Contents
1. Introduction ............................................................................................................................................... 4
1.1 Background ......................................................................................................................................... 4
1.2 Problem formulation............................................................................................................................ 4
2. Methodology ............................................................................................................................................. 6
2.1 Structure .............................................................................................................................................. 6
2.2 Hermeneutics ....................................................................................................................................... 6
2.3 Qualitative Methods ............................................................................................................................ 9
2.3.1 Interviews ..................................................................................................................................... 9
2.3.2 Inductive and Deductive Approach ............................................................................................ 10
3. Basic concepts ......................................................................................................................................... 12
3.1 South – South Cooperation................................................................................................................ 12
3.2 FDI (Foreign Direct Investment) ....................................................................................................... 12
3.3 One China Policy............................................................................................................................... 12
4. Theories ................................................................................................................................................... 13
4.1 Approaches ........................................................................................................................................ 13
4.1.1 Neo-Liberal Approach ................................................................................................................ 13
4.1.2 Development Approach .............................................................................................................. 14
4.1.3 Post-colonial and Neo-Colonial Approach ................................................................................. 15
4.2 Theories ............................................................................................................................................. 16
4.2.1 Soft power .................................................................................................................................. 16
4.2.2 Dependency theory ..................................................................................................................... 21
4.2.3 Neocolonialism ........................................................................................................................... 26
4.3 Comparison-three theories ................................................................................................................ 31
5. Analysis-China’s motives........................................................................................................................ 32
5.1 China’s FDI in Africa ........................................................................................................................ 32
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5.1.1 FOCAC (Forum on China – Africa Cooperation) ...................................................................... 33
5.1.2 Policy .......................................................................................................................................... 33
5.1.3 Economy ..................................................................................................................................... 34
5.1.4 Social .......................................................................................................................................... 35
5.2 China’s soft power in Africa ............................................................................................................. 35
5.2.1 The necessity of China promoting soft power in Africa............................................................. 35
5.2.2 Investment as a major tool to promote China’s soft power ........................................................ 36
5.2.3 Concrete analysis from three perspectives ................................................................................. 36
5.3 China’s motive according to dependency theory .............................................................................. 39
5.3.1 China’s replacement with the West in Africa ............................................................................. 39
5.3.2 The application of the dependency theory .................................................................................. 40
5.4 China’s motives according to neo-colonialism ................................................................................. 42
5.4.1 Economical motives ................................................................................................................... 42
5.4.2 Political and social motives ........................................................................................................ 45
5.5 Comparison-Outcomes of the theories .............................................................................................. 45
6. Analysis-Africa’s motives ....................................................................................................................... 47
6.1 Nigeria and Kenya’s trading relationships with China ...................................................................... 47
6.2 Nigeria’s motives .............................................................................................................................. 48
6.2.1 The importance of Nigeria as China’s investment target ........................................................... 48
6.2.2 Economic motives ...................................................................................................................... 49
6.2.3 Political motives ......................................................................................................................... 51
6.2.4 Social motives ............................................................................................................................ 52
6.3 Kenya’s motives ................................................................................................................................ 52
6.3.1 The importance of Kenya as China’s investment target ............................................................. 52
6.3.2 Economic motives ...................................................................................................................... 53
6.3.3 Political motives ......................................................................................................................... 55
6.3.4 Social motives ............................................................................................................................ 55
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6.4 Comparison-Nigeria and Kenya’s motives ....................................................................................... 56
6.4.1 Similarities.................................................................................................................................. 56
6.4.2 Differences ................................................................................................................................. 57
6.5 U.S reaction ....................................................................................................................................... 58
6.6 Future outlook of China – Africa’s cooperation (focus on Nigeria and Kenya) ............................... 60
6.6.1 Future outlook for Africa............................................................................................................ 60
6.6.2Nigeria ......................................................................................................................................... 61
6.6.3 Kenya.......................................................................................................................................... 62
7. Conclusion & Discussion ........................................................................................................................ 64
7.1 Conclusion ......................................................................................................................................... 64
7.2 Discussion ......................................................................................................................................... 65
8. Bibliography ............................................................................................................................................ 66
9. Appendix ................................................................................................................................................. 72
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1. Introduction
1.1 Background
The 30th of March in the year 1956 can be seen as a historical starting point. It stands for the
beginning of the diplomatic relations between the People’s Republic of China and the African
states, Egypt being the first country1, and marks the start of now more than half a decade of
Chinese development finance to Africa. In the years that followed, China became increasingly
involved with Africa as more nations gained independence. In 1964, eight principles of China’s
foreign economic government were announced, with the principle of mutual benefit and equality,
emphasis on self-reliance, and absence of required conditions for finance being the most
important ones. The next key milestone of the relations between China and Africa was
established in 1971, when the People’s Republic of China took over the UN - seat of the Republic
of China, which included Taiwan, by having the support of twenty-six African countries who
voted in Beijing’s favor. Relations between the Asian country and the continent remained to be
tight, resulting in the establishment of the Forum on China-Africa Cooperation (FOCAC). Its first
meeting was held in Beijing in 2000, and attended by representatives of more than 44 African
countries. The Chinese cultural values were spread by the Confucius Institute, which opened first
in Kenya in 2005. It aims to promote the Chinese language and culture in foreign countries, and
stimulate and facilitate exchanges between the different cultures. 2006 was declared in China as
the ‘Year of Africa’, and a China-Africa development fund was created to boost investments.2
1.2 Problem Formulation
Nowadays, China is Africa’s largest trading partner.3 The FOCAC has calculated that the trade
volume between the two parties increased from US$2 billion in 1999 to US$16 billion in 2012.4
One of the reasons why this increase was possible is that China is an attractive economic partner
for many developing African countries. In contrast to many other countries, China does not
Ministry of Foreign Affairs of the People’s Republic of China
Website: http://www.fmprc.gov.cn/eng/wjb/zzjg/xybfs/gjlb/2813/t16304.htm on 02-12-2013.
2
China in Africa timeline.
Website: http://interactive.guim.co.uk/2013/apr/china-in-africa/components/timeline/index.html on 02-12-2013.
3
OECD
Website http://stats.oecd.org/, on 01-12-2013
4
FOCAC Policy Briefing.
Website:http://www.ccs.org.za/wp-content/uploads/2012/05/FOCAC_Policy-Briefing_tradeinvest_final.pdf on 0212-2013.
1
Page | 4
require a specific form of governance in exchange for cooperation. 5 The Chinese communist
party has emphasized its foreign policies based on mutual benefits, but critics believe that this
argument is used to camouflage the extraction of natural resources in deceptive ways. Questions
arise if the Sino-African relationship creates a process of economic dependency or economic
development, if it strengthens Africa’s position in global politics, and if it improves Africa’s
living standards or not. The aim of this paper is to answer these questions by analyzing whether
the growing Chinese investment flows have a good or bad influence on the economic, political
and social development in Africa. The analysis will be built on three different theories and
applied to China’s relationship with two African countries: Nigeria and Kenya.
5
Kevin Kwok. China’s influence in Africa.
Website: http://www.fairobserver.com/360theme/china%E2%80%99s-influence-africa on 02-12-2013.
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2. Methodology
2.1 Structure
First, the methodology of the paper will be described. The project group has used both primary
sources, in the form of interviews, and secondary sources, in the form of qualitative and
hermeneutic methods, to gain information from different perspectives. Second, the paper will
explain the three theories that are used in the analysis: the soft power theory, the dependency
theory and the neocolonialism theory. Third, China’s and Africa’s motives will be analyzed
according to these theories by focusing on Nigeria and Kenya and the analysis results will be
further enriched by the reaction of U.S. and a future outlook. Finally, the conclusion and
discussion will provide an answer to the problem statement.
2.2 Hermeneutics
The general method used on the analysis sections of this project is hermeneutics, which is a
method in social science that deals with interpretation and understanding of texts. Hermeneutics
has been defined differently throughout the years. Friedrich Schleiermarcher (1768-1834) said
that as a prerequisite for understanding a text, the reader had to have some knowledge about the
author’s life and the historical context in order to understand it. On the other hand, Hans–Georg
Gadamer (1900-2002) also tried to establish a proper definition of what hermeneutics was. Hans–
Georg Gadamer´s analysis developed the Friedrich Schleiermacher’s ideas of hermeneutics. Hans
–Georg Gadamer believed that a prior understanding of the topic was needed in order to
understand it; subsequently, the interpretation was based on one's prejudices. However, the text
also has the ability to move the reader's prejudices. From this perspective, it is clear to establish
that the comprehension and the pre-comprehension are interdependent. In this paper the project
group has mainly used the Hans Georg Gadamer’s definition on hermeneutics.
Hans–Georg also uses a Hermeneutic circle to illustrate the hermeneutic process of the
comprehension and interpretation. Taking this image, we can determine that the interpretation
process, within Hans-Georg Gadamer’s hermeneutics approach, has no limit. Otherwise it will
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lead you to a continuous interpretation. In the project, the group decided to scope our research
and analysis based on factors which are relevant to the topic. 6
Before we started this project we had some pre-comprehension of the topic on “China’s FDI in
Africa” from media and our courses, such as “Political Change and Development Theories”.
These reasons support our decision to analyze this topic. We have used various resources in order
to search relevant information linked to the topic, such as articles, books, and interviews. These
resources have helped to gain a wider understanding and a shared vision of how, indeed, the
situation of China’s FDI in Africa is.
Throughout the research process for this project, with the materials used in the analysis, we have,
in some aspects, confirmed our pre-comprehension of the topic that, for example, China is taking
over the position of the largest investment in Africa, and that it has created a strong bond with
Africa. In other aspects, we had to reconsider our previous prejudices about the topic. For
instance, we were wondering if China’s motives should be defined as egoistic or altruistic.
In regard to limitation, considering that Africa is such a large and diverse continent, the project
group decided to focus mainly on only two countries to have a deeper understanding of the
situation. On the contrary, if we had analyzed Africa as a whole, it would be a great challenge to
get a real grasp of the situation, and it had been impossible to generalize since it was so diverse.
One of the reasons we chose to analyze the cooperation between China with Kenya and China
with Nigeria was because Chinese media had more positive voices about the relationship between
China and Kenya, but some negative reactions concerning China and Nigeria. In this sense, it
gave the project two opposite viewpoints on the cooperation between China and African states. In
addition, these states are also very different from each other, in regard to their relationship with
China, because Nigeria is one of China’s biggest investments in Africa, whereby Kenya is a much
smaller investment. Since we had limitation on time and page amount, we decided that this was
the best way to get a real understanding of the cooperation.
6
Den Store Danske. Hermeneutik.
Website:
http://www.denstoredanske.dk/Sprog,_religion_og_filosofi/Filosofi/Filosofiske_begreber_og_fagudtryk/hermeneutik
on 02-12-13
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To create the basis for this analysis, the project group agreed on three theories to apply in this
project, soft power, dependency and neo-colonialism, since we found these the most relevant to
creating a strong foundation to answer the problem statement of this project. It is also important
to mention that soft power and dependency theory can be considered as more of western theories,
whereby neocolonialism is more relevant for Africa, considering that Africa experienced a
colonial period in its history.
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2.3 Qualitative Methods
It is important to start up that the method of accessing data that we have used in this project is the
qualitative method. We have defined the structure of the project and its base on analysis by
means of qualitative approach. Throughout this project, the qualitative method has worked as the
thread of the chosen problem statement reasoning, as well as, the foundation of the analysis based
on theories of Soft Power, Dependency and Neo-Colonialism. According to Michael Quinn
Patton and Michael Cochran: “Qualitative research is characterized by its aims, which relate to
understanding some aspect of social life, and its methods which (in general) generate words,
rather than numbers, as data for analysis.” 7 The use of qualitative research methodology is
structured by specific characteristics. These specific features help to make sense of the project. In
this project the qualitative research has been featured by establishing methodological steps which
involve the collection, analysis, and interpretation of data, including the interview in the form of
a survey, which collects information from different interviewees relevant to our topic.
2.3.1 Interviews
An interview can be defined as an asymmetrical relationship between an interviewer and a
respondent, in which the interviewer coordinates a conversation aimed to obtain desirable
information and the respondent provides answers using his or her experiential knowledge. 8 In
addition to the secondary sources that were used, the project group decided to obtain knowledge
from primary sources by constituting a structured, individual interview in the form of a survey.
The questions were composed together after a brainstorming session and aimed on extracting
knowledge from direct stakeholders. They had to cover three aspects of the motives that are
analyzed in this paper: social/cultural, economic, and political. Furthermore, some questions were
designed to capture the personal experience of the interviewee, whereas others tried to clarify the
interviewee’s opinions and perspectives on the topic. Therefore, the two surveys are not similar,
but customized to each interviewee. After designing the questions, the surveys were sent via
email and social media. The survey was done in the perspectives of a Chinese businessmen
working in Africa, a Chinese employee in Kenya, and a Nigerian International Relations
postgraduate student. Ma Yushui and Xu Jiaxun got contacted through project member Han
7
Michael Quinn Patton and Michael Cochran. 2002. A Guide to Using Qualitative Research Methodology. Published
by Medecins sans frontieres.
8
Jaber Gubrium and James Holstein, Handbook of Interview Research. SAGE, 2002., p.3.
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Song. Ma Yushui (55 years old) is the general manager in China Road & Bridge Corporation,
which undertakes a lot of engineering and labor projects in Africa; Xu Jiaxun is a 25-year-old
university graduate who has been living in Nigeria for two years. Aderinsola Adebulehin is a
student that Max van Veen met during his study abroad. She is a 20-year-old student at Monash
University South Africa, who spent most of her life in Nigeria. After completing her bachelor’s
degree in Global International Studies and Criminology, she is commencing her postgraduate in
Development studies in January 2014. With these backgrounds, the project group agreed that
these persons could provide valuable, additional information by sharing their personal
experiences and perspectives.
2.3.2 Inductive and Deductive Approach
Within qualitative methodology, there are different approaches regarding relevant data collection.
Selection of suitable approaches for data collection depends on the research target and the kind of
data available. Throughout our project, we have chosen two approaches: inductive, and
deductive. On the one hand, inductive approach focuses its methodology on beginning with
observation in order to understand it through hypotheses. The main aim which characterizes
inductive method is to establish a theory through previous observation, and hypotheses. On the
other hand, deductive approach is featured by working from the more general to the more
specific, namely, from an original theory to a confirmation, through hypotheses and observation.9
Inductive approach takes dominancy in the conclusion part where knowledge obtains a posteriori
from analyzed Chinese and Africans motives serves for creating general conclusion.
In this project, the group uses the deductive approach in the following way: The theories of soft
power, dependency and neo-colonialism are applied to the analysis of both China’s motives and
Africa’s motives. In the first analysis on China’s motives part, the analysis unfolds itself from
three perspectives: culture, values, and foreign policies, which are the three sources of improving
within the soft power theory. Although, on Africa’s motive part, soft power is used to explain
how Nigeria and Kenya benefit from China’s intentions of improving its soft power in Africa,
and how China’s soft power is influenced by different reactions of the two countries to China’s
9
Trochim, Wiliam M.K. 2006. Research Methods- Knowledge Base. Published by Web Center For Social Research
Methods.
Website: http://www.socialresearchmethods.net/kb/dedind.php on 1-12-2013
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investments. In the second analysis section where China’s motives are examined, the key
assumptions from dependency theory are applied. Core-periphery scheme explains how SinoAfrican economic coexistence is formed and how ties between both countries relate. In the third
and final analysis, China’s motives are analyzed in an economic, political, and social dimension,
which are the main ways of influencing according to neo-colonialism theory. In Africa’s motives
part, neocolonialism and dependency theories are used to explain why Nigeria and Kenya want to
diversify its exports and how China facilitates this.
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3. Basic Concepts
3.1 South – South Cooperation
South-South cooperation is the process which bases its action foundation on political articulation
and economic, scientific exchange, as well as, other relevant areas among developing countries
with the main purpose of promoting state growth.10
3.2 FDI - Foreign Direct Investment
An investment made by a company or entity based in one country into a company or entity based
in another country. Those entities which make investments directly into another entities or
countries typically have a significant degree of influence and control over such company or
state.11
3.3 One China Policy
The ‘One China policy’ is a concept which refers to the establishment of one unique,
predominant state “China”. Even though, there are two governments, on the one hand, People’s
Republic of China; and on the other hand, Republic of China (Taiwan). Both governments agreed
that it must be only one supreme state. The problem occurred when both China and Taiwan
disagreed on which of them is legitimate. From the perspective of foreign policy, this means that
partners, in order to cooperate with China, have to support China in preventing the secession of
areas that are striving for independence, like Taiwan and Tibet.12
10
United Nations Day for South-South Cooperation (12/09-2013)
Website: http://www.un.org/en/events/southcooperationday/ on 14-12-13
11
Foreign Direct Investment – FDI ” Definition of 'Foreign Direct Investment – FDI”
Website: http://www.investopedia.com/terms/f/fdi.asp on 14/12-2013
12
Wenping. p.25
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4. Theories
The following section is dedicated to giving a general introduction of the theories and approaches
used to analyze the given problem in this paper. In social science, theories help to describe reality
and generate the historical and practical knowledge needed to resolve problem; in the study of
international relations, theories offer conceptual tools to accomplish two basic tasks: to analyze
the impact of rules and decisions on state behavior, and to understand the changing dimensions
and limits of power structures, institutions and order. It is essential that theories should be
employed to understand the increasingly complicated policies made by state and international
political leaders when facing the ongoing challenges of building consensus related to maintaining
and promoting peace, security and prosperity. 13
The study of international relations theories contains various theoretical approaches, among
which three are mainly used in this essay to analyze the Sino-African relations: neo-liberal
approach, development approach, and post-colonial and neo-colonial approach. To study the
approaches and theories in the first place helps to understand the motives behind certain policies
and actions taken by both sides.
