In Europe there is a widespread suspicion that China must be up to no good, but I do think there are two sides to that picture. But like in any other Western coverage of China nowadays the media prefers to show us the ugly side.
Hong Kong-based researchers Barry Sautman and Yan Hairong argues about China:“The Western characterisation of China as engaging in an amoral, neo-colonial scramble in Africa has developed out of the larger ‘China Threat’ discourse. The discrediting of China in Africa serves to contain a perceived strategic competitor and to negate the notion of a pluralism of paths of development. This new discourse also retroactively vindicates European colonialism in Africa and constructs the Western self-image as ‘promoters of democracy and good governance’ on the continent—despite US, UK and French continuing support for most of Africa’s authoritarian regimes.”
I believe in trade, business and infrastructure (physically and mentally) as the means to development in Africa. If Europe did not subsidize the farming we could buy cheaper agricultural products from Africa who in turn would have money to buy knowledge-based products from Europe. Instead African markets are flooded with excess EU produce at prices below that the African farmer can compete with.
United Nations acknowledges the steps taken between China and Africa for a liberalised trading partnership:
"More Ethiopian agricultural products would be allowed into China duty-free, he revealed, and China had pledged some $500 mn for various development projects in Ethiopia. “China is an inspiration for all of us,” he added. “What China shows to Africa is that it is indeed possible to turn the corner on economic development.”
I know that China, like USA and EU, are also supporting some terrible regimes in Africa. And this harms all the good development China is bringing to Africa. But I do believe that Beijing these days are choosing the right way. In the end the trading strategy that China is promoting in Africa would benefit more from stable economies than war and corruption. Because the economic relationship matters to China, its government has a vested interest in long-term stability, and China's current rhetoric suggests an understanding that this is best procured by “harmony” and the careful balancing of interests, not by force.
Now I hope that EU will learn from China's policies in Africa making it easier for the citizens of Europe to do business with Africa. Cut the toll barriers and scrap the CAP (Common Agricultural Policy). Let us through social entrepreneurship or just common import-export make money while we make up for our colonial debt to Africa. I got a lot of entrepreneurial friends in Tanzania who are impatiently waiting for the wall to fall.
But like the president of Senegal said at the EU-Africa summit December 2007: "Europe is close to losing the battle of competition in Africa." It was the first EU-Africa summit since 2000 because of Europe's worries about human rights abuses, so it actually seems the EU is waking up. So Europe and Africa are talking again, but it has given no trade results yet, partly because Europe does not have one voice (some countries are still reluctant to engage in free-trade and to remove agricultural subsidies) and Africa now has greater negotiating power.
China Development Brief knows a lot more about this case than me, so I will let them say the last words here. A bit provocative, but it is still the bitter truth:
"Westerners typically believe that although China has the largest society in the world it has no civil society worth mentioning. But this is at least to some extent because China is not easily visible or comprehensible to Westerners, who have a long tradition of finding the Chinese “inscrutable”—a quality that, of course, depends on the cognitive powers of the observer, not the observed. Africans should not be so short sighted."
Nice post... I remember hearing a debate on P1 where one of the debaters (I have forgotten his name) argued that Europe should not only drop its protectionist policies but furthermore abolish its agricultural sector and buy food from African farmers... especially a country like Denmark whose wheat quality is unsuited for human consumption and instead goes to feeding the ever growing population of swine [two legged and the four legged kind to ;-)].
ReplyDeleteEither way China is an interesting case indeed with, and I agree with you on the notion that our understanding of the giant is limited to a few aspects of their society.
Well keep up the good posts and I will draw traffic to your page as Africa draws the Chinese ;-)
Removing trade barriers is a good idea. However, one is naive if one thinks that this will remove Africa's problems. The biggest problem for African trade is..Africa. There are trade barriers between African countries, and since neighbouring countries are the most likely trade partners, this poses a much bigger problem than the trade barriers of EU. Fact is, that many of the products that Africa can offer aren't that interesting for European consumers. African countries are reluctant to remove tariffs because it often is one of the major sources of income for the state.
ReplyDeleteThese things are rarely stated in Denmark, where we much more often hear the press and leftwingers state that EU's trade barriers is what is keeping Africa in poverty. If only it were so simple.
Also, there is the problem of the ineffectiveness of much of the African workforce. Some Chinese companies bring their own workers, because they simply cannot get reliable and skilled workers in Africa. How is Africa supposed to attract foreign investment with a workforce that is ineffective? On top of that add the often unstable and quasisocialist regimes and protectionist measures you find in many African countries, and you will realise that EU's trade barriers are only a fraction of the problems.
Daniel B: "Fact is, that many of the products that Africa can offer aren't that interesting for European consumers." Products like sugar and beans?? I am very interested in cheaper food products. And if African farmers get incomes on export they will spend the money making the wheels go round and eventually buying more imported products. So both the European consumers and exporters would gain from a free trade agreement, but some powerful European farmer lobbyists would of course have to look for a new job.
ReplyDeleteYes, Africa has huge problems with corruption, education and unreliable regimes, but should we be part of the disease or part of the cure?
We could help the development by letting the farmers benefit from their natural comparative advantage. By letting the market mechanism function by agreeing mutually with African Union to remove trade barriers like tariffs and subsidies.
