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Transatlantic Challenges
Deborah Brautigam
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China’s African Aid: Transatlantic Challenges
April 2008
Deborah Brautigam
International Development Program
School of International Service
American University, Washington, DC
This paper was prepared for the German Marshall Fund of the United States’ Program on Aid Effectiveness. I acknowledge with
thanks the support of the GMF in funding my research in Africa, December 2007–January 2008. I also thank those who made
comments on drafts of the paper, including, David Hirschmann, Frans Lammersen, Meghan Olivier, Paul Colombini, Janet West,
Jonathan White and Zha Daojiong.
1 The Rise of China in Africa
Several competing narratives are prominent in aid frequently refer to China’s commitment to build
discussions of Chinese aid. In the Western media, the massive Tanzania–Zambia railway during the
China appears as a new donor in Africa, rocketing 1970s, a project turned down by the West. Chinese
to a position of prominence, without morals and leaders emphasize that they have rescheduled and
mainly engaged with rogue regimes and resource- cancelled a large portion of debt owed by Africa’s
rich countries. The Chinese aid program is low income countries without imposing the kinds
portrayed as enormous. For example, in June 2006, of preconditions required by the rich countries. For
an article carried by the Associated Press newswire decades, stories in the Chinese press have profiled
mistakenly quoted the Chinese premier as saying the “selfless” teams of Chinese doctors delivering
that China had given Africa “more than $44 billion healthcare in remote African towns, agricultural
in aid,” since beginning its aid program (what experts teaching Chinese rice techniques to African
he actually said was RMB 44 billion, or around farmers, and frequent donations of food, anti-
$5.7 billion). A journalist at the Christian Science malaria drugs, and humanitarian relief bilaterally
Monitor claimed that China’s aid to Africa in 2006 and through the United Nations.
was “three times the total development aid given by
rich countries,” (rich countries gave about US$30 A third narrative is heard in the corridors of power
billion in 2006; China gave, at most, only a fraction in Africa, where almost without exception, African
of that). Reports on Chinese aid often state that governments have welcomed China’s new visibility
China gives aid as a “quid pro quo” in exchange for as a source of finance. They admire China’s own
access to natural resources like oil. Resource-rich record of development success, and appreciate
“rogue regimes”—Sudan, Zimbabwe, and Angola— the Chinese emphasis on non-interference and
feature as notorious examples of countries enjoying explicit lack of political conditions. China’s focus on
large amounts of “no strings attached” aid from economic development (including the development
China. Critics point to risks that the ratcheting up of natural resources) mirrors the agenda voiced by
of loans will pile new and unsustainable debt onto many African leaders, and the particular attention
low-income countries whose debts were recently to infrastructure—electric power, ports, irrigation,
cancelled by the rich countries. Many assume that roads—is welcomed in a region where finance for
the Chinese do not demand proper accounting infrastructure had been low for many decades.
of funds and worry that the lack of conditions on Leaders appreciate the Chinese insistence on their
governance will worsen corruption in a region engagement as a partnership, not a form of charity.
already plagued by official malfeasance. Fourth, African societies reflect a more mixed
A second narrative on aid appears in China’s response. Some appreciate the leverage offered by
state-controlled media. There, officials point to the the Chinese option, and appreciate the absence
long history of China’s engagement with Africa, of economic conditionality, a prominent feature
and claim that their relations in the 21st century in assistance from much of the West. Others
will reflect “a new type of strategic partnership… focus more on a litany of problems associated
featuring political equality and mutual trust, with China’s economic embrace of Africa: the
economic win-win cooperation.”1 Discussions of competition presented by Chinese goods, the
large number of Chinese workers who typically
accompany Chinese projects, and a sharp increase
1
“Declaration of the Beijing Summit of the Forum on China–
Africa Cooperation,” November 16, 2006 (draft) http://www.
in small-scale Chinese traders competing with
focac.org/eng/wjjh/t404126.htm. Africans in many urban markets. Unions have
Throughout 2007 and 2008, Chinese teams is reflected in the principle of “non-interference
fanned out across Africa to put Hu Jintao’s Beijing in each other’s internal affairs” (recognition of
Declaration into action. Although much of the the rebellious province of Taiwan as “China”
Western world began to notice Chinese aid only is seen as interference in an internal dispute).
