comment:

  1. The silent take over of entire areas by Chinese settlers, even in Addis, is a visible sign of China's intention to take root in Africa and exploit our natural resources. Oil fields and mines are the target while corruption is their main method of acquiring favors. What I deplore is the lack of an open debate over this new phenomena among African intellectuals. Where is the fact based research on. China's presence in Africa, not just about their meager foreign direct investments but about the unprecedented influx of low laying operatives, backed by State capital, who buy off small, medium and big entreprises, build homes using local partners (spouses?), get facilities that locals don't have....I observe as we all do but we need a genuine analysis of China's presence and future in Africa. Costy, we need to start now.

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