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Symbiotic Success
Symbiotic Success: Sino-African Relations and A New Development Model
By Robert Burton
A Masters Thesis Submitted in Partial Fulfillment of theRequirements for the Degree of Master of Arts International Studies
In the School of Business and Professional StudiesConcordia University
Irvine, California
Abstract
China has the world’s fastest developing economy and is slated to be the next world superpower.
African resources will fuel much of China’s eminent rise, yet Africa is the world’s poorest
continent but the most resource abundant. “Symbiotic Success: Sino-African Relations and A
New Development Model” is a study that explores the vicissitudes of China’s investment on the
African continent, as well as looks into the impact of investment and aid on the people,
economies, and politics of the African nations. The author explores the impact and potential of
such a relationship between the world’s fastest growing economy and the world’s poorest-one
that will play a major role on the future world stage. The question is whether or not this new
relationship will be one that is a “Win-Win?” Will it be mutually beneficial? How can African
governments leverage this investment to ensure symbiotic success? Judgment sampling was
used to collect field data, which was analyzed to chart participants’ attitudes concerning areas of
Chinese investment. Besides the majority of participants not being aware of their government’s
investment, their attitudes reflected areas where they felt China would benefit Africa and where
Chinese investment might not cause some problems in the long run. African governments should
imitate many of the tactics used by China to achieve China’s level of rapid economic growth as
well as use the tactics that China used against the west to garner leverage with investing Chinese
agencies.
Keywords: word, word, word, word, etc.
Table of Contents
Introduction………………………………………………………………………………………1
Purpose of Study…………...…………….……………………………………………………2
Literature Review………………………………………………………………………………..3
Methodology…………………………………………………………………………………….10
Data Analysis……………………………………………………………………………………17
Conclusion………………………………………………………………………………………26
Summary…………………………………………..……………………………….………...26
References……………………………………………………………………………………….32
Appendix
1SYMBIOTIC SUCCESS
Introduction
Symbiotic Success: Sino-African Relations and a New Development Model
Since opening its doors to the world in 1978, China has lifted 500 million people out of
poverty (World Bank, 2014). Thirty-six years of development, at a yearly average of 10% GDP
growth per year, has helped China bolster its economy into middle-income status. This was
possible due to certain economic reforms initiated by Deng Xiaoping. Deng’s reforms
galvanized the economy, which allowed the minimum wage to increase, narrowing the wealth
gap and developing a sense of security, based on the improvement of government regulations
(Inch, 2014). China’s growth might be hard for the West to match; the system of government for
most Western countries is constituted of elected bodies of men, all of who have agendas and
other entities to represent. Thus, the implementation of new legislation and infrastructural
change is not only time-consuming but often hindered, compromised, changed, or just vetoed.
Therefore, the author opines that for the Chinese, change can be implemented quicker than it
would be in Western countries.
The African continent is endowed with near global monopolies on platinum, chromium
and diamonds; a proportion of the world’s vital metals and reserves of precious necessities such
as gold, coal, copper, nickel, and perhaps more importantly uranium (Rocha, 2007). However,
it’s the most underdeveloped in the world while also being inhabited by 50% of the worlds’ poor
people. Little needs to be said of Africa’s dire monetary poverty.
China is now the leading recipient of Foreign Direct Investment (FDI) but will soon
become the largest exporter of Overseas Direct Investment (ODI), mainly to Africa (Inch, 2012).
Africa’s natural resources could potentially fuel China’s economic growth in exchange for
financial aid. Underdeveloped nations could both be attractive to China and beneficial for
2SYMBIOTIC SUCCESS
Chinese investment. However, the intricacies and vicissitudes of a symbiotic relationship
between the growing economic giant and the developing African nations receiving its investment
could have both advantages and disadvantages economically, politically, culturally, and socially.
The author understands that the relationship between different national economies is complex.
As such, problems facing Chinese investment in Africa would have multiple sources, which will
be discussed later in this paper.
This study will establish a connection between two of the above-mentioned sources:
1. How is investment conducted and who benefits?
2. What are the attitudes behind the citizenry of the investing nation?
This study will lead to a set of suggestions that could help the African nations stabilize their
economic growth. In addition, it will explore what China can teach Africa, not because Africans
are ignorant, but because China has better adapted to the economic environment of the modern
age. Additionally, China and Africa are two groups that have rarely interacted and have the
potential to create an interesting scenario in regard to how the Chinese people’s attitudes about
Africa will affect the nature of China’s investment and its dealings with the African people.
The author will survey Mainland Chinese to ascertain not only the implications of this
massive trading partnership but the nationalistic, economic, and personal agendas of the
individuals involved. The author will analyze the Chinese model of development to determine
which ideas and policies African nations may adopt that will provide them leverage in this new
rapidly emerging world.
In nature, symbiosis describes a relationship that is mutually beneficial for both parties
involved. Thus this work, entitled Symbiotic Success: Sino-African Relations and a New
Development Model will explore whether or not Sino-African relations are in a state of
3SYMBIOTIC SUCCESS
symbiosis. It will explore China’s investment in Africa, to determine whether or not it is truly
beneficial for both parties and highlight Chinese economic development strategies from which
Africa may learn.
In evaluating the Chinese method of investment, the writer will examine the factors that
influence political and economic policy, namely the social and cultural attitudes that are either
behind investment or can seriously affect is nature. It will be taken that “investment” means the
transference of infrastructural and “valued” resources, not necessarily money, which normally
happens between a developing and a developed nation. The writer will use Dambisa Moyo’s
definition of Aid, the sum total concessions and grants, which are mostly monetary. Aid to
Africa exists in two forms: either bilateral or multi-lateral. Bilateral aid consists of government-
to-government transfers while multi-lateral is given via institutions. The radical characteristic of
Chinese investment is that a still-developing nation is providing investment to other developing
nations in the form of both concessions and grants.
