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    China Business
     Feb 8, 2007
Page 3 of 3
CHINA ON SAFARI

Emperor Hu's new clothes for Africa
By Bright B Simons, Evans Lartey and Franklin Cudjoe

French military-technical assistance to its former colonies (which Lansana Gberie, a security expert, asserts to have been worth many millions of dollars in 1984) or the United States' anti-communist projects across the continent: in what was then Zaire, apartheid South Africa, and Angola.

China's aid, in the absence of these caveats, comes with "strings attached" - in fact it provides enough rope for either partner to



hang itself. Foremost among these is the injunction against dealings with Taiwan and the unstated - publicly, that is - commitment by the recipient nation to favor Chinese consortiums for the development of whichever projects the aid is earmarked for.

For example, sports stadiums have become one of Beijing's most favored development projects in Africa. This is because of Chinese companies' track record of building these across the continent. In Mozambique, for instance, China is both the biggest fund provider and builder of roads.

China's Exim Bank makes no effort to hide its mandated purpose of using loans as means of securing contracts, particularly in high-value processes, for Chinese companies abroad. The 800 Chinese companies in Africa are viewed by Beijing as fulfilling both political and economic roles, and as part of a diplomatic effort to project influence.

In Nigeria, to cite a further example, oil concessions have gone to Chinese companies as part of multibillion-dollar infrastructure loan arrangements. The same is the case in Angola. Perhaps to redeem the "no strings attached" argument, it can be said that these are commercial "strings" and differ in that respect from the more complex conditions often insisted on by Western aid givers. Such a contention will be flawed on several levels.

All donor countries have their priorities, which evolve according to different timelines. Western donors may calculate that promoting free markets means eventually securing better trade relations with Africa. China may emphasize immediate gains through political negotiations. The difference is of style and emphasis, not of fundamental structure, which at any rate, in our view, is tied to the very orientation of Africa itself, and far less so to the disposition of Africa's partners.

Moreover, the premises ought to be better established. It has become fashionable to lump all Chinese assistance under the heading of "aid", making little distinction among grants, loans and technical assistance of different sorts. No doubt this is partly because of the opacity of most of these transactions. Still, it does not excuse the lack of imagination.

The relevant context is that to date Africa has received half a trillion dollars from its traditional donors and less than $7 billion from China. This is not to denigrate China's giveaway - after all, it is a hard-up country itself - or to ignore the massive recent spike: this year it is projected to lend three times as much as the World Bank to Africa. But the fact remains that it gives different kinds and levels of assistance under vaguely elucidated terms and conditions. That is not the same thing as "giving without strings".

Until faltering reforms in Africa see a greater transformation of the African economy and political system, China's engagement with the continent will be constrained like so many before it in realizing possibilities.

Just as Hu was about to leave Beijing for Africa, a breeze of good news swirled like an omen into the airwaves. Five Chinese telecom workers held hostage in Nigeria had just been released. But the enthusiasm was short-lived; four days later, nine employees of Chinese petroleum giant China National Petroleum Corp were grabbed by gun-toting rebels right from company premises in the south of the country. Perhaps CNPC is already taking some crash courses in occupational-hazard awareness from long-term foreign operators in the Nigerian oil industry - the Shells and the Mobils.

The unfortunate episode seemed to signify: welcome, if you gonna play, you gotta learn the ropes. Hu, and China, shouldn't expect an easy ride in Africa.

Whether Emperor Hu's clothes are new or not doesn't matter, as anyone who has read the fairytale [1] knows, because they both mean the same thing. What matters, especially in Africa, is that they fit.

Note 1. "The Emperor's New Clothes" is a Danish fairy tale written by Hans Christian Andersen and first published in 1837, as part of Eventyr, Fortalte for Born (Fairy Tales, Told for Children). It was originally known as "Keiserens Nye Klaeder". The story is a type of fable or morality play with a cautionary message: just because everyone else believes something is true, it doesn't mean it is. - Wikipedia

Bright B Simons is an adjunct fellow at the Center for Humane Education (Imani). Evans Lartey is director of development at Imani, which is a think-tank based in Accra dedicated to researching economic trends to glean practical public-policy insights for the benefit of government, business and civil society in Ghana. Franklin Cudjoe is the executive director of Imani.

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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