at this point, these Chinese teams were following These long-standing principles also help explain
in the footsteps of hundreds of Chinese aid teams the Chinese resistance to calls by the West that
over the past five decades. The overall principles they impose political conditions on their aid.
governing Chinese aid reflect continuity in the “Equality and mutual benefit” are reflected today Iriuscidunt verci
principles of foreign policy more generally, while in Chinese leaders’ frequent emphasis on aid as a tinciduisi. Lis ad
the content and specific elements of China’s aid and partnership, not a one-way transfer of charity. The elessi. Um alis
engagement with Africa are best understood in the five principles have always been a feature of China’s
dolor si. Ing eum
context of changes in China’s own domestic politics. engagement with Africa, shaping the way Chinese
dolorem nullaor
officials position themselves vis-à-vis the West.
A. Domestic and Foreign Policy Context tionseq uipsum
Domestic political and policy shifts have also ipsusto dolore
Like other countries, China gives aid for a variety of shaped China’s aid. During the first three decades of feum quiscil iscilis
reasons: as a political tool of foreign policy and in the People’s Republic (1949–79), China’s domestic er si et vent amcor
support of its own economic interests; as a response policy shifted between an ideological emphasis ad dio eum vel
to domestic stakeholders, and as a reflection of on class struggle and a more pragmatic emphasis
higher values and principles. As a tool of foreign on constructing an economically strong, modern
policy, aid is critical in support of the “one-China” nation. By 1979, the pragmatic forces in the
policy. Aid also acts to smooth the way for other person of Deng Xiaoping had won the leadership,
economic transactions (exports, investment, and China embarked on a policy of shifting the
construction contracts) and it reflects China’s vision economy gradually toward the market, while trying
of itself as a responsible, significant power, quick to to contain the pressures inherent in openness to
deliver humanitarian assistance. foreign investment and trade and global markets,
and maintaining the Chinese Communist Party at
The bedrock of Chinese foreign policy is reflected
the helm of government.
in the “Five Principles of Peaceful Coexistence”
introduced by Chinese Premier Zhou Enlai in 1954: Much of the 1980s were focused on building up
China’s domestic economy and attracting foreign
1. Mutual respect for sovereignty and territorial
investment. In the early and mid-1990s, however,
integrity
a further set of reforms were put in motion that
2. Mutual non-aggression
aimed to deepen restructuring of state-owned
3. Non-interference in each other’s internal
enterprises, promote the competitiveness of China’s
affairs
most important firms (private and state-owned),
4. Equality and mutual benefit
and ready the economy to join the World Trade
5. Peaceful coexistence
Organization in December 2001. State-owned
More than 50 years later, Chinese leaders still point enterprises were separated from the control of
to these principles as fundamental influences on their parent ministries and allowed to manage
their strategy of aid and economic engagement. An themselves and be responsible for their own
overriding concern with the “one-China” policy profits and losses. In the tenth Five Year Plan
(2001–2005), these reforms were deepened through
1. The Maoist Period 1960–76 United Nations, New York, September 14, 2005
1997–Sao Tome and Principe Swaziland is the only African country that has never
established diplomatic relations with Beijing.
* These countries had previously had relations with Taipei, and broken them to establish relations with Beijing.
Source: Author’s research and Chung-lian Jiang, “Beijing and Taipei, the African Challenges,” http://www.african-geopolitics.org/show.
aspx?articleid=3584 [n.d.]
The Chinese aid system operates at three levels: in the Department of Aid to Foreign Countries, and
Beijing, in the provinces and municipalities, and in the Bureau of International Economic Cooperation.
the field. The cabinet of the Chinese government— The Department of Aid makes the annual plans
the State Council, headed by the Chinese premier and budgets for aid disbursements, and drafts the
and vice-premiers—acts as the main decision- regulations that (as in other ministries) increasingly
maker on aid, but the details are handled by a substitute for the earlier system of state planning.
number of different agencies. Economic assistance The Bureau oversees the practical steps (bidding,
Cumsan hendio decisions are part of China’s foreign policy, and procurement, monitoring, evaluation, and training)
con vullaorem the Ministry of Foreign Affairs appears to be in the implementation of aid and economic
zzrilit laorting the primary initiating agency for traditional aid cooperation (non-aid) projects.