Key Terms
Symbiotic: adjective describing any independent or mutually beneficial relationship
between two persons, groups or countries (Dictionary.com)
Win-Win: A business or trade relationship where both parties gain (Dictionary.com).
South-South: Trade partnership between two separate nations that are considered apart of
the economic “South” and are developing nations (World Bank, 2014).
Non-Conditional Aid: Foreign Aid/Investment which is given with absolutely no
conditions or stipulations concerning Human Rights or good governance (Moyo, 2009).
Aid: All payments made directly to governments either through government-to-
government transfers or transferred via institutions such as the World Bank (Moyo, 2009).
4SYMBIOTIC SUCCESS
Literature Review
Historical Development of Africa
Starting with the Marshall Plan of 1947, Aid has had many shifts in its structure and
purpose (Moyo, 2009; Brautigam & Knack, Foreign Aid, Institutions, and Governance in Sub-
Saharan Africa, 2004). Through 5 of the previous decades traversing the latter half of the last
century, starting in the 40s and moving forward into the 1990s, the purpose of Aid has changed
based on the needs, wants, and desired goals of the hegemonic western powers (Moyo, 2009;
Brautigam & Knack, Foreign Aid, Institutions, and Governance in Sub-Saharan Africa, 2004).
Initially, Aid was structured in a way that mimicked the development of Europe after World War
II, from there it moved into a conduit of industrialization before it transformed into a mechanism
to fight poverty on a continental scale; starting in the 70s it became a tool for stabilization, and
then a buttress of democracy, before finally crystalizing into what it is today, the only known
solution for Africa’s problems (Brautigam & Knack, Foreign Aid, Institutions, and Governance
in Sub-Saharan Africa, 2004; Congressional Digest, 2007; Moyo, 2009).
Historically, much of Africa’s problems with Aid have had to do with monetary
investment and how it has been allocated. Through most of its history, Aid to Africa was
European in origin, and has always been controlled by developed Western financial agencies,
until now (Brautigam & Knack, Foreign Aid, Institutions, and Governance in Sub-Saharan
Africa, 2004; Moyo, 2009). However, western investment has dictated terms that were often
deemed unreasonable and counter-productive to growth while failing to stimulate manufacturing,
which is crucial to job creation (Wamboye, Adekola, & Sergi, 2014) (Rebol, 2010).
5SYMBIOTIC SUCCESS
As Aid and its processes have fluctuated over the years, is has affected different African
governments in numerous ways (African Growth Initiative at Brookings, 2011; Hailu, 2011;
Wamboye, Adekola, & Sergi, 2014). There is evidence that FDI has had both positive and
negative effects on import and exports while ODA has positively affected imports and negatively
affected exports (Hailu, 2011). Most importantly, this creates deficits that affect resource
distribution and economic growth (Hailu, 2011; African Growth Initiative at Brookings, 2011;
Congressional Digest, 2007; Wamboye, Adekola, & Sergi, 2014). One pertinent issue that has
been raised is good governance and whether or not malfeasant behaviors can be blamed on Aid’s
removal of responsibility from African bureaucrats. African countries have also displayed an
inability to wean themselves off of Aid and many haven’t grown economically, creating Aid
dependent conditions that have ensconced the recipient countries in an atmosphere ripe for
economic stagnation and political corruption (African Growth Initiative at Brookings, 2011;
Brautigam & Knack, Foreign Aid, Institutions, and Governance in Sub-Saharan Africa, 2004;
Hailu, 2011; Moyo, 2009; Obiorah, 2007; Wamboye, Adekola, & Sergi, 2014). The author
should note that Africa’s history with Aid has not been completely bleak. Some African
countries have been able to turn foreign investment into sustainable, measureable growth (Hailu,
2011; African Growth Initiative at Brookings, 2011). However, all sources agree that despite
gargantuan sums of cash being injected into a majority of the separate economies on the
continent, Africa has not come near the level of economic growth that Asian competitors have
seen (African Growth Initiative at Brookings, 2011; Brautigam & Knack, Foreign Aid,
Institutions, and Governance in Sub-Saharan Africa, 2004; Congressional Digest, 2007; Hailu,
2011; Wamboye, Adekola, & Sergi, 2014; Moyo, 2009; Rebol, 2010).
6SYMBIOTIC SUCCESS
Sino-African Investment
Though this economic phenomenon is new, there is a wealth of information that explores
the relationship between China and Africa and its implications on the African people and the
world. Many, written by American, Chinese, and African scholars concern hopes, wishes, and
many fears about this investment model, its implications, and the agenda behind it. The overall
reasons for the heightened investment began with China’s need for raw materials (Marks, 2007).
From there, certain ideological frameworks have been put into place to validate China’s
involvement in the affairs of a land with which it had had little prior involvement. The
ideological premise is that both China and African nations are currently at developing nation
status and relations should be fostered and sustained because of the “brotherhood between
developing nations” as well as South-South economic development (Kjollesdal & Welle-Strand,
2010; Taylor, 2007; Rocha, 2007).
Ideologically this transference of economic growth is not new. In fact, what the modern
world is witnessing is a repetitive historical trend. Take for instance the Mongol invasion of the
whole of Asia. By 1219 A.D the Mongols, led by Genghis Khan, conquered territories stretching
from Eastern Europe to the borders of Song Dynasty China, allowing them control over the
commercial flow of goods from what is now southern China to the main purchasing centers in
what is now the Middle East, setting the scene for future transference of knowledge, expertise,
technology, tradable goods, and human capital throughout Asia (Weathorford, 2003). This
“flow” undoubtedly transformed into the Silk Road, carrying the above mentioned from a unified
Asia west into Europe. Fast forward through hundreds of years of economic development and
industrialization and the current developed nations of the West are floundering, allowing for the
flow of knowledge and expertise to soon reverse its movement from the “West to rest” and now
7SYMBIOTIC SUCCESS
flowing back again from the “east to the least,” (Inch, 2012; Gupta & Wang, 2009). The “least”
being the developing nations located due west of China, which would include Africa.
