China-Africa: An economic partnership
By: BERNADUS SWARTBOOI and HENNY SEIBEBCHINA is arguably the world’s second largest economy, having overtaken Japan recently. China’s economy grew at 11,9 per cent in the second quarter of 2010, ragging in U$1,337 trillion, with Japan at U$1,288 trillion during this period. Industrial growth in heavy and light industry and expansion in consumer appetite in 2009, led economic growth. China’s GDP is US$5 trillion, next to the American GDP of US$ 14,4 trillion.
Africa’s combined GDP is U$1,6 trillion, equaling Brazil or Russia, and African GDP growth has been 4,9 per cent since 2000-2008, over double the growth rate of the 1980’s and 1990’s. Sub-Saharan Africa grew at 4,7 per cent. The prime driver is export of natural resources from the continent.
China’s economic reform began under the stewardship of Deng Xiaoping in 1978. The 30 year period covering 1978-2008 saw economic growth in China, unprecedented in world history. Deng Xiaoping was elected Chairman of the Chinese People’s Political Consultative Conference (CPPCC), in March 1978, and convened a “National Science Conference,” proclaiming that “science and technology are the primary productive force”, and that “intellectuals, too, are part of the workers class.” The CPC leaders concurred that China was 15 to 20 years behind the rest of the world.
In 30 years, from 1978-2008, since graduating from the “Cultural Revolution,” China steadily became a global economic giant. China has lifted 600 million citizens from absolute poverty, from 1985 to 2005, as it celebrated 60 years of the founding of the People’s Republic of China in 2009. Around 17 African states are celebrating 50 years of independence, unable to translate policy initiatives into prosperity pillars. However, according to McKinsey Quarterly “Africa’s economic pulse has quickened….and the continent is among the world’s most rapidly growing economic regions.” This is cemented by the view of some leading economists that Africa is the next major economic powerhouse, within 10-15 years from now.
Caution must be had that economic growth is but one ingredient for poverty dismantlement, for too often, economic growth in Africa has been jobless, while rural Africa was left out of the development processes. Agriculture helped the Chinese in rural areas, Africa too should be serious about agricultural reform and productivity. China succeeded in 30 years. If serious, we too can make our African miracle happen in 30 years.
China’s approach to Africa has changed dramatically since the end of the Cold War. From the 1955 Bandung Conference until the end of the 1980s, Chinese policy in Africa focused on support for independence and Pan-African movements.
Today, relations focus on economic diplomacy. China cancelled in excess of a 100 billion RMB Yuan of African debt, while its diplomacy is accepted in most African countries as solid and respectful. According to Chris Alden, author of “China in Africa”, two-way trade stood at US$10 billion, and in 2009 it hit US$90 billion, making China Africa’s single largest trading partner, surpassing America, which traded US$86 billion with Africa in 2009.
Moreover, China invested US$20 billion for construction in Algeria; US$6 billion for infrastructure development in Democratic Republic of Congo; US$5.5 billion in banking in South Africa; US$2.5 billion in offshore oil investment in Angola; US$23 billion in oil refineries in Nigeria. Again in 2009, at the Forum on China and Africa Co-operation (FOCAC) meeting in Egypt, China pledged billions of dollars in economic co-operation to Africa. The 30 year old SADC has yet to submit a proposal to benefit from such a set of measures!
Urgent bilateral trade and commerce issues need unbundling viz., the involvement of Chinese entrepreneurs in SME sectors across the continent, crowding out many small and medium African businesses, while limitations of African’s in the construction industry is experienced, with Chinese contractors vying for the most lucrative bids. Disregard of labour laws is also a concern.
Towards Africa-China Youth Summit:
Deliberating the Future
Meaningful engagement between the youth of our two people’s is vital to chart the future. Recalling what we have stated about China earlier, and the emerging reality that Africa is the next major economic hub, meaningful and sustained deliberation is timely and relevant. FOCAC focuses on state relations, while the future Sino-Africa relations depends on young people. Once the current generation of solidarity leaders are gone, how will Sino-Africa relations be? What would feed and enrich any such relations? What are the encrypted values, and vision, and are these commonly agreed between us? These are fundamental questions.
Therefore, following in the great footsteps of generations of Chinese and African leaders, some Namibian youth engaged the Communist Youth League of China and the All China Youth Federation in April 2010, in Windhoek, to plan and realize the first Africa-China Youth Summit, a “festival of ideas,” as we popularly refer to it, to canvass matters of mutual trade and commerce, culture and co-operation.
The talks were led by the authors of this piece, together with Himuvi Mbingeneeko, and later joined by Eveline !Nawases-Taeyele. Summit is expected to be convened sometime in 2011 in Windhoek, Namibia, where delegates from all the sub-Saharan African countries and over 50 Chinese delegates are expected.
The Summit, the first of its kind between Sino-African youth, will certainly enhance the common ground for mutual coexistence, understanding and cooperation. We thank the Namibian Government for its support.
* Bernadus Swartbooi and Henny Seibeb are the Founders and Directors of the Africa-Asia Strategic Studies Institute. They are the principal authors of “The Politics of Apologetics.”