el do exer si tin agreements. In keeping with the Asian tradition
of gifts, the Chinese prefer to announce a decision 2. Ministry of Foreign Affairs
ulputem iure
about particular aid projects or an overall aid
velendrer sequat. Much like the U.S. State Department, China’s
agreement during visits of Chinese officials to
Ummy nissis eum Ministry of Foreign Affairs oversees aid decisions
Africa (or African officials to China).
dolummy nullaor as they relate to overall foreign policy objectives.
amconsecte A. M
ajor Institutions of Aid and Economic Traditionally, the Ministry’s desk officers in the
exercilisl ut Cooperation Department of African Affairs and diplomats
on the ground have been the “front line” for
vullandio odo
Anywhere between 15 and 23 central ministries and advising Beijing on the quantity of foreign aid
agencies have some kind of role in China’s foreign for a particular African country. In Beijing, they
aid. This is similar to the United States, where work closely with the Ministry of Commerce and
foreign aid is provided by 26 different government the China Eximbank in making these decisions,
departments, agencies, and offices; and France following guidelines issued by the Ministry of
which has a complex array of aid related offices.9 Foreign Affairs Department of Policy Planning,
However, the four main actors orchestrating China’s which has the responsibility of monitoring the
aid and economic engagement in Africa are the general policy trends on economic cooperation and
Ministry of Commerce (MOFCOM), Ministry foreign aid.
of Foreign Affairs (MOFA), and two of the three
policy banks: China Export Import Bank (China 3. China Eximbank
Eximbank) and the China Development Bank.
China Eximbank was set up in 1994, primarily
1. Ministry of Commerce to finance and implement the trade and overseas
investment policies of the Chinese government.
The Ministry of Commerce (MOFCOM) is Its main business is to offer export sellers’ credits
China’s central ministry concerned with aid. to Chinese companies (Table 2). Since 1995, the
MOFCOM is responsible for disbursing grants Eximbank has also operated China’s concessional
and zero-interest loans, and coordinates with loan program, a major arm of China’s foreign aid.
China’s Eximbank on concessional loans. Within The concessional loan program generally raises
MOFCOM, aid is the responsibility of two units: funds for its loans on domestic and foreign capital
markets, much as the World Bank does for its
9
On the large number of agencies involved in French aid, see IBRD loans. The interest rate on the foreign aid
Carol Lancaster, Foreign Aid: Diplomacy, Development, Domestic concessional loans is officially subsidized by the
Politics Chicago: University of Chicago Press, 2007, pp. 148-150.
government through the foreign assistance budget.
3. Training and Scholarships China’s debt relief resembles debt relief from
the OECD countries in that it is targeted to low
Since 2000, the Chinese government has income and least developed countries. Mauritius,
accelerated the training component of its foreign for example, with an excellent record of repaying
aid, focusing in part on transferring information its debts received no debt relief, while highly
about China’s own experience with urbanization, indebted Zambia reportedly received $211 million.
economic growth, and poverty alleviation. By 2007, However, Chinese debt relief differs in the ease of
China had held 2,500 short and medium term implementation and the absence of conditionality.
training courses in 20 different fields (management, Between 2000–03, China cancelled approximately
economics, agriculture, health, justice, education, $1.4 billion in overdue debt from 31 African
etc.) with more than 80,000 people participating.14 countries. Between 2006–09, another round of
As noted above, this was expected to increase debt cancellations was scheduled to write off an
rapidly with the twin pledges made by Chinese additional $1.3 billion from. These cancelled debts
president Hu Jintao at the 2005 UN Summit in New amount to 60 percent of the total owed to China.16
York (30,000 developing country personnel trained
over three years) and the 2006 FOCAC Summit in
Li Baoping, “On the Issues Concerned with China–Africa
15
17
Personal communication, Alison Germak, OPIC, March 14
and 17, 2008.
