President Trump’s Non-African Strategy: Published in AU’s “Invest in Africa” magazine

Below is my article on President Trump’s Non-African Strategy, January 1, 2019, that was published (abridged) in the African Union magazine: “Invest in Africa“-2019 vol 1. You can find it on page 109 (129 on the link to the magazine). There are many worth while articles to read in this volume of the AU magazine  

 

 

Lawrence Freeman

January 1, 2019

After waiting almost two years for President Trump to articulate his policy for Africa, last month he unveiled his US-African Strategy, through the mouth of National Security Adviser John Bolton.  It should be called the Non-Africa Strategy because it has little if anything to do with the continent of Africa itself. Rather, it is essentially a geo-political tactic aimed primarily at China and to a lesser extent Russia. President Trump has put his stamp of approval on the age-old British inspired geo-political ideology that views foreign policy as a “global zero-sum game”-a world with only winners and losers among the super-powers. All other (lesser) nations are treated simply as movable pieces in their fantasy game. In other words, in this administration’s policy, Africa is a pawn on their geo-political chess board. Sadly, this so-called African stratagem shows no concern for well-being of the African people, doing nothing to improve the conditions of life on the continent, nor does it enhance US security.

Bolton explicitly attacks China’s new paradigm in foreign policy-the Belt and Road Initiative-while threatening African nations who do not support the US position on China and Russia. Blinded by their geo-political world view, the Trump administration displays disdain for the fruitful collaboration of China (primarily) with Africa nations in building vitally needed infrastructure across the African continent. In many cases constructing new railroads for the first time since the days of imperialist-colonial domination.

The Trump/Bolton policy has already failed from the start. It is too late to stop Africa’s momentum for economic development with its allies. However, if the Trump administration were more thoughtful, it would formulate a strategy to assist African nations in reducing their massive deficits in crucial categories of infrastructure.

Return to a Real American Strategy for Africa

The promotion of human life should (must) be the most important goal of all foreign policy. Human beings uniquely possess the cognitive-creative mental capacity to transform the physical universe. Only through new scientific discoveries by a sovereign human mind, can we ensure the continued material-biological propagation of our human race. Thus, the promotion of physical (not financial) economic growth, which sustains human progress, is the core of any competent “good neighbor” foreign policy.

Presidents John Kennedy and Kwame Nkrumah, Washington DC, March 1963

President John Kennedy was our last president who identified with and supported the development of the newly liberated African nations. His unique friendship with Ghanaian President, Kwame Nkrumah resulted in securing the funding for the Akosombo Dam on the Volta River which provided hydro-power for aluminum smelting and electricity for the people. This project stands as a monument today in Ghana (and Africa) in contradistinction to the El Mina slave dungeon, and other “slave castles” along Ghana’s coast.  We should remember that it was the African liberator, President Nkrumah, who was the very first Head of State invited by President Kennedy to Washington DC on March 8, 1961.  Four months later, the pro-African President invited Tafawa Balewa, the Prime Minister of the newly independent Republic of Nigeria to the White House.

Not one of the ten US Presidents following the death of Kennedy have emulated in practice his genuine concern for the advancement of the African people. However, President Kennedy was not original in his vision for Africa.

President Franklin Roosevelt famously scolded British Prime Minister Winston Churchill, during their war-time conferences, for Britain’s imperialist exploitation of Africa. He drove Churchill into an apoplectic fit, when he threatened to do away with British Imperialism and its eighteenth-century methods, after the war was won.

President Roosevelt expressed his vision for Africa’s development when told his son Elliott, that with the re-creation of a lake in the depressed flats in North Africa, “The Sahara would bloom for hundreds of miles.” He also reminded his son of the rivers which arise in Atlas Mountains and disappear under the Desert. “Divert this water flow for irrigation purposes?  It’d make the Imperial Valley in California look like a cabbage patch!”

This is the way US leaders true to our American System of economic progress used to think.

Africa’s Future

Africa’s population is projected to expand to 2.5 billion people in 2050- a generation and a half generation from now. The continent is well situated to become the center of world commerce, with its expanding population, vast tracts of arable land, and its abundance of natural resources. To secure this future, Africa needs trillions of dollars invested in infrastructure. There is no “zero sum” competition. Africa’s friends should cooperate in promoting the limitless number of infrastructure projects that Africa desperately needs. If, Africa and its allies fail to fully develop its enormous potential, and African nations are unable to productively employ and instill hope for a better future to the continent’s projected 2050 population of a billion young people, then we should anticipate perilously new levels instability and insecurity.