4.1 Approaches
4.1.1 Neo-Liberal Approach
According to Jackson and Sørensen, there are four major approaches in “International Relations
(IR) discipline”: realism (neo-realism), liberalism (neo-liberalism), international society, and
international political economy (IPE). 14 And neo-liberal approach is selected herein to elaborate
on the influence of Chinese investment in Africa. Liberalism has been identified with an essential
principle-the freedom of individuals and states. It shows a belief in the importance of moral
freedom, of the right to be treated and a duty to treat others as ethical subjects, but not as objects
or means only. 15 The early study of liberalism is labeled as utopian idealism, whose basic
assumptions are that human beings are rational and when they apply reason to international
relations they can set up organizations for the benefit of all; public opinion is a constructive
13
Griffiths, M., Callaghan, T.O. & Roach, S.C., 2008. International Relations: The Key Concepts second edi.,
Abingdon: Routledge,abng. pp.124-126.
14
Jackson, R. & Sørensen, G., 2007. Introduction to International Relations: Theories and Approaches, New York,
USA: Oxford University Press.
15
Doyle, M. W., 1983. Kant,liberal legacies, and foreign affairs.
Page | 13
force; removing secret diplomacy in dealings between states and opening diplomacy to public
scrutiny assures that agreements will be sensible and fair. However, these ideas are referred to as
nothing but the projection of wishful thinking. During the 1950s, 1960s, and 1970s, a host of
international relations paid attention to trade and investment, travel and communication and
similar issues that were prevalent in the liberal democracies in the west. Those relations paved
the way for a new attempt by liberals to formulae an alternative to realism that would avoid
excessive utopian elements of earlier liberalism. And this renewed liberal approach is classed as
neo-liberalism. There are four strands of neo-liberal approach: sociological liberalism,
interdependence liberalism, institutional liberalism, and republican liberalism, among which
interdependence theory is developed by Robert Keohane and Joseph Nye, presenting a world
where security and force matter less and countries are connected by multiple social and political
relationships. Carrying this theory forward, Joseph Nye pioneered the theory of “soft power”,
which will be applied to the analysis in this paper.
4.1.2 Development Approach
The word “development” is open to a great deal of controversy. It’s hard to formulate an
adequate development theory for the majority of the world’s population who suffer from
underdeveloped situation without first knowing their past history which resulted in their current
underdevelopment.16 One way that development is often measured is in terms of changes in gross
national product (GNP) per capita and comparative GNPs between countries. However, there are
some problems with the economic growth concept of development: it ignores the wealth disparity
that might accompany with high GNP and it also neglects the type of government that is
presiding over the development. 17 Another measurement of development is the level of welfare
system, namely, the provision of health and medicine, pension, access to education, and other
elements that help to raise people’s living standard. On the Basis of this measurement, many
African countries will be categorized as “underdeveloped” due to their inabilities to provide these
essentials.
16
17
Frank, A.G., 1966. The development of underdevelopment. 18
Ibid.
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Other measurements can also be used to define “development”: technological advancement,
international trade, mass production and consumption, etc. To sum up, development does not
merely involve economic growth and not all economic growth can be equated with development.
The major development schools are modernization theory, world system theory and dependency
theory, among which the dependency theory is used herein to analyze Sino-African relationship.
It describes a situation where the economy of certain countries is conditioned by the development
and expansion of another economy to which the former is subjected. It maintains that dependency
is the source of underdevelopment and it is the result of imposition of a set of external conditions
on Third World development. In this paper, the dependency theory is employed as an indicator
that the Chinese investment in Africa might be one of the reasons behind its underdevelopment.
4.1.3 Post-Colonial and Neo-Colonial Approach
The “post” in “post-colonialism” or “neo” in “neo-colonialism” should not be taken as a
straightforward temporal marker and they do not imply a period “after imperialism” as a global
system of hegemonic power. 18 Spicak maintains that, “we live in a post-colonial, neocolonized
world” 19 ; Bhabha contends that postcoloniality is “a salutary reminder of the persistent
‘neocolonial’ relations within the ‘new’ world order and the multi-national division of labor”.20
Many of these postcolonial theorists argue that the “post” or “neo” is not a dividing temporal
marker, but an indication of continuity. 21Therefore, the connection between the past and present
emerges as a key focus in the post-colonial and neo-colonial approach. Post-colonial and neocolonial approach to IR stems from its dissatisfaction with the mainstream IR theories, which
have its birth in Europe and currently get dominated by American academia. The IR disciplines
and notions are, to some extent, designed to serve the powerful and make a sketch of the world
picture from the perspective of the developed, thus failing to reflect and represent the standpoints
of the poor countries. On the contrary, the post-colonial and neo-colonial approaches, concerned
18
Young, R. 2003. Postcolonialism. Oxford: Oxford University Press. P117-121
Spivak, G.C., 1999. A Critique of Postcolonial Reason. Cambridge, MA: Harvard University Press. Mentioned in
Young, R. 2003. Postcolonialism. Oxford: Oxford University Press. 117-121
20
Bhabha, H., 1994. The location of Culture. London: Routledge. Mentioned in Young, R. 2003. Postcolonialism.
Oxford: Oxford University Press. P117-121
21
Griffiths, M., Callaghan, T.O. & Roach, S.C., 2008. International Relations: The Key Concepts second edi.,
Abingdon: Routledge,abng. P124-126.
19
Page | 15
with the complex power-knowledge relationships that reproduce the contemporary world order,
put the South, the Third World and the underdeveloped into the focus of attention.
Originating in the literary and cultural fields, the post-colonial and neo-colonial approach is
relatively new to and marginal in IR, as implied by its complete exclusion from the IR text or its
inclusion in the end after other peripheral theories of constructivism, post-structuralism and
feminism, etc. However, post-colonialism and neo-colonialism have been making more and more
contributions to the study of international relations and standing out in the traditional west-centric
approaches, helping the developing and under-developed to be more influential in the world.
After introducing the approaches, the theories will be presented as follows.
4.2 Theories
4.2.1 Soft Power
4. 2. 1. 1 Introduction
In today's global society in which we live, the power struggles between the powerful and
influential countries of the world, which seek above all, with their foreign policies and military
strategies, to have a major position of influence over other countries, thus, to maintain privileges
and run the world according to their political and economic interests. Within this international
background, we take as significant reference to Joseph S. Nye who, thanks to his theory on soft
power, contributed to establish main basis of international knowledge in regard to state power,
and its implications in current globalized reality. Joseph Nye´s theory mainly focuses his study on
the explanation of nature of power within an international background where countries exert their
influence over others in a society that works as an interconnected net. To better understand this
concept, soft power, we should also pay attention to the concept of hard power, and the
importance of both to understand the power struggle is currently taking place between the
different countries, we must start from the following statement in reference to the a country's
foreign policy: “in the past , it was more important to be feared by others to be loved, but today it
is imperative to be both” 22
22
Nye, Jr. Joseph S. 2004. Soft Power: The Means to Success in World Politics. Chapter One, The Changing Nature
of Power. Published in the United States by PublicAffairs. Page 1.
Page | 16
4.2.1.2 Joseph Nye
Joseph S. Nye was Dean of the Faculty John F. Kennedy at the University of Harvard, in the
United States, from 1995 until 2004. In 1994 and 1995, Joseph Nye also served as assistant
secretary of defense for International Security Affairs. He studied at University of Princeton.
After postgraduate studies at the University of Oxford , and he finished his Ph.D. in political
science at the University of Harvard.23 Joseph Nye coined a concept that appears always to define
this ongoing power struggle between countries: the concept of soft power. Joseph Nye defined the
concept of soft power in his book "Bound to Lead" published in 1990. Since then, the use of this
concept has spread globally around the world, making it imperative for understanding global
conflicts, as well as, to plan policies and military strategies24. The concept of soft power was
defined within the theory of the political science, and it was determined as a complement to hard
power, in order to establish terms of reference for explaining the phenomenon of seeking power
and influence in the world through the international relations between the countries. 25
4.1.2.3 Definition of Power
Regarding the understanding of the concept hard power and soft power defined by Joseph Nye in
his theory about power, it is very relevant to achieve an accurate knowledge on what is power.
Joseph Nye, in his theory, also made an allusion to an accurate definition of concept power in
order to provide a wider knowledge about several aspects linked to soft power. According to
theorist Joseph Nye, “Power is the capacity to do things. At this most general level, power means
the ability to get the outcomes one wants. Power also means having the capabilities to affect the
behavior of others to make those things happen. So more specifically, power is the ability to
influence the behavior of others to get the outcomes one wants, but there are several ways to
affect the behavior of others. You can coerce them with threats; you can induce them with
payments; or you can attract and co-opt them to want what you want”.26
The Globalist. ”Author Biography”
Website:http://www.theglobalist.com/AuthorBiography.aspx?AuthorId=107
24
Nye, Jr., Joseph S. (February 23, 2006) Think Again: Soft Power. Published by Digital Foreign Policy Magazine.
Website: http://www.foreignpolicy.com/articles/2006/02/22/think_again_soft_power?wpisrc=obinsite
25
Nye, Jr., Joseph S. (February 23, 2006) Think Again: Soft Power. Published by Digital Foreign Policy Magazine.
Website: http://www.foreignpolicy.com/articles/2006/02/22/think_again_soft_power?wpisrc=obinsite
26
Nye, Jr. Joseph S. 2004. Soft Power: The Means to Success in World Politics. Chapter One, Page 2
23
Page | 17
4.1.2.4 Main Assumptions
Hard Power
In the past, the actions and strategies within international framework accomplished by states to
gain power and independence from other countries were based on measures of terror and acts of
force and aggression, which is known as hard power. But from this unique perspective only using
hard power, countries have no chance to achieve their political objectives to maintain power and
cultural influence on other states. In today's society, countries adopt foreign policy measures
taking into account the two factors that are defined in the theory of Joseph Nye on soft power and
hard power. If we understand hard power as the power exercised by states through military
actions and aggressive economic policy to other countries, in order to obtain the benefits sought.
We also argue that in many times through military and financial coercion states have failed to
establish their influence and maintain a position of power.27 Hard power is, in certain aspects,
easy to determine its main theoretical definitions because it clearly refers to aggressive foreign
policies which are followed by states. Joseph Nye´s quotation explains this in an accurate way:
“We know that military and economic might often get others to change their position. Hard power
can rest on inducements (carrots) or threats (sticks). But sometimes you can get the outcomes you
want without tangible threats or payoffs.”
28
The indirect way to get what you want has
sometimes been called the second face of power.
Soft Power
Our primary knowledge on power leads us toward a narrow comprehension on it, and linked to
the use of violent acts, making using of army over a country in order to get own benefits. But this
understanding is not completed because states can exert their power from different perspectives,
applying diverse policies, either using direct threats, hard power; or utilizing alternative
strategies, soft power. From Joseph Nye´s theoretical premises: ”Soft power is partly defined as
cultural power. Power is the ability to alter the behavior of others to get what you want.” 29
There are basically three ways to do that:
27
Bohorquez, Tysha. (December, 2005 ) Review on Joseph Nye´s book titled Soft Power. The means to success in
world politics.By UCLA international Institute.
28
Nye, Jr. Joseph S. 2004. Soft Power: The Means to Success in World Politics. Chapter One. P. 5.
29
Nye, Jr., Joseph S. (February 23, 2006) Think Again: Soft Power.
Page | 18
-
coercion (sticks),
-
payments (carrots),
-
and attraction (soft power).
“British historian Niall Ferguson described soft power as non-traditional forces such as cultural
and commercial goods and then promptly dismissed it on the grounds that its, well, soft.”30
From the starting point of these reasoning, it is significant to realize that there is a relation
between the design of political strategies which are posed by different countries, and the power of
influences over other nations, as well as, the benefits which are generated by means of this power.
Thus, one of the main aims when a country establishes its foreign policies within international
panorama is to look for establishing its power, and national security31.
For this reason, states
always try, with its foreign policies, to sign partnerships with other countries with the goal of
getting a balance with respect to the power of the other countries.
The concept defined by Joseph Nye, soft power, must be understood from the perspective of
cultural power, considering that Joseph Nye quoted that “a country’s soft power can come from
three resources:
-
its culture (in places where it is attractive to others),
-
its political values (when it lives up to them at home and abroad),
-
and its foreign policies (when they are seen as legitimate and having moral authority).32
Consequently, soft power can be exerted by countries through a wide variety of different ways in
order to get influence, and a dominant position, because by means of soft foreign policies, a
country can achieve international legitimation and moral authority. Although it is important to
take into account that soft power is not easy to control, as well as, unpredictable consequences of
certain foreign policies. As Joseph Nye quoted: “Governments can control and change foreign
policies. They can spend money on public diplomacy, broadcasting, and exchange programs.
30
Ibid.
Nye, Jr., Joseph S. 2004. Power in the Global Information Age. From realism to globalization. Chapter I, Hard and
Soft Power. Pages 1-2. Routledge. Taylor & Francis Group. London and New York.
31
32
Nye, Jr., Joseph S. (February 23, 2006) Think Again: Soft Power.
Page | 19
They can promote, but not control popular culture”.33 In accordance to that, one of the main
factors of soft power is largely independent of government control.
Soft power tries to produce a behavior change in a concrete country for the purpose of getting
what it want, but this influence process depends on the context and the skills with which the
resources are converted into outcomes.
For Joseph Nye, it is important to understand the role which is exerted by soft power within
international diplomacy. Soft power is featured by “indirect” strategies, as well as, by the power
of attraction and seduction. As Joseph Nye establishes “soft power rests on the ability to shape
the preferences of others. This soft power- getting others to want the outcomes that you want- coopts people rather than coerces them. A country may obtain the outcomes it wants in world
politics because other countries – admiring its values, emulating its example, aspiring to its level
of prosperity and openness- want to follow it. In this sense, it is also important to set the agenda
and attract others in world politics, and not only to force them to change by threatening military
force or economic sanctions.”34
4.2.1.5 Critique
Some theories, such as Neorealist scholars, have criticized soft power, considering it a vague,
ineffective concept. Critics emphasize hard power rather than soft power because they consider
that soft power is just a reflection of hard power. Nations can only exercise soft power through
their hard power. Furthermore, in the critics’ opinion, soft power is subordinated to hard power
which is exerted by states through their military force, economic power and industrial strength, as
I have mentioned before. For critics, soft power is a concept that is difficult to quantify because
its influence is not clear to measure effectively.35
33
Ibid.
Nye, Jr. Joseph S. 2004. Soft Power: The Means to Success in World Politics. Chapter One. P. 5.
35
Liaropoulos, Andrew. Being Hard on Soft Power. Published by RIEAS. Research Institute for European and
American Studies.
Website: http://www.rieas.gr/research-areas/global-issues/transatlantic-studies/1519-being-hard-on-soft-power-.html
34
Page | 20
4.2.2 Dependency Theory
4.2.2.1 Introduction
Dependency theory emerged in the early sixties as an explanation of the economic stagnation in
Latin-American countries caused by protectionism and import substituted industrialization
programs, constructed by ECLA (Economic Commission for Latin America) scholars. 36 These
scholars followed the Singer-Prebisch thesis stating that less developed countries suffer a welfare
loss from a perpetual decline in their international terms of trade for exports of primary and raw
products. 37 It led to the development of a program in the fifties which aimed to industrialize
developing countries, but it did not succeed.38 The unsuccessful outcomes in Latin-America led
to the development of a more radical program, which is neo-Marxist in origin. It focuses on the
relations between advanced capitalist powers and less developed states.39 Dependency, then, is a
situation in which the economy of these less developed states is determined by the development
and expansion of the advanced powers, to which the former is subjected. While dominant
countries can expand and be self-sustaining, dependent countries are not self-sustaining and can
only do this as a reflection of that expansion.40 By exploiting the latter, the former could expand,
and the solution is to overthrow the parasitic elite and create a new, revolutionary government
committed to autonomous development.41
The dependency process can only be understood by reference to its historical dimension. The
focus of research should lie on examining the total network of social relations as they evolve in
different contexts over time. Therefore, dependency theory is characterized as structural, holistic
36
Alvin Y. So. Social Change and Development: Modernization, Dependency and World-System Theories . London.
SAGE Publication, p91-94.
37
Richard A. Brecher and Ehsan U. Choudhri. "Immiserizing investment from abroad: the Singer-Prebisch thesis
reconsidered." The Quarterly Journal of Economics, p.181.
