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The best way is — simply — to trade fairly with the country. All sorts of effects kicks in; wealth, a demand for educated people and in that trajectory a demand

The best way is — simply — to trade fairly with the country. All sorts of effects kicks in; wealth, a demand for educated people and in that trajectory a demand for education. Currently it is only China that takes this approach — at least in Africa — and gains influence. It’s a pity.

veddox 8y ago
While agreeing with your first point, I strongly object to the notion that China is trading fairly with Africa. I've known the Zambian Copperbelt (the major industrial province) for over twenty years. In the last ten years, and especially in the last five, it has literally been overrun with Chinese "investors". Driving between towns, you see almost only Chinese companies, Chinese mines, Chinese trucks. Signposts are written Chinese first, English (the official language) second. Some time back, they managed to negotiate a 10-years tax-free period for them with the Zambian government. They prefer to import their own labourers - tens of thousands of them, living in heavily guarded compounds. Where they do employ local labour, workers are forced to work seven day weeks under precarious conditions. (Last year, 40 people died when a slag heap collapsed.) China ingratiates itself with African governments by offering immense loans for big infrastructure projects. Western governments are almost always unwilling to do so themselves (partly because of corruption in the target countries), so the Africans jump at the Chinese offer. But the loans come with strings attached: the projects have to be given to Chinese contractors, who often charge ten times the regular price. And when the country in unable to pay back the loan on time (as they inevitably are), the Chinese government takes over key national assets in "mortgage". (Compare here: https://www.africanstand.com/news/africa/east-africa/china-to-take-over-kenyas-main-port-over-unpaid-huge-chinese-loan/ https://www.africanstand.com/news/africa/east-africa/china-t...)
- tilt_error 8y ago
  I was not aware of that. Thank you for correcting me!

veddox 8y ago

While agreeing with your first point, I strongly object to the notion that China is trading fairly with Africa. I've known the Zambian Copperbelt (the major industrial province) for over twenty years. In the last ten years, and especially in the last five, it has literally been overrun with Chinese "investors". Driving between towns, you see almost only Chinese companies, Chinese mines, Chinese trucks. Signposts are written Chinese first, English (the official language) second. Some time back, they managed to negotiate a 10-years tax-free period for them with the Zambian government. They prefer to import their own labourers - tens of thousands of them, living in heavily guarded compounds. Where they do employ local labour, workers are forced to work seven day weeks under precarious conditions. (Last year, 40 people died when a slag heap collapsed.) China ingratiates itself with African governments by offering immense loans for big infrastructure projects. Western governments are almost always unwilling to do so themselves (partly because of corruption in the target countries), so the Africans jump at the Chinese offer. But the loans come with strings attached: the projects have to be given to Chinese contractors, who often charge ten times the regular price. And when the country in unable to pay back the loan on time (as they inevitably are), the Chinese government takes over key national assets in "mortgage". (Compare here: https://www.africanstand.com/news/africa/east-africa/china-to-take-over-kenyas-main-port-over-unpaid-huge-chinese-loan/ https://www.africanstand.com/news/africa/east-africa/china-t...)

tilt_error 8y ago
I was not aware of that. Thank you for correcting me!