Deborah Brautigam’s The Dragon’s Gift: The Real Story of China in Africa provides a revealing and comprehensive view of China’s “aid” program in Africa. I label China’s aid program with trepidation because China’s activities in many African nations don’t correspond with Western expectations of an “aid program”. This misunderstanding may be the source for much Western criticism of the “rogue donor.” Accused of exploitation of African workers, environmental degradation, and an insatiable desire for African natural resources among other things, China has come to be viewed as a new imperialist over Africa in some circles.
But as Ms. Brautigam explains, persuasively interweaving anecdotes with economic data, China is blazing a different path in Africa, viewing African countries not simply as bottomless holes in which to dump aid, but as new markets to invest in, profit from, and even partner with. She cites longstanding Chinese aid projects in African countries and numerous joint-ventures between quasi-government-owned Chinese companies and African companies to support her case. Admittedly, the data is limited due to the unavailability of official Chinese aid figures, but she succeeds in debunking the popular myth of China’s new aid program dwarfing those of traditional Western donors. Reports of gargantuan cash transfers to dictatorial and corrupt African regimes are largely overstated.
Rather, the author illustrates China’s different approach to aid. Instead of the vague goals such as the broad and immeasurable Millennium Development Goals decided on by UN experts, Chinese grants are tied to specific proposals submitted by African governments. In contrast to the largely unmet promises of Western donors to double or triple aid to Africa, China has indeed met its goal of increasing the billions it donates in the form of grants or concessional loans. Rather than irresponsible lending to profligate or corrupt African governments (followed by self-congratulation when these impossible loans are forgiven), Chinese loans are structured to ensure long-term repayment, often in unconventional ways.
One of China’s most interesting differences from the West comes in its view of “sunset industries,” which refers to sectors that have become too expensive to maintain in China due to rising labor costs. Instead of trying desperately to keep factories that have become too expensive to remain in China, the government encourages these industries to “go global” and find more economical locales for production. This results in foreign direct investment in African countries, bringing jobs, infrastructure, and technical knowledge. (Too often this also results in the violation of labor and environmental standards in offshore locations…but these violations are not unique to Chinese companies, and we are hypocritical to cast blame only upon them). Going global also pushes Chinese manufacturing towards more high-tech and high-value production, which translates into better wages and skills for its own workforce. Remember, China is also a developing nation. In America, labor unions view outsourcing as unfair, but they also fight to raise wages even though the value of the products may remain stable. Thus the struggle of US automakers. Perhaps the US and its companies could learn how to better equip its workforce for occupational transitions once an industry is no longer viable in the US and encourage the development of more high-tech and green jobs.
Brautigam successfully illuminates the parallels between what happened during China’s own spectacular development and what Chinese actors are trying to accomplish in Africa. After more capitalist-friendly leaders wrested control of the government from Mao, China began to implement reforms which spurred economic growth. This included allowing Japanese and Western firms to invest in China and help it develop its natural resources. For decades, China was an exporter of minerals and gas, and its government successfully utilized this natural wealth to promote development and increase the wealth of millions.
It is widely thought that the Communist Party now justifies its autocratic control over its people by making them richer. I would never encourage any government to suppress its people by denying free speech, freedom of religion, and elections, and I believe that increasing a person’s freedom is an integral part of “development.” In my opinion, today’s China has many problems, including high rates of pollution, growing inequality, corruption and of course human rights violations perpetrated by those in power. Many African countries share these characteristics with China, and I fear that some are choosing to emulate the Chinese model of autocratic capitalism. I am not denying that China’s involvement in Africa can contribute to the corruption, pollution, and oppression that has already been occurring within the continent. But less-widely known are the stories of successful partnership between Chinese and African companies, innovative ways to use natural resources to ensure benefit to the source country, and the benefits of viewing Africans as economic partners instead of aid recipients. The skeptics accuse China of exploitation, and it is true that Chinese companies desire to reap profit from their African investments (so do Western companies). But it is important to recognize the jobs that investment and infrastructure development can bring to African countries. The US can lead the way in adopting some of the more creative measures that aid can be used to encourage business. Further, it’s essential to gain a nuanced view of the moderating influence that China is starting to have on autocratic African governments. The US can continue to engage with China to ensure that it continues this trend.
Is the increase of Chinese activity in Africa ultimately a positive trend? As Brautigam explains, China’s purpose in engaging in Africa is ultimately for China’s benefit (isn’t that how any country is expected to act?), but increasingly, this is accomplished through initiatives that benefit both Chinese and African actors. More often, it is the response of the African government that determines if interaction with China actually benefits actual Africans. But, if any country knows how to quickly increase the economic standing of millions of poor people, it is China.
UPDATE: Deborah Brautigam maintains a blog that reports on the latest happenings between China and Africa: http://www.chinaafricarealstory.com/