China’s African Aid: Transatlantic Challenges 17
three African zones were approved in Zambia, are likely to be relatively more opportunities for
Mauritius, and Nigeria.19 technology transfer to African investors. To benefit
from these zones, African governments will need to
There are risks in this strategy. Chinese companies boost their own companies’ abilities to partner with
facing increasingly strict environmental and labor the Chinese, deliberately building business linkages,
regulations in China will likely expect to find a building skills, promoting transfers of technology,
more relaxed regulatory environment overseas. and ensuring that most jobs are filled locally.21 And
Cumsan hendio Mauritians have expressed concern at their they will need to ensure that the promoters fulfill
con vullaorem government’s agreement to allow large numbers their promises.
of temporary Chinese workers to be employed
zzrilit laorting
in the zone, as they are, in fact, currently outside 3. Tariff and Quota-Free Entry for Goods from Least
el do exer si tin
the zone. Companies in the zones will largely be Developed Countries
ulputem iure producing for export into the region, and this will
velendrer sequat. continue to provide stiff competition for Africa’s At the Addis Ababa meeting of FOCAC in 2003,
Ummy nissis eum own manufacturers. Chinese leader Hu Jintao promised to give zero
dolummy nullaor tariff treatment to an unspecified number of
amconsecte The Chinese have been sensitive to some of exports from Africa’s least developed countries.
exercilisl ut these concerns. In Zambia, for example, Chinese The list of commodities and rules of origin were
promoters promised to do an environmental negotiated during 2004, and the full list of 190
vullandio odo
appraisal, meet the ISO 14000 environmental products was announced in each country in early
standards, and hire local labor. Yet, as the World 2005. At the Beijing Summit in November 2006,
Bank has pointed out, manufacturing has been the Chinese pledged to increase the list to 440
the chief sector of interest for Chinese investors in commodities; this went into effect in July of 2007.
Africa, and this is a sector that has been of relatively The West has two similar programs: (1) Europe’s
little interest for the West.20 Given the lower “Everything But Arms” (EBA) program allows
levels of technology used by Chinese firms, there duty-free and quota-free entry into the European
Union for all goods from the least developed
19
This initiative is very different from other partner country countries except armaments; entry for bananas,
strategies to assist African countries to expand manufac-
tured exports. For example, the U.S. Agency for International rice, and sugar was phased in more gradually; (2)
Development will spend $200 million on technical assistance the United States’ Africa Growth and Opportunity
and assorted projects over five years to build African trade
competitiveness. Four countries were chosen as “competitive- Act is an incentive-based program, allowing
ness hubs” (Ghana, Senegal, Botswana and Kenya), but these duty free entry of most commodities, as long as
hubs are intended only to “provide information and technical
assistance to African organizations, U.S. Government agencies,
countries have met a number of economic, political,
donor and civil society organizations, and the private sector on and rule of origin conditions. China’s program is
trade, investment, and business activities in the region, including said to cover almost all the exports from the least
training opportunities.” United States Agency for International
Development, “Africa Global Competitiveness Initiative,” http:// developed countries, however a list of goods is not
www.usaid.gov/locations/sub-saharan_africa/initiatives/agci. easy to obtain and this makes it difficult to evaluate
html. The USAID “competitiveness hubs” are somewhat similar
to ten centers China established in the mid-1990s to promote the potential development impact. Independent
two-way trade and business in ten African countries: Egypt,
Guinea, Mali, Côte d’Ivoire, Cameroon, Gabon, Mozambique,
Nigeria, Tanzania and Zambia. 21
For more on this, see Deborah Bräutigam, “Chinese Business
20
Broadman, p. 99. The World Bank conducted a mid-2005 sur- and African Development: ‘Flying Geese’ or ‘Hidden Dragons’?”
vey of Chinese investors in eight Chinese cities, and found that in Daniel Large, J. Christopher Alden, and Ricardo M. S. Soares
45 percent had invested or were planning to invest in manufac- de Oliveira, eds. China Returns to Africa: A Rising Power and a
turing, 35 percent in construction and services, and 20 percent Continent Embrace London: Christopher Hurst.
in resources (agriculture, mining, oil and gas).
22
Lucian Cernat, Sam Laird, Luca Monge-Roffarello, and Ales-
sandro Turrini, “The EU’s Everything But Arms Initiative and
the Least-Developed Countries,” WIDER Discussion Paper No.
