chinese aid, trade and investment in africa a case study of tanzania

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Chinese Aid, Trade and Investment in Africa A case study of Tanzania International Development Studies Lecture Series 11-11-2010 Sanne van Keulen

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Chinese Aid, Trade and Investment in Africa A case study of Tanzania. International Development Studies Lecture Series 11-11-2010 Sanne van Keulen. “China is legitimizing and encouraging Africa’s most repressive regimes, thereby increasing the likelihood of weak and failed states” - PowerPoint PPT Presentation

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Page 1: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Chinese Aid, Trade and Investment in Africa

A case study of Tanzania

International Development Studies Lecture Series

11-11-2010

Sanne van Keulen

Page 2: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

“China is legitimizing and encouraging Africa’s most repressive regimes, thereby increasing the likelihood of weak and failed states”

Brookes & Hye Shin (2006)

“China is marking a path for other nations around the world who are trying to figure out not simply how to develop their countries, but also how to fit into the international order in a way that allows them to be

truly independent, to protect their way of life and political choices in a world with a single massively powerful centre of gravity”

Joshua Cooper Ramo (2004)

“China is both a tantalizing opportunity and a terrifying threat for Africa“

Moeletsi Mbeki

Page 3: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

“Much of the commentary on China in Africa focuses either on assessing how Western capital’s interest might be affected, or on

denouncing China for practices that have for centuries been the norm for US and European powers – support for dictators, callous destruction of the environment, exploitation of minerals, and

complete disregard for human rights. Lost in the cacophony has been the voice of independent African analysts and activists […] There is

no single ‘African view’ about China in Africa […] .”Firoze Manji in Manji & Marks (2007)

Page 4: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Theoreticalbackground

- China’s re-entrance in Africa- China’s motives and goals- Conjuncture between aid, trade and investments- Competitive versus complementarity- Infrastructure and development

Page 5: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Trends in Chinese Investment (FDI)

Page 6: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Trends in Chinese Investment (FDI)

Page 7: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Trends in Sino-Tanzanian Trade

Page 8: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Trends in Sino-Tanzanian Trade

Page 9: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Trends in Chinese Aid

- Pattern of Sino-Tanzanian agreements 1960-present- Cooperation in the area of infrastructure (roads and

railways, communication, energy, water supply), agriculture, medical assistance, industrial development and cultural cooperation

- China’s role in Tanzania’s donor community- Aid for trade ‘deals’- The big unknown

Page 10: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Infrastructure development

“Admittedly, Chinese enterprises have contributed to swift improvements in infrastructure and hence to economic growth in Africa, generally acting in the context of projects negotiated at

an intergovernmental level. There is a risk, however, of domestic construction companies being crowded out, and there are sizable shortfalls in the transfer of know-how and

employment of local workers.”Asche and Schüller (2008)

- Two perspectives: economic development through infrastructure assets and impact on the construction market

- Public versus private investment- Chinese market share in civil works- Market entry strategy

Page 11: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Stakeholder Perspectives- From friendship to business- The informal economy- How Chinese companies operate in the market

- Lack of understanding - Organization of work and work ethics

- The role of the Tanzanian government - Threats and opportunities for economic development

Page 12: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Conclusions

- Complex and contradictory effects- Competition and complementarity - Role of the Tanzanian government- Lack of understanding and dialogue

Page 13: Chinese Aid, Trade and Investment in Africa A case study of Tanzania

Questions, [email protected]

http://www.ccs.org.za/wp-content/uploads/2010/05/China_Monitor_APRIL_2010-SCEDIT.pdf