BOOK
The Rise of China and India in Africa
Fantu Cheru | Cyril Obi | Gunilla Carlsson | Dot Keet | Kwesi Aning | He Wenping | Fredrick Mutesa | Peter Kragelund | Alex Vines | Sanusha Naidu | Liu Haifang | Sanjukta Bhattacharya | Alemayehu Geda | Atnafu G. Meskel | Peter Draper | Tsidiso Disenyana | Renu Modi | Linn Axelsson | Professor Timothy M Shaw
(2010)
Additional Information
Book Details
Abstract
In recent years, China and India have become the most important economic partners of Africa and their footprints are growing by leaps and bounds, transforming Africa's international relations in a dramatic way. Although the overall impact of China and India's engagement in Africa has been positive in the short-term, partly as a result of higher returns from commodity exports fuelled by excessive demands from both countries, little research exists on the actual impact of China and India's growing involvement on Africa's economic transformation.
This book examines in detail the opportunities and challenges posed by the increasing presence of China and India in Africa, and proposes critical interventions that African governments must undertake in order to negotiate with China and India from a stronger and more informed platform.
Fantu Cheru is the Research Director at the Nordic Africa Institute in Uppsala, Sweden and Emeritus Professor of International Development at the School of International Service, American University in Washington, DC. Dr. Cheru's previous publications include: African Renaissance: Roadmaps to the Challenges of Globalization (2002); The Millennium Development Goals: Mobilizing Resources to Tackle World Poverty (2005); Ethiopia: Options for Rural Development (1990); The Silent Revolution in Africa: Debt, Development and Democracy (1989). His articles have appeared in Third World Quarterly, World Development, Review of African Political Economy, International Affairs, and Review of International Political Economy, among others.
Dr. Cyril Obi is a Senior Researcher, and Leader, Research Cluster on Conflict, Displacement and Transformation at the Nordic Africa Institute, Uppsala, Sweden.In 2001, he was a fellow of the 21st Century Trust, Conference on 'Rethinking Security for the 21st Century', also held at Oxford. He is a contributing editor to The Review of African Political Economy, and is on the editorial board of The African Journal of International Affairs, The African Security Review and The Review of Leadership in Africa.
The Nordic Africa Institute (Nordiska Afrikainstitutet) is a center for research, documentation and information on modern Africa. Based in Uppsala, Sweden, the Institute is dedicated to providing timely, critical and alternative research and analysis of Africa and to co-operation with African researchers. As a hub and a meeting place for a growing field of research and analysis the Institute strives to put knowledge of African issues within reach for scholars, policy makers, politicians, media, students and the general public. The Institute is financed jointly by the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden).
'Readers will find the book to be both educative and critical.'
Adebayo Olukoshi, African Institute for Economic Development and Planning
'World hegemonies are shifting from the Atlantic to the Pacific and the Indian Ocean. The rise of China and India, the relative decline of the US and the waning centrality of Europe will all have far-reaching impact on Africa. The new geo-political stratgey of the US expressed openly in the militarisation of the African continent would find the Eastern seaboard of Africa the weakest link in the Indian Ocean rim. Under the circumstances, a deeper understanding of the global situation and its impact on Africa is cricially important. The contributors to this book attempt to provide us with such an understanding. It is most welcome.'
Issa G. Shivji, University of Dar es Salaam
'A timely work of scholarship that doesn't shy away from hard questions regarding the implications of Asia's rise for African development. It will be welcomed by academics, policy makers and students alike for its clear-eyed analysis, data and comparative insights.'
Chris Alden
'A very valuable addition to a whole series of new and on-going debates about the character of China and India’s engagement with Africa.'