203/47, June 2003; Garth Frazier, Johannes van Biesebroeck, Iriuscidunt verci
“Trade Growth Under the U.S. Growth and Opportunity Act,” tinciduisi. Lis ad
NBER Working Paper No. 13222, July 2007. Growth under the
African Growth and Opportunity Act,” NBER Working paper elessi. Um alis
No. 13222, July 2007. dolor si. Ing eum
dolorem nullaor
tionseq uipsum
ipsusto dolore
feum quiscil iscilis
er si et vent amcor
ad dio eum vel
A. How much aid does China give to Africa? Table 3: China’s Official Government
In 2006, the Chinese government revealed that Expenditure for External Assistance 1998–2007
over the years they had disbursed RMB 44.4 billion To Africa
(US$ 5.7 billion) in aid to Africa. However, most
RMB mil US$ mil US$ mil
information about official aid is considered a state
secret. Chinese officials do know how much aid 1998 3,720 449 198*
Cumsan hendio they give: aid is still part of a government system 1999 3,920 474 208*
con vullaorem that allocates state resources through planning.
They simply do not collect it together and report it 2000 4,588 554 244*
zzrilit laorting
as do governments who belong to the OECD/DAC. 2001 4,711 569 250*
el do exer si tin
ulputem iure Using Chinese methods of calculating aid, the 2002 5,003 604 266*
velendrer sequat. annual amount to Africa in 2006 was in the range of 2003 5,223 631 278*
Ummy nissis eum $462 million, and this will reach close to $1 billion
2004 6,069 734 323*
dolummy nullaor in 2009. These figures are calculated from China’s
amconsecte annual budget for external assistance (Table 3). 2005 7,470 926 407*
exercilisl ut The budget figure includes grants, the face value of 2006 8,200 1,050 462*
vullandio odo zero-interest loans administered by MOFCOM, and
the interest rate subsidy given to the concessional 2007 10,800* 1,421* 625*
loans administered by China Eximbank (but not *estimates. Africa’s share is estimated at an average of 44% of
the face value), expenses for health teams and the total.
training programs, but not scholarships. Sources: Qi (2007); Ministry of Commerce officials, Beijing,
and author’s calculations.
The sums reported in Table 3 are far smaller than Exchange rates are end of period averages 1998–2006.
the figures frequently reported as “aid” in the press. International Monetary Fund, International Financial Statistics
(2007). The exchange rate for 2007 is that current in July.
This is mainly because the budgeted expenditure
reflects only the interest subsidy, and not the face
and concessional loans. These mixed credits
value of the foreign aid concessional loans extended
are sometimes mistakenly reported as “aid.”
by the China Eximbank. The annual subsidy
2. “Preferential” loans. Subsidies from the
for a concessional loan of US$100 million with
Chinese government and the prevailing low
an interest rate of 2 percent would be only US$
interest rates make it easy for most of the
4 million, assuming a central bank lending rate of
export buyers’ credits and loans offered to
6 percent. In contrast, among OECD countries, the
African governments and their state-owned
entire face value of concessional loans is considered
companies to be offered at “preferential” rates
official development assistance (ODA).
a few percentage points below the market.
The official aid figures are also smaller than These loans are often viewed as “aid” by the
estimates in the press for several other reasons: media, but they would not qualify as official
development assistance (ODA) under OECD
1. Package Financing. China Eximbank has a guidelines.
“package financing mode” that can combine 3. Multi-year versus annual. Chinese aid (and
export buyer’s credit, export seller’s credit, other finance) is normally provided as a
Transatlantic policymakers are concerned about governments were limited to projects that are
a number of issues that seem to be connected to not commercially viable.33 In 2001, the OECD
China’s rise as a provider of aid and development Development Assistance Committee agreed to
finance in Africa. The norms governing aid and recommend that all official development assistance
finance have been changing in the West, and be untied except food aid and technical assistance.
practices that are common in Chinese lending
are no longer accepted or under attack in Europe As Chinese companies ratchet up the competition for
and the United States. China’s mix of state and projects in Africa, European and American companies
Iriuscidunt verci
business also creates dilemmas for policy makers believe that their low bid prices are influenced by the
tinciduisi. Lis ad
in countries where business activities overseas are preferential loans available from China Eximbank.
