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Memorandum submitted by the Centre for Chinese Studies, Stellenbosch University
April 2008
The staff at the Centre for Chinese Studies (CCS), Stellenbosch University, has had regular communication with the DFID-China office since early 2006. In the last few years, CCS and DFID-China have interacted on both formal and informal channels. DFID-China has commissioned CCS for two substantial research undertakings:
1. China's Interest and Activity in Africa's Infrastructure and Construction Sectors (Grant reference AG4498) from April to November 2006
2. How China delivers Development Assistance to Africa (Grant reference AG4782) from April to November 2007
The Centre for Chinese Studies can comment on the following points:
1) Aid effectiveness and DFID's 'added value' compared to other donors to China
In the experience of the Centre for Chinese Studies, the DFID-China office has clearly been amongst the most effective donor institutions to engage a variety of Chinese actors in order to successfully stimulate dialogue. Furthermore the DFID-China office has maintained a particularly balanced and objective approach to engagement with China, especially in comparison to other donors. China remains largely wary of international donor institutions and DFID- China's informed approach has done a great deal to alleviate Chinese Government reservations and set aside prejudices. This has greatly facilitated interaction between DFID China and their Chinese counterparts and has opened space for meaningful dialogue on substantive development issues.
2) The effectiveness of the UK Government's strategy to engage with China on international development as regards Africa
DFID-China has co-ordinated and co-operated well with the DFID country offices in various African countries. This was instrumental in the success of the research endeavours with which CCS was involved.
In reference to DFID's approach to engaging China, as discussed above the CCS considers DFID-China to be progressive and forward-thinking. DFID-China has been considerably more open to collaboration than other the donors. Given the sensitivities surrounding China's engagement in Africa, DFID's approach has been extremely important in establishing a middle ground and has gone a long way toward the beginnings of establishing a framework for effective donor harmonization. DFID-China has an understanding with China Exim Bank; whereby both sides have agreed to greater communication concerning projects in Africa.
3) China's relationship with multilateral development institutions
Despite a historical preference for bilateral engagement, China has in recent years become gradually more amenable to multilateral engagement. Since accession to the World Trade Organisation (WTO) in 2001, China has begun to appreciate the benefits of multilateralism. China is a donor to the African Development Bank and China Exim Bank has a Memorandum of Understanding with the World Bank.
While the fact that China is a signatory to such agreements is promising, it cannot be regarded a guarantee that China will continue to participate in multilateral activities and effectively implement the commitments made. DFID-China, in terms of its approach to engaging China and the goodwill already established between the DFID-China and the office's Chinese counterparts, is in a unique position to leverage such relations to encourage China's continued participation in multilateral development dialogues.
Dr Martyn Davies Executive Director Centre for Chinese Studies Stellenbosch University
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