I have just been to Tanzania and met a lot of people doing business. Corruption is the one greatest problem - by the government, by the police, by firms, by everyone. But they now have a very public debate slowly changing the Corrupters image from a "smart guy" (yeah, really!) to a "bad guy hurting the society". My point is that the workforce itself is not ineffective, but the system and the so far inexistence of society moral as we know it in Europe. But the society is changing for the better and we can help pushing this change!
Maybe I didn't make myself clear. I do agree that removing trade barriers is a good idea and I fully support that. My point is that doing that might not have such a great effect that some people think. Usually neighbouring countries are the biggest trade partners. In Denmark we trade very much with Germany and the other Scandinavian countries for example.
ReplyDeleteSure, they might be able to sell some sugar in some countries and that is good. I'd love to buy cheaper sugar from African countries too. But many other products are more attractive to other African countries, such as cultural products for instance. Trade with such products suffer under the protectionist measures that almost every African state has today.
So while we can agree that EU's protectionism is bad, I just needed to make the point that contrary to what a lot of people believe, it is not only EU that is the problem, but the African countries themselves.
Regarding the workforce: well, as far as I know this has always been a major problem. Why should Chinese companies bring their own workers for simple tasks if the African workforce was satisfactory? It doesn't make sense, since it is costly.
Ok, we do agree that EU's protectionism is bad. (USA's protectionism is even worse) Where we don't agree is HOW bad it is.
ReplyDeleteIn Denmark, yes, our neighbouring countries are our biggest trade partners. For Africa, no, the intra-African exports are 6.2% of the total African exports to the world, whereas the export to Europe is 34% (2004 figures). So the European market is 5 times as big for the African exporters than the intra-African market. The European market is very important for Africa and that is why our protectionism IS one of Africas biggest problems.
The protectionism between the African countries are out of our hands, but I hope the African Union soon will succeed in making Africa a free trade area.
Regarding the workforce: The chinese companies only BRING a few workers. The greater part of their workforce they HIRE in Africa, which often is chinese immigrants (legal and illegal) willing to work under conditions that most of the Africans don't want to.
(hmmm, this discussion has no end, has it!? Maybe in the future I should stick to my diary posts...)
Maybe it has no end, but it is interesting none the less, don't you think?
ReplyDeleteOne reason that the situation is like that, is the heavy tariffs imposed between African countries. Again, we agree on the EU and US trade policies and tariffs and all that, it is just important no the ignore the significance problems in Africa. I recommend this article, that I came across today:
http://themadisontimes.com/articles/op-ed-/food-crises-and-restrictive-african-trade-practices
"In Nigeria, the tariffs on rice are at 55 percent, including a five percent levy for increasing local production. In neighboring Benin, it is mere 35 percent. That's a whopping $200 per ton price advantage Benin imports have over Nigerian ones."
55%? 35%? That is just crazy. No wonder the trade inside Africa suffer from this.
Maybe it has no end, but it is interesting none the less, don't you think?
ReplyDeleteOne reason that the situation is like that, is the heavy tariffs imposed between African countries. Again, we agree on the EU and US trade policies and tariffs and all that, it is just important no the ignore the significance problems in Africa. I recommend this article, that I came across today:
http://themadisontimes.com/articles/op-ed-/food-crises-and-restrictive-african-trade-practices
"In Nigeria, the tariffs on rice are at 55 percent, including a five percent levy for increasing local production. In neighboring Benin, it is mere 35 percent. That's a whopping $200 per ton price advantage Benin imports have over Nigerian ones."
55%? 35%? That is just crazy. No wonder the trade inside Africa suffer from this.
Daniel B: "Fact is, that many of the products that Africa can offer aren't that interesting for European consumers." Products like sugar and beans?? I am very interested in cheaper food products. And if African farmers get incomes on export they will spend the money making the wheels go round and eventually buying more imported products. So both the European consumers and exporters would gain from a free trade agreement, but some powerful European farmer lobbyists would of course have to look for a new job.
ReplyDeleteYes, Africa has huge problems with corruption, education and unreliable regimes, but should we be part of the disease or part of the cure?
We could help the development by letting the farmers benefit from their natural comparative advantage. By letting the market mechanism function by agreeing mutually with African Union to remove trade barriers like tariffs and subsidies.
I have just been to Tanzania and met a lot of people doing business. Corruption is the one greatest problem - by the government, by the police, by firms, by everyone. But they now have a very public debate slowly changing the Corrupters image from a "smart guy" (yeah, really!) to a "bad guy hurting the society". My point is that the workforce itself is not ineffective, but the system and the so far inexistence of society moral as we know it in Europe. But the society is changing for the better and we can help pushing this change!
Nice post... I remember hearing a debate on P1 where one of the debaters (I have forgotten his name) argued that Europe should not only drop its protectionist policies but furthermore abolish its agricultural sector and buy food from African farmers... especially a country like Denmark whose wheat quality is unsuited for human consumption and instead goes to feeding the ever growing population of swine [two legged and the four legged kind to ;-)].
ReplyDeleteEither way China is an interesting case indeed with, and I agree with you on the notion that our understanding of the giant is limited to a few aspects of their society.
Well keep up the good posts and I will draw traffic to your page as Africa draws the Chinese ;-)