38
So, Social Change and Development, p. 91-94.
39
Ibid., p.92.
40
Theotonio dos Santos. "The structure of dependence." The American Economic Review, p.231.
41
Stephen M. Walt. "International relations: one world, many theories." Foreign Policy, p.32-33.
Page | 21
and historical.42 Its key contributors included the scholars Andre Gunder Frank and Theotonio
Dos Santos. Frank was a German professor and theorist in the field of economics, and has
worked at different universities in Chile, Brazil and Mexico. From 1981, he was professor of
Development Economics and Social Sciences at the University of Amsterdam, until his death in
2005. One of his most important works was The Development of Underdevelopment, published in
1966, in which he explained how dependency creates a power structure between the core and the
periphery.43 This influenced other theorists, such as Theotonio Dos Santos, a Brazilian economist
and political scientist. He is a professor emeritus at the University Ricardo Palma in Lima, Peru,
and is well-known for his work ‘The Structure of Dependency’, which was published in 1970 and
explained how the core structurally limits the industrial development in the periphery.44
4.2.2.2 Main Assumptions
Dependency theory contains four main assumptions: development should be seen in a historical
perspective, dependency is an external condition that creates over- and underdevelopment, it is
impossible for the peripheral countries to develop alongside the developed core, and personal
gains of dominant groups in the periphery do not contribute to the collective gains of society.
First, its unit of analysis is the global system and various forms of interaction with national
societies. The development of a regional or national unit can only be understood if placed in a
historical context. The worldwide political-economic system, which emerged along with the
European colonies in the world, explains the differences in development between different
regions and nations.45 Thus, it is crucial to understand the historical heritage.46
Second, following the assumption that history shapes the differences between these regions and
nations, dependency theory argues that a capitalist world economy is formed in which some
42
Samuel J. Valenzuela and Arturo Valenzuela. "Modernization and dependency: Alternative perspectives in the
study of Latin American underdevelopment." Comparative politics, p.554.
43
Frank, Andre Gunder’ Biography
Website: http://rrojasdatabank.info/agfrank/personal.html#short on 11-12-2013.
44
Santos, Theotonio Dos Biography
Website: http://theotoniodossantos.blogspot.dk/ on 11-12-2013.
45
Valenzuela. "Modernization and dependency", p.544.
46
So, Social Change and Development, p.104.
Page | 22
countries were able to specialize in the industrial production of manufactured goods. This was
possible as other countries were able to provide the necessary primary goods, mostly agricultural
and mineral, for the specialized countries to consume. This resulted in the global system being
divided between the European colonizers, which formed the center of the system, and the
colonized Third World, which formed the periphery. In contrast to the theory of comparative
advantage, this international division of labor did not lead to parallel development through
comparative advantage. Instead, it created a process of dependency in which the periphery is
dependent on the center.47 The historical heritage of colonization and the unequal international
division of labor inhibited the national development of Third World countries. Therefore, this
dependency is an external condition, imposed from outside, and the source of under- and
overdevelopment.48
Frank argued that this assumption holds by examining developments in Latin-America and
drawing three conclusions. First, he distinguishes between metropoles (representing the center,
although they are subordinates of the global system) and satellites (the periphery), and states that
the development of the national and other subordinate metropoles is limited by their satellite
status. Second, Frank argues that peripheral regions experience their greatest economic
development when they are geographically and economically isolated from the metropolis and
maintain weak contacts. Third, he states that the regions which are the most underdeveloped are
the ones which had the closest ties to the metropolis in the past.49 Thus, Frank argues that a
metropolis-satellite relationship, or power structure, exists that permits the center to develop by
expropriating economic surplus from the periphery.50 He concludes that colonialism and foreign
domination have forced many advanced Third World countries to follow a path of economic
backwardness.51
Dos Santos builds on Frank’s theory and examines the productive structure in developing
countries to explain dependency. He states that three fundamental structural limitations on the
47
Valenzuela. "Modernization and dependency", p.545.
So, Social Change and Development, p.104.
49
Andre Gunder Frank. The development of underdevelopment. New England Free Press. p.23-25.
50
Ron Ayres and David Clark. "Capitalism, industrialization and development in Latin America: the dependency
paradigm revisited." Capital & Class. p89.
51
So, Social Change and Development, p95-98.
48
Page | 23
industrial development in the Third World exist. First, industrial development depends on the
existence of an export sector which brings in foreign currency that can be used to purchase
advanced machinery. Therefore, there is a political dependence on foreign interests. Second,
foreign financing is needed to cover the deficit that results from these investments and finance
further development. Third, industrial development is strongly dependent on the technological
monopoly, which is exercised by the imperial centers. Dos Santos continues to argue that these
productive structures limit the growth of the internal market in three ways: first, by subjecting the
labor force to highly exploitative relations which limit its purchasing power. Second, by creating
only a limited amount of jobs compared to population growth, new sources of income are
constrained. Both these developments limit the growth of the consumer market. Third, he states
that the economic surplus generated within a developing country is reduced by remittance of
profits abroad, blocking the possible creation of basic national industries.52
These conclusions lead to the third assumption of dependency theory. The center benefits the
most of the global links and is capable of dynamic development which is responsive to internal
needs. In contrast, the periphery has a reflex type of development. It is constrained by its
incorporation into the global system and it is dependent on the requirements of the expansion of
the center. Thus, it is impossible for individual societies to be able to follow the path of other
societies because it is taking part alongside industrialized societies and is therefore tied to them
by economic relationships.53 The very transformation of an interrelated world system precludes
such an option.54 The only way to be able to develop is then to reduce ties with center countries
to a minimum and adopt a self-reliance model, in which a country can fulfill its own needs, and
increase ties with other peripheral countries on which the country is not dependent.55
The forth and last assumption focuses on the dominant groups within the peripheral regions and
nations. Dependency theorists assume that peripheral, dependent development produces an
opportunity structure, in which the benefits for dominant groups do not contribute to the society
52
Santos. "The structure of dependence", p.232-235.
Valenzuala, "Modernization and dependency", p.544.
54
Ibid., p.550
55
So, Social Change and Development, p.105-106
53
Page | 24
as a whole. Their personal gain does not create a collective gain of balanced development. 56
These dominant groups of the center, supported by the ruling classes of the developing world,
had grown rich by exploiting society to maintain the dependency on the center. 57 This implies
that some form of social revolution is needed to get rid of the parasitic, dominant groups and
appoint a new, revolutionary government which aims to maximize the collective benefit and is
committed to autonomous development.58
4.2.2.3 Critique
A lot of criticism is aimed at the impossibility thesis, which states that development can never
occur in underdeveloped countries. This thesis can be rejected if different standards of
development are followed: statistical evidence has showed that capitalist growth and
industrialization have occurred in Third World. However, Frank and other neo-Marxists argue
that using only these standards is not sufficient59 and should include social and political factors.
Fernando Cardoso, one of the founding fathers of the dependency theory, argues that these
structural determinations of the term are wrong, and suggests that dependency should be seen as
an open-ended process, in which development and dependency can co-exist.60
Furthermore, critics argue that dependency theorists oversimplify core-peripheral relationships
and do not come up with an adequate theoretical answer to the problem. Cardoso, for example,
states that Frank simplified the debate, overlooked the specificity of the situation and came up
with a theory that only contained generalizations.61 Therefore, he asks for an improvement in the
quality of the historical-structural analysis, so that the dependency process can better be
explained in particular historical events.62
56
Valenzuela. "Modernization and dependency", p.545.
Walt. "International relations: one world, many theories." Foreign Policy, p.32.
58
So, Social Change and Development, p.106. &
Walt, "International relations: one world, many theories." Foreign Policy, p.32-33.
59
Ayres. "Capitalism, industrialization and development in Latin America", p112-113.
60
So, Social Change and Development, p.136-137.
61
Fernando Henrique Cardoso. "The consumption of dependency theory in the United States." Latin American
Research Review
62
Ibid., p12.
57
Page | 25
4.2.3 Neocolonialism
4.2.3.1 Introduction
Neocolonialism was introduced during the sixties when it was no longer legitimate and politically
acceptable for leading powers to keep colonies. Nowadays, there might be some colonies
surviving, but creating new ones is very difficult. The concept of neocolonialism came into the
language by the acceptance of decolonization and giving independence to former colonies. One
of the pioneers of neocolonialism was Jean Paul Sartre who employed the draft of theory in his
essay “Colonialism is a system.”
63
The term itself was firstly coined by president of Ghana
Kwane Nkrumah in his work “Neo-colonialism the last stage of imperialism”. Furthermore,
concept of neocolonialism afterwards appeared in editorial “Presence Africaine “ (April-May
1960)64, stating that neocolonialism used more progressive, more modern, more realistic and less
shocking ways to maintain power over the country which was once a colony.
In this section, neocolonialism uses main thought of these scholars: Jean Paul Sartre, Kwane
Nkrumah and Phillipe Ardant. Kwame Nkrumah was born on September 21, 1909, in Nkroful,
Gold Coast, predecessor of today’s Ghana. Independency that Ghana gained in 1957 was his
main contribution to the liberating from British colonial dominancy. Until his dead in 1972, he
advocated concept of Pan-Africanism. Within his key works belongs book Neo-colonialism: the
last stage of imperialism where he strongly argues against any exploitation from Western
countries. Jean Paul Sartre (1905-1980) and Philippe Ardant (1929-2007) were French authors
contributing to the topic of neocolonialism.
In the 19th century colonialism was one part of the distinguishing power divisions. Basically, if a
state owned colonies, it implied that it was endowed with more power. Colonies allowed their
mother-states to hugely benefit from them and thus helped to create space for development,
expansion. Moreover, colonies were highly valued because they were providing rich sources of
raw material and cheap labor force. On the other hand colonies represented new opportunities for
exports of goods as well as excessive working labor from mother-states. Since the era of
colonialism in the last century fell down, trend of independence and gaining freedom for former
63
64
Jean Paul Sartre, colonialism is a system. p.30-47
Ardant, Le néo-colonialisme :thème, mythe et réalité, p.839
Page | 26
colonies appeared, and new tendency of imposing imperialism emerged. This concept can be
referred as a neo-colonialism.
4.2.3.2 Assumptions of Neo-Colonialism
American heritage dictionary defines neocolonialism subsequently: “A policy whereby a major
power uses economic and political means to perpetuate or extend its influence over
underdeveloped nations or areas”65 The system of unequal economic and political relationship
framed by neocolonialism, is imposed on a so-called Third world. The main devices used for
exploitation are nowadays tied primarily with economics and neocolonialism is intensely using
high technology and scientific progress. Typically, a former colony was corrupted with
economics focusing on exports of a few products (raw materials, agriculture products) and was
economically fully dependent on its former mother-state. The former colony, as many developed
countries including EU are applying economic tools to protect selected domestic producers
(agriculture, e.g), does not have other chance than to rely on its former master as for exports. The
Third world countries are being actively participating in the economic progress as well, but no
one knows to what extent. Usage of the repressive military aggression, in extreme cases,
facilitates neocolonialism as well. Cultural influencing is one of the lesser, but still typical factor
of neocolonialist practices.
Nkrumah argues that it is necessary to combat neocolonialism in order to stop foreign
interference in domestic affairs. The devices of neocolonialism are often astute and frequently
disguised, not only included in economic sphere. Religious, ideological and cultural scopes are
used to undermine national preferences and go towards neocolonialism. 66 Following Ardant,
expression of neocolonialism is difficult to settle due to non-existence of neocolonialist doctrine
or the politics with neocolonialism moral. 67 The former colonizer is giving independence and
pretends to help satellite country in further development by creating economic ties within the
country. In fact, the financial aid is in many times shorter than the money that they are actually
extracted from country by deceptive ways. Therefore neocolonialism is de facto disguised
colonialism itself, using appealing phrases to obtain the old aims of exploitation. According to
65
Neocolonialism. The American Heritage. New Dictionary of Cultural Literacy, 3 rd edition.
66
Nkrumah, Neo-colonialism: The last stage of imperialism. p.239
67
Ardant, Le néo-colonialisme :thème, mythe et réalité. p. 852
Page | 27
Ardant, neocolonialism and industrial countries became almost synonyms. 68 Moreover, neo
colonialism serves as an instrument for replacing colonialism and its means in the era where
states are independent.
“The general objective is to achieve colonialism in fact while preaching independence.” 69
According to Ardant, neocolonialism and colonialism are almost identical terms; distinction that
lies between them is in the hypocrisy of neocolonialism, which is de facto disguised
colonialism.70 Although many features between neocolonialism and colonialism are shared, there
are specific aspects that determine only neocolonialism. Neocolonialism is a policy that profits
from the weakening of the former colonies politically, economically and culturally. Certain
politicians, functionaries or CEOs have wished to benefit from the inexperienced head of the new
independent states, as well as from not sufficient administrative. As a matter of fact,
neocolonialism is evolved colonialism, adapted to a new situation. Examples of neocolonialism
can be seen in British intervention in Kuwait, politics in Israel, existence of the foreign military
bases, usages of United Nation forces in Congo affairs, economic blocks and etc. In conclusion
premises of neocolonialism state that rich countries substitutes ancient colonists. 71
4.2.3.3 The Mechanisms of Neo-Colonialism
High rates of interest are one of the ways how to practically apply neocolonialism. This can be
viewed from the document released by the World bank in 1962 where Asian, African and Latin
American countries were altogether having foreign debt about 27,000 million dollars. The 5,000
million dollars from debt were used for paying service charges and high interest. Further on,
method of penetration by economic aid means that the foreign investors coming with money
assigned for aid were at the same time de facto extracting bigger sums by interest and profit from
the debtor countries.
72
Multilateral aid, a method of exploitation, is executed through
international organizations: the international monetary fund, the International Bank for
Reconstruction and Development (World Bank) and International Finance Corporation. All of
68
Ibid. p.850
Nkrumah, Neo-colonialism: The last stage of imperialism. p. 241
70
Ardant, Le néo-colonialisme :thème, mythe et réalité . p.839
71
Ibid.
72
Nkrumah, Neo-colonialism: The last stage of imperialism. p.242
69
Page | 28
these mentioned above have U.S. capital as their major backing. 73 Companies push future
borrowers to accept non-adequate conditions like imparting information about their economies or
approving supervisions on their use of loans.
4.2.3.4 Critique
Criticism is aimed mainly to practices of multinational monetary companies i.e. Monetary Fund
and the World Bank. By refusing their grants and financial aid, the Third world countries are
unable to pay back its huge debt; therefore countries are basically obliged to accept every
condition that financial corporations are imposing upon them. These practices cover
machinations like submitting their policy and plans to review by the World Bank or accepting
supervision over their use of loans. This creates decisive sort of control over less powerful states
economies. Stronger states are de facto holding power over weak countries by fostering their
debt.74 Moreover, Gunder Frank discovered that economic development in developing countries
was dependent on the short periods when industrialized countries where experiencing crisis and
their control over peripheries were weakened.75 According to this theory, it is impossible to attain
successful industrialization whereas foreign companies are still partly involved in domestic
economies.
Based on the description above, neocolonialism omits the fact that those former colonies can
profit from economic ties that are created with stronger countries. Developing countries can keep
political and economical bindings with former metropolis (i.e. Canada as a part of British
Commonwealth is economically strong), but institutions as well as executive and executive
power that are crucial for effective governance of state must be independent from metropolis.
Ecological impact of the foreign investments is part of the criticism that goes towards
neocolonialism. Population in neo-colonies suffers from devastation of local soil caused by
foreign organizations and their selfish search for the raw material while neglecting ecological
impact. Inhabitants serve as a cheap labor force enriching strong states as well. The two factors
mentioned above are explaining why neocolonialism creates untenable development and
perpetual underdevelopment. On the contrary, supporters of neocolonialism proclaim that while
73
Ibid.
Ibid.
75
Andre Gunder Frank. The development of underdevelopment. New England Free Press. pp. 23-25.
74
Page | 29
stronger countries are profiting from cheap labor and raw materials, Third world is at the same
moment affirmatively influenced by its development and modernization. 76
76
Neo-colonialism
Website: http://www.thelatinlibrary.com/imperialism/notes/neocolonialism.html on 10-11-2013.
Page | 30
4.3 Comparison-Three Theories
In conclusion, the three theories can provide different insights in the Sino-African relationship.
First, soft power can explain the different policies and strategies adopted by states because there
are sometimes uncontrolled consequences of international repercussions. It is clear that countries
design their foreign policies based on both soft and hard power, for the purpose of achieving a
privileged position within the global system. In addition to soft power, dependency theory can be
used to explain how power is exercised between states. The theory implies that in this global
system, a power structure exists that contains core and peripheral countries. By exploiting the
latter, the core can stay powerful and maintain control, whereas the periphery’s development is
inhibited. To overcome this process, peripheral countries should reduce ties with center countries,
adopt a self-reliance model and increase ties with other peripheral countries on which they are not
dependent. The third theory neo-colonialism, compared with dependency theory, which depict the
world picture from the viewpoints of the developed countries and deal with issues mainly in the
economic dimension, helps to sketch a more comprehensive scene, standing in the position of the
underdeveloped and having more historical, political, military and social elements included. It
examines the development process by focusing on the colonial history of developing countries. It
partly uses the premises of colonialism itself with the bigger emphasis on the economic ties
which stronger country employ over less powerful country and therefore creates dependency and
underdevelopment. It can be seen how the theories are applied in practice in the analysis section.