It should be obvious to all, including President Trump and his advisers that there will be no security without economic development.

It would be best for both the US and Africa, for President Trump to jettison this terribly flawed policy and advance a real American vision for the continent.  This should include collaboration with China on building transformative infrastructure such as the Transaqua inter-basin water transfer project to refurbish the shrinking Lake Chad.

Lawrence Freeman is a Political-Economic Analyst for Africa, and Vice Chairman of the International Scientific Advisory Committee to the Lake Chad Basin Commission

 

Will A Marred Presidential Election Be Used to Discredit Buhari and Nigeria?

The two leading candidates in Nigeria’s Presidential election. On the left-President Muhammadu Buhari (APC). On the right-Atiku Abubakar (PDP)

Plans are afoot to potentially use violence or other means to disrupt Nigeria’s Presidential election re-scheduled for Saturday February 23, 2018, in order to discredit President Buhari, and Nigeria. I am not making an idle prediction. Knowing Nigeria and its history as I do, and the intent of financial predators to weaken the Nation State of Nigeria, one must be prepared.

Hours before the polls were to open, the Independent National Election Commission postponed the voting for one week. Leading up to the originally scheduled vote on February 16, circles in the US and UK issued unprovoked condemnations warning President Buhari to conduct a “fair and transparent” election. Why such warnings delivered weeks in advance, when Nigeria had distinguished itself in 2015 by conducting, by most accounts, the most honest Presidential election in its history? The most dangerous threat against President Buhari came from George Soros’ Open Society of West Africa. Soros, a member of the financial globalist oligarchy is notorious for using his worldwide tentacles to foster regime change. Read: External & Internal Forces Fear Continuance of Buhari Presidency

Earlier this week, Republican Congressman Chris Smith, who is the party’s point man on Africa, issued a denunciation of President Buhari. In his statement Cong Smith said: “Responsibility for the delay of Nigeria’s presidential election lays squarely with President Muhammadu Buhari and those close to him.” He went on to accuse the President of “undermining confidence that this election and subsequent gubernatorial elections will be free and fair…” Smith is no friend of Africa. He is a proponent of regime change and has joined with anti-Muslims forces in the US in calling for the removal Sudanese President Bashir. In April of 2018, when Ethiopia was celebrating the selection of Dr. Abiy Ahmed as its new, young reformist Prime Minister, Smith’s subcommittee on Africa, passed a resolution denouncing Ethiopia for alleged human rights violations.

On February 19, John Campbell (retired US Ambassador to Nigeria), published a blog for the Council of Relations raising suspicions of President Buhari’s involvement in the postponement of the February 16 election. Campbell reports that many Nigerians “are seeing the postponement as part of a strategy to throw the elections, most often to incumbent President Muhammadu Buhari.”  He goes on to say: “Nigerians are also concerned that the postponement provides more opportunity for the incumbent powers to buy votes and deploy security services to intimidate voters.”

Campbell in his blog, retails the allegation from President Buhari’s opponent, Atiku Abubakar, “claiming that the Buhari administration postponed the vote to ensure a lower voter turnout.”  He also repeats the accusation that President Buhari’s plan: “is to provoke the public, hoping for a negative reaction, and then use that as an excuse for further anti-democratic acts.”

Violence: A Political Weapon 

There are forces inside and outside Nigeria, who would like to undermine the nation’s sovereignty, preferring a malleable government that would permit the continued exploitation of Nigeria. Since Royal Dutch Shell descended on Nigeria with its first oil well in 1956, Nigeria has never been truly sovereign. Mega oil companies and their financial cohorts, conspiring with a cabal of corrupt “middlemen,” have looted Nigeria’s oil for decades, resulting in economic and political instability for Africa’s largest populace.

The Buhari administration has not yet acted to fully mobilize the Nigerian economy as forcefully as required to end abject poverty and generate productive jobs for millions of unemployed youth. Not nearly enough has been done to reverse the British nurtured deep ethnic divisions that have instilled great mistrust in Nigerian society. Sadly, these volatile ethnic, religious, and geographic fault lines