CHINA IN AFRICA

Question 1

KAPLINSKY & MORRIS

Answer 1

• SSA attractive due to rich resources
• DRC extensive resources but lacks ability to exploit this, Chinese investment in mines allowed under condition that investment in infrastructure & no more than 20% of workforce is Chinese
• aid tied to an investment package, mutually beneficial

Question 2

ANGOLA

Answer 2

• Angola –> China oil exports up 400% since 2001
• $14.5 billion credit in Chinese investment, accepts repayment in natural resources
• 93-95% Angola export, if China controlled this economy would suffer, exploitative

Question 3

TULL

Answer 3

• natural resources to maintain economic boom, 9/10 partners are resource rich
• no preconditions, doesn’t undermine sovereginity of state/ supports authoritarian rule
• finance prestiguous buildings like stadium in Sierra Leone
• negative political development which doesn’t contribute to the promotion of peace, prosperity or democracy on the continent

Question 4

GU

Answer 4

• investment compromises MDGs, good governence, human and labour rights BUT is crucial for accelerating growth
• private firms are mainly SME, risk taking and oppurtunisitic

Question 5

BRAUTIGAM

Answer 5

• structural adjustment policies, MDGs, social development shape Western aid, funding for agriculture dropped 25% to 4% and lack of investment in manufacturing and infrastructure, China stepped up
• joint venture, building factories and creating demand for Chinese goods, funding exploration for natural resources (Sudan oil 1996)
• using lessons learnt from aid relationship with Japan