1.5 - Angola + China Flashcards
What is the dependency theory?
- outlines relationship between core and periphery in global context
- is a Marxist theory rather than a modernisation theory
- countries are locked into peripheral or core state since lat 16th century due to colonialism
- Peripheral countries are unable to develop due to balance of global trade
- Core relies on and exploits periphery
- IGOs reinforce the systems of control
What is the periphery dependent on the core for?
- Manufactured goods
- Aid
- Political and economic ideas
- The locating of polluting industries
What is the core dependent of the periphery for?
- Debt repayments
- Political support
- Raw materials
- Brain drain (to poach high skilled workers)
How much did Chinese banks loan Angola for reconstruction since the end of the Civil War?
- $60bn
What conditions have been put in place on Chinese reconstruction loans to Angola?
- At least 70% of construction projects must be carried out by Chinese companies
- Angolan companies do not gain from these projects
- no filtering of wealth
What is China’s ultimate geopolitical goal?
- a world built on political equality and mutual trust
- no more American hegemony
How has China had a positive social and cultural influence on Angola?
- China has sent 600 teachers and 15000 doctors
- May result in an improvement in education and life expectancy
- can increase favour for Chinese influence in Angola amongst the people
How has Angola exercised its leverage over China?
- Forced China to buy at least 10 000 barrels of oil/day as part of investment deals
- semi-secure income stream
How are Chinese trade and investment deals beneficial for Angola?
- New infrastructure is built for low or almost no cost to the Angolan people
- eg. Luanda Railway and electricity distribution lines
- potentially overcoming infrastructure hurdle for globalisation
- Knowledge, experience and some wealth are being shared through these deals
- allows for potential for future self sufficiency
How are Chinese trade and investment deals detrimental for Angola economically?
- Cheap Chinese goods have flooded African markets
- resulting in prices of goods such as textiles being down 17%
- results in local companies not being able to compete with low prices and becoming unprofitable
- thus destroying local industry
- led to job losses in Kenya, South Africa and Lesotho
- dependency on Chinese goods is increased
- Local private companies cannot compete solely because they do not have access to resources needed for tasks eg, road building
How are Chinese trade and investment deals detrimental for Angola and Africa politically and socially?
- China has backed the MPLA in Angola
- despite their corruption and HR violations
- China has blocked resolutions against civil war in Sudan
- Elections have been rigged in favour of pro Chinese politicians
- eg. In Zambia, rioting occurred when an anti Chinese politician from the opposition ‘lost’
- Chinese investment does not see reduction of poverty and good, independent governance as an end goal
How has Chinese trade in Africa varied since 2000?
- Grown by 400%
What is neocolonialism?
- Use of economic, cultural, political or other pressures to control and pressure other nations
- especially former colonies
How is neocolonialism conducted?
- Strategic alliances
- provision of bilateral aid that benefits the donor
- TNC investment
- leading to FDI and creation of jobs
- retains influence
- Terms of trade
- low commodity export prices
- high import of manufactured goods
- Establishment of debt creditor relationship
- through unfair or impractical loan conditions
What is the value of finance provided for projects by China for Angola since 2000?
- $465m
- Has been enough to no longer need Western support from former colonisers
- has shut out French and Portuguese companies
- is China’s 2nd largest trading partner in Africa