Page | 31
5. Analysis-China’s Motives
5.1 China’s FDI in Africa
There is no doubt that Africa has been counting on foreign investments for years now, and for
many years it was the western countries who played the biggest role in these investments. But
since 1990s the tendency about investments changed considering that China had risen and had
become the biggest foreign investor in the African countries. Some analysts argue that the
Chinese investments take more into consideration the national interest of the African countries, if
we compare to the western countries. This situation may happen because they share the same
identity, considering that these countries are in development. In this section, we will analyze the
difference between the investments from China and the Western countries in Africa.
We will start to analyze China´s circumstances, as well as, we will focus on what China declares
about itself in regard to its policy in Africa. In order to examine this question, we will take as
reference the document titled: “China's African Policy”, published in January 2006. From a
previous approach, the document establishes that China faces development as the most important
of the challenges the world confronts. Nowadays, China is considered the largest developing
country, and Africa as the continent which embraces most of developing countries. The
relationship between China and Africa is projected towards the world as "south-south
cooperation" between developing countries, as well as a "new strategic partnership" based on
political equality and mutual trust. These factors are very important in regard to foreign policy,
according to Joseph Nye’s theory on Soft power. The basic principles of this “south – south”
cooperation, making mention to the document “China’s African Policy”, are: sincerity,
friendship, reciprocity and equality. In addition, the Five Principles of Peaceful Coexistence are
also very important concepts to take into consideration in this cooperation relationship for both
countries, which are:
-
Mutual benefit,
-
Reciprocity
-
Common prosperity
-
Mutual support
-
Close coordination
Page | 32
There are two concepts which are essential regarding China´s opinion in this cooperation, and
they play a very important role. These concepts are: mutual benefits and reciprocity. According
to the quoted document, it is of vital importance that the economic cooperation contributes to
mutual benefit, and that both China and African countries make benefit from their economic
relations. National Sovereignty is also very important to China, they have established that they
will provide assistance to African countries without any political conditions. Besides, “China
supports African nations' desire to be an equal partner in international affairs “, giving its full
support to the AU (African Union) and NEPAD (The New Partnership for Africa’s
Development), and even supports it against UN. 77
5.1.1 FOCAC (Forum on China – Africa Cooperation)
Now that we have established the Chinese promised foreign policies towards Africa, I would like
to analyze if in fact they had been followed. To make this analysis, I will mainly use the Forum
on China-Africa Cooperation (FOCAC) meetings rapport to see the progress of this cooperation.
Since 2000, China - Africa relations have been guided by the FOCAC, this forum is held as a
Ministerial Conference every three years. In the first FOCAC Ministerial Conference, which was
held in Beijing in 2000, China established cooperation with 44 African countries78, afterwards
during conference held in 2006, 4 more African countries joined the cooperation, and in the last
FOCAC meeting in 2012, 2 more African countries joined.79 According to these facts, we can
realize that China had been extending its cooperation more and more. China’s mainly condition
for this cooperation is that the African community accepts and respects the “One China Policy”.
5.1.2 Policy
Regarding the China´s foreign policy, it seems that China has found common ground with the
African countries. Taking into reference the FOCAC - conference, in 2000, they established some
political goals, such as the states will support each other in international panorama, as well as,
China will help Africa with their debt without conditions. In 2006, China and Africa cooperation
Forum on China – Africa Cooperation “China Africa’s policy” (2006/01/12)
Website: http://www.focac.org/eng/zt/zgdfzzcwj/t230479.htm on 18-11-2013
78
Forum on China – Africa Cooperation ” The First Ministerial Conference of FOCAC” (2004/09/15)
Website: http://www.focac.org/eng/ltda/dyjbzjhy/CI12009/t157577.htm on 18-11-2013
79
Forum on China – Africa Cooperation “Beijing Declaration of the Fifth Ministerial Conference of the Forum on
China-Africa Cooperation” (2012/07/23)
Website: http://www.focac.org/eng/ltda/dwjbzjjhys/hywj/t954245.htm on 18-11-2013
77
Page | 33
became more “aggressive”, and ambitious towards their goal, they declared that they wanted a
reform of the UN, and a resumption of the DOHA - round of the WTO, in order to beneficiate
better the developing 80countries. In the last conference they had, in 2012, they established that
“Developing countries are playing an increasingly important role in international affairs.” 81,
what means that their cooperation is making a progress for the developing countries, although it
is significant to point out that they also established during FOCAC conference that there was still
work to do.
5.1.3 Economy
In “China's African Policy”, China’s main statement was that the economic cooperation between
developing countries should be fair, equal and generate mutual benefit. These aims are a priority
according to FOCAC, considering that it is clear the great importance and benefits which are
generated from this cooperation, as well as, the commitment for cooperating that China and
African countries have complied. China has already started helping with assistance, loans and
debt relief and much more. Here are some examples of the economical investment already
received in the African countries:
“Direct investment from Chinese businesses to Africa totaled US$5.49 billion in cash flow in
2008 and US$7.81 billion in reserve by the end of the year. During the first half of 2009, nonfinancial direct investment from China to Africa reached US$552 million.”
The Chinese Government has financed China-Africa Development Fund in 2007 with an initial
investment of US$1 billion. The Fund decided to invest even more than 500 million dollars in 27
projects covering agriculture, electric power, construction material, mining, machinery, and
industrial parks. Infrastructure investments are also very high in countries such as Nigeria, and
Forum on China – Africa Cooperation “Beijing Declaration of the Fifth Ministerial Conference of the Forum on
China-Africa Cooperation” (2012/07/23)
Website: http://www.focac.org/eng/ltda/dwjbzjjhys/hywj/t954245.htm on 18-11-2013
81
Page | 34
many more, some of these constructions are attracting even more investments to the country.82
5.1.4 Social
From the perspective of the social aspect, China is complying with its commitment, although it
seems more as a giveaway than as a mutual benefit. A good example of this, as I mentioned
before, is the assistance which is offered by China to different African countries with no political
condition in several aspects. 83Together with the increasing assistance, it is important to point out
that it is an essential part of China's strategy to gain influence in region. At the same time, it is
also related to a strategy based on "soft power", considering that China is trying to build
confidence and close cultural ties throughout educational programs and exchanges.
5.2 China’s Soft Power in Africa
5.2.1 The Necessity of China Promoting Soft Power in Africa
China’s economic engagement in Africa has tremendously expanded over the past 3 decades,
especially since China transformed from a net energy exporter to a net importer in the mid-1990s.
Its growing requirement for energy, resources and minerals results in its economic expansion,
which has triggered a lot of debate in both African world and western countries. In Africa, the
debate gets fuelled by a mixture of hopes for better development opportunities and fears for what
a great demand for energy resources might bring about to the fledgling local economies. 84 In
western countries, a notion of “China Threat Theory” gets widespread-some western scholars
insist that China’s increasingly intensified economic tie with Africa is mainly designed to plunder
the energy resources.
“Peaceful rise” is an official response in China, under the leadership of Hu Jintao, to these
negative thoughts. It seeks to set up its national image as a non-threatening and responsible
Forum on China – Africa Cooperation “Implementation of the Follow-up Actions of the Beijing Summit of the
Forum on China-Africa Cooperation” (2009/11/10)
Website: http://www.focac.org/eng/ltda/dsjbzjhy/hywj/t627504.html on 18-11-2013
83
Forum on China – Africa Cooperation. “1st – 5th Ministerial Conference - Document”
Website: www.focac.org on 19-11-2013
84
Wenping, H., 2009. To Pull Down the Wall:Building Soft Power in China-African Relations. Western Asia and
Africa, 7.
82
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global power by emphasizing and promoting soft power. Since the first Forum on China-Africa
Cooperation in 2000, China has made a systematic effort to give greater profile to its soft-power
policies in Africa; the term of “soft power” entered into Chinese official language in 2006 when
President Hu Jintao brought up the concept of “national soft power” on the seventh national
session of Chinese Writer’s Association. 85
5.2.2 Investment as a Major Tool to Promote China’s Soft Power
China’s soft power can be mainly classified into five categories: investment, humanitarian aid,
exchange programs, diplomacy, and participation in multilateral institutions, among which
China’s investment strength is arguably its most significant and effective soft-power
instrument.86 In this section, both foreign direct investment and foreign direct aid will be the
objects of study, because FDI is closely relevant to the discussion of foreign aid in China’s
case—the state-owned companies account for a considerable proportion of FDI, and the line
between state and non-state entities is usually blurred, making it harder to distinguish between
public and private flows, namely, between foreign aid and foreign investment. As has been
mentioned in the previous chapter, a country’s soft power can come from three sources: culture,
values and foreign policies. The following analysis will view the soft-power dimension of
China’s FDI activities from these three perspectives.
5.2.3 Concrete Analysis from Three Perspectives
5.2.3.1 Culture
The opinion that China’s foreign aid in Africa is offered in unrelenting quest for natural resources
is not challenged until some information is released by “AidData”, which is the largest database--launched by US researchers---of Chinese development finance in Africa, detailing 1668 official
finance projects in 50 countries between 2000 and 2012.87 Apart from investing in mining (44)
and energy (83 projects), shows the data, China has also put hundreds of millions of dollars
towards transport (115) education (161) health (192), and cultural projects, etc. Hereinto, 40
85
Bean, J.D. et al., 2009. Chinese Soft Power and Its Implications for the United States Competition and
Cooperation in the Developing World C. Mcgiffert, ed., Center for Strategic&Internatinoal Studies. pp. 37-39.
86
Ibid.
87
AidData, China Aid Data.
Website: http://china.aiddata.org/ on 30-11-2013.
Page | 36
projects were committed to Nigeria and 65 to Kenya. 88The foreign aid to Africa is a significant
channel of China’s cultural diplomacy, and also a crucial part of its soft-power construction.
For one thing, the idea of foreign assistance to Africa has its profound cultural origin. China’s
current aid policy can be traced back to The Eight Principles for Economic Aid and Technical
Assistance to Other Countries issued in 1964, the Four Principles of “emphasizing equality and
mutual benefit, pursuing practical results, adopting various ways, and seeking common
development” raised in 1980s, and the general objectives of “sincerity, friendship and equality;
mutual benefit, reciprocity and common prosperity put forward in China’s African Policy Paper
in 2006, which all base themselves on the notions of “equality, cooperation, reciprocity, respect
and sincerity”, the essence of Chinese culture. 89 The pursuit of harmonious relationships with
African countries has its roots in the traditional Chinese moralities of “valuing common interests
instead of individual material gains” and “not doing to others what you would not have them to
do to you”, etc. The assistance itself is a reflection of Chinese culture and a reinforcement of
Chinese culture’s influence in Africa as well. For another, with direct aid, credit lines and
reasonable contracts, China has helped African countries in building a great many infrastructure
projects---roads, bridges, airports, schools, hospitals, stadiums, dams and legislative buildings,
some of which become the landmarks in Africa. These improvements in infrastructure have not
only stimulated the economic growth in Africa, but also functioned as a silent display of Chinese
culture and increased China’s cultural power in a subtle way. 90
5.2.3.2 Political Values
According to Joseph Nye’s conceptual framework, values are the resources of soft power when a
country lives up to those values at home and abroad. In the past two decades, a fervent debate has
risen, in China, from the search for a unifying ideology or core value system to replace the now
defunct Maoism-Marxism and offer an alternative to western values. Although no consensus has
been reached, interim steps have included the rehabilitation of once vilified traditional school of
88
Claire Provost and Rich Harris, China commits billions in aid to Africa of charm offensive-interactive.
Website: http://www.theguardian.com/global-development/interactive/2013/apr/29/china-commits-billions-aidafrica-interactive on 01-12-2013.
89
魏雪梅，2011。中国援助非洲与提升中国软实力。国际关系学院学报 2011 年第 1 期。
90
Ibid.
Page | 37
thoughts: Confucianism, Taoism and Buddhism. Accompanying this debate is the belief that
apart from building “material civilization” (hard power), China should also construct “spiritual
civilization” (soft power) 91 China has invested in setting up a great many educational institutions
in Africa, with the most influential effect exerted by the establishment of Confucius Institutes.
The first Confucius Institute in Africa was established in Nairobi, Kenya’s capital, in 2005, and
18 others have been built in Africa so far, including 2 in Nigeria set up in 2008 and 2009
respectively. The Economist notes that China “has been careful not to encourage these language
centers to act as overt purveyors of the party’s political viewpoints, and little suggests they are
doing so... but officials do say that an important goal is to give the world a ‘correct’
understanding of China.” And Confucius Institutes only teach simplified Chinese characters,
which are standard in Mainland China, instead of the traditional Chinese characters used in
Taiwan and Hong Kong. Canada's Globe and Mail commented that this “would help to advance
Beijing’s goal of marginalizing Taiwan in the battle for global influence.” 92 The invest in such
educational institutions as Confucius Institutes is viewed by many scholars as an exercise in soft
power, helping to popularize Chinese language and disseminate Chinese values, thus leading to a
great rise in China’s national image.
5.2.3.3 Foreign Policies
In China’s trade and investment with Africa, its adamant commitment to respect state sovereignty
and carry out a policy of non-interference serves as a great appeal to African countries, in
addition to the lure of China’s promises of economic opportunities. Firstly, China’s long-standing
opposition to the use of force, its preservation of state sovereignty and territorial integrity, its
non-interference in other countries international affairs and its opposition to economic sanctions
as well as its latest concept of building a harmonious world resonate for obvious reasons with
many African countries. For instance, Minister Shi Guangsheng declared at the first Forum on
China―Africa Cooperation (FOCAC) that China will unswervingly side with African countries
and peoples to safeguard the legitimate rights and interests of the vast number of developing
countries and push for the establishment of an equitable and rational new international political
91
Bean, J.D. et al., 2009. Chinese Soft Power and Its Implications for the United States Competition and
Cooperation in the Developing World C. Mcgiffert, ed., Center for Strategic&Internatinoal Studies. pp.37-39
92
Geoffrey York (2005), "Beijing uses Confucius to lead charm offensive” The Globe and Mail, 9 September 2005.
Page | 38
and economic order.
93
Secondly, China emphasizes the win-win situation of its economic
engagement in Africa, which finds support in Africa for several reasons. First, there is
appreciation for China’s pragmatism that it comes to Africa as a business partner, but not a
missionary to convert others or a donor to offer charity. Second, there is belief that the emphasis
on economic mutual benefit will be more likely to ensure sustained development than
humanitarian impulse. 94 These foreign policies applied in China’s trade with and investment in
Africa act as a major diplomatic push to foster closer ties with African countries, win support for
China’s national image and improve its soft power.
5.3 China’s Motive According to Dependency Theory
5.3.1 China’s Replacement with the West in Africa
China’s recent political and economic involvement signifies important occurrence in Africa
region. In past, The United States were playing crucial role regarding foreign partnership in
African continent. Dominancy over the region was partly caused by former colonial bindings.
Nowadays, Africa tries to release these connections with United States and other western
countries, replacing them with Chinese involvement. For many African citizens no colonial
history and non-intervention strategy indicates Chinese good intentions. From very rare contact
that Africa was experiencing in past with China, current relationship evolved to a complex of
mutual engagement between countries. Intellectuals amongst Africans see the breakthrough from
western imperialism very positively. Unlike western countries, Chinese are using appealing mean
of aid that does not imply any preconditions. E.g. China cancelled some of the Africans debt.
“However, a generally asymmetrical relationship differing little from previous African-Western
patterns, alongside support of authoritarian governments at the expense of human rights, make
the economic consequences of increased Chinese involvement in Africa mixed at best, while the
political consequences are bound to prove deleterious.95
Guangsheng,Shi, 2000 minister of foreign trade and economic cooperation of China, “To Intensify China-Africa
Cooperation for a Brilliant Future” (Speech at FOCAC, October 11, 2000).
94
Bean, J.D. et al., 2009. Chinese Soft Power and Its Implications for the United States Competition and
Cooperation in the Developing World C. Mcgiffert, ed., Center for Strategic&Internatinoal Studies. P37-39
95
China’s engagement in Africa: scope, significance and consequences.
Website:
http://journals.cambridge.org/action/displayFulltext?type=1&fid=459857&jid=MOA&volumeId=44&issueId=03&ai
d=459856&bodyId=&membershipNumber=&societyETOCSession= on 21-11-2013
93
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Africa was in the past lacking in foreign investment and still vitally needs huge monetary help for
improving most of the economic sectors and other aspects of stagnating system. All of these
factors lead to the creation of dependency on China which is now offering low-cost loans, partial
rebuilt of education system and another appealing form of aid. To what extent are Chinese means
of help useful for sustainable development in Africa, is at least disputable. As a typical case can
serve the modernization of Lagos–Kano railway that has been promised to Nigeria, however
never come to realization.96
5.3.2 The Application of the Dependency Theory
According to the first assumption of the dependency theory Africa’s underdevelopment is caused
by historical affairs. Long period of imperialism, exploitation and implementation of western
cultural patterns left Africa’s industrialization and development far behind its stronger
metropolises. Colonialism served for enriching western countries which made use of plentiful
sources of raw material and left the satellite countries in the state of underdevelopment with lots
of social problems. Presently, the main objective of China is to fuel its skyrocketing economy.