In many instances Chinese companies are simply elessi. Um alis
not so heavily subsidized and where issues of a
more competitive: their profit margins are slim, dolor si. Ing eum
government’s direct responsibility for the behavior
and many have been working in Africa for decades dolorem nullaor
of its national firms are not so easily raised. This
and know their market well. However, although the tionseq uipsum
section reviews five issues linked to Chinese aid:
subsidized export credits and tied aid, governance non-transparency of most commercial and quasi- ipsusto dolore
and corruption, rogue regimes, environment and commercial contracts makes it difficult to find out the feum quiscil iscilis
social standards, and debt sustainability. financing terms, it is clear that preferential loans are er si et vent amcor
easily available to companies exporting higher end ad dio eum vel
A. Tied Aid and Subsidized Export Credits Chinese equipment and services, such as telecoms.
China’s 2006 announcement that its Eximbank MOFCOM’s aid is generally tied to Chinese goods
would provide Africa with $5 billion in preferential and services or local costs, although permission
loans and preferential export buyers credits can be granted for Chinese project managers to use
heightened transatlantic concerns about China’s loan funds to order equipment or machinery from
subsidized export credits and tied aid. Europe, the a third country. China Eximbank’s concessional
United States, Canada, and Japan used to regularly official development assistance loans are tied,
fight low intensity trade battles with each other although not completely. Their website states that:
using heavily subsidized export credits (these were
generally not counted as aid) or mixing aid with • Chinese enterprises should be selected as
other kinds of credits. To placate taxpayers, donors contractor/exporter
also usually tied their aid to goods and services
• Equipments, materials, technology or services
provided by their nationals, although studies
needed for the project should be procured from
routinely showed that tied aid distorts trade and can
China ahead of other countries. In principle, no
lead to higher costs for developing countries who are
less than 50 percent of the procurements shall
unable to choose the most cost-effective suppliers.
come from China.
OECD members have moved to reduce both
OECD members have made much progress in
areas of concessional finance, leveling the playing
eliminating subsidized export credits and reducing
field and, in theory, increasing the effectiveness
tied aid since their first historic agreement in
of aid. Under the 1992 Helsinki Arrangement, a
set of rules on the provision of tied aid, part of
the Arrangement on Officially Supported Export 33
An exception can be made for financially viable projects in the
least developed countries if access to commercial finance is not
Credits, concessional export credits from OECD available.
Instead of finger pointing at China—I think it would Yet not all Chinese projects have worked well.
be better to bring them in. I’m sure they have their When their technicians left, the school buildings
own position, so engage them. and clinics they built sometimes remained empty.
—Donald Kaberuka, President, African Irrigation schemes were frequently not well-
Development Bank, May 17, 2007 maintained, and industrial projects mismanaged.
People were rarely consulted about the changes
China’s rise in Africa is cause for some concern, being brought to their communities, and some
Cumsan hendio but it need not evoke the level of alarm and fear objected. Hu Jintao’s pledge to rapidly double
con vullaorem raised by some who have condemned China’s aid aid has increased the risk of problems. The West
as destabilizing, bad for governance, and unlikely is no stranger to problem projects. Exchanging
zzrilit laorting
to help Africa end poverty. China’s aid is not views, rather than lectures, on lessons learned and
el do exer si tin
enormous, and though growing, will continue to approaches to aid and cooperation could lead to
ulputem iure be well below levels offered collectively by OECD
velendrer sequat. useful engagement.
members. Understanding how China’s aid system
Ummy nissis eum works, how aid relates to China’s foreign policy and How might this be done? The Chinese do not
dolummy nullaor business goals, and how aid is evolving can provide see themselves primarily as “donors,” preferring
amconsecte transatlantic stakeholders with a better grounding the language of “cooperation” and “partnership.”