Apart from historical trends and ideological framework exists a real reason for China’s
investment in Africa. The context for Sino-African relations is quite complicated and contains
intricacies and nuances on both sides of the perspective lens. For starters, according to Moyo
(2009), Sub-Saharan Africa has the highest concentration of poor people in the world; over 50%
of the world’s poor, and that percentage is predicted to increase. Although aid from western
countries has totalled $2 trillion over the last 50 years, there has been very little, noticeable,
effective change (Moyo, 2009). Western aid is arguably outdated and could be an ineffective
module of Foreign Direct Investment (FDI) that was created as an imitation of the Marshall Plan,
the development module aimed to reconstruct Europe after the end of the last World War. The
issue is that Europe was rebuilding damaged infrastructure, which previously existed, while
Africa had very little infrastructure to begin with (Moyo, 2009). Not only has the structure of aid
been proven antiquated it’s also a façade, as it has assisted in the propping up of corrupt regimes
(Karumbidza, 2007; Kjollesdal & Welle-Strand, 2010; Moyo, 2009).
From the African point of view, Africa is stuck in an economic and policital rut with no
foreseeble exit. China offers a new means of development, a new ally, and a shift of paradigm
(Moyo, 2009;Marks, 2007). China offers a new route towards development that challenges the
idea that Democracy and transparency are prerequisites for development and a good life (Moyo,
2009; Marks, 2007). The Chinese model offers fewer conditions, more investment, fewer
meetings, and more rapid, immediate infrastructural implementation (Moyo, 2009; Karumbidza,
2007; Marks, 2007).
8SYMBIOTIC SUCCESS
From the Chinese point of view, investment in Africa is absolutely imperative for the
survival of the Chinese people and China’s global security. Firstly, China has one-fifth of the
world’s population and only between seven to eight percent of its arable land (Brautigam, 2009).
That is a far stretch as far as it comes to feeding a population of 1.5 billion. China has developed
a pretty good solution to its food security problem: Agribusiness. As far back as the 1980s,
China has been investing in Africa’s unused, underdeveloped land to develop farms used for
hybridizing different strains of rice (Brautigam, 2009).
Natural resources have been trumpeted as China’s main reason for investment, yet, it is
only one reason. However, since natural resources are an imperative for development, China
and Chinese businesses have begun to invest heavily in Africa on multiple economic levels,
ranging from cheap goods on the micro level, to infrastructure and industrial development on the
macro level. In return, China receives ample amounts of various natural resources from
recipient-countries all over the African continent (Kjollesdal & Welle-Strand, 2010; Obiorah,
2007; Marks, 2007; Lemos & Ribeiro, 2007). The list of resources is vast while the type of
exchange depends on what the ricipient nation has to offer and what they need from China in
exchange. Looking from another angle, an African land squeeze combined with African
underdevelopment has made the continent look very attractive to Chinese companies being as it
creates supply and demand (Brautigam, 2009). If China were to fill this economic vacuum then
it could create a lucrative, long-term niche in a growing African market (Brautigam, 2009).
Many scholarly on-lookers ponder the purity of China’s motives in Africa. Being that the entire
project is supposed to be a win-win scenario, no one doubts that China is expecting something in
return for their efforts but will this be at a disadvantantage to Africa? Beijing has ensconced its
approach in many layers of political rhetoric and foreign policy statements (Brautigam, 2009).
9SYMBIOTIC SUCCESS
China’s stance is that their dealings with Africa are on par with South-South economic relations
and China’s foreign policy initiatiaves (Brautigam, 2009; Marks, 2007).
Chinese Investment in Africa
The history of how aid has been given to African nations and the “bureaucratic” nature of
Western aid has made Chinese aid extremely attractive (Kjollesdal & Welle-Strand, 2010;
Karumbidza, 2007). The Chinese have a radically different model for investment in Africa being
that they have a “no interference” policy, a different interpretation of human rights, as well as
non-conditional loans which disperse quickly and lack a bureaucratic process (Kjollesdal &
Welle-Strand, 2010; Rocha, 2007; Taylor, 2007). In fact, China is simply emulating the method
Japan used to invest in China in earlier decades (Brautigam, 2009). Influenced by their own
development history, Chinese investment is mostly industrial: Chinese companies receive the go-
ahead to depart to African countries and invest themselves into either buying land, extracting
resources, or starting some commercial enterprise (Brautigam, 2009). Brautigam (2009) explains
it best: Chinese companies, acting pseudo-independently, have set up factories, purchased land to
invest in agribusiness, and set up special economic zones (SEZ), all while building roads,
hospitals, stadiums, transferring knowledge and expertise while even footing the bill for the
African Union’s new headquarters in Addis Adabba, Ethiopia. Of the above mentioned,
Agribusiness, or developing agricultural practices for ordinary or commercial uses, is slated to be
the most profitable. Africa’s underdevelopment offers great tracts of unused land available for
purchase that offers an opportunity for Chinese companies to create a permanent stake in a
budding African market (Brautigam, 2009).
10SYMBIOTIC SUCCESS
Besides radically reshaping the paradigm of development for Africa, the effects of
China’s investment are numerous and complicated. Quite frankly, it’s too early to make a certain
judgment as to whether or not China’s influence will be good or bad. For one thing, China has
certainly challenged the notion that establishing a democratic state, in emulation of the West, is
the only route to development (Kjollesdal & Welle-Strand, 2010; Brautigam, 2009; Moyo,
2009). Most of the literature agrees on the current, noticeable effects of China’s presence on the
continent.