For this purpose it is crucial to extract oil and gas reserves that Africa region (especially Nigeria)
is very rich in. So far, the Sino-African model “oil for infrastructure” or more recently “oil for
money” is partly working for mutual benefit. China is boosting its economy by extracting oil
reserves, while at the same moment helping to revive the educational system and improve
technical skills of indigenous citizens.97 However, how this rather asymmetrical exchange can
suit for Africa’s self-industrialization in future is hard to predict.
The second presumption of dependency theory is based on the fact that capitalist world economy
is able to specialize in its industrial production of manufactured goods. This is basically possible
thanks to satellite countries and theirs natural resources. Primary products are exported to the
developed countries which serve for growth of the metropolis, but at the same time create deeper
underdevelopment in the exploited region. Therefore, according to Valenzuela, world global
system is divided into colonizers and the colonized, which constitute the centers and the
96
97
Mthembu-Salter, Gregory. Elephants, Ants and Superpowers: Nigeria’s Relations with China. p.3
Patroba, Hillary. China in Kenya: Addressing counterfeit goods and construction sector imbalances, p. 12
Page | 40
peripheries of the system.98 As it has been stated before, China (as the colonizer or the center) is
at the moment experiencing better than positive boom of its economy. For the future hightechnology expansion, continuous supplement of raw material is crucial. In this case, Africa
(colonized or periphery) works as a reservoir of primary products, leading to the progress of
Chinese economy. Proof can be found in an article from financial times which states that China
National Offshore Oil Company (CNOOC) is negotiating with Nigeria for acquiring one sixth of
its oil reserves. 99 Subsequently, long-distance development in Africa could be halted due to
finiteness of the products. As soon as the whole natural richness if fully extracted, Africa loses its
main export revenue. As a consequence Chinese economy will rise and African will be left
behind, possibly much more underdeveloped than before. Furthermore, what speaks for creation
of dependency ties is that Kenya exports unfinished goods: hides and skins, sisal fiber and so
forth to China, whereas at the same time China imports finished manufactured goods to Kenya,
mainly electronic products, mobile phones, computer hardware and footwear. 100 This creates
deep Sino-Kenyan trade inequality. For example trade balance between Kenya and China was in
2008 negative, hitting approximately minus 2 US$ bn. 101 Stated by Onjala, researcher for the
Institute for Development Studies (IDS) - University of Nairobi:
“The pattern of Kenya’s trade balance with China is that of a rapidly growing deficit”.102
In the same year Nigeria, was experiencing even worse trade deficit, reaching over 4 US$ bn
difference between import from China and export there.103
Following dependency theory, this unbalanced commerce exchange is considered as an unequal
exchange. However, according to Ricardo, a classical British economist, China and Africa are
98
Valenzuela. "Modernization and dependency", p. 545
Chinese Seek Huge Stake in Nigeria Oil.
Website: http://www.ft.com/cms/s/0/5d72e37a-ac90-11de-a754-00144feabdc0.html#axzz2njaIBvcn on 01-12-2013
100
Patroba, China in Kenya: Addressing counterfeit goods and construction sector imbalances, p.7
101
Chinese Trade and Investment Activities in Africa
Website:
http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Chinese%20Trade%20%20Investment%20Act
ivities%20in%20Africa%2020Aug.pdf, on 15-11-2013
102
Onjala, The impact of China-Africa trade relations: The case of Kenya, p.1
103
Chinese Trade and Investment Activities in Africa
Website:
http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Chinese%20Trade%20%20Investment%20Act
ivities%20in%20Africa%2020Aug.pdf, on 15-11-2013
99
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still enjoying the privileges of comparative advantage, when trade exchange is beneficial for both
sides, even if it is not creating surplus within country104. According to Dos Santos, the key point
is to look at the productive structure in the developing countries. As it was mentioned before,
growth of the local market is curbed by three factors.105 Firstly, purchasing power of developing
country is limited due to exploitation of the labor force. In the case of Africa, many complaints
regarding poor work conditions emerged. Work is often referred to as “slave like” with
insufficient security. The fire in the Chinese-owned factory in Lagos 2002, where 37 Nigerian
workers ended locked inside can be used could be used as an example. Secondly, sources of
income are limited by the lack of new job positions. Dissatisfaction within Africa mainly comes
from the lack of employment for local citizen, which is caused by the fact that Chinese are
supplying their business with its own labor force. In another case, thought job positions are
created, they cannot meet African working standards. Thirdly, establishment of national
industries is blocked by outbound remittance which makes it hard to generate economic surplus
in the developing countries.
5.4 China’s Motives According to Neo-Colonialism
The last theory, neo-colonialism, can be used to analyze if China, being the foreign power, is
profiting from the weaker position of Nigeria and Kenya. Both African nations have a long
history of colonialism, in which Great-Britain took advantage of their natural and human
resources. However, China too has its own history of national humiliation and understanding the
pain of colonialist practices. Engaging in colonialism-type activities would therefore not only
betray China’s shared history with Africa, but also China’s own constitution, which explicitly
mentions the country’s opposition towards colonialism. 106 The investments from the Asian
country can be analyzed in three aspects: economical, political, and social.
5.4.1 Economical Motives
Neocolonialism states that economic motives are the prime devices used for exploitation. Former
colonies are crippled by an economy focused on the exports of a few, primary products. This can
be seen in Nigeria, where petroleum and petroleum products account for 95% of its exports and
104
Ricardo, On the Principles of Political Economy and Taxation, p.135.
Theotonio dos Santos. "The structure of dependence." The American Economic Review. pp. 232- 235.
106
Wenping He. "The balancing act of China’s Africa policy." China Security 3, no. 3, p.29.
105
Page | 42
80% of its budget revenues.107 Kenya is also a good example. It is not over-dependent on one
singular product like Nigeria, but its top export products (tea, horticultural products, and coffee)
are traded for low prices.108 China does not appear amongst Nigeria’s and Kenya’s top export
countries,
109
but the African countries have started to increase its imports from China in a
different range of products. Africa currently has a lower industrial capacity, creating the need for
imports from China, which has a strong manufacturing base.110 Therefore, China accounts for
18.2% of the African country’s total imports, more than any other country in the world. When a
look is taken at the import commodities, machinery and transport equipment are the biggest
import products. 111 China’s Ministry of Commerce identified the main aims of its policy to
increase Chinese MNE’s Nigerian market share, expand Nigerian market for Chinese products,
increase its presence in the oil and gas sector and leverage its investments as a gateway to other
areas in Africa.112 These aims are likely to be similar for Kenya, in which China shows up as the
second biggest importer (behind India) with 15.3% of Kenya’s total imports, also providing
machinery and transport equipment, amongst others.113
The over-dependency on oil products in Nigeria and low-value agricultural products in Kenya,
along with their investments in high-value Chinese machinery and transport equipment, has some
implications for the trading balance. In 2010, Chinese exports accounted for 87.3% of the
bilateral trade total with Nigeria. 114 In Kenya, the situation is even worse, as Chinese exports
made up almost 98% of the total bilateral trade in the same year.115 These trade deficits lead to
increasing debt levels for Nigeria and Kenya, which, according to the neo-colonialism theory, can
be used to maintain control, as the major power will use high interest rates as a mechanism to
107
CIA, Nigeria Factbook
Website: https://www.cia.gov/library/publications/the-world-factbook/geos/ni.html on 20-11-2013.
108
CIA, Kenya Factbook
Website: https://www.cia.gov/library/publications/the-world-factbook/geos/ke.html on 20-11-2013.
109
Margaret Egbula and Qi Zheng. "China and Nigeria, a powerful South-South alliance." OECD, no. 5, pp. 6-7.
110
Wenping, He. "The balancing act of China’s Africa policy." p.26.
111
CIA, Nigeria
112
Egbula and Qi, "China and Nigeria, a powerful South-South alliance", pp..4-5.
113
CIA, Kenya & Central Bank of Kenya, Monthly Economic Review, p.24.
114
Egbula and Qi, "China and Nigeria, a powerful South-South alliance." p.6.
115
Hillary Patroba, "China in Kenya: Addressing Counterfeit Goods and Construction Sector Imbalances". SAIIA,
p.7.
Page | 43
make it harder for the weaker economies to pay back their debt. 116 However, reactions from the
African nations appear to be positive, pointing to the relatively flexible nature of Chinese
lending:
“The terms of loans from Beijing are favorable – they have long repayment periods with a huge
component being concessional.” 117
Another economic mechanism that major powers use to maintain control is tools to protect
selected domestic producers. This can still be seen in the strict protection of agricultural products
in the European Union and United States. China, however, emphasizes free trade with Africa,
relieving the burden of custom duties of many products that are exported to the Asian country.118
Many commodities from developing African countries have been given tariff-free status in
Chinese markets.119
Neocolonialism also states that financial aid is in many times shorter than the money that they are
actually extracting from a country by deceptive ways. Critics have argued that China’s aid
program is little more than a tactical move to gain further access to natural resources. In response,
Beijing published a paper in 2011 in which it explained that China was ahead of the curve on
debt relief, and that it has helped Nigeria through debt cancellation rounds since 2000. 120
Furthermore, He Wenping, who is the secretary general of Chinese Asian and African Research
Society, argues that noninterference with internal affairs of others and offering unconditional aid
are important principles in China’s relationship with Africa. The respect for national sovereignty
and territorial integrity create a basic equality between African countries and China, in which
China’s aid to Africa is unconditional. It is based on mutual benefit and sustainability, rather than
charity.121 However, it is therefore questionable if this aid is truly unconditional, as loans can
only be spent on Chinese products and services.122
116
Philippe Ardant, "Le néo-colonialisme : thème, mythe et réalité." Revue française de science politique, 15e année,
n° 5, p.242
117
SAFTI: South African Foreign Policy Initiatives. China’s Lending Kenya.
Website: http://www.safpi.org/news/article/2013/china-s-lending-kenya-hits-750m on 26-11-2013.
118
Wenping, He."The balancing act of China’s Africa policy." p. 29
119
Ibid., p. 37
120
Egbula and Qi, "China and Nigeria, a powerful South-South alliance." p. 16.
121
Wenping He. "The balancing act of China’s Africa policy." p. 33.
122
Egbula and Qi, "China and Nigeria, a powerful South-South alliance." p. 16.
Page | 44
5.4.2 Political and social motives
According to the neocolonialism theory, the political motives of the major force are to maintain
power over the weak. In extreme cases, this can lead to repressive military aggression. In the
relations between China and Africa, with the “peaceful rise” strategy as one of the proofs
mentioned in the soft power analysis, this is not the case. China has one requirement for a
partnership, the acceptance of the so-called ‘One China policy’123 African nations take up almost
a third of the seats in the United Nations and are crucial in helping China balance its relations
with the West. Africa is therefore not a pawn China’s international relations game, but a very
important player in opposing hegemonism and power politics. 124 This co-operation between
developing countries is the so-called “South-South” co-operation.125
Furthermore, neocolonialism argues that social mechanisms can be used in the form of cultural
and ideological influencing to undermine national preferences. In the case of China, cultural
collaboration with Nigeria is based on the training of craftsmen to ensure quality control. 126 The
Chinese have no incentive to undermine national preferences, but instead focus on a mutually
beneficial relationship, such as a technical skills exchange with Kenya127, which is important in
the export of machinery.
5.5 Comparison-Outcomes of the Theories
China’s motives are analyzed on the basis of three theories: soft power, dependency and
neocolonialism. From the perspective of soft power, China operates on neither altruism, nor
egoism. China’s investment has expanded dramatically in the past 3 decades and its expansion in
Africa is not only linked to the requirements of China’s rapidly growing economy, but also to a
strong diplomatic push to build friendly partnerships with African governments, to gain support
in international forums for China’s worldviews, to construct and promote China’s soft power, and
in the long run, to create markets for Chinese goods and services. However, during the process of
Wenping, He."The balancing act of China’s Africa policy." p. 25
Ibid., p.26.
125
Patroba, "China in Kenya". p.6.
126
Alkasim Abdulkadir. Retrieved from http://www.ynaija.com/alkasim-abdulkadir-after-trade-and-railway-china-toexport-culture-to-nigeria-y-frontpage/ on 20-11-2013.
127
Patroba, "China in Kenya". p.12.
123
124
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China promoting its soft power, Africa also benefit a lot from Chinese investment in
infrastructure, educational institutions, etc., and the non-interference policy accompanying it.
A similar conclusion can also be drawn in terms of dependency theory. Despite the fact that
China and Africa has formed a core-periphery relationship, from which China has acquired
primary products to support its economic progress, Chinese relationship with Africa differs from
the previous western colonizers. China and its previous contacts with Africa were non-imperial in
its purpose, on the contrary to the western countries, which were exploiting continent during long
era of colonialism. For this reason Chinese plan seems to certain Africans more virtuous. China is
regarded as a poor country with recent economic boom. In this instance, it can be concluded that
Africa is identifying with Chinese economy growth model, moreover see China as an example to
follow, as a “big brother”. Furthermore, China is not close to imposing troops in the region, nor
trying to interfere in the political situation therefore its main intentions are composed of the trade
engagements. This is also the case with respect to neo-colonialism. Although China has been
accused many times by the West of exploiting the continent for natural resources, it seems like
their relationships with Nigeria and Kenya benefit all parties. Africans praise the flexible Chinese
lending nature and China’s policy efforts, including the tariff-free status and debt reduction, and
the Chinese understand Africa’s need for a better infrastructure and importance in the world
politics.
Page | 46
6. Analysis-Africa’s Motives
6.1 Nigeria and Kenya’s Trading Relationships with China
Throughout the history of the Sino-African relations, the Chinese have always stressed the
importance of mutual benefits. After analyzing how FDI in Africa has been beneficial for the
Chinese, it is important to take a look at Africa’s perspective. The recent developments of
Chinese investments have changed the African continent. In many times, the investments upgrade
poor infrastructure, which is important to in creating jobs, intra- and interstate trade, and solving
structural unemployment. Furthermore, there are not many conditions attached to these
investments, usually only required to be performed by Chinese companies. This section will
analyze how this affects the development process in Nigeria and Kenya.
After Nigeria gaining independence in 1963, ties between China and Nigeria were rather loose
due to strong linkages that western countries imposed on Africa during colonialism. Through
1970s China was engaging mainly in diplomatic issues with Nigeria after the two sides
established diplomatic relations in 1971. Later in 1980s and 1990s, Nigeria was experiencing
economic collapse and growing violence due to unstable political situation. Under the rule of
Sani Abacha, the Nigerian-Chinese Chamber of Commerce was established and the China civil
engineering construction corporation (CCECC) won the right to revive Nigeria’s railway system.
Further expansion of economic ties is connected with the year 1993 when China became second
largest importer of crude oil, and trade speedily increased thanks to several contracts with
Nigerian oil companies. Nature of these agreements was mostly based on the exchange for lowinterested loans and modernization projects. During the rule of Olesegun Obasanjo intergovernmental Nigeria-China Forum was constituted and the Sino-African ties were hugely
expanding. Nowadays, China is securing its access to the country’s oil resources by buying stakes
in existing enterprises.
Kenya’s relations with China can be divided in three periods. The first one starts immediately
after Kenya’s independence in 1963. It was characterized by tension between the two countries,
who were accusing each other of undermining sovereignty. The second period started with the
24-year reign of Kenyan president Daniel Arap Moi, who tried to resolve the past conflicts and
Page | 47
started a basis of cooperation. Kenya’s imports from China really started to take off in the
nineties, after a number of trading agreements were signed. A reform coalition taking over
leadership over the African country in 2002 marked the start of the third period, in which
president Kibaki welcomed Chinese FDI with open arms. Agreements were signed that attracted
high amounts of Chinese investments in Kenya, contracted Chinese construction companies, and
increased imports from China. In 2010, the Chinese became Kenya’s leading source of FDI.
The evolution of these relationships has resulted in a growing Chinese influence in the two
African countries. The areas of influence in both African countries, however, differ. This is not
only caused by different Chinese motives, as could be seen in the previous section, but also in the
different motives and histories of both African countries. The evolution of the relationships has
already showed some differences in economic and political characteristics, which, along with
specific social aspects, are important in analyzing why Nigeria and Kenya are open for Chinese
investments.
