Today I went to a meeting on “South-South Cooperation and Global Trade: Bypassing the Hegemon? ” – arranged by GMU’s Center for Global Studies- at the Carnegie Endowment for International Peace, Washington D.C. The first two panels were lame pretty, at least for me personally because more politics and cultural quarrels were being discussed (which do not interest me, though they may be significant in their own place)! The 3rd panel was about the existing condition of global trade relationships, especially the fledging Doha Round and its implications to the developing countries.
One particular speaker through the first -panel made some interesting factors about Chinese curiosity about Africa and Chinese strategy in controlling African resources through its financial grants/loans and coaxing foreign policy. Before proceeding further, I have to say that Mark Katz’s presentation on the Russian geo-economic eyesight and their objective in showing up “strong” in the international market was also very good. Political resources: China will not care where and also to which kind of leaders its money will go so long as its interests are secured. 42 million to Mugabe the other day to make/renovate his palace.
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This is barely been away in the news because secretive dealings, bribery and coaxing is high in China’s engagement with Africa. Additionally, China does not anymore care about ideology, i.e. trying to cope with domestic communist parties in the African countries. It deals with all political parties (party-party ties) to ensure that its financial and vital passions are guaranteed. Since 1997-2006, China acquired 200 exchanges with the African political celebrations and it feted 60 African party chiefs in China itself.
This is a strategy to morally, financially, and politically bind African leaders so that there is no objection whatsoever to Chinese interests. 15 billion help to Africa during African-China conference in China last year. However, Joshua argues that it’s not aid but an investment for profit. The total grants or loans are specific and low and is incomparable to Western aid/grant.
1.2 billion new loan to the same country). Importantly, the allotted money go out of Chinese banks never. For example, China announced billions of dollars of aid to Angola, which received the amount of money never. What the Chinese did was that it deposited a cheque in Angola’s name in its EXIM bank and for any new project to be executed in Angola, it transferred money to 1 of the predetermined five bidders for investment projects. Funds were in reality transferred in one bank to some other in China itself.
It never made its way to Angola, though infrastructure or whatever project was designed for was done or began. Meanwhile, Angola paid China’s loan from oil exports. This made certain that Chinese money stayed at home, it gained profit, and extremely essential oil flow was guaranteed for a long time. Just what a shrewd technique to dupe the African nations! The conditions for Chinese dealings with African countries are: employ Chinese firms and not recognizing Taiwan. The dragon is marching and widening its mouth gradually and steadily. Welcome to the Chinese Marshall Plan for Africa!