EDITORIAL

November 13, 2006

Posted to the web November 13, 2006

Recent developments especially in the economic fieldhave set the stage for a significant if not a fundamental shift in relationships between Africa and the rest of the world. Since the emergence of Communist China, successive Chinese regimes under Mao Zedung and Chou-en-Lai; later under Deng Xiao Ping to the current crop of "modern" Chinese leaders, the Chinese governments have generally supported Africa in its struggle to free itself from European colonialism and later American domination. The Chinese have consistently and strongly supported African states.

One of the landmarks of this early cooperation was in building the TaZara - Tanzania to Zambia - railway project. This monument was followed by a host of other projects throughout the continent. In those days, Africa and China had broadly the same under-development profile. Hunger, disease, backward technology and scarce investment capital. Whereas Africa was an open house for economic investors, entrepreneurs and adventurers, the Chinese case was different. They had one stable government, were disciplined enough to control the process and rely on self help and home grown economic policies to develop. Africa was an experimental group for so many European and American economic policies through Bretton Woods institutions and bi-lateral bodies. The difference was clear.

Today the scenario is vastly different. China is able to feed its 1.5 billion people in spite of drought, floods and other natural catastrophes. Last week it was revealed that China's foreign reserves had topped 1 trillion dollars - that is one thousand million dollars. The Chinese are awash with people as well as dollars. The Chinese have reached this pedigree because they have taken the correct economic policies according to the dictates of their requirements and with their reputation as the most industrious people in the world have built a burgeoning economy with cities transformed and countryside picking up.

In contrast, Africa presents a mixed picture. One or two countries have shown promising economic development. But the discontinuities of governments, natural disasters, disease and especially bad leadership have left us far behind everyone else. The Chinese with an eye to the main chance are now attempting to get closer to Africa because the continent is bursting with raw materials. Given the right conditions and the right terms, this initiative by China could prove a catalyst for accelerated African development.

However, this relationship is not going to be plain sailing. Chinese aggressiveness could put off many African partners. At present China is dumping huge quantities of cheap imports to the severe detriment of the manufacturing sectors in Africa. Nigerian textile industry is all but dead thanks partly to Chinese dumping, to give one painful example. Many analysts and enlightened Africans must have watched last week's un-edifying spectacle of more than 40 African Heads of State paraded like a cattle show in front of the Chinese leadership in Beijing. The only thing more surprising than this uncharacteristic and unwise decision by Beijing to invite all African Heads of State to China was the African Heads of State' decision to go. Propriety would have dictated that the Chinese would come to an AU Summit and see everyone individually and address the Assembly collectively which is normal in international relations. However, the predilection and passion for misuse of government funds dragged African leaders like a magnet to Beijing because it became known that China had reportedly budgeted about 50 billion dollars for loans to Africa this year alone. Some of the African leaders would be dripping with saliva and licking their chops to get a piece of the action.

Certain western institutions and governments have publicly voiced their fears about this new link between China and Africa because that would reduce their influence and commercial presence on the continent. But Western nations and financial institutions having connived with corrupt African leaders to bankrupt the Continent in the last 30 years are not the natural source of advice to us. The only way they can maintain their position if they want is to offer trade terms to Africa on the same or better terms than the Chinese.

Nevertheless, we in Africa should be aware that imperialism, colonialism and slavery can come in another guise. What we should do is to take opportunity of the competition between China and the West and obtain the best terms for our people. The internal control systems should be improved to ensure that only viable and self-liquidating loans are contracted. At all events, investment is the key to economic development and we should make sure the physical, financial, regulatory and communication infrastructure are in place before we start at long last on the road to attracting foreign capital which is a basic requirement for accelerated economic development. Without attending to the basics, we would leave our country and our people in the same desperate cycle of poverty, debt overhang, loan forgiveness, admonition and shame. 21st Century African leaders have a duty to take a different course.