6.2 Nigeria’s Motives
6.2.1 The Importance of Nigeria as China’s Investment Target
The growing relationship between China and Nigeria is generated by the fact that the two
countries have economic complementarities. On Nigeria’s side, the infrastructure deficiency,
coupled with a huge demand for investment, is the main challenge for its development, hence the
need to cooperate with China, which has developed one of the largest construction industries in
the world with abundant financial credits and particular expertise crucial for infrastructure
development. On China’s side, its industrialization drive and large-scale inflow of FDI have led
to a booming manufacturing economy which is in great need of minerals and natural resources,
thus the need to tap them in such country as Nigeria which boasts its rich resources. 128
Nigeria’s investment incentives, along with its massive reserves of natural resources, appear to
have succeeded in attracting the attention of Chinese investors. According to China’s Bulletin of
Overseas Investment, Nigeria occupied the second position, following South Africa) among the
128
Oyeranti, G.A., Babatunde, M.A. & Ogunkola, E.O., 2011. An analysis of China-Nigeria investment relations.
Journal of Chinese Economic and Foreign Trade Studies, 4(3), pp.183–199.
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ranks of African host counties for Chinese FDI between 2003 and 2009. Chinese FDI stocks in
Nigeria totaled $1.03 billion in the period, while FDI stocks for the continent $ 9.3 billion, with
Nigeria taking up a large share of the FDI in Africa.
129
According to the map of Chinese
investment in Africa sketched by “Business Insider”, Nigeria has been one of the largest
recipients of Chinese investment offers since 2010, and the fields that have received most of the
offers are oil and natural gas, infrastructure construction (road, rail, dam, etc.), manufacturing and
others, which implies the expressed and explicit desire of China in Nigerian oil and gas resources,
and of Nigeria in China’s support for its infrastructure. 130 It further reinforces the prevalence of a
link between Chinese FDI and trade in the context of China-Nigeria investment relations.
6.2.2 Economic Motives
6.2.2.1 Oil for Infrastructure
According to the report from U.S. Energy Information, oil-rich Nigeria has an estimated 37.3
billion barrels of proven crude oil reserves as of 2011, taking up a share of 2.53% of world total
and making itself the tenth biggest oil reserves in the world, 131which makes it appealing to China
whose long-standing policy is to try to gain access to both energy and other natural resources
around the world. As Nigeria was deficient in its infrastructure construction, it was inclined to
offer oil blocs to Chinese government, which entailed important infrastructure-building
commitments from them. This motive was especially revealed during Obasanjo’s term of
presidency.
“Oil for infrastructure” can be regarded as the essence of Obasanjo’s policy; he required Chinese
bidders for oil blocs include in their bids commitments to provide Nigeria with infrastructure
projects across a range of sectors, adding to their already growing number of Nigerian projects.
This policy was driven by the growing frustration and disillusionment of Nigerian government
with the fruitless results of fifty years’ post-independence cooperation with the West, and by the
cumbersome terms and conditionalities of Western aid as well. 132 The following are some
129
Egbula, M. & Zheng, Q., 2011. China and Nigeria: A Power South-south Alliance
Mamta Badkar, 2013. Map: Here Are All the Big Chinese Investments in Africa Since 2010.
Website: http://www.businessinsider.com/map-chinese-investments-in-africa-2012-8, on 29-11-2013.
131
U.S. Engergy Infromation Administration Report About Nigeria.
Website: http://www.eia.gov/countries/cab.cfm?fips=NI on 01-12-2013.
132
Mthembu-salter, G., 2009. Elephants,Ants and Superpowers :Nigeria’s Relations with China. , (42).
130
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exercises of “oil for infrastructure” motives. During Obsanjo’s second term, the government
secured commitments from China to provide elements of railway program in exchange for oil
blocs, with Chinese companies promising to construct a new, 1315-kilometre, double-track,
standard-gauge line between Lagos and Kano. And also by the mode of “oil for infrastructure”,
Obasanjo secured the agreement of the Chinese government to construct a massive 2600 MW
hydro-electric power station at Mambilla during the 2006 China-Africa summit and linked the
project to China National Offshore Oil Corporation (CNOOC) acquiring oil blocs in the 2007
bidding round. 133
From the interview conducted by our group members we can also see that the Nigerian
government is more supportive of China’s investment in infrastructure construction (medical
treatment and public health, the layout and construction of the cities and towns, the financial
system, etc.) that help the local people to improve their living standard and production level,
while the trade-oriented investment projects such as textile goods and petty commodity are given
less support. However, the motive of “oil-for-infrastructure” did not get fully satisfied due to the
fact that some of the infrastructure constructions were barely implemented. For example, CCECC
won a $529 million contract to rehabilitate the Nigerian railway system in 1995, and the former
premier of China’s State Council, Li Ping, signed protocols in regard to power generation, steel
and oil in 1997, but CCECC never did revive Nigeria’s railways and Li Ping’s protocols were
scarcely put into effect.134
6.2.2.2 Oil for Cash
However, the “oil for infrastructure” policy failed after president Yar´Adua took office---his
administration swiftly launched reviews on the “oil for structure” agreements signed between
Nigerian government and Chinese oil companies, which resulted in either suspension or
cancellation of these contracts. Instead of “oil for infrastructure”, Yar´Adua put forward with “oil
for cash” as an alternative model. This model switch happened for a reason. Not like Angola or
Sudan where one-party state ensured continuity and predictability in government’s resolutions
and policies, Nigeria is troubled by electoral cycle and unstable political environment due to the
133
134
Mthembu-salter, G., 2009. Elephants,Ants and Superpowers :Nigeria’s Relations with China. , (42).
Ibid.
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fact that the power might be transferred from the Christian south to Muslim north, or the other
way round. For one thing, the infrastructure construction will take a longer time to take effect
than the four-year span of ruling for the political elites, so it is easier to just get cash injections
into the budget. For another, every time the state power is transferred via election from one elite
to another, the winner of the election have to come up for renegotiation about the contracts
signed with Chinese side. Therefore, Nigeria’s politics dictates, as Sinopec has accepted, that
Chinese companies purchase oil assets not with offers of debt-funded infrastructure, but with
cash. 135
6.2.3 Political Motives
The Nigerian officials welcome Chinese policy of aid without strings attached, and the only
requirement for Nigeria to receive aid is to show respect for “One China policy”, which allows
Nigeria to follow their own political system and deal with their own internal affairs without
interference. Besides, the Nigerian officials are also concerned about a low-level adhesion to
human dignity and individual freedom under China’s collectivist tradition. 136 They argue that
these traditions could on one hand give rise to human rights abuses by the Nigerian government,
but on the other hand serve as a positive driving force. If applied properly, according to some
comments, these traditions might help to set up a more disciplined society and solve some serious
problems in Nigeria such as corruption. As the interviewee Xu Jiaxun has mentioned, corruption
is a wide-spread phenomenon in Nigeria, with the authorities blackmailing or even arresting and
jailing some foreign investors and businessmen, which has given rise to an abominable investing
environment. Therefore, it is an alluring element for the Nigerian side that Chinese involvement
in trade and investment in Nigeria might work as a way to deal with corruption and other political
problems.
Despite these political benefits that Nigeria may enjoy from its economic ties with China, what
China cannot provide legitimate leaders to Nigeria. As long as the China-Nigeria relationship is
mainly economic but not political, it will have limited impact.
135
136
Mthembu-salter, G., 2009. Elephants,Ants and Superpowers :Nigeria’s Relations with China. , (42).
Utomi, P., 2008. U . S . and Chinese Engagement in Africa U . S . and Chinese Engagement in Africa.
Page | 51
6.2.4 Social Motives
One of the ways Nigerian can irrefutably benefit from is Chinese investment in educational
assistance projects to help develop Nigeria’s weak disciplines such as medicine, science, health,
and media, etc. China has also invested in the training classes that help Nigerians to learn
Chinese. For instance, two Confucius Institutes have been set up in Nigeria to teach Nigerians
Chinese characters. The role that China is now playing in the world signifies the importance of
Chinese language to be taught in Nigerian schools. For Nigerians, learning Chinese will serve as
a medium through which they will be able to develop their expertise in whatever pursuit they
determine to accomplish. However, some critics include practical concerns about improper
ideological influence and China’s surveillance over Nigeria, etc.
In addition, Chinese have set up a new middle class among Nigerians by launching training
programs to develop the skills of the local workers. Chinese workers are considered well-trained
and technically-skilled, while the Nigerian workers are relatively deficient in their skills and
expertise. Chinese construction companies promise that they will provide Nigerian employees
with on-the-job training, and several local construction engineers also report that they have a
chance to grasp new techniques and strategies on visiting Chinese working sites when they are
exposed to new working practice.137
6.3 Kenya’s Motives
6.3.1 The Importance of Kenya as China’s Investment Target
The relationship between Kenya and China is growing, not so much because they have economic
complementarities, but because Kenya is seen as a gateway to and business hub for East and
Central Africa.138 Furthermore, infrastructural investment projects have been given the highest
priority by the Kenyan government. 139 The Chinese offer favorable contracts compared to
Kenya’s local contractors and provide learning opportunities for Kenyans who operate in the
137
Patterns, C.W., Policy, S.F. & Later, O.Y., 2012. China-Nigeria Relations: The Nigerian Niger Delta and
Continent Wide Patterns. International Affairs Review, 1(4), pp.1–47.
138
Patroba, "China in Kenya". p.5.
139
Kenya Vision 2030. Retrieved from
http://www.usaid.gov/sites/default/files/documents/1860/3)%20Vision%202030%20Abridged%20version.pdf on 1112-2013. p.8.
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construction business. 140 The recent discovery of oil has made the relationship even more
important for China, although Kenya is still in conflict with Somalia, affecting the political
stability.
Since 2010, China is Kenya’s top FDI source with cumulative investments of over $474m
USD.141 The destinations of these investments are mostly in the manufacturing and construction
business.142 In 2007, Kenya released the Vision 2030 program, in which it ideas how to follow
the process towards a higher level of development. The country’s main goal is to increase annual
GDP growth rates to an average of 10% over the period 2007 to 2030, and Chinese investments
prove to be a helpful tool in reaching this goal. 143 The program is built around three pillars;
economic, political and social, and can be used to explain how the recent developments in the
Kenya-China relations benefit the African country.
6.3.2 Economic Motives
One of Kenya’s biggest economic problems is that the formal labor market is unable to generate
enough jobs and employ a growing workforce, often consisting of unskilled workers, and
crippled by weak formal institutions that are not able to provide sufficient training. 144 Chinese
investments provide a solution by emphasizing a relationship based on reciprocal connection, for
example through a technical skills exchange. 145 Furthermore, workers from rural areas are
attracted as the infrastructure is upgraded and more Chinese companies enter the labor intensive
Kenyan manufacturing market. 146 This also increases the industry’s competitiveness. In the
construction industry, for example, where the Chinese enter with competitive pricing strategies
for infrastructure projects147, monopolistic tendencies are reduced148 and projects are finished on
140
Patroba, "China in Kenya". p.16-19.
China top FDI source.
Website: https://www.standardmedia.co.ke/m/?articleID=2000099862&story_title=Rekindling-Chinese-Kenyanfriendship on 13-12-2013.
142
Investment destinations.
Website: http://www.businessinsider.com/map-chinese-investments-in-africa-2012-8 on 11-12-2013.
143
Kenya Vision 2030, p.10.
144
Aleksandra Gadzala. "Survival of the fittest? Kenya's jua kali and Chinese businesses." Journal of Eastern
African Studies 3.2. 2009. p.203-204.
145
Patroba, "China in Kenya". p.6.
146
Patroba, Ibid., p.12.
147
Michael Chege. "2 Economic Relations between Kenya and China, 1963–2007." The Guardian, London . p.32.
148
Patroba, "China in Kenya". p.12.
141
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time and more efficiently.149 However, due to job scarcity, many poor Kenyans are pulled into
the informal economy, in which small-and-medium sized enterprises (SME’s) contribute
significantly to Kenya’s economy by providing jobs and adding value. The growing presence of
Chinese enterprises results in many local SME’s facing significant profit losses or liquidation,150
causing the lay-off of many unskilled employees to cut costs.
Joseph Munyao, Kenya’s former minister of Livestock, already stated that “Kenya can no longer
continue depending mostly on the West for mechanization technologies.”151 In accordance to the
dependency theory and theory of neocolonialism, it is better for Kenya to spread imports amongst
more countries, which lessen the degree of dependency in a core-peripheral power structure with
Western countries. Concerning exports, Kenya’s trade is characterized by exporting a few lowvalue products like tea, horticultural products and coffee. Increasing its exports to China will not
only stimulate sales, but also offer opportunities to diversify its export products due to reduced
trade barriers on certain products.152 This goal is clearly communicated in Vision 2030, which
states that economic diversification and stronger bilateral trade relations are the main goals to
build a successful ‘Made in Kenya’ brand.153 Stronger bilateral relations with emerging markets
such as China also provide a flow of FDI which is complementary to investments coming from
Western sources,154 since the Chinese are willing to invest in projects that boost regional and
international trade and carry higher risks.155 Moreover, the relationship opens up more business
opportunities for Kenyan entrepreneurs. Business delegations have already visited China to
explore possibilities in machinery and joint ventures in power generation.156
149
Dorothy McCormick. "China & India as Africa's new donors: The impact of aid on development." Review of
African Political Economy. p.16.
150
Gadzala. "Survival of the fittest?". p.203-204.
151
Donovan Chau. Political Warfare in Sub-Saharan Africa: US Capabilities and Chinese Operations in Ethiopia,
Kenya, Nigeria, and South Africa. Carlisle Barracks, p.30.
152
Reduced trade barriers.
Website: http://www.businessdailyafrica.com/China-lowers-trade-tariffs-to-woo-Kenya-exporter//539546/1725082/-/qe590x/-/index.html on 11-12-2013.
153
Made in Kenya.
Website: http://africa.chinadaily.com.cn/africa/2010-05/03/content_15984378.htm on 10-12-2013.
154
Western donors.
Website: http://www.state.gov/e/eb/rls/othr/ics/2013/204669.htm on 11-12-2013.
155
Gadzala. "Survival of the fittest?" p.203.
156
Chege. "2 Economic Relations between Kenya and China. " p.26.
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6.3.3 Political Motives
One of Kenya’s political problems is its dependency on donors, mostly coming from the West.
Donors often come with many conditions and own agendas which limit the development of the
political system by inhibiting organizational learning, designing and implementing policies. 157 In
developing a stronger political system, which is also explicitly mentioned in Vision 2030 158 ,
Kenya prefers to follow an independent path based on the wishes of the Kenyan people.
Therefore, noninterference with the country’s internal affairs offers another motive to increase
ties with China. The only requirement of supporting China’s ‘One China policy’ gives Kenya the
freedom to restructure their political system without having to follow governance policies from
traditional partners. However, attracting the Chinese investments without any political strings
attached can also be a motive to increase corruption, which is the abuse of power by public
officials for the private gain.159 High-level graft scandals in the African country in 2005 and 2006
resulted in the World Bank and IMF delaying loans, hoping that the government would take
action.160 It seems like Kenya is now taking the battle against corruption serious, despite their low
ranking on Transparency International’s Corruption Perception Index.161
6.3.4 Social Motives
In the Vision 2030 program, Kenya also aims to increase adult literacy, school enrolment and
transition to university rates. 162 China helps by providing exchange programs, for example,
between the Egerton University in Kenya and the Nanjing Agricultural University in China.
Furthermore, Africa’s first Confucius Institute was established in Nairobi in 2005, offering more
job opportunities for Kenyans that want to learn about the Chinese language and culture. 163 In
addition, Chinese investments improved living standards and health standards by reviving sports
157
McCormick, Dorothy, and Hubert Schmitz. "Donor proliferation and co-ordination: experiences of Kenya and
Indonesia." Journal of Asian and African Studies 46.2. p.152.
158
Kenya Vision 2030, p.6.
159
Egger, Peter, and Winner, Hannes. "Evidence on corruption as an incentive for foreign direct investment."
European journal of political economy. p.950.
160
CIA,
Website: https://www.cia.gov/library/publications/the-world-factbook/geos/ke.html on 10-12-2013.
161
TI CPI. Kenya is ranked 136 from 177 with a score of 27.
Website http://cpi.transparency.org/cpi2013/results/ on 10-12-2013.
162
Kenya Vision 2030, p.16.
163
Kenneth King. "China's cooperation in education and training with Kenya: A different model?." International
Journal of Educational Development 30.5, 2010. pp.489-490.
Page | 55
facilities, providing pharmaceutical products and modernizing malaria research centers.164 Most
recently, China donated equipment worth almost $1 million USD to combat poaching in Maasai
Mara Game Reserve.165 The relationship also has in drawbacks, in the sense that communities are
worried about the negative environmental effects of some project sites. Furthermore, Chinese
companies have the tendency to choose Chinese workers over the local people and using different
labor practices, creating frictions.166
6.4 Comparison-Nigeria and Kenya’s Motives
To sum up, some Nigerian and Kenyan motives are similar, whereas others differ. This has some
implications if one wants to generalize their motives to the whole African continent.
6.4.1 Similarities
One motive both Nigeria and Kenya share is to create a better social environment by receiving a
large amount of China’s investment in educational institutions and training programs. For
instance, China has devoted $19.7k to teaching equipment in Nigeria and $3.2 m to Nigerian
rural schools and so forth; it has also invested $37.7k in the office equipment for Kenya national
youth service, and 571.0k in the construction of Confucius Institute at University of Nairobi, etc.
