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Should Ghana be scared of the Chinese exploration?

Sat, 7 Jan 2012 Source: Sawyerr, Ade

Ade Sawyerr, gives an insight to an emerging relationship between African

countries and the Chinese Republic. Should Africa now look East and abandon

the long standing albeit rocky relationship with the West. Ade informs.

David Cameron’s speech in Nigeria included a warning for Africa to be

cautious in their dealing with China and a suggestion that the

authoritarian capitalism model adopted by the Chinese was not sustainable

and will not help in the development of Africa.

But this warning needs to be examined against the backdrop why it has taken

50-60 years for the West to be rekindling their interest in Africa as the

preferred trading partner as it was at the time of independence. We should

ask whether this warning has anything to do with the fact that the Chinese

are filling the space that the West abandoned because they were not

interested in our holistic economic development but only in access to our

goods.

Cameron’s speech touched on three issues of importance to the West when

Africa is mentioned: aid, trade, and democracy.

He promised more targeted aid to areas of conflict and improved mechanisms

for delivering aid that would bypass corrupt governments. But he did also

mention that Britain was yet to meet its target of spending 0.7% of Gross

National Income on aid. In 2009 it spent 0.52% - £7,365 million - in total

on aid; £1,559 million of this on the 800million people in Black Africa or

sub-Saharan Africa, equivalent to £2.00 per capita. What he did not say is

that roughly 40% of this is spent on the many consultants that work on

these projects and the British goods and service that are purchased as a

result of aid and that African governments would prefer to have greater

control so that the aid is channelled to better support social development

related services.

Cameron was robust on trade. He bemoaned the fact that Africa could do

better than the 12% intra-African trade, that is way below the two-thirds

that takes place amongst European Union member countries. He reiterated the

commitment of Britain as a serious trading partner manifested by the many

businessmen and women that had accompanied him on this trip. But he did not

explain why 50-60 years after independence Britain had lost its position as

Africa’s preferred trading partner and was now rekindling their interest in

the Continent again.

The third plank of his speech on democracy is to be welcomed. Multiparty

democracy does indeed breed good governance; the view that some form of

authoritarianism is necessary for accelerated development and growth, as

manifested by countries such as Thailand, Malaysia and Singapore and

latterly by China, should be rejected by all.

But the reality is that the pattern of trade favoured by Britain and the

West did not assist in the development of Africa and may have been the

cause of the stunted economic growth on the Continent.

Several examples abound. Nkrumah in Ghana built more schools in 10 years

than the British did in 100 years of the Gold Coast. Our road and railway

systems were all from the hinterland to the coast to carry our primary

goods away. The communication system was such that a simple telephone call

from Ghana to Togo had to be routed through England and France. There was

deforestation at an alarming rate without any effort to replant those trees

that were exported and sold, and of course destruction of the land in

search of minerals. Whilst covertly supporting rogue regimes such as Ian

Smith’s Rhodesia and apartheid South Africa, Britain was busy subverting

nations such as Ghana that sought to forge a Continental union that would

provide, military, economic and political strength.

The West’s insistence on democracy and spending money on the development of

institutions has not paid off for Africa, it has not rid the Continent of

corruption in government contracts, many more cases of corruption are now

surfacing western companies desperate to do business in Africa that they

promised bribes when none had been demanded. Indeed the West and

international multilateral agencies have not asked Africa what it really

wants for development but have experimented with orthodoxies based on the

way that they developed some centuries ago. Western governments behave as

if these development methodologies are fixed and sacrosanct and have

general applicability regardless of local context and customs.

Africa needs massive development in infrastructure before it can deploy an

accelerated rate of industrialisation to catch up with the rest of the

world. Without that infrastructure base Africa will remain a supplier of

primary products to both western and eastern countries. It is this, much

needed, infrastructure base that, will engender the tooling capability,

which the West had failed to provide, but that the Chinese are very much

interested in delivering for Africa.

Infrastructure investment will create a virtuous environment that will help

Africa transform its agricultural and extractive commodities from low to

high value products and help Africa in its drive towards capital formation

that will be more beneficial to the Continent than basic trading in low

value goods and services.

Leapfrogging from low value agriculture to high value services is unlikely

to happen without a strong manufacturing base; even in the mobile phone

industry with exponential growth taking place in Africa we do not

manufacture the technical equipment, do not own the networks, do not write

the applications and even though we supply the critical raw materials we do

not manufacture the phones.

Whether the Chinese exploration into Africa will turn into exploitation of

the Continent depends on whether African leaders have learnt the lessons of

past years and are able to negotiate terms of contracts that will benefit

their countries.

Africa at this critical stage in its development, when it is still viewed

as a frontier rather than an emerging market, needs more state involvement.

Private companies will not build the schools, they will not build the

hospitals, and they will not build the roads, the rail and the

communications networks. Recent privatisation of utilities following World

Bank orthodoxy has not delivered more potable water or more electricity for

the people. Privatisation may work when the base infrastructure is in

place, but it certainly is not working to help create the free and fair

society to which most nations aspire.

The western governments have delivered little and are hung up on democracy

and freedoms, and perhaps rightly so, because in their experience that was

how they developed.

The Chinese come with an open book, turn a blind eye on issues of free

press and human rights, but they leave tangible structures, houses for the

poor, roads and railways. In return they are able to satisfy their need for

energy as well as increase their markets in - what one would term - a

mutually beneficial engagement.

The problem with David Cameron’s warning is that whilst African government

would want to listen, they also see the West being bankrolled by the

Chinese, they see the factories that the Chinese are building in western

countries, they observe that as recently as before Cameron’s trip, the

Chinese Premier had been to Britain where he signed contracts worth £2

billion and to Germany where he signed contracts worth £10 billion.

So African governments are bound to ask, if Britain is so intent on doing

business with China and China holds so much American debt, why Africa

should be wary of the Chinese.

Africa should recognise that its interests are paramount in any

negotiations on trade or investment, but that it should chose its own way

forward to development. It should eschew the doctrine of unbridled free

markets much in the same way as it should steer clear of authoritarian

capitalism.

Africa needs to accelerate its agenda for a Pan-Africanist union because

that is the only way that it can prevent neo-colonialisation whether the

threat is from the Chinese or from the West.

It is ironic that 50 years after Nkrumah was overthrown in Ghana because of

his Pan Africanist agenda, this route may be the only effective model of

stopping the Continent’s exploitation, and indeed may be the only agenda

that can help create our own model for accelerated development. This agenda

incorporates self determination and less reliance on foreigners based on a

principle of social justice for all the poor in Africa with a large dose of

collaborative cooperation amongst all Black nations.

*Ade Sawyerr*

Ade Sawyerr is partner in the diversity and equality focused consultancy,

Equinox Consulting. He can be contacted at www.equinoxconsulting.net. You

may email him at jwasawyerr@gmail.com or visit his blog at

http://adesawyerr.wordpress.com/2011/08/04/should-africa-be-scared-of-the-chinese-exploration/

This article was first published in the OBV blog under the title, Should

Africa be scared of Chinese exploration?

http://www.obv.org.uk/news-blogs/should-africa-be-scared-chinese-exploration

http://twitter.com/adesawyerr

Columnist: Sawyerr, Ade