29 Aug2009

I came across this video on Hulu in a series called Vanguard, and thought it worth sharing. About a month ago I dedicated a post to the Role of China in Africa, which I highly suggest you check out! I wrote about many of the issues and concerns raised here, but the video delivers some great imagery to the concepts and realities of China’s growing foothold in Africa.

We are taken to the country of Angola, a country scarred by almost 30 years of civil war. After the war, Angola sought financial assistance from the West, but was unable to secure investment due to the many conditionalities attached. The Chinese, however, were quick to court the Angolans – particularly given the wealth of natural resources (diamonds, minerals, and oil) and the country’s strategic coastal location. Five years after the end of Angola’s civil war, with the help of China, the country had become Africa’s fastest growing economy.

Angola has seen rapid growth in the local Chinese population. At the time of filming this video, China had an estimated US $6-11 billion extended to the Angolan government in loans. Under the loan agreements, 70% of all projects were to be built by Chinese companies – importing their own labor and materials ranging from light bulbs to heavy machinery.

For Chinese expats living in Angola, life is less glamorous than what they imagined – notably the level of poverty that they witness. Creating an incentive to stay, though, the average Chinese worker in Angola makes about three times (3x) what they would make in China.

The negative arguments remain, however:

  • The Chinese “Mutual Respect for Sovereignty” policy gives Angolan politicians a blank check for bad behavior (Rise in Corruption)
  • Chinese investment does little for Angolan employment
    • Angolans at bottom of the totem pole in their own country
    • Continued reliance on the informal sector
  • No utilization of local resources (everything is imported from China) means that Angolan businesses hardly benefit
  • Once the natural resources have been depleted, the Chinese will leave and what will Angola be left with? Is it worth it?

What do you think?

Also, don’t forget to take a look at my first post on China in Africa.

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