The Chinese investment in educational field is very important for the development of Nigeria and
Kenya, since those who benefit from these educational improvements and develop their own
capacities might become the future entrepreneurs, managers, engineers, doctors or even policymakers, who will have great impacts on these two countries. Despite the fact that China is
intensifying its investment in education in an attempt to uplift its cultural influence and
popularize Chinese values, thus greatly improving its soft power, Nigeria and Kenya are also
beneficiaries from these attempts in a practical way.
In addition, the fact that China emphasizes noninterference with the African countries’ internal
affairs is another motive that both Nigeria and Kenya share. In contrast to the West, who offer
help with a range of political and economical conditions resulting from the colonial history,
164
Patroba, "China in Kenya". p.12.
Maasai Mara Game Reserve. Retrieved from http://www.businessdailyafrica.com/Corporate-News/Narokreceives-Sh80-million-boost-for-Mara/-/539550/1987146/-/w3ep57/-/index.html on 11-12-2013.
166
Patroba, "China in Kenya". p.5.
165
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China’s development aid is offered with no strings attached. This policy, seen as positive by
Nigeria and Kenya which both have faced political disruptions in the recent past, stands in stark
contrast to the assumption of the neocolonialism theory that the political motives of the major
force are to maintain power over the weak, which can lead to repressive military aggression in
extreme cases.
6.4.2 Differences
The first difference lies in the political motives of Nigeria and Kenya. For Nigeria, it has more
agreement on Chinese collective values, which are viewed as by-products embedded in
increasingly intensified economic ties between China and Nigeria and considered as a tool to set
up a more disciplined society and solve some serious problems in Nigeria such as corruption.
China’s soft power will, therefore, be reinforced in Africa since shared values is one of the
sources of soft power. In Kenya’s case, on the contrary, the Chinese investments without any
political strings attached can increase corruption, considering Kenya’s recent history of graft
scandals. The potential negative effects of China’s foreign policies on Kenya will be an
impediment to China’s great attempts to improve its soft power.
The other difference reveals itself in the economic motives of the two countries. For Nigeria, the
oil business is the country’s prime industry. Chinese investments offer an opportunity to reduce
its dependency on the export of the singular primary resource to solely Western countries.
Investments in other areas, such as manufacturing, are less important, and therefore can be
viewed from a more skeptical viewpoint without hurting the national economy. This is different,
however, for Kenya, which lacks the raw materials that attract the Chinese in other parts of
Africa. Their manufacturing industry is seen as an important pillar of its future growth. Chinese
investments are therefore welcomed and in most cases seen as a positive development for its
economy. Moreover, economic diversification is one of the country’s main aims, and increased
ties with China will reduce its dependency on exports to the West, providing more opportunities
for Kenyan entrepreneurs.
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6.5 U.S Reaction
Until replaced by exceptional boom of Chinese economic growth and expansion of worldwide
commercial partnership, USA was for a long period the main Africa’s business partner.
According to OECD the United States were overtaken by China in 2009 as Africa's major trading
associate. The total amount of merchandise trade between Africa and China was 13.5 percent
whereas trade between Africa and US accounted for 12.7 percent of the total Africa trade.167
Nowadays, under President Obama’s presidency, the U.S. is possibly striving for restoration of
the trade dominancy over China in Africa. This hypothesis is supported by President Obama’s
recent visit of three African countries: Senegal, South Africa and Tanzania. This can be seen as
the use of soft power as well, by winning the hearts over the African continent. 168 Although in
June 2013 at the conference held in South Africa Obama stated that he did not see China as a
threat and he thought that Chinese engagement in Africa was a good thing, the fact that all of
these three countries were lately visited by Chinese heads of the state as well showed that the
contradictions regarding sphere division of influence between China and U.S. in Africa were
growing gradually.169
The overall US perception of the Chinese involvement in Africa varies. The U.S. fears that
skyrocketing blossom of Chinese economy “is the story of a declining global power: the U.S and
an emerging power: China”. 170 According to Jared Bernstein, member of President Obama’s
economic team, the United States still hasn’t fully recovered from the financial crisis that stroke
the country in 2009. Since that period, economic situation has been improving rather slowly.
Jared Bernstain also states there is no noticeable “bounce-back,” and no V-shaped pattern in
recent economic growth in U.S. On the contrary, Chinese economic expansion is one of the most
discussed topics nowadays. Furthermore, China can be seen as a strategic threat or a competitor
167
OECD
Website http://stats.oecd.org/, on 01-12-2013
168
Stephen Chan, The morality of China in Africa, p.61
169
Two Ways Obama Could Actually Support Africa's Boom.
Website http://www.huffingtonpost.com/obadias-ndaba/two-ways-obama-could-actu_b_3513395.html, on 29-112013
170
U.S worry about China in Africa
website: http://www.emergingpowers.org/index.php/103-uncategorised/36-us-worry-about-china-in-africa on 4-122013
Page | 58
in both political field and business circle.171 The first interpretation includes fears of “lock up”
access to natural resources, i.e. gas and oil which will eventually create space for undermining
US influence within Africa continent. According to Princeton Lyman, former ambassador to
Nigeria, this anxiety is baseless. In the case of oil, China now accounts only for 9 percent of
Africa’s export whereas USA accounts for 32 percent. Furthermore, China direct investments in
oil production were lesser than predicted due to inability to access Africa’s major oil deposits.172
The latter perception of China by US is more positive. China created strong diplomatic ties by
establishing diplomatic offices and other institutions, thus enjoying well-deserved and more
consistent support than US from the African bloc173. China is also seen as a strong competitor in
the economic sphere challenging US by bidding over oil deposits or mineral concessions
combined with granting aid. As US belongs to OECD and needs to follow World Bank rules,
certain actions (i.e. support to the authoritarians regimes) are prohibited.
Briefly concluded, although Obama stated that Chinese engagement in Africa was not threatening
US in the political or in the economic sphere, the US is currently trying to get further involved in
Africa’s affairs. This supports the hypothesis that the US is making itself more visible to Africa,
i.e. by the usage of soft power.
171
China and the US in Africa: A Strategic Competition or an Opportunity for Cooperation?
Website: http://www.cfr.org/content/thinktank/ChinaandUS_Africa.pdf on 11-12-2013
172
Ibid.
173
Ibid.
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6.6 Future Outlook of China – Africa’s Cooperation (focus on Nigeria and Kenya)
In this part the project group is going to establish some expectations of the relationships between
China and African countries, especially Nigeria and Kenya. We are going to base our previsions
regarding China and Africa´s cooperation on different aspects which have been assessed by
diverse international publications, such as National Bureau of Statistics, OECD’s reports; or
articles written by Hilary Patroba, Jing Gu, or Richard Schiere. These resources, and references,
will make forecasts, always from an expected perspective based on current economic, social or
politic facts. It is especially relevant to point out the possible positive benefits, as well as, to
analyze measures towards overcoming the obstacles.
6.6.1 Future Outlook for Africa
The most positive, accurate previsions about profitable financial benefits which are going to be
generated in the future within international framework of the commercial cooperation between
China and diverse African countries, predict that there are evident proofs which confirm a good
and valuable future regarding China-Africa’s cooperation. China has established strong bonds
especially with Nigeria and Kenya. However, it is also necessary to observe the possible dark
consequences of this cooperation. In addition to positive, profitable common benefits, it also has
to be taken into account that “China’s rapid growth has transformed its relationship with Africa.
Industrialization has boosted China’s import demand for oil and minerals (e.g. iron ore, bauxite,
nickel, copper), which Africa can satisfy. The China-Africa relationship could be described as
“commodities-for-infrastructure”. 174 Chinese government persuades Chinese companies to
expand their business, creating a wider international net which favors China’s growth, and
development in the next decade. China is a well-known super powerful nation which requires an
enormous amount of raw materials in order to continue growing, and here is the significant
importance of its relation with Africa. From this, we can establish that China and African
countries get mutual support for their development through their cooperation. Although China
government will also need to face great challenges in African territory in order to reach a
174
Gu, Jing & Schiere, Richard. May 2011. Working Paper No. 124. African Development Bank Group. Post-crisis
Prospects for China-Africa Relations. p.4.
Website: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/WPS%20No%20124%20Postcrisis%20Prospects%20for%20China-Africa%20Relations.pdf on 02-12-13
Page | 60
profitable development of its investments. These challenges will focus on “climate change, food
insecurity, and energy insecurity, as well as, African integration and infrastructure”.175
6.6.2Nigeria
In Nigeria, Chinese public and private investors are trying to start up their own companies within
“manufacturing and information and communication technologies sectors”. 176 This interest is
due to enormous richness that Nigeria can offer to international markets, considering that “The
total value of Nigeria’s external merchandise trade amounted to N5, 341.1 billion in the second
quarter 2013, an increase of N242.3 billion or 4.8% from N5,098.9 billion recorded in the
previous quarter, which means that export growth outperforms imports leading to favorable
trade balance”. 177 This means that Chinese investments have increased in the last decade in
Nigeria, and Chinese investors are becoming the main motor which confirms progress in the
Chinese economy in the world. This economic fact shows the great importance of China’s
influential power, as well as, the magnitude of Chinese investments. From this reasoning, it is
foreseeable that China will continue being a predominant power in Africa, thanks mainly to its
continuous important investments in the future.
Although in these aspects, China should face up to the obstacles that might impede progress if it
wants further development in Africa. A clear example of these setbacks is that “Nigerians have
expressed dissatisfaction with the labor practices of Chinese companies, the quality of cheap
imported goods and the impact of those imports on domestic producers”.178 These remarks on
Chinese business model by Nigeria can have very negative consequences for China’s
international relationships and also damage Chinese investments abroad. Negative valuations
about China can weaken its image as power within international context.
175
Ibid. p.11
Egbula, Margaret & Zheng, Qi. West African Challenges. NO 5, November 2011. China and Nigeria: A Powerful
South-South Alliance. Sahel and West Africa. Club Secretariat. OECD. Page 3.
Website: http://www.oecd.org/countries/nigeria/49814032.pdf on 02-12-2013
177
NBS. National Bureau of Statistics. Foreign Trade Statistics. 13 rd september, 2013. No 507. P.1.
Website: www.nigerianstat.gov.ng 02-12-13
178
Egbula, Margaret & Zheng, Qi. p. 3.
176
Page | 61
In order to solve these negative obstacles which can decrease Chinese progress, China
government has adopted different measures, such as the signed agreement between China and
Nigeria Memorandum of Understanding179 on Peace co-operation in 2010. This agreement meant
an important step ahead in order to achieve mutual economic and political compromises.
Previous to that, President Hu Jintao provided some political reassurance during his visit in
February 2009 to Nigeria, and he committed to the implementation of a series of effective
measures in order to favor China-Africa cooperation in the future. These approved measures will
focus on the promotion of positive relationships, as well as, search accurate strategies for
stimulating an economic development based on profitable benefits. From the beginning of
financial crisis, China has invested “$10 billion in concessional loans to Africa, as well as a loan
of $1 billion for small-and medium-sized African businesses”. 180
6.6.3 Kenya
Regarding China-Kenya’s cooperation, we are going to analyze their mutual profitable benefits,
mainly due to Chinese investments in Kenyan territory. The most important advances, which
have occurred in Kenya, can be ascribed to the important public and private Chinese investments
specialized in building, considering that China has been developing different projects. The main
projects that China has invested in Kenya are focused on health, technological and educational
fields, and energy. China’s main aim is to become more influential in strategic sectors which help
China to increase its hegemonic role within international panorama.
On the other hand, there are some negative obstacles which damage Chinese development. The
main negative impact regarding China-Kenya relationship is that “Local contractors argue that
Chinese companies have increased unhealthy competition in the market, which leads to local
companies being unable to compete and having to close down. In Kenya approximately 44
Chinese firms are working on various projects.” 181 From that point on, it is significantly relevant
to point out that as of these obstacles, some measures has been taken in order to improve ChinaAfrica trade agreements which will assure benefits, and prosperity in the future to both. For
example, one important measure adopted by Chinese government has been “helping its
179
*A document that expresses mutual accord on an issue between two or more parties.
Gu, Jing & Schiere, Richard. p.18.
181
Patroba, Hilary. p.12.
180
Page | 62
companies to be competitive through a number of measures, for instance by providing companies
with operating capital, which gives them a competitive edge.”182 It is clear that these measures
will permit in the future an improvement on political relationships between China and Africa, as
well as, mutual economic enrichment.
Another negative obstacle has been the conflict in which Kenya has been involved, where Kenya
invaded Somalia for political reasons. Kenya invaded Somali territories in order to assure Kenyan
security, and it achieved the control of relevant Somali resources, such as oil, which was also
exported to China by Kenya. Kenya-Somalia conflict can lead to greater problems in the future,
as much for Kenya as for China, since this fact, probably, will create future problems regarding
Chinese soft-power in Africa because China can be in the middle of a conflict; thereby military
confrontation could weaken Chinese influence in African territory.
183
Kenya should solve its
foreign conflicts with Somalia in order to achieve a more comfortable, stronger position within
African region. This Kenyan-Somali conflict can only lead to negative consequences on Kenya
linked to a negative growth of its economy and state welfare.
Based on all this relevant facts, mentioned in this analysis, of China-Kenya’s relationship, we can
forecast that Kenya will take important advantages of its relationship with Chinese government
and private Chinese investors. Kenyan government will also enrich itself due to Chinese imports,
as well as, Chinese financial, and human support towards improvement of infrastructures, and
strategic sectors such as health, technology and education. In regards to China’s unstoppable
growth, it means that Chinese exports, and companies will have a wider control of international
markets, and in this way, securing China´s privilege position over the other countries, including
Africa.
182
Ibid. p.13.
Branch, Daniel. 15 November, 2011. Why Kenya Invaded Somalia. The opening of an aggressive new chapter.
Website: http://www.foreignaffairs.com/articles/136670/daniel-branch/why-kenya-invaded-somalia on 4-12-13
183
Page | 63
7. Conclusion & Discussion
7.1 Conclusion
The paper has shown that China’s relationship with Nigeria and Kenya provides opportunities for
all parties in economic, political and social aspects. From the findings of this paper, it can be
concluded that China possesses a powerful influence on the African markets. The goals of the
Sino-African relationship are based on mutual economic benefits, as well as a continuous
economic growth of China and Africa in order to sustain development in the future. This is done
by investing in large infrastructure projects, creating more job opportunities, and stimulating
national and international trade, which will lessen the degree of African countries’ dependency
on the West. It must be noted, however, that there still exist some drawbacks: in one way,
China’s low-cost products make the local ones less competitive; in another, Chinese inferior and
counterfeit goods are frequently complained about by the locals. The influence of Chinese FDI on
Africa’s political development remains limited. On the one hand, it strengthens both China’s and
Africa’s position in the international framework, as China recognizes the African states’
importance in the UN based on the fact that Africa has already helped China in the past by
supporting China’s decisions. On the other hand, China’s noninterference policy can lead to more
corruption problems in the future by helping the elite class to maintain power and being
politically indifferent towards authoritarian regimes. Social development is created by increasing
the African living standards. Chinese investments in educational institutions and training
programs introduce African people to new techniques and working practices. Furthermore, these
investments can be used to improve the health care system, for example, by modernizing medical
research centers. However, adverse impacts also exist in social field, reflected in the potential
negative environmental effects and improper ideological influence, etc.
In accordance with these conclusions, it can be seen that the Sino-African relationship conforms
to the soft power theory in that China uses investment in Africa as a major tool to promote its soft
power, which creates markets for Chinese goods and services in the long run. However, the
findings indicate that the dependency and neocolonialism theories appear to be a mismatch with
the case of China’s FDI in Africa and require further adjustment. In terms of dependency theory,
the core-periphery scheme between China and Africa is not as significant as that between the
West and Africa, and the degree of dependency of Africa on China is lower than that of Africa on
Page | 64
the West, implying that it is easier for Africa to develop through its relationship with China than
with that of the West. China strongly underscores the importance of its relationship with Africa
based on mutual benefits, thus creating for both sides a win-win situation which is a key feature
of the South-South alliance. In addition, it cannot be said that exploitation is the main driver of
this structure, as China also provides opportunities for economic growth. Furthermore,
neocolonialism theory states that strong powers profit from the weak, former colonies
economically, politically, and culturally. These assumptions do not completely fit in this
relationship, as China’s role in the extraction of natural resources in the former colonies in Africa
is accompanied with investments focused on sustainable development, the provision of
unconditional aid, and non-interference in African politics. Moreover, it is explicitly mentioned
in China’s constitution that China opposes colonial practices, which is a result of its own history
of colonialism.
