China in Africa: Friend or Foe?
This week, Alf Svensson is participating in the mission of the EU delegation to South Africa. The delegation is in Cape Town for the inter-parliamentary meeting with the South African Parliament. Topics discussed in the partly heated debate include: SADC-EU Partnership Agreement Negotiation, the New EU foreign policy strategy, Situation in African nations holding elections in 2011, Outcome of EU-Africa summit in Tripoli, etc. Below is the opening remarks of Alf Svensson to the sub-item on South-South cooperation and development.
Honourable members, dear colleagues,
There has been a dramatic increase of South-South trade relations since the beginning of the new Millennium. Just over the ten past years, Beijing has become the single most important trading partner for many African countries. We all know – and this is probably an understatement - that China does not have environmental and social standards as their main priority. There are concerns that the Chinese presence in Africa could actually hinder or slow down the democratisation process on the continent, even though the partnership with China may well lead to strictly economical development.
China has experienced fast industrial development, and is therefore in need of raw materials and oil – a need that may be the main incentive for Chinese interest and engagement in trade with, and aid to, the African continent.
But maybe there is something that European donors could actually learn from the way China is operating? If we are to be a little self-critical, and one should, the fact is that the Chinese presence in Africa has made it possible to achieve, in just a few years, what Western donors have failed to achieve in more than 50 years of post-colonial history! Efficient infrastructure is now coming into place in Africa – thanks to the Chinese.
The Chinese and European ways of handling business and aid relations in Africa, and all over the world, are however, and will probably remain, quite different. Chinese activities in Africa are often conditional – for example access to raw materials in exchange for a nice road. One of the most evident examples is Angola, which has lately become the main oil supplier to China, in return for a number of economic and infrastructure projects.
European actors, as you well know, traditionally operate with another kind of conditionality; aid in exchange for steps towards good governance, transparency and democracy.
I would like to quote Philippe Maystadt, President of the European Investment Bank, who said:
The competition of Chinese banks is clear: they do not care about social or human rights conditions.
Or, as Papa Kwesi Ndoum, Minister for Public Sector Reform in Ghana, puts it:
There is a risk that some governments in Africa may use Chinese money in the wrong way to avoid pressure from the West for good governance.
The Chinese model is not only economical, it is political as well. China is a state governed by a party with no cares for democratic principles and human rights!
There is also a link to employment. If China really wanted to make a positive change in Africa, they would of course use African labour force for their projects, and not, as is now the case, import Chinese workers to carry out the job.
Many textile factories and other industries have been forced to close on this continent due to the massive import of cheap Chinese products, which of course leads to further unemployment. If I am not mistaken, trade unions here in South Africa carried out a campaign for boycott of Chinese products in 2007.
South Africa was recently invited to become a member of the BRIC forum. Flattering as this may be, some domestic financial expert have warned that there might be a risk that South Africa, as being by far the smallest economy in BRICS, would be treated as the little brother, and not be allowed any real influence in BRICS.
Some are suggesting to enhance the cooperation within IBSA instead. It would be interesting to hear the views of South African colleagues on this specific issue, as well as on other aspects of South-South cooperation.
Thank you.
Publicerat den 21 februari 2011
Honourable members, dear colleagues,
There has been a dramatic increase of South-South trade relations since the beginning of the new Millennium. Just over the ten past years, Beijing has become the single most important trading partner for many African countries. We all know – and this is probably an understatement - that China does not have environmental and social standards as their main priority. There are concerns that the Chinese presence in Africa could actually hinder or slow down the democratisation process on the continent, even though the partnership with China may well lead to strictly economical development.
China has experienced fast industrial development, and is therefore in need of raw materials and oil – a need that may be the main incentive for Chinese interest and engagement in trade with, and aid to, the African continent.
But maybe there is something that European donors could actually learn from the way China is operating? If we are to be a little self-critical, and one should, the fact is that the Chinese presence in Africa has made it possible to achieve, in just a few years, what Western donors have failed to achieve in more than 50 years of post-colonial history! Efficient infrastructure is now coming into place in Africa – thanks to the Chinese.
The Chinese and European ways of handling business and aid relations in Africa, and all over the world, are however, and will probably remain, quite different. Chinese activities in Africa are often conditional – for example access to raw materials in exchange for a nice road. One of the most evident examples is Angola, which has lately become the main oil supplier to China, in return for a number of economic and infrastructure projects.
European actors, as you well know, traditionally operate with another kind of conditionality; aid in exchange for steps towards good governance, transparency and democracy.
I would like to quote Philippe Maystadt, President of the European Investment Bank, who said:
The competition of Chinese banks is clear: they do not care about social or human rights conditions.
Or, as Papa Kwesi Ndoum, Minister for Public Sector Reform in Ghana, puts it:
There is a risk that some governments in Africa may use Chinese money in the wrong way to avoid pressure from the West for good governance.
The Chinese model is not only economical, it is political as well. China is a state governed by a party with no cares for democratic principles and human rights!
There is also a link to employment. If China really wanted to make a positive change in Africa, they would of course use African labour force for their projects, and not, as is now the case, import Chinese workers to carry out the job.
Many textile factories and other industries have been forced to close on this continent due to the massive import of cheap Chinese products, which of course leads to further unemployment. If I am not mistaken, trade unions here in South Africa carried out a campaign for boycott of Chinese products in 2007.
South Africa was recently invited to become a member of the BRIC forum. Flattering as this may be, some domestic financial expert have warned that there might be a risk that South Africa, as being by far the smallest economy in BRICS, would be treated as the little brother, and not be allowed any real influence in BRICS.
Some are suggesting to enhance the cooperation within IBSA instead. It would be interesting to hear the views of South African colleagues on this specific issue, as well as on other aspects of South-South cooperation.
Thank you.
Publicerat den 21 februari 2011
