January 16, 2020
It is as clear as day and night, the difference between China’s approach to Africa and that of the United States. There is no equivalence. Historically, China has viewed African nations as part of the developing sector from which China emerged. This has contributed to China’s distinct attitude to partnering with African nations in promoting economic growth. Over the last two decades especially, the ties between China and Africa have grown stronger, with Africa’s East Coast materializing as an integral part of China’s Belt and Road Initiative.
The US has not always dismissed the importance of contributing to Africa’s growth. President John Kennedy, following in the footsteps of President Franklin Roosevelt, was a strong opponent of colonial subjugation of Africa. President Kennedy, as US Senator advocated Africa’s liberation movement, and as US President supported President Kwame Nkrumah’s plans to construct the hydro-electric dam and bauxite smelting complex on Ghana’s Volta River. By the end of the 1960s the US had lost its optimism and vision for the world, adopting in its place, a British inspired cynical “geo-political” doctrine.
Geo-politics divides the world into two categories; winners and losers in a zero sum game. Today’s unfounded attacks against China’s involvement in Africa, alleging that China is deliberately entrapping nations into debt and stealing their natural resources flows from this perverted world view. Chinese President, Xi Jinping promotes a different philosophy; it’s called “win-win.”
Building, Not Extracting
Unlike British Imperialist Cecil Rhodes, and degenerates like King Leopold II, China is not raping Africa for its resources. Since Royal Dutch Shell discovered oil in southern Nigeria in 1956, the West has focused its investment chiefly in oil and gas-i.e. hydrocarbon extractive industries. China in recent decades has become the leading nation in financing and building infrastructure in Africa. It is well known that investment in extractive industries do not expand the economy nor provide a large amount of jobs. However, it does yield large streams of revenue. China has chosen a different business mode; one more beneficial to the African people.
According to McKinsey consulting company’s publication, Dance of the lions and the dragons, released in June 2017, China in 2015 financed $21 billion worth of infrastructure projects in Africa. That is three times the combined total of France, Japan, Germany, and India. US financing of infrastructure in Africa was too minimal to even mention. Detailed in the same document, China’s export and import trade with Africa is quantified as $188 billion in 2015, compared to the US at $53 billion. Deloitte’s 2017 Africa Construction Trends, further documents China’s role in expanding Africa’s infrastructure. As of June 2017, China was only second to African governments in funding large infrastructure projects, 15.5% and 27.1% respectively. The US was listed at 3%, the UK and France at 2%. When it comes to who actually builds these projects the figures are more shocking; China constructed over one quarter or 28.1% of these projects, the US 3.3%, and the UK 2.3%.
Infrastructure Is Essential
Infrastructure is critical for every economy to expand, grow and develop. Africa’s deplorable lack of infrastructure is literally killing its people. There is no more crucial single element of economy that must be addressed for African nations to develop. Infrastructure adds value to the entire economy by augmenting the productive capability of every farmer and worker. More capital intense economies will be affected by technologically advanced infrastructure platforms.
The history of humankind demonstrates that progress of civilizations emanates from the realization of scientific discoveries transmitted through more efficacious technologies. Infrastructure reflecting more advanced machinery is a primary means of transferring technology (science) to the economic production process.
There is nothing wrong with African nations using their resources for collateral or payment of loans for infrastructure. Wealth is not the monetary value of natural resources extracted from the earth. Economic wealth is understood to be that which contributes to the increase of the power of society to provide the material wellbeing of its citizens and their posterity. Infrastructure performs that function.
China’s contribution to building new railroads in Africa, replacing century old British and French antiquated rail lines, and constructing new hydro-electric dams, and ports, is precisely what African nations need to develop. China is providing indispensable assistance; the US and Europe are not. An experienced former US ambassador to Africa told me bluntly; the US stopped investing in infrastructure in Africa in the early 1970s. Sadly, today, the US continues to repeatedly proclaim, “we don’t build infrastructure.”
Debt-Trap or Claptrap?
In her latest paper, A critical look at Chinese ‘debt-trap’ diplomacy: the rise of a meme, Deborah Brautigam, China-Africa scholar and Director of the China-Africa Research Initiative-(CARI) at SAIS*, puts a nail in the coffin regarding false accusations of China deliberately entrapping African nations through debt.
She writes: “…for over a decade Western politicians and pundits have warned that China is a rogue donor with regard to its finance, is a new colonialist, and a predatory and pernicious lender that snares vulnerable states in a debt trap leveraging its loans in order to have its way with weak victims.”
Brautigam responds to these allegations by asking: “However, does evidence exist for this kind of debt leverage?” Then she answers: “It [SAIS database] has information on about more than 1000 loans and, so far, in Africa, we have not seen any examples where we would say the Chinese deliberatively entangled another country in debt, and then used that debt to extract unfair or strategic advantages of some kind in Africa, including ‘asset seizures’.” (emphasis added)
With the population of 55 African nations projected to reach 2.4 billion in the next three decades, the continent needs trillions of dollars in new infrastructure. Presently, the US is more concerned in countering China in Africa, than developing Africa. Many African leaders are hopeful the US will establish a more robust economic relationship with their nations. As has been the case with previous administrations, the lack of vision, and adherence to “geo-politics” is preventing the US from engaging with Africa in a win-win relationship. This can and should change.
*Johns Hopkins School of Advanced International Studies
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com