In summation, Africa will benefit from the transference of knowledge and expertise while
having to contend with 300,000 to 700,000 mainland Chinese immigrants, an influx of cheap
imported goods from China, and what might be a entity establishing another permanent, non-
African presence on the continent (Taylor, Kopinski, & Polus, Contextualizing Chinese
Engagement in Africa, 2011; Karumbidza, 2007; Obiorah, 2007; Kjollesdal & Welle-Strand,
2010; Moyo, 2009; Lemos & Ribeiro, 2007).
African Concerns
When one examines the rhetoric given by Chinese ministers and the economic
circumstances between Africa and China, one then must delve further and examine the
implications of Chinese investment in Africa from the African perspective. This investment
schema consists of both concerns, which are common areas where there may be some defects,
and threats, or areas where there are some issues that could seriously harm Africa’s future
development and the well being of its people. African authors seem to have many concerns over
Chinese Direct Aid ranging from whether or not it is beneficial for the African people, worries
11SYMBIOTIC SUCCESS
about China simply becoming another colonizer, to China’s shady relations with some nations
that have not-so-desirable leadership (Karumbidza, 2007; Marks, 2007;Obiorah, 2007). A huge
concern is how some African nations are releasing control of huge sectors of their respective
economies to be developed by Chinese Multi-national companies (Rocha, 2007; Karumbidza,
2007; Kjollesdal & Welle-Strand, 2010;Taylor, Kopinski, & Polus, Contextualizing Chinese
Engagement in Africa, 2011;Lemos & Ribeiro, 2007). This concern brings up questions about
the feasibility of China’s investment and whether or not this model is really conducive to African
economic development. Once Chinese corporations control sectors of the economy, can the
African economies regain control or see any benefit or growth? Taylor (2007) highlights an
issue that extends from the previous one. Once a Chinese corporation or government creates a
presence in the aid-recipient country, it’s possible that there may be some interference in local
politics, of course with advantage going to the party in power, whoever they may be. One of the
most salient concerns is whether or not the African governments in power can leverage Chinese
investment, coming from a position of strength, so that it can convert investment into actual
economic growth (Taylor, Governance in Africa and Sino-African Relations: Contridictions or
Confluence, 2007; Moyo, 2009). African scholars have made many assertions concerning
various defects of Chinese investment and the cultural attitudes or ideologies of China’s
corporations and government. Brautigam (2009) defines a few and refutes some; asserting that
Chinese aid is not just about oil, minerals and resources but also about the infrastructure needed
to extract them, as well as the fact that the autonomy that Chinese businesses exercise in their
affairs debunks any notion of a “grand Chinese plan” (Brautigam, 2009). Brautigam (2009),
however, does confirm that China is indeed gaining business with low environmental and social
standards. Some have accused China of being absolutely corrupt, that doing business with them
12SYMBIOTIC SUCCESS
is to dance with the devil. While China has not aggressively condemned corrupt regimes, it
certainly hasn’t propped them up either; combine all of the above concerns with the fact that
their policies and practices are evolving and you have a very complicated picture (Brautigam,
2009).
Methodology
This research was designed to explore the economic and social implications of China’s
investment model throughout Africa. It was designed to compare social and racial attitudes of
the most socially astute Chinese to the nature of the investment module to see if there is a
correlation between how Chinese view Africa and African people and the way investment in
Africa is conducted and approached. This research ascertained the general attitudes of the
Chinese.
The study used snowball and judgment sampling to seek out only those who are socially
astute or involved in business in some way, preferably business overseas. The sample size for
this study reached a maximum of 220 Chinese who are situated at the lower and middle rungs of
the socio-economic ladder and know little of Africa. The study included those participants who
have occupations that would indicate that they have some knowledge of foreign affairs and
international relations. For example, teachers, government officials, businesspersons, and etc.
are already overseas and most likely represent people with more enlightened perspective on the
subject.
13SYMBIOTIC SUCCESS
Research Instrument
The survey was designed to extract the attitudinal variations from the participants and
compare the findings to find any similarities. The next phase identified any discrepancies in
terms of their attitudes and what is happening on the ground. The research included quantitative
methodology using a survey questionnaire. The questionnaire asked participants questions that
determined their demographics in regards to age, gender, occupation, income, travel experience,
nationality, education, and whether or not they had any previous business experience in Africa.
The independent variables were exposure to foreigners, travel experience, opinion of Chinese
investment in Africa and whether or not it is beneficial for both parties, or what those benefits
might be and for whom. The dependent variable was their perception of Africa and Africans.
Other independent variables, which were included to influence their perspective, had to do with
whether or not they’ve traveled to Africa, and, if the participant is a businessperson and whether
they have done any business with Africans.
On some questions I used a Likert scale to gauge if these responses indicate a positive
attitude towards Africa, Africans, and investment in Africa. Some questions were formulated as
“On a scale from one to 5, 5 being the highest and 1 being the lowest…” Other questions read as
“would you say …Beneficial, Neutral, and Unbeneficial.”
Sampling
This research targeted Chinese who have been determined by preliminary study to be
most informed about the subject. This includes Chinese who are involved in business or have an
occupation that indicates that they have some astute knowledge of international affairs and
foreigners, specifically Africans, who live and work in China. Those who are in business or
14SYMBIOTIC SUCCESS
some type of government related work will be sought out for a face-to-face interview. The goal
was a sample of size 200 Chinese, preferably, educated and knowledgeable of world affairs. .
The survey was anonymous, confidential, and voluntary. No one had to participate if they
did not wish to do so and were not pressured. The author tried to minimalize the chances of any
risk to the most possible extent. The author promised confidentiality and made sure that any
personal information given was not disclosed.