Kenneth King, University of Edinburgh
Table of Contents
Section Title | Page | Action | Price |
---|---|---|---|
Africa Now | i | ||
About the editors | ii | ||
List of tables | vii | ||
List of figures | vii | ||
Acronyms and abbreviations | viii | ||
Foreword | xi | ||
Introduction – Africa in the twenty-first century: strategic and development challenges | 1 | ||
China and India as preferred partners | 2 | ||
Exit the Washington Consensus! Enter the Southern Consensus! | 5 | ||
Scope of the book | 6 | ||
PART ONE | The big picture: China and India as emerging giants | 11 | ||
1 | China, India and (South) Africa: what international relations in the second decade of the twenty-first century? | 13 | ||
China–India and Africa: the historical context | 13 | ||
Africa and China: convergent or divergent national and regional interests? | 15 | ||
Africa and BRIC: from emerging economies to private capital and civil society | 16 | ||
Africa and BRIC: compatible or competitive? | 17 | ||
South Africa within CIBS (China, India, Brazil, South Africa Dialogue) and IBSA: dominator or facilitator of Africa’s interest? | 19 | ||
Africa, China and IR from ‘Africa’: lessons from the continent? | 20 | ||
2 | South–South strategic bases for Africa to engage China | 21 | ||
Current African governmental engagements with China | 22 | ||
Alternative strategic perspectives for Africa | 23 | ||
Box 2.1 Investment conditions of Third World governments (late 1960s–70s) | 24 | ||
3 | India’s African relations: in the shadow of China? | 34 | ||
Post-cold war relations: a rediscovery | 35 | ||
Broadening economic horizons: the quest for energy security | 35 | ||
table 3.1 ONGC investments in Africa | 37 | ||
table 3.2 Other oil companies in Africa | 38 | ||
Trade and investment | 39 | ||
table 3.3 India’s trade with Africa | 39 | ||
Political and economic drivers | 40 | ||
Box 3.1 The India–Africa Summit of April 2008: commitments made by India | 42 | ||
table 3.4 Presence of Tata in Africa 1991–2006 | 43 | ||
figure 3.1 India’s active lines of credit as of March 2006 | 44 | ||
Development assistance | 44 | ||
In China’s shadow? | 45 | ||
Conclusions | 48 | ||
PART TWO | China and India’s relations with Africa: a historical perspective | 51 | ||
4 | China’s development cooperation with Africa: historical and cultural perspectives | 53 | ||
Cultural cooperation: to make friends first | 54 | ||
The evolution of Sino-African development cooperation, 1955–79 | 54 | ||
China–Africa relations in the post-1970s reform period | 56 | ||
The post-1990 reforms | 57 | ||
Reinventing cultural diplomacy in the service of globalization | 58 | ||
Key programmes for promoting Chinese cultural diplomacy | 59 | ||
Conclusion | 61 | ||
5 | Engaging Africa: India’s interests in the African continent, past and present | 63 | ||
India–Africa trade, past and present | 64 | ||
From idealism to pragmatism: India–Africa relations since the 1990s | 67 | ||
India–Africa and new regionalisms | 71 | ||
India and China in Africa: competition or coexistence? | 72 | ||
Conclusions | 75 | ||
6 | Indian development cooperation with Africa | 77 | ||
India’s African diplomacy in the post-cold-war period | 77 | ||
Indian development assistance outflow: volume and instruments involved | 78 | ||
Volume and composition of aid | 79 | ||
table 6.1 Indian development assistance outflow | 80 | ||
Development cooperation instruments employed | 79 | ||
figure 6.1 Indian development cooperation instruments | 81 | ||
India’s Aid and Technical Assistance Programme | 81 | ||
table 6.2 India’s aid and technical assistance outflows | 82 | ||
India’s lines of credit (LOC) programme | 83 | ||
figure 6.2 Indian lines of credit outlay | 84 | ||
Institutional arrangement for approving LOCs | 84 | ||
figure 6.3 Institutions and activity flow chart for approval of an LOC | 85 | ||
figure 6.4 Institutions and activity flow chart after signing of an LOC | 86 | ||
table 6.3 Ongoing Indian development cooperation activities with African regional/multilateral bodies | 87 | ||
Development cooperation with African regional/multilateral bodies | 88 | ||
Are Indian lines of credit concessional enough to qualify as ODA? | 89 | ||
table 6.4 Terms and conditions of Indian lines of credit | 89 | ||
table 6.5 Indian aid, trade and investment flows in Africa: geographical distribution | 90 | ||
But can Indian LOCs be technically considered as ODA? | 89 | ||
Indian development cooperation: aid, trade and investment linkages | 90 | ||
table 6.5 Indian aid, trade and investment flows in Africa: geographicaldistribution | 90 | ||
If it is not ODA then is it Aid for Trade? | 91 | ||
table 6.6 Financing for trade | 91 | ||
What’s the issue of tied aid vis-à-vis export credit? | 92 | ||
The role of Indian development cooperation in ‘oil for infrastructure’ deals | 92 | ||
Conclusion | 93 | ||
PART THREE | China and India’s growth surge in Africa | 95 | ||
7 | China and India’s growth surge: the implications for African manufactured exports | 97 | ||
Modelling the China–Africa relation in manufacturing exports | 98 | ||
Are African exporters being displaced by China and India? | 98 | ||
table 7.1 G2LSLS IV regression result: dependent variable log of third market imports | 100 | ||
Is Africa stepping into the export space left by China and India? The ‘flying-geese’ theorem | 101 | ||
