1 Taking stock of the evidence
You may recall that in the first session the following two questions were asked:
- Does China’s international engagement spell increased cooperation between developing countries for mutual benefit?
or
- Are Chinese practices exploitative, signalling a new phase of neo-colonialism?
These questions are essentially two sides of the same coin and you were introduced to a range of evidence that could help you answer these questions.
Activity 1 Reflecting on China’s impact in Africa
Spend 30 minutes thinking back over the previous four sessions of study and fill in the following table as a way of structuring your analysis. As you do so, consider whether both columns of the table have an approximately equivalent number of factors or whether one side is significantly more heavily populated that the other. And do you feel all factors are of equal importance or are some more critical than others? An opening example has been included for you.
| Factors where China has encouraged African development | Factors where China has impeded African development |
|---|---|
| Builds refineries | Imports labour |
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Discussion
Here is a suggested response to the activity.
| Factors where China has encouraged African development | Factors where China has impeded African development |
|---|---|
| Builds refineries | Imports labour |
| Brought new investment in infrastructure through oil-backed loans | Largely enriched political elites in the countries where it invests |
| Created jobs in construction | Chinese firms still import the more skilled labour they need |
| Purchases many of the commodities that African countries produce and so boosted their income | Sometimes misunderstood the politics of a particular country |
| Takes African governments seriously and does not seek to interfere in their politics | On occasion contributed to domestic conflicts, as in Sudan |
| Created local linkages in some countries, e.g. Sudan | |
| Taking a more active role in development and diplomacy following the Darfur crisis | |
| Skills and technology transfer |
Now watch this video with Giles Mohan.
Download this video clip.Video player: Video 1: China’s Contribution to African Development
Transcript: Video 1: China’s Contribution to African Development
GILES MOHAN
Whether China brings development through its investments in Africa is a mixed answer, really. In some cases, it's been quite positive. In other cases, less so. And I think that counters some of the media hype that the Chinese are only there to do things in their own interest. So rather than saying it's either/or, it's a bit of both, really. And the answer to why that happens is really down to the nature of those local institutions that you see in Africa. So where you have robust laws that govern, say, the local content that is written into those contracts and that is enforced, then you can see some benefits coming from that. But where there's lax regulation, then companies, whether they're Chinese or whoever, will not really be doing a great deal to generate employment, create revenue, and all those other things which you get. I think the other key way that the Chinese have contributed to more forms of inclusive development is through what are called oil-for-infrastructure deals; So this is to say, well, we'll take some of your oil, but it can be other natural resources. And we effectively give you a low interest loan on the back of that. You secure your loan against the sale of those resources. And then the money that comes in from that is used to build infrastructure, which can be roads, railways, electricity generation, and things like that. And it's those things, actually, I think, which are going to have the wider ripple effects in terms of African development, not simply whether there's a 5%, 20%, 30% stake in a particular oilfield, which is a very capital-intensive industry. So the benefits are always going to be quite limited from direct employment, say, in the oil fields. But if you think in a much broader set of issues around those infrastructure and the linkages to local firms, and you can see small ways, I think, in which China is benefiting Africa.
Video 1: China’s Contribution to African Development
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To what extent do you agree with this assessment of China’s role in Africa? If you differ, why do you think what you do?