The demographic portion of this paper detailed who was surveyed, and the social
positions of the participants, in order to garner the attitude of the people about being part of the
survey. Whatever attitude seems to prevail will be indicative of a particular section of the
population. As such, it will be determined how demographic information is relevant to African
development and if any effect is prevalent. This survey’s aim was to have between 200 and 500
participants and the following findings are the result of a sample size of 220 persons who are
mostly Chinese.
The age categories encompassed all ages from 19 or less to over 70. The demographics
were segregated into seven age brackets, the first and last being larger than the five in the
middle. The most prevalent age bracket is that of those aged 40-49 years of age, the number of
persons in this bracket being 42.7%
Thus we can see the main participants are middle-aged Chinese professionals with
families, since many middle and high school students helped disseminate a sizable portion of the
questionnaires. The mean age bracket was that of those ages 30-39.
15SYMBIOTIC SUCCESS
Age
19 or less
20-29
30-39
40-49
50-59
60-69
70 and above
0 10 20 30 40 50 60 70 80 90 100
Figure 1.1 Age distribution of survey sample (N=172)
As is evident, most of the participants were middle-aged (40-49) professionals. The
second largest group prevalent is that of the young, ages 19 or less. Any attitudes displayed in
the following analysis of data will come from drastically different generations. Most of those
aged 19 or less are students. Those who are between 40 and 49 make up 52.3% of the sample
participants (N=220) while those aged 19 or less constituted 31.3 % of the surveyed participants.
Those who were 20-29 also factored in, showing that young urban professionals (those whom the
Chinese refer to, as “Ants”) will also have a voice counted. Those aged 60-69, or 70 and above
were not heavily represented with a total of less than twenty to non-existent.
Subjects’ Gender
Overall, 122 females were surveyed and 98 males participated. The numbers were only
10 people away from reaching equilibrium. This is mostly to do with which member of the
16SYMBIOTIC SUCCESS
family is involved in business. Since the aim was to direct students to the parent that is involved
in business, the male to female ratio is somewhat arbitrary. Another factor could have been that
students simply gave the survey to the parent that was home. Surveys were also widely
distributed at English Centers, where the majority of the students are women. Women made up
55% of the sampled group while the males were the remaining 45.
GenderMaleFemale
Figure 1.2: Gender of Participants (N=220)
Occupation
Occupation was crucial to determine from which working portion of the society the reflected
attitudes stem. It was important to ascertain what the attitude is, but more so what factors
influenced the attitude, and furthermore, how relevant the attitude is to African development.
Five categories were available for choosing: Business, Education, Government, Entertainment,
and Other. Three of these categories are important, Business, Education, and Government, as
17SYMBIOTIC SUCCESS
these participants have the attitudes, beliefs, and ideas most relevant to the situation in Africa.
These categories were chosen because the researcher believed these persons most likely would
consist of those who are most aware, even care, and have an informed opinion on the subject
matter. Furthermore, the persons in this category will be more likely to have some aspect of
their employment involving Africa or development. The aim was to find participants involved in
business. Forty-six percent of the survey sample (N=220) is employed in business in some form;
this increases the number of subjects involved in business in Africa. The second largest category
was that of “Other”, which consisted of 37% of the sample size (N=220), 82 participants who are
most likely students or are employed in some industry that isn’t Government, Business, and
Education related. Many of the 37% were students studying at Shanghai Pinghe Bilingual
School. Other categories included Education, Entertainment, and Government in total equaled
20% of the total survey sample (N=220). The attitudes displayed in this research would mostly
reflect a mix of businesspersons and students; an interesting variation of opinions, a blend of
those with intimate knowledge with business and development and those without.
Income and Education
In this survey, income and education were used to gauge affluence. The impression
evolved around the idea that affluence brings awareness. If this is indeed the case, then the
higher the income and education of the participant the more likely they are to have an informed
opinion of China’s development in Africa due to exposure.
In regards to income, the results presented a dichotomy between those with and those
without.
18SYMBIOTIC SUCCESS
Annual Income in RMBLess Than 10,00011,000-2100021,000-30,00031,000-40,00041,000-50,00051,000-60,00061,000-70,00071,000-80,00081,000-91,000over 100,000
Figure 1.3: Annual Income in Renminbi
Fifty-three percent of the survey sample (N=220) has an annual income over 100,000 RMB. If
affluence were indicative of awareness, than this would be beneficial for extracting an informed
survey sample. Yet, 39% of participants are those who earn less than 10,000 RMB a year. This
is because the 31% of total participants (N=220) were students, but paradoxically are probably
children of wealthy adults.
Data about education levels also proved useful as over 64% of the participants had a
college or university degree, which includes undergraduate, graduate and or doctoral degree.
The second largest group was those who earned master’s degrees, including Masters in Business
Administration, and law degree (20%).
19SYMBIOTIC SUCCESS
Education Level
High school diplomaCollege/UniversityMasters/MBA/Law DegreeDoctorate/Ph.D/Medical DegreeOther
Figure 1.4: Educational Levels of Participants
Figure 1.4 shows the participants’ educational levels are evenly distributed. This shows
that the attitudes in the research are going to reflect a mix of those who are educated and those
with less education. With over 64% (N=220) of the participants having some diploma, I believe
this has greatly increased the chances of drawing participants who are informed and aware of
African development.
Data Analysis
This research includes quantitative analysis. The quantitative analysis includes univariate
analysis in order to compare factors that will reveal unique information about the subject matter,
and to discover more about China’s role in African development. Businesspersons and
professionals were to extrapolate attitudinal variables from the perceptions of Chinese people.
These variables will be compared to see what the Chinese think about Africa, African people,
and the effect of investment on African economies and people.