table 7.2 Spearman’s rank correlation coefficient between the RCAIs of African exporters and the Asian drivers | 103 | ||
table 8.1 Sectoral distribution of outward Chinese FDI stock | 110 | ||
table 8.2 China’s OFDI outflows – regional distribution (stock) | 111 | ||
Conclusion | 104 | ||
8 | Chinese investmentin African network industries: case studies from the Democratic Republic of Congo and Kenya | 107 | ||
Outward FDI: motivations and entry modes | 107 | ||
figure 8.1 Positioning for emerging market companies | 109 | ||
figure 15.1 China–Angola trade volume | 194 | ||
Patterns of Chinese investment in Africa | 110 | ||
table 8.1 Sectoral distribution of outward Chinese FDI stock, 2003–06 | 110 | ||
table 8.2 China’s OFDI outflows – regional distribution (stock), 2003–06 | 111 | ||
The impact of Chinese investment: case studies from Kenya and the DRC | 112 | ||
Concluding observations | 118 | ||
9 | The role of India’s private sector in the health and agricultural sectors of Africa | 120 | ||
Indian investments in Africa | 121 | ||
Indian private investments in Africa and the role of the EXIM Bank | 122 | ||
Indian FDI and trade in the African agricultural and agribusiness sector | 123 | ||
Indian private sector FDI in the African healthcare sector | 127 | ||
Conclusion | 130 | ||
10 | Navigating Chinese textile networks: women traders in Accra and Lomé | 132 | ||
The politics of trade, women traders and textiles in Togo and Ghana | 133 | ||
Navigating Chinese penetration of local markets: a tale of two traders | 135 | ||
Conclusions | 140 | ||
PART FOUR | The conflict–development nexus: a precarious balance! | 143 | ||
11 | China and Africa: towards a new security relationship | 145 | ||
Background to China’s Africa engagement | 145 | ||
Expressions of soft power? From ‘resource grab’ to a mutually beneficial relationship? | 146 | ||
China and the African Union | 149 | ||
table 11.1 Ranking of countries by size of troop contribution to UN peacekeeping missions | 151 | ||
Defining a new partnership? The intersection between security and non-political interference | 151 | ||
What prospects for a new and dynamic partnership? | 152 | ||
Conclusion | 154 | ||
12 | The Darfur issue: a new test for China’s Africa policy | 155 | ||
Darfur: a complicated issue | 155 | ||
Darfur and the debate on ‘genocide’ | 157 | ||
Darfur and its ‘links’ with China | 158 | ||
China–Sudan economic relations | 159 | ||
Oil revenues, positive economic growth and the birth of the CPA | 159 | ||
‘Non-interference’ and the ‘responsibility to protect’ | 160 | ||
China, Sudan and the United Nations | 161 | ||
The ‘engagement approach’: China’s constructive role | 162 | ||
The ICC’s verdict and the future of Darfur | 164 | ||
Conclusions | 165 | ||
13 | China and Zambia: between development and politics | 167 | ||
The scope and content of Sino-Zambian bilateral ties | 168 | ||
table 13.1 Chinese engagement in Zambia, 1967–2006 | 169 | ||
table 15.1 Number of visas issued to Chinese nationals | 194 | ||
Non-Ferrous Company Africa Mining plc: a case study | 173 | ||
Conclusions | 177 | ||
PART FIVE | The scramble for African oil and resources | 179 | ||
14 | African oil in the energy security calculations of China and India | 181 | ||
China in global energy security | 182 | ||
China’s strategic energy security calculations in Africa | 182 | ||
India’s strategic energy security calculations in Africa | 187 | ||
Conclusion | 190 | ||
15 | China and India in Angola | 193 | ||
figure 15.1 China–Angola trade volume (1995–2006) | 194 | ||
table 15.1 Number of visas issued to Chinese nationals (2004–07) | 194 | ||
Political and diplomatic relations | 195 | ||
Financial and economic cooperation | 195 | ||
Bilateral trade | 199 | ||
Foreign direct investment | 200 | ||
Extractive industries | 200 | ||
table 15.2 China’s exploration and production assets in Angola | 201 | ||
A special relationship? | 202 | ||
Impact on poverty reduction | 203 | ||
Putting it into context | 203 | ||
India and Angola | 204 | ||
table 15.3 India–Angola trade | 205 | ||
Conclusions | 206 | ||
16 | The price of ‘openness’: towards Chinese economic control in Zambia | 208 | ||
Western donors and the shrinking capacity for autonomous investment policies | 208 | ||
External actors, FDI and the Zambian economy | 209 | ||
The scope of Chinese investments in Zambia | 211 | ||
table 16.1 Sectoral distribution of Chinese companies in Zambia | 212 | ||
Catalysing investments in Africa: Chinese state support for FDI | 213 | ||
Conclusion | 215 | ||
PART SIX | Conclusion | 219 | ||
17 | Countering ‘new imperialisms’: what role for the New Partnership for Africa’s Development? | 221 | ||
The tortured history of Africa’s regional integration experience | 222 | ||
Revival of regionalism in Africa in the post-1990 period | 224 | ||
NEPAD: a new beginning or another ‘false start’? | 224 | ||
The limits to NEPAD: an evaluation and the way forward | 226 | ||
Countering Chinese and Indian ‘imperialism’: what is to be done? | 227 | ||
Action at the national level: engaging China and India | 228 | ||
Regional platforms for engaging China and India | 231 | ||
Conclusion | 236 | ||
Notes | 238 | ||
Bibliography | 243 | ||
About the contributors | 266 | ||
Index | 268 |