DFID and China - International Development Committee Contents


Written evidence submitted by Dr Giles Mohan

  1.  This submission primarily relates to "The effectiveness of the UK Government's strategy to engage with China on international development, especially Africa". It comes from a team of ESRC-funded researchers examining the impact of China on Africa's politics and governance. For more information on the project see http://www.geography.dur.ac.uk/projects/china-africa/. The project forms part of a wider Asian Driver's Programme located at the Open University http://asiandrivers.open.ac.uk/.

WHAT DOES CHINA MEAN FOR AFRICAN DEVELOPMENT?

  2.  China's involvement in Africa undoubtedly has important implications for international development. However, it is vital in approaching this issue to disaggregate both "Africa" and "China", since both are complex and differentiated (Mohan and Power 2008). Talking in too broad terms takes us down the unhelpful path of seeing China as having some master plan and treats 53 African countries as essentially similar. Allied to this is not over-playing China's role. While an important actor, many commentators agree that it is still not a major player in Africa, save for a few countries, and that much of China's commercial interests are no different from any other commercial interests. However, in contrast to some countries, the Chinese are thinking long-term and do not see Africa as a "basket case", but a region of profitable possibilities.

  3.  The key contributions of China to Africa's development are numerous and mostly well known, so we will not rehearse them in detail. First, they contribute infrastructure, something which has been ignored by other donors for some time. Non-Chinese and Chinese commercial interests agree that this is key for Africa and China's lead has shown how important and popular infrastructure is. This demonstration effect is seeing a renewed interest in infrastructure from other donors. Second, China's model of financing is very much commercially oriented with a relatively small aid programme, even though the aid is tied into these commercial ventures. This financing brings revenue into African states, but given its greater project focus it could be argued that it is more tangible and easier to monitor than the fungible direct budget support favoured by other donors. Third, while aid is relatively limited it is symbolically important. China acts as a symbol and role model for Africa, even if for most African countries China's experience is hard to emulate. China also stands for a form "Southern" development which is somewhat different from the free market consensus that has dominated since the end of the cold war. Fourth, Chinese aid and investment permits some limited "triangulation" between African countries and other countries which enables some leverage. This is also important politically and symbolically as it signals the possibility of development alternatives to the Washington Consensus. That said it is far too early and unwise to talk of a Beijing Consensus, given the diversity of the Chinese state and the increasing reliance on competitive tendering, which loosens any political grip on economic decisions. Finally, a significant, but overlooked dimension of China's role in Africa is inward migration of Chinese (Mohan and Kale 2007). The figures are notoriously unreliable but we know of significant inflows in South Africa, Nigeria, Sudan, Angola, Mauritius and Zambia (Alden 2007). In these and other countries too the presence of Chinese businesses is transforming retail and service sectors and, at times and in some places, creating tensions among Africans.

POTENTIAL AREAS FOR COOPERATION BETWEEN DFID, CHINA AND AFRICA

  4.  Any policy response must be African-centred and work with African governments and civil society organisations all the way. The Chinese have not proven willing to engage with civil society organisations, so DFID's long experience of this is an important area where mutual learning for an international development partnership can occur. And these could have benefits for opening up political processes in China as officials become more used to wider scrutiny.

  5.  The second recommendation is to engage in joined up thinking. International development is a process tying economies and societies together in complex ways yet some of the current thinking treats China and Africa as discrete. Two key issues stand out here in terms of DFID's engagement with China on development issues. DFID's Country Assistance Plan and other policy statements rightly talk about China's rural poverty as a key issue and resources are being channelled for various education and health initiatives to tackle this. At the same time the House of Lords and many other commentators berate China for importing labour to Africa for construction projects and factory work. Yet many of these in-migrants are the very same migrants from China seeking to escape rural poverty. This does not alter the fact that rural development in China should curb out-migration, but DFID's policy must recognise the complicity of these processes. Second, poverty and inequality in China is becoming a political issue and one wonders how long it is before ordinary Chinese begin to question a foreign policy which seems to be channelling resources to the African poor when so much poverty exists domestically. We feel this is an issue which will need monitoring and managing carefully.

  6.  Another key area for cooperation is around governance, which has a number of facets. The Chinese operate publicly under the ethos of "non-interference" and respect for African sovereignty. Yet on the other hand they increasingly talk about the need for political stability. These two pressures are proving more irreconcilable and there is evidence that the Chinese are becoming more involved in internal governance in Africa. Darfur was clearly the turning point here, but Chinese political commentary is also talking about the need to re-think the non-interference policy and look at ways of strengthening governance capacity and working with pan-African organisations. This is a good sign and clearly chimes with western policy and stability is not unlike the security concerns of western countries. So, there seems an opening to work with the Chinese on questions of stable governance, but it cannot be framed in the usual way around democratisation. Issues where synergies might occur are peace-keeping, where the Chinese have taken a lead, and issues around transparency and corporate social responsibility. These are tangible activities where mutual interests seem greatest. The Chinese have signed up to some global compacts so these need to be encouraged and embedded in all corporate engagement with Africa. And for this to stick it needs to apply to corporations of all nationalities.

  7.  Agriculture is an area where the Chinese have expertise. Because so much of the debate around China and Africa focuses on oil and mineral resources, it overlooks one of the key areas of potential. Many African countries do not have minerals worth exploiting. We also face a global food crisis and Africa has the land, climate and labour to enhance agricultural output. The Chinese have a two-part development process—a coastal, industrial one and an inland, agricultural one. Much can be learnt from China's agricultural model and Chinese has much expertise to bring to Africa as well as commercial muscle. This, then, seems a primary area for cooperation and DFID has resources for research which could be used to develop these partnerships.

  8.  Finally, migration is a key issue for both China and Africa. As noted earlier Chinese are migrating to Africa for economic reasons. Many bring entrepreneurial skills and capital, which is vital for Africa. But where relatively unskilled workers are brought in they displace African labour. At the same time skilled Africans have been leaving the continent for 30 years, bringing their talents to Europe and North America, and supporting family through remittances (Mohan 2006). There is the need for a comprehensive policy on migration, which recognises the entwining of economies and that processes of uneven development in one economy have implications, via migration, for another. It is incumbent upon policy-makers in both sending and receiving countries to rationally analyse when migration works for development and when it does not, and crucially looking at the entire migration process since these effects are felt differently in sending and receiving countries.

CITED REFERENCES

Alden, C (2007) China in Africa, Zed Books, London.

Mohan, G (2006) "Embedded cosmopolitanism and the politics of obligation: The Ghanaian diaspora and development", Environment and Planning A, 38(5), 867-883.

Mohan, G and Kale, D (2007) The invisible hand of South-South globalisation: Chinese migrants in Africa, unpublished report for the Rockefeller Foundation, available at http://www.geography.dur.ac.uk/Projects/Portals/115/Rockefeller%20Report%20on%20Chinese%20diasporas%20PDF.pdf

G Mohan and Power, M (2008) New African choices? The politics of Chinese engagement in Africa and the changing architecture of international development, Review of African Political Economy, No 115, 23-42.





 
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