exercilisl ut for engaging China and Africa over areas of mutual Although Chinese officials have come to some
vullandio odo concern. Three areas stand out as key: donor group meetings in some countries, they are
reluctant to participate actively in the donor-driven
A. Aid Effectiveness institutions that have been set up in most low
income countries to coordinate and harmonize aid
Europe and the United States committed to make
activities. They fully realize that their commitment
their aid more effective through the OECD’s
to non-interference is a comparative advantage
Paris Declaration. The Chinese also care about
in dealing with most governments, and they
the effectiveness of their aid, and are proud of
are reluctant to join donor groups that are still
a long record of support for useful projects that
comfortable using conditionality. Cooperation
responded to African leaders’ requests. When
is more likely to happen in a multilateral arena,
infrastructure went out of fashion in the West,
or on a regional or sectoral level. The Africa
China continued to believe that ending poverty
Development Bank’s Infrastructure Consortium
required building roads and bridges, providing
for Africa, the Food and Agriculture Organization’s
electricity to rural areas, and boosting agriculture
South-South Cooperation program, and regional
and industry. At the same time, they also
malaria initiatives are all areas that show promise.
built conference halls, ministry buildings, and
stadiums, the urban infrastructure requested most Finally, the West could move to engage China
often by African governments. They argued that as a partner in supporting African business. A
it was wrong to impose economic conditionality 2006 OECD study on donor support for private
in exchange for aid and that countries should be investment in developing countries argued that
free to find their own pathway out of poverty. donors “need to change the way they do business”
Mainstream economists in the West today are also and adopt “an appropriate range of aid instruments
questioning the value of the economic conditions … to strengthen the capacities of local firms:
imposed on aid over the past few decades.
At first glance, the nervous handwringing that has catch up behind the advanced industrial countries
surrounded the debate on China in Africa to date whose economic stake in Africa is much deeper.
seems unwarranted. Perhaps most frustratingly for the West, China
—Overseas Development Institute (U.K.) is not transparent about its aid figures, and this
Annual Report 2007 inevitably fuels uninformed media speculation,
rumor, and concern.
Chinese aid has a very long history in Africa.
Cumsan hendio This gives China legitimacy and credibility in Much is changing in China. Aid policy is being
con vullaorem its current relationships on the continent. But rethought, as China’s policy makers rapidly move
Chinese aid has evolved differently from aid in the up the learning curve. Domestic pressures for
zzrilit laorting
West. MOFCOM’s Department of Aid to Foreign environmental protection are growing in China,
el do exer si tin
Countries and Chinese universities and institutes and may soon help to shape China’s global
ulputem iure have been isolated from the extensive research on engagements. China has begun to show sensitivity
velendrer sequat. aid effectiveness in the West, and they have formed to pressures from outside on Darfur and perhaps
Ummy nissis eum independent judgments about the ways to ensure on Zimbabwe. Their understanding of what
dolummy nullaor sustainability of their aid investments. China’s aid “non-intervention” means has evolved in the past,
amconsecte emphasizes local ownership, and at the same time, and is certain to continue to evolve. Transatlantic
exercilisl ut reflects China’s own development experience. partners can best engage China by offering to share
vullandio odo China has successfully reduced poverty at home, experiences on what has and has not worked in
and some of the lessons of China’s own experience our own aid. Some humility is in order, as the West
are being transferred through their aid. has no sure recipe for development assistance, and
our own record in Africa is far from perfect. Steady
Many of the fears about China’s official invitations to Chinese officials to participate in
development assistance are misinformed. The regional and multilateral meetings and workshops
evidence suggests that it is not enormous, it is not on aid and development will help build a cadre of
primarily used in resource swaps, and it is not people in China who can more critically analyze the
even a prominent feature of China’s relationship effectiveness of aid and other forms of economic
with Sudan or Zimbabwe (investment is far more engagement. Strengthening the ability of African
important in both). On the other hand, China’s governments to critically appraise finance and
aid and state-subsidized loans are bundled into investment proposals would also be useful. Above
a non-transparent system that violates many of all, keep in mind that China’s ultimate goals for
the norms current in the OECD. Unlike most aid in Africa are not so different from ours. They,
of the West (but similar to Japan), the Chinese too, want to use aid to help countries develop
government uses all the tools of a developmental their people and their assets so that they can be
state, including aid, to support its goals in Africa. better trading partners, hosts for investment, and
While Western donors have moved to separate stable, prosperous members of a peaceful global
aid from business, China only recently began to community.
link the two, and perceives itself to be playing