7.2 Discussion
Our findings contribute to the academic debate whether China is only investing in Africa to
exploit the continent’s natural resources and if their investments facilitate development on the
continent. In contrast to many Western scholars, this paper has examined incentives from both
sides. The conclusions of this study imply that African countries should continue to strengthen
their relationship with the Chinese. Africa has already been predicted as an emerging economy,
and China can provide investment flows that are complementary to the West, facilitating
economic and social progress. For China, the findings imply that Africans are willing to increase
ties and have a more positive viewpoint on the relationship than their relation with the West. This
might help the Chinese in becoming a global threat to the United States, and gain a more
dominant position in the international system. Future research could test our findings in other
African countries to be able to provide a more general African conclusion. Furthermore, different
theories, like the modernization theory, could be used to be able to understand the Sino-African
relationship from other perspectives. Lastly, since the situation has changed so quickly in recent
years, future research could verify if our findings remain relevant.
Page | 65
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9. Appendix
Interview with Aderinsola Adebulahin.
1. What is your experience with Chinese FDI in Nigeria? And Africa in general?
2. Do Chinese companies get involved in society? Do they provide financial aid, build
schools, etc.? In case they do, do you think this happens at a sufficient level?
3. Do Nigerian universities or other schools pay any special attention to Chinese FDI?
4. Do you think that Chinese companies benefit the local Nigerian people by providing
work, sufficient pay, good work environment?
5. Do you think that local Nigerian politicians support or oppose the Chinese investments
and companies?
6. Do you think that there is any corruption involved?
7. Do you feel that there is any difference between Chinese investments and Western
investments in Nigeria?
8. Do you think that the Chinese investments cause any environmental disruption?
9. How do you think the Chinese-Nigerian relationships will develop in the future?
10. Do you think that Chinese FDI in Nigeria creates development or dependency? And does
the positive impact of Chinese FDI outweigh the negative impact in the end (e.g. profit for
region vs environmental disruption)?
Answers:
1. Industrialization, infrastructure, clothing and kitchen equipments; these three areas in my
experience are dominated by the China-Nigeria trade relation agreements. It is general
knowledge that China has built itself up through industrialization and has extended same
ideology to many other countries for different reasons. Nigeria is a country rich in oil and
gas which is highly beneficial to China’s continuous pursuit in its rise to economic
superpower status through industrialization. To sum this up, economic relation terms of
agreement is, Nigeria benefits from China with regards to aiding with the process of
industrialization, improving state of infrastructure by using Chinese companies and
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expertise whilst China will benefit from Oil, gas and other natural resources China may
require.
2. The most I know is that most of the products sold in stalls and shopping malls (keep in
mind that most markets in Nigeria are of flee market set ups), hence the ‘stall and
shopping mall’ settings were brought in by foreigners like Chinese foreign nationals of
which most of the products sold there were tagged “made in china”. Also, during road
constructions in Nigeria I usually just see Chinese nationals carry out these construction
jobs themselves rather than employ the locals.
3. I cannot provide a credible answer to this as I studied in South Africa for my higher
education, however the amount of research available online on China-Nigeria trade
relations suggests that attention is paid to the China’s FDI in Nigeria.
4. I have hardly encountered a situation where a local works in a shop/market or company
owned by Chinese nationals in Nigeria or even in South Africa. It seems that it has always
been a trend for China to employ own labour rather than use these business and
involvement in Africa to benefit locals.
5. Local politicians hugely support FDI of any kind, from China or otherwise. Foreign
Investment in Nigeria is mostly smiled upon by politicians the problem is most of our
African politicians fail to reach a deal that will ensure that the foreign countries do not
take advantage of our countries as we are ultimately economically weaker that the
Chinese or western countries. There is a need for stricter measure to be employed to
regulate and monitor the involvement of foreign investments to ensure that Nigeria and
other African countries are turning deserving profits in the long run.
6. Is there corruption involved? Hmm I think there is as always but it’s hard to comment on
because I do not really follow the economic relations between China and Nigeria.
7. Yes, definitely. The exchange criteria of trade relations between Nigeria and many other
countries differ primarily because; there are different national and international interests
for many countries. As explained earlier, Nigeria benefits from infrastructural
development from China and from a country like the U.S for example Nigeria benefits,
military training, opportunities to work and school overseas through the ‘Lotto initiative’.
The lotto initiative refers to winning an American lottery to provide you an opportunity to
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“greener pastures”, which is never always the case when citizens who win relocate to the
United States.
Clarification: The initiative is like a raffle draw system where Nigerian apply for an
"american visa", that will enable them to get a green card eventually as well as work
there n allow their children to school there
8. I’m unaware of any major environmental problems caused by Chinese investment in
Nigeria, in addition to the points mentioned earlier other trade relation encompass areas of
import and exports which hardly amounts to anything hazardous in Nigeria. These import
and export items are primarily clothing and fashion accessories.
9. I think it will continue to grow, the relationship between China and Nigeria has entered
over 40years and China and Nigeria have agreed that the relationship between not merely
trade relationship but a union of economic, social and political partnership.
10. In my opinion, ‘foreign aid’ leads to dependency because it is structured as a hand down
to African economies that are struggling, however Foreign investment agreed upon on
mutual grounds where both parties gain to almost equally benefit can create an avenue for
African countries like Nigeria to learn from experts, manage the profits from such
investments and invest it to in turn improve the economic state of their own African
countries.
Personal Details

Lived in SA for going over 8years now

Was born in SA

I have spent most of my years in Nigeria; attending Nursery, Primary and Secondary
school

BA (Global)in International studies and Criminology

To specialize in Development studies for Post graduate studies commencing in
January 2014.
Page | 74
Interview with Ma Yushui.
Chinese FDI in Africa--Ma Yushui
关于中国在非外商直接投资的调查
1. Q: What is your experience with Chinese FDI in Africa in general?
请问您是如何在非洲参与外商直接投资的（您在非洲投资或工作的经历）？
A: 我现任中国路桥工程有限责任工资物资装备部总经理。我们公司是由国务院批
准成立的第一批走出国门进行国际承包工程的公司之一，曾参与中国路桥在肯尼亚、
也门、安哥拉等国家的海外项目施工。1985 年参加工作，先后在卢旺达、肯尼亚、赤
道几内亚、安哥拉、也门等国家工作，目前在莫桑比克工作，至今工作 28 年多，在海
外工作累计也有十多年，而且大部分都是在非洲。其中在肯尼亚工作了 8 年。
(I am the general manager of the department of materials and equipments supply in China
Road & Bridge Corporation (CRBC), which is one of the earliest four state-owned foreigntrade enterprises to venture abroad, undertaking a lot of engineering and labor projects in
Africa. I started working, since the year of 1985, in African countries like Rwanda, Kenya,
Equatorial Guinea, Angola and Yemen, etc., among which Kenya witnessed my 8 years of
working experience.)
2. Q: Which countries do you think have attracted the largest proportion of Chinese
FDI ?
您认为中国外商投资最多的两个国家是？
A: 尼日利亚，安哥拉
(Nigeria and Angola.)
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3. Q: What fields do you think Chinese companies have more interest to invest in?
您认为中国企业在非投资主要集中在哪些领域?
A: 能源开发（包括矿产资源）、基础建设、农业种植，近两年也有进行房地产投资
的。 教育、医疗保健一般为援助性或外交需要。
(Exploitation of energy resources, infrastructure construction, agricultural planting; real
estate investment (in the past few years); diplomatic assistance in education and health care.)
4. Q: Do you think that local African politicians support or oppose the Chinese investments and
companies?
您认为非洲政府/官员对于中国投资持何种态度？支持还是反对?
A: 就目前来看，只要是自带资金来投资，大部分非洲国家政府都还是欢迎和支持的。但
是如果是商业贷款需要政府还款，可能就比较慎重。
(For now, the Chinese companies are warmly welcomed by most of the African governments
if they bring their own investment to Africa. On the contrary, the African governments will be a
lot more cautious about the investment in the form of commercial loan which requires
governmental repayment.)
5. Q: Do Chinese companies get involved in society? Do they provide financial aid, build
schools, etc.
中国在非企业是否会为当地社会提供经济援助？如捐献学校等？
A: 中国政府一直以来每年都有给非洲的无偿援助（商务部援外司），有教育、基础建
设、医院学校等。另外，像我们这样的承包企业，也会在非洲各地厉行一些社会责任和义
务，为当地无偿建学校，帮助当地解决饮用水等；我公司这几年还为非洲好几个国家出资
培养了 100 多位在华留学生。
(Chinese government (Department of Aid to Foreign Countries, Ministry of Commerce) has
always been giving aid to Africa in the field of education, infrastructure, hospitals and schools,
etc. Besides, many contracting companies like CRBC have spared no effort to fulfill our
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corporate social responsibilities (CSR) by setting up schools, solving the problems of drinking
water, etc. )
6. Q: Do Chinese companies hire local people as their employees? If they do, how much percent
do these local people take up in the employee collective and what are these employees usually
hired to do?
中国在非企业会雇佣当地人做雇员吗？如果是, 这些当地人在雇员中大概占怎样的比例？
他们通常做什么样的工作？
A: 像我们这样的工程承包企业，在非洲施工要雇佣大量的当地员工，大约一个中国人要
配 10 个当地人左右。当地员工一般都担任技术工种和普工（司机、操作手、小工），担
当管理人员的相对较少，但随着近几年的属地化管理，也有少量当地员工参与管理。
(The contracting companies like CRBC will employ a host of local people, with one Chinese
with 10 African assisting workers. The local employees usually work as skilled labor or general
worker (driver, operator, unskilled laborer, etc.), while few of them serve as administrative staff.
However, with the development of localized management, there are also a small amount of local
people working in the management layer.)
7. Q: Is there any difficulty or obstacle for Chinese companies to invest in Africa?
中国企业在非投资有何困难或障碍?
A: 可能最担心的是局势变化，政府是否稳定。
（The biggest impediment might be the unsteady political situation. The Chinese
companies
might have to break off the investment due to the changes in the government.）
8. Q: Do you feel any difference between Chinese investments and western investments in
Africa?
您认为中国在非投资与西方国家在非投资有什么不同吗？
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A: 西方投资一般都是私人企业，实为赚钱。中国投资大部分还是政府投资，私人老板
相对较少。
（The western investment is mainly made by the private companies, aiming at earning
money; most of Chinese investment is controlled by the government with fewer private
investment.）
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Interview with Xu Jiaxun
Chinese FDI in Nigeria
关于中国在尼日利亚外商直接投资的调查
1. Q: What is your experience with Chinese FDI in Nigeria?
请问你是如何在尼日利亚参与外商直接投资的（你在尼日利亚工作的经历）？
A: 我于2011年9月至今被公司委派到尼日利亚负责纺织品等相关商品的销售。销售模
式 多 为 直 销 。 主 要 经 营 市 场 在
Kano 的 Kantin Kwari market （ 此
为尼日利亚乃至西非地区最大的纺织品交易市场）
I was appointed by my company to work in Nigeria on September 2011, responsible for
the sale of textile product with direct-selling as our main sale mode and Kantin kwari market
(the largest textile market in Nigeria even the whole region of western Africa) the as our
major trading market.
2. Q: What fields do you think Chinese companies have more interest to invest in?
你认为中国企业在尼投资主要集中在哪些领域？
A: 就我所见闻而言，中国企业的大部分投资领域集中在城市道路、生活饮用水等
一些
基础设施建设上。此外电力建设上，就我了解，尼日利亚并未有统一的国家
电网，所以导致该国的生活及工程用电大多依赖于自主发电。
(As far as I’m concerned, Chinese companies’ investments are mostly made in the
infrastructure construction such as city roads, drinking water, electric power construction, etc.
Since there is no national power grid in Nigeria, the electricity is mainly self-generated to
meet household demand and also engineering project demand. )
3. Q: Do you think that local Nigerian politicians support or oppose the Chinese investments
and companies?
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你认为尼日利亚政府/官员对于中国投资持何种态度？支持还是反对？
A：政府支持与否主要要看中方投资在于何种领域。举例来说，上文提及的市镇道
路建设、生活用水及其他有助于改善当地人民生产生活水平的基础设施建设，对此政
府是相当欢迎的。除此之外，另一些以贸易为主的投资项目，例如纺织品、小商品等
，对于这些投资贸易政府则不予支持，美其名曰保护本国相关产业发展。但很多尼国
本地的产业现状，例如纺织品产业，因为尼日利亚本国大多地区的生活生产用电仍是
个极大问题，很多地区长期断电，其当地的工厂根本无法进行生产制作，很多产品必
须依赖进口，但政府又从宪法上予以禁止，这本身就是就是对矛盾，这类怪象的产生
直接原因是出于尼日利亚政府的腐败，因为敲诈中国商人是很多当地政府官员的收入
来源之一。比如，中国公司要向地方政府，州政府还有联邦政府交三分税，分别孝敬
不同的政府部门。
(It depends on which fields Chinese companies have invested in. For example, in terms of
the infrastructure construction like road, rail, drinking water and other projects that help the
local people to improve their living standard, the Nigerian government has shown warm
welcome and great support. On the contrary, some trade-oriented investment projects such as
textile goods and petty commodity, are given less support from the local government in the
name of protecting the local industry. On one hand, some local factories cannot carry out
production due to the long-term power cut, so that some products are import-dependent; on
the other hand, the importation of these products is forbidden by the Constitution. But these
products still have a chance to show up in the local market due to the corruption of Nigerian
government, because one of local officials’ income resources is to blackmail the Chinese
businessmen. For example, the Chinese companies have to pay three-fold taxes to local
government, state government and federal government respectively. )
4. Q: Do Chinese companies hire local people as their employees? In case they do, how
much percent do these local people take up in the employee collective and what are these
employees usually hired to do? Is there any conflict between Chinese employers and local
employees?
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中
国
在
尼
企
业会雇佣当地人做雇员吗？如果是,
这些当地人在雇员中大概占怎样的比例？他们通常做什么样的工作？中国老板与当地员工 之 间有怎样的雇佣
矛盾？
A: 会雇佣。黑人在公司所占的比重不算很高。一般每个单位有一个黑人作为担保
人或者充当雇员，主要领导层仍以中国人为主（有些公司或者根本不雇佣）。黑人在
公司所负责的事务主要集中于为中国人处理与当地政府的关系，公司所需交的税务及
相关诸如移民局等政府部门人员的沟通协商等。矛盾主要体现于黑人雇员做事的结果
不能达到老板预期效果，在执行力上会打折扣，矛盾相对较少。
(Yes, they do. But the local people only account for a small proportion in Chinese
companies. In general, there will be one local people in each company, employed as the
guarantor dealing with the local government, e.g. negotiating with the officials about taxes
and immigration, etc. There are not many conflicts between Chinese employers and local
employees. The conflicts are mainly manifested when the local staff cannot reach the
expectation of the leaders and their executive obligations are not met. )
5. Q: Is there any difficulty or obstacle for Chinese companies to invest in Nigeria
(governmental restriction, strike or social anti-Chinese activities)?
中国企业在尼投资有何困难或障碍（如，政府限制，员工罢工或反华活动等）？
A: 困难主要在于政府政策上的不支持与近年来局势的不稳定，其中博科圣地（
BOKO HARAM）及尼日尔解放战线同盟的恐怖袭击所造成的局势动荡影响来的尤为
深重。另外 15 年即将进行的总统选举相信也会对社会稳定造成一定的影响。
The difficulty mainly lies in the nonsupport of the local government and the unstable
political situation, and the influence from Boko Haram is especially deep and profound.
Besides, the presidential election to be held in 2015 will also have an impact on the Chinese
investment.
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6.
Q: Do Chinese companies get involved in Nigerian society? Do they provide
financial aid, build schools, etc.? In case they do, do you think this happens at a sufficient
level?
中国在尼企业是否会为当地社会提供经济援助（如捐献学校等）？如果是，你认
为这种援助是否充分？
(A: I didn’t spot any social assistance from Chinese companies.)
7.
Q: Does the positive impact of FDI in Nigeria outweigh the negative one, e.g.
economic profit vs. environmental disruption?
你如何衡量中国在尼投资为尼日利亚带来的正面影响和负面影响（如，是经济
增长的影响更大，还是因投资带来的环境污染影响更大）？
A: 正面影响应大于负面影响,中国与尼日利亚两国间在基础设施领域上还是有很大
差距的,尼日利亚的基础设施,如公众医疗卫生,市镇规划建设,银行金融系统等与中国的
基础设施还有不小差距,总体来讲我觉得中方还是带去了较为先进的发展理念与技术,更
好的改善了当地人民的生产生活水平。
(I believe the positive impact outweighs the negative one, since there is still a great gap
between China and Nigeria in the field of infrastructure construction (medical treatment and
public health, the layout and construction of the cities and towns, the financial system, etc.) I
think China has brought relatively advanced ideas and technology, along with its investment,
to Nigeria and greatly improved the living standard and the production level of the local
people.)
8. Q: How do you think the Chinese-Nigerian relationships will develop in the
future?
你认为中尼关系在将来会如何发展（如，中国会加大对尼投资等）？
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A: 政府间的合作应该会日趋密切，中国国内的政策还是会加大对于非洲的投资与支
援力度。
(The inter-governmental relationship will get increasingly intensive, and the Chinese
government will enlarge its investment and aid in Africa.)
非常感谢您的配合！祝您工作顺利，生活愉快！
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