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China in Africa Myths and Realities

In recent years, journalists and pundits in the West have looked on China’s economic engagement with Africa, including foreign aid, with growing alarm. An NYT op-ed a few years ago called China a “rogue donor,“ giving aid that is “nondemocratic in origin and nontransparent in practice, and its effect is typically to stifle real progress while hurting ordinary citizens.”

Other negative stories about China in Africa include China abetting genocide in Darfur by supplying arms in exchange for Sudanese oil; propping up corrupt government in Zimbabwe; swooping in to undo the anti-corruption work of the IMF or the World Bank in Angola or Nigeria with offers of no-strings-attached loans; and generally ignoring environmental, safety and labor standards on projects in Africa.

So the idea that China’s aid to Africa could be in any possible way better, more credible, or more effective than Western aid to Africa may be a hard sell. But Deborah Brautigam, author of the new book The Dragon’s Gift: The Real Story of China in Africa, argues that focusing only on the China threat makes us blind to the real opportunities Chinese engagement offers for African development.

Part of the problem, says Brautigam, is that there is very little information about what China is really doing in Africa, and in this vacuum, “myths sprang up and were rapidly accepted as facts.” Brautigam fills this void and dispels, or at least complicates, some commonly held beliefs about China in Africa.

In other areas she finds evidence to back up criticism of China’s Africa policies, but argues that we should not see China’s stance towards Africa as static; it is evolving and can sometimes be influenced by international pressure. Throughout, some of Brautigam’s best insights come from asking “compared to what?”:  The book seeks to compare Chinese aid to Western aid as it really is, not as we wish it were.

A few examples of China myths and partial truths:

1) China targets aid to African states with abundant natural resources and bad governments

Actually, China gives money to almost every single country in Sub-Saharan Africa, excluding only those that don’t acknowledge the One China policy. There is little evidence that China gives more aid to countries with more natural resources or specifically targets countries with worse governance. China is not alone in its interest in natural resources in Africa, and natural resources are not the primary motivating factor for Chinese aid: like all donors, US definitely included, China is motivated to give aid by a mix of political, commercial, and social/ideological factors.

2) The Chinese don’t hire Africans to work on their projects

This depends on how long a company has been working in Africa, and how easy it is to find appropriate local labor. Ultimately, it also depends on African governments themselves, who have the power to dictate what proportion of project staff must be local (as Angola and the DRC have done). Brautigam also points to the stark contrast in standard of living between Chinese workers and managers in Africa, who tend to live in extremely simple conditions, and Western advisors, who more typically live in expensive housing or hotels. While Western experts may be fewer, they cost their projects a lot more.

3) China outbids other companies by flaunting social and environmental standards

This one’s true but evolving…Brautigam portrays China as “on a steep learning curve,” struggling with environmental and corporate social responsibility issues at home and abroad. She gives some evidence that China and Chinese companies are becoming increasingly sensitive to international perception on these issues and may be inching towards international standards.

This Wednesday (February 10) NYU’s Development Research Institute and the Wagner School are co-hosting a lunchtime seminar and book launch event with Professor Brautigam. Click here for more information and to RSVP.

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| Posted in Aid Policies and Approaches | 3 Comments

Who gets the Last Seat on the Plane? Why Aid Hates Economics

Not long ago, I was returning home from a trip when the airline bumped me from my flight due to overbooking. The airline rep was very sympathetic, but I didn’t want her sympathy, I wanted A Seat On the Plane. She had traded off my wishes against those of other passengers, and I lost.

 Economists are unpopular because we say there is always SOME resource that is overbooked in aid, and aid is Forced to…

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| Posted in Uncategorized | 11 Comments

It’s a love fest!

Starbucks, in partnership with RED, recently announced a plan to have musicians in 156 countries participate in a Global Sing-along, which produced this totally adorable video:

What does this have to do with the price of (coffee) beans? The All-You-Need-is-Love fest is part of a giant global plan to save the continent of Africa from dying of AIDS (and also maybe sell some coffee and reap the marketing benefits of associating their brand with…

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| Posted in Uncategorized | 9 Comments

Debates on losing the AIDS War

We got some great comments in response to yesterday’s post How the war on AIDS was lost.  Much of the debate centered around three questions:

1) Isn’t treatment complementary to prevention?  And so there is no tradeoff?

While some agreed with the post’s overall assertion that prevention has been neglected in favor of treatment, Caitlin argued that this distinction is artificial: “in many places, the availability of treatment makes prevention possible.”

Gregg Gonsalves…

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| Posted in Uncategorized | 9 Comments

How the war on AIDS was lost

There was an alarming article in the Wall Street Journal on the reverses of previous advances in AIDS prevention in Uganda, plus running out of US funding for AIDS treatment.

The war on AIDS is being lost. Here are the facts:

  1. There were an estimated 2.7 million new infections worldwide in 2008; 1.9 million of them were in Sub-Saharan Africa.  The number of people added to treatment each year is also increasing

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| Posted in Aid Policies and Approaches | 22 Comments

We’d like to thank the Academy…

Bill Easterly and Yaw Nyarko have their Sally Field Oscar moment (You like us! You really like us!) At least 5 of you! as they are interviewed by BBVA on the occasion of DRI winning the BBVA Frontiers of Knowledge in Development Cooperation Award.  They talk about the simple focus of DRI, their motivations for working on aid, and what the award means to them. Additional footage demonstrates that Easterly and Nyarko are not…

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| Posted in Uncategorized | 6 Comments

An oil purse is a curse, of course?

This post is by Adam Martin, a post-doctoral fellow at DRI.

In development economics everyone knows that natural resources are a curse. A well-known study by Sachs and Warner found a negative correlation between resource abundance and growth rates, while subsequent studies have shown a negative relationship with democracy.

The Curse enjoys wide appeal. Aid skeptics like that it implicates oppressive domestic government and nationalized industries. Aid supporters are drawn to its emphasis on…

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| Posted in Research and Statistics for Good and Evil | 21 Comments

Dropping Haiti’s debt = sending old shoes

The following post is by David Roodman, a research fellow at the Center for Global Development (CGD) in Washington, DC.

Last week my colleague Michael Clemens blogged in this space about the “The best way nobody’s talking about to help Haitians.” So as a complement, here’s what I think is the worst way that everybody’s talking about to help Haitians: cancelling Haiti’s debt.

I am not suggesting that Haiti’s foreign creditors should stick…

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| Posted in Uncategorized | 9 Comments

What’s so hard about nation-building?

From today’s NYT

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| Posted in Uncategorized | 5 Comments

Quake an opportunity for foreigners to “get Haiti right”? Aid “shock doctrine”?

NEIL MacFARQUHAR in a good NYT story this morning  (self-promotion alert: I am quoted in the story) notes all the discussion that the quake is an opportunity to sort out all the problems of long-run Haitian development. But an opportunity for whom? Apparently for foreigners. The story mentions some of the proposals for foreign intervention:

Haiti should be temporarily taken over by an international organization

{Bill Clinton as} Haiti reconstruction czar.

“Is it too wild a

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| Posted in Uncategorized | 16 Comments