20SYMBIOTIC SUCCESS
Uni-variate Analysis: Are you aware of China’s Development in Africa?
Fifty-five percent of the participants surveyed were between the ages of 40-49, and were
mostly women, who most likely had a child or two at Pinghe’s Bilingual school in Shanghai,
China. The sample (N=220) tended to be a mix of the wealthy elite, young urban professionals
and students, who are most likely the progeny of that wealthy elite. Fifty-two percent of the
participants earn over 100,000 RMB per year, indicative of at least middle class status or affluent
people who have an informed opinion of the subject matter.
Fifty-nine of the participants surveyed (N=220) were unaware of China’s development
and investment in Africa prior to 2006. Thus, so far, 27% of the participants’ attitudes will
reflect that of people not aware of what is going on between China and Africa and their opinions
may be nuanced by a sense of apathy. As the chart in figure 1.5 shows, most of the participants
were aware and this will be beneficial to extracting informed opinions.
Are you aware of China's de-velopment of Africa?
YesNo
Figure 1.5: Are you aware of China’s development in Africa?
21SYMBIOTIC SUCCESS
With 73% of the participants having some form of awareness about China’s
development, keen insights should reign prevalent in the attitudes displayed in this research.
The other variable worthy of attention is how the Chinese see Africa and Africans. The
writer’s personal hypothesis is that the image the Chinese have of Africa in their collective sub-
conscience will have an impact on, or either is emblematical of China’s investment model.
Several buzzwords were used to extract either a positive attitude or a negative attitude.
Participants were told that they could choose up to three. Positive word associations such as
“Beautiful”, “Fellow Developing Nation,” or “Exotic Travel Destination,” were used to connote
positive attitudes about Africa while negative word associations such as “Poor”, “Unstable,” and
“Dangerous” were used to denote negative attitudes about Africa. Of the sample size (N=220)
the most common buzzword selected to described Africa was “Fellow Developing nation”, while
the second most popular was that of “Poor”. A combination of attitudes seems to be prevalent
here, while seeing African nations as fellow comrades in the struggle can be seen as positive,
being viewed as a people without money can be dangerous, especially in the Chinese paradigm,
where having money is valued.
Fellow Developing Nation
Exotic Travel Destination
Unstable
Unknown
Interesting
0 10 20 30 40 50 60 70 80
Describe What Africa is to You
Describe What Africa is to You
22SYMBIOTIC SUCCESS
Figure 1.6: What does Africa mean to you?
Figure 1.6 shows that attitudes about Africa straddle the spectrum. If the different words were
designed to have certain connotations, then the amount of positive or negative associations is
distributed throughout to varying extents. Surprisingly, the most prevalent selection was that of
fellow developing nation, which denotes an amiable working partnership. The issue would then
be to determine whether or not this partnership is truly symbiotic. Attitudes about Africa seem
to vary from person to person, with no one group of people reflecting a certain attitude. What
would feed this attitude would be not only what you know, but also the source of the
information. For example, 84% of the 220 participants said they get their information about
Africa from the media or news. It is common knowledge that the Chinese media is controlled by
the State. Therefore the Chinese people, on average, receive information based on what the State
wants them to know. Africa’s image, or more accurately the African image that people in China
receive will be that which is controlled, manipulated, and mitigated by the state. Perhaps the
prevalence of seeing Africa as a fellow-developing nation stems from state missives and rhetoric.
Interestingly, 46 of the participants claim they see Africa as poor. If poor is a negative
association, the question is what effect will this have on China’s relations with Africa? Will
there be a superior-inferior relationship? Will the Chinese approach Africa with paternalism, or
perhaps maybe condescension?
Participants were asked a series of questions designed to determine whether or not Sino-
African development was seen to be mutually beneficial. 75 participants (43%) stated that
China’s investment in Africa is beneficial for Africa. However, 20% said that Chinese
investment was not beneficial for China. This evidence seems to highlight that many Chinese
see this investment as benefitting Africa more than it would benefit China. Interestingly, when
23SYMBIOTIC SUCCESS
asked about how beneficial Chinese investment will be for Africa, 71% of the participant’s
replies indicated they thought it would be beneficial. That is a majority, yet another interesting
aspect is that of those who did not give a response that implied benefit, most of the answers were
not “unbeneficial” but rather “neutral.” Here, we have an answer set dichotomized between a
positive response and neutrality. This could be indicative of the apathy spoken of earlier.
Below, figure 1.8 shows two pie charts, the one on the left shows that the majority (71%)
remarked that Chinese investment will be beneficial, and then in blue you see those who marked
any other type of response while the chart on the right displays, in more detail, what is consisted
in “other”.
Beneficial
Neutral
Not Beneficial
Beneficial for Africa
Figure 1.7: Will Chinese Investment be Beneficial for Africa?
The very next question in the survey asked, whether or not China’s investment would be
beneficial for China. The responses drew very different conclusions. In figure 1.8 only 35% of
the respondents said Chinese investment in Africa would be beneficial for China. Instead of
implying that it would be unbeneficial, 44% marked neutral. Actually, there are more people
24SYMBIOTIC SUCCESS
that did not say beneficial than those who did. Yet, this data seems to be suggesting many
Chinese do not see their country’s investment in Africa to be something done for the benefit of
China. To add to this, during a presentation on this topic given to a class taught by the author of
this study, many students inquired as to which methods were used to invest in Africa. This may
indicate that though many are aware this is happening, many simply do not know how it is being
done. Comparing the two previous data sets shows that in the Chinese mindset Chinese
investment is seen as comparatively more beneficial for Africa than it is for China. Existentially
speaking, this isn’t symbiosis: this is one more economically advantaged country helping one
that is more disadvantaged.
Beneficial35%
Neutral44%
Not Beneficial21%
Benefical for China?
Figure 1.8: Will Chinese investment be beneficial for China?
