Grandiose Parlor

6 Responses to “Africa: Chinese Dollars Won’t Matter Much if…”

1. For every intent and purpose, the new China Afican Policy, has all the semblance of colonialism. The first wave of colonialism wasn’t entirely evil. Yes, they messed up the geopolitics of the continent, but they also built infrastructure and empowered the locals to the extent possible.

   Though the Chinese have maintained they do not what any of the internal politics stuff, their not getting involved in internal politics of their trade partners, is as evil as politics of the first colonisers who truncated the natural sociopolitical growth of African nations.

   How can Red Dragon justify trading with a nation whose maniacal head of state kills and maims indiscriminately in the name of war?

   How can China continues doing business with a nation when the bulk of the cash that accrues from such trade ends up in the pocket of its kleptomaniac head of state?

   To remain silent in the face of evil is evil. It’s even more evil since China benefits immersely by being and remaining silent!

   Your comment is appreciated and I share you view point in its entirety Thanks! - Imnakoya

   By Dayo
   November 4, 2006 at 11:20 pm

2. Dayo is correct, except for colonization. I think the word is being used emotionally, and not by its definition.

   China’s policies are amoral. They believe in “socialism in one state”. They are completely only interested in strengthening their own territory. Still state to state relations are often amoral. State to state is different than people to people.

   Regards.

   The point Dayo is trying to make is that colonialism, by whatever definition, is one of the several factors that have helped create the mess we see in Africa today. It wrecked the native geopolitical structure of the continent beyond repair! While China may be trying not to get entangled in the internal affairs of African nations, but by being silent and continuing to trade with evil regimes, like Sudan, it is also helping to consolidate evil. - Imnakoya

   By Renegade Eye
   November 5, 2006 at 11:48 am

3. Good job Imnakoya, your input on this important issue is much appreciated.

   Point 1: Will there be a technology transfer (or professional skills transfer)?

   Answer: No. Experts who closely follow the PRC have written that China is not big on sharing its manufacturing know-how with outsiders, especially with other developing nations. When they finish milking the cash cow, they simply leave to find a new one. This might change in the not-too-distant future.

   Point 2: lack of probity, political oppression, and weakened institutions. How will the cash influx from Beijing help improve these areas?

   Answer: Not my problem. At least, that has been the attitude of the Beijing regime and their ambassadors and international businesspeople up to now. Ain’t in the handbook, Dude. Again, this could change in the not-too-distant future. How long is not-too-distant? Your guess is as good as mine.

   My advice?

   Take the money and run, get top dollar for your resources, don’t sell too much too fast. Don’t sell at all, just rent or lease it!

   Demand local participation in damn near every project, learn what you can when it is of value.

   Make sure that your national and regional and local governments spend the money on things that the nations needs and not on themselves.

   Keep working closely with specific nations on good governance and fair trade and poverty alleviation and better health and education, ’cause we love you whether you have oil and gas and gold and diamonds or not.

   We love you for who you are, not for what you’ve got under your feet (natural resources). After all, many of us in the West and elsewhere are your own blood, those who did not return from the sea a long, long time ago…

   By Black River Eagle
   November 6, 2006 at 11:48 am

4. Thanks BRE. The China-Africa trade tango is one dance that will generate a lot of heat and reaction for a long time. As you mentioned in your post, the G8 will not remain silent and indifferent to the Chinese agenda, andit will be intersting to see how and what they would offer to checkmate the Chinese.

   By imnakoya
   November 6, 2006 at 9:27 pm

5. This is why Equatorial Guinea’s President Teodoro Obiang was all smiles at the China-Africa Summit. When he is able to sign a few new deals with China he and his family will not have to worry about this problem anymore reported at the BBC News on Nov 8th:

   BBC News
   President’s son buys $35 million U.S. home

   Teodoro Nguema Obiang bought a $35m house in California’s exclusive Malibu area in February, Global Witness says.

   His pay as a minister is $60,000 a year. The country was named recently as one of the world’s most corrupt.

   Africa’s third-biggest oil producer earns $3bn a year but most people live on just $1 a day.

   Global Witness said it obtained the information on the purchase of the 16-acre property from public records available in Los Angeles.

   Read more at
   http://news.bbc.co.uk/2/hi/africa/6129992.stm

   THIS my friend is a good example of “money laundering”!
   Call in The Federales (FBI, U.S. Treasury) quick.

   Money laundering is putting it too lightly; this is robbery!!! -Imnakoya

   By Black River Eagle
   November 10, 2006 at 10:19 am

6. If getting Chinese dollars means that China is simply pumping money into Africa’s vast storehouse of raw materials just to turn around and process them into finished goods somewhere in China, then yes the Chinese money will matter. However, to whom will it matter and in what way?

   If history has anything to do with it, “raw material-only” investments would matter mostly for China. They would almost certainly be in the best position to go through the ribbon and cross the finis line, but wait…second to cross the finish line would probably be Africa’s politicians, and in last place struggling to finish this foot-race would be everyone else-Africa’s people.

   Mr. Musevini, I believe, took a wise and courageous stance in telling China that their investment would mean only receiving incentives for investing in Uganda’s finished products. On the surface his words may seem proud, arrogant, and misplaced. But wait…if one looks closely accross the wide expanse of African nations..then one might find that for some reason the countries that have experienced the most vicious power struggles, the most shocking poverty to the masses, and etc. these are nations which in their respective categories (oil, diamonds, gold, uranium, bauxite, rubber, & etc) are leaders-when it comes to quantity of resources. Oftentimes, the leadership in these countries found numerous ways of subverting the market system and became the market itself. In the process, so many precious commodities were almost given away to nations who used these materials to make consumer products, industrial products, and strategic products of a national interest. Yes, the politicians become wealthy, but the people starve. Because the people are not blindfolded, the politicians feel the need to further entrench themselves in power. Thereby creating a huge and perplex cycle of suffering. Generally speaking, this is what as happened to the bulk of Africa’s mineral rich nations.

   There have been a few exceptions most notably-the three that most quickly come to my mind are Botswana, Ghana, and Uganda. The similiarties that they seem to share are strong leadership and an independent business base. Additionally, they each seem to have a very strong and guiding culture lying just beneath their official socio-politcal structures. My apologies, for the long-wind, what I am hinting at is that although the above scenario of chaos is probable-there is hope that the opposite could happen. Botswana’s diamonds, Ghana’s gold, and Uganda’s coffee have been for the most part favorable for these three nations, they have each invested the proceeds into initiatives aimed at involving/empowering large cross sections of their populations. I hate cliche’s but Africa…your future is in your hands! Only you can decide which upon which path to tread. And which ever direction you choose to take…the world will surely never be the same.

   By Mwangi
   November 14, 2006 at 7:26 pm

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