Figure 1.8 displays the attitudes that had to do with dissecting the more minute aspects
of the Chinese investment model in Africa. As mentioned earlier, Chinese investment offers a
number of benefits that local African populations could take advantage of, namely cheaper
goods, infrastructure, job-creation etc. Yet this study wants to analyze which of these benefits
25SYMBIOTIC SUCCESS
will be more prevalent. So the next set of questions offers a list of options and the participants
were told to select up to three. Figure 1.9 shows how often each item was selected.
Cheaper
Goods
Infra
structu
reJo
bs
Non-conditi
onal Loan
sTra
de
Tranfer
ence
of Knowled
ge an
d Exper
tise
Other
12
101
69
1
31 34
4
Greatest Benefit For Africa
Greatest Benefit For Africa
Figure 1.9: Greatest Benefit for Africa
As seen above, the Chinese see infrastructure as the greatest benefit for Africa.
As investment comes in, building projects, which provide crucial infrastructural needs, will grow
in number and the Chinese believe this will be the main facet of China’s legacy in Africa.
Following infrastructure, jobs were listed as a benefit for the continent. They were the second
largest group, numbering 69 out of a total 220 selections indicating that the participants (N=220)
see this as a potential benefit. However, from an economic standpoint there is a discrepancy
because when asked what would be the greatest flaw in China’s investment model, the most
prevalent response was that of the lack of transference of actual money into African economies.
26SYMBIOTIC SUCCESS
No transfer-ance of actual
monies
Chinese businesses will not hire enough of the local popula-
tionSupporting unstable
governments
Chinese Companies may monopolize sectors African
economies
other
China could be another col-onizer
Greastest Flaw
Figure 2.1: Greatest Flaw in Chinese investment model
Figure 2.1 shows that the Chinese are very aware of what they describe as possible
economic discrepancies, and this could be indicative of a failed attempt at symbiosis. If one
looks at Figure 2.1, the combination of “no transference of actual money” with “Chinese
businesses don’t hire enough of the local population” could highlight a serious problem. In fact,
there have been concerns about Chinese companies only employing up to 70% Chinese staff
(Rocha, 2007). Fifty-nine participants (28%) said the Chinese might “monopolize certain sectors
of the economy,” which could be a serious
27SYMBIOTIC SUCCESS
Summary and Conclusion
This summary has analyzed Chinese attitudes concerning Sino-African
investment. The evidence presented in this study can in no way be considered indicative of any
profound, life changing results. The examination of literature puts the entire phenomena into
context while the study reached an appropriate audience but did not necessarily reach any
conclusive results. The methodology proved partially effective, in the end, but did reach a large
amount of people. If there were ever a future study, a larger sample size would certainly foster
greater chances for a more successful study with more rewarding findings.
In terms of the data, this sample was not large enough to amass any statistics that could
be used to make any general statements, yet it could be an indicator of possible chances for
future study. What this particular sample set has shown is that among educated, middle-class
Chinese, sentiments towards Africa seem to be, at best, ambivalent. Chinese investment in
Africa is viewed as a beneficial means for developing the African continent, but in no way are
these findings demonstrative of any form of symbiosis. The attitudes seem to be centered on
neutrality and ambivalence. To say it explicitly, when asked if the entire scheme of investment
will be beneficial for Africa, the most common response was “yes.” When asked the same
question about China, the most common answer was “neutral.” This is a major discrepancy in
attitudes and further research should be done on the extent of these attitudes, but should also
include African viewpoints as well.
The participants of this study have concluded that Africa’s greatest benefit, in their
opinion, will be infrastructure and the creation of jobs. That infrastructure has already been
implemented in the form of roads, hospitals, schools, and facilities that extract resources. The
most prevalent flaw is the potential of African economies being monopolized by Chinese
28SYMBIOTIC SUCCESS
companies. This means certain major Chinese multi-national companies could come in and set
up business powerhouses on African soil in which African businesses will not be able to
compete. This combined with the second largest concern, the lack of actual currency being
injected into African economies and pockets, could spell an economic cesspool of stagnant
development with Africa being turned in a resource colony for China.
Limitations and Suggestions
This study had a few limitations that prevented it from having an optimum level of
success. For starters, if the sample size were larger then more conclusive results could have been
drawn. Another issue was the instrument/survey itself. Whether it was the survey not being
clear enough or that this type of research doesn’t happen often in China, participants either didn’t
know how to take a survey or answered questions in a way that almost caused the author to have
to throw out data.
It is the opinion of the author that because this study has highlighted some discrepancies,
discovered a few cognitive dissonances, and has brought up more questions than definite
answers; there are some good areas for further study. Case in point, this study has analyzed the
Chinese attitudes but not African ones. Another study could be conducted in the near future
where African and Chinese businessmen could be interviewed, these businessmen would have
more in-depth, professional views on what is going on “on the ground.”
Discussion And Suggestions
29SYMBIOTIC SUCCESS
The whole of Africa’s development is riding on two things. First, the ability of the
governing parties on the continent to unify, and second, their ability to leverage their resources to
acquire whatever it is they need to develop economically. The author would like to put together
some suggestions for African governments to aid them in actuating their economic development.
The author will display which methods China used in order to acquire the rapid economic growth
that it is has accomplished in the past 36 years.
China has amassed one trillion Yuan worth of monetary reserves and has effectively
transitioned from an impoverished nation to a star-developing nation, all by doing one simple
thing: be on one accord. China isn’t communist anymore and there aren’t visible traces of
communist tendencies in the hearts and minds of the people. In fact, the Chinese are quite
capitalist and their business acumen is laudable. The point of the matter is that the rapid level of
economic advancement manifested by China is something that Africa should imitate - all of it.
By “all of it”, I mean even the methods the Chinese used to negotiate with the West to leverage
what Western companies had to offer. Beijing has successfully negotiated with giants bigger
than itself. A one-party system, well-detailed five-year plans, and the obedience and willingness
of a national politic that has directed its efforts to slaving away for the glory of a greater ideal,
have made it possible for China to achieve great heights. The Chinese seem to move with
consensus towards their economic destiny, convinced that they deserve it and that it’s their
rightful place.
Keeping all of this in mind, Africa would be wise to watch, listen, and imitate. Like
China, Africa should consider making use of its kith and kin entrenched in countries throughout
the Western world. A large part of China’s success came from its ability to make use of its
diaspora; likewise, the African diaspora will be crucial to African economic growth, for two
30SYMBIOTIC SUCCESS
reasons. First, the African diasporans have attended Western schools, served in Western armies,
obtained Western knowledge and expertise, and second, they have Western money. In past
decades Africa has suffered from something of a brain drain, similar to China. In order for
investment to truly work, Africa must call its children home, and with them, must come Western
know-how, knowledge, and funds. A further note on the African diaspora: Africa must be
willing to call home both those of the diaspora who left voluntarily and those who left
involuntarily, being that both groups have what African nations need. An example of this would
be the case of the United States 40 million African-Americans, whom posses one trillion dollars
in spending power. If even a small percentage of this figure was directed towards investment in
small and middle-sized businesses all over the continent, businesspersons could potentially
transfer control over African resources into the hands of local people. The author posits that if
this is augmented by Chinese investment, is an effective method for obtaining the wealth that the
continent needs.
The next issue at hand would be the method in which African governments handle the
vast investment given by Chinese companies. African governments should consider “slanting
the game” of development in their favor. If the governments could come to some form of a
consensus that the aim of doing business with foreign entities in Africa is to acquire whatever is
needed to benefit the African people, they could start to affect change in a way that creates
power. If an action does not benefit the African people it should not be done. Foreign Direct
Investment did not simply pour into China uncontrolled, yet it was first examined, measured,
tested in Special Economic Zones, and then implemented on a larger scale.
The Chinese government has been successful in utilizing foreign aid and distributing it
based on which industry or sector needs it most. In sectors of the economy where the Chinese
31SYMBIOTIC SUCCESS
found themselves in need of investment, they legislatively forced foreign companies to form
joint ventures, which helped knowledge and expertise to pass from foreign minds to the Chinese
companies, and in the name of profits and secure market niches, foreign enterprises acquiesced.
What this does is attract foreign investment and then create companies that could do business in
that industry. African countries should consider this, but if it is to be done it must be carried out
en masse and on a continent-wide scale.
Next, Africa should consider marketing itself as a secure locale for cheap labor. At first
this might be a little humiliating, but in the future it should be deemed necessary. This will bring
businesses and create jobs for people without them, as well as give people a share in the
development of their country.
Africa should also market itself as an exotic travel destination. Wealthy Chinese citizens
are travelling more than ever, and Africa, with its natural scenery and wildlife, could secure a
sizable portion of the Yuan spent on overseas travel. African music, dance, and other vestiges
belonging to the plethora of cultures in Africa seem exotic and enticing to many Chinese while
its people seem uninhibited and “magical.” Playing on this would allow African countries to
capitalize on the image that many have of African people. Also, an unknown, southern province
of China known as Yunnan is home to an Ethnic Minority park, which is proof of the Chinese
people’s fascination with cultures and peoples they deem “exotic.” The author does not deny
that the existence of this Minority Park is both humiliating and a little denigrating to the 56
ethnic minorities in China; however, opines it should be used as an economic tactic.
Africa should also be concerned over some of the activities of Chinese businesses
concerning agribusiness. While the development of the African agricultural sector is to be
applauded, the government should contemplate the implications of allowing foreign entities such
32SYMBIOTIC SUCCESS
power. Once Chinese companies secure enough land in Africa, they will have created a
permanent market niche and power in the local food market. Demanding that Chinese
companies hire a certain number of African employees could delineate this power and create
more jobs. Demanding that these companies even create joint ventures with African businesses
guarantees the transference of expertise and creates future companies that can compete against
their Chinese mother company and prevent monopolies.
The next point of this article might prove unpalatable to many. Africa needs to unify on a
continent-wide scale and become one economic bloc. Without this unification nothing will
happen for Africa. While some countries in Africa have an abundance of resources to bargain
with (e.g. Nigeria, Somalia) others don’t have enough and risk being left alone, bullied and
bereft. Whereas oil rich Nigeria will grow, small and resource-lacking countries may be left to
fend for themselves. Though this may seem like basic, historical common sense, it isn’t. This
method will only leave cracks in the wall of development that will later cause it to fall down.
Another issue is the myth that democracy and capitalism are prerequisites for
development. Lifting 500 million people out of poverty in 36 years at the behest of a single-
party state is proof enough that the idea of capitalism and democracy being the only route toward
development is a fallacious assertion. African governments should determine which economic
system is best for the cultures, peoples, and populations they rule in consideration of the
respective histories and economic situations in those nations. China has proven that a single
party state works well for nations with large numbers of the uneducated and impoverished. It
allows the powers-to-be to make decisions quickly and then implement them with all due haste.
Democracy is best suited for giving a wealthy, educated population a stake in their government
while allowing them to have a say in the direction of the nation. For many African countries,
33SYMBIOTIC SUCCESS
democracy isn’t a viable option at this point. For others, like South Africa, it is more realistic.
Arguably, communism and capitalism are simply two opposite ends of the political spectrum.
They both have agendas, manifestos, advantages and disadvantages. They benefit different
people and serve different purposes. Arguably, history has shown that one can stand the test of
time and the other can’t. Yet, the validity of one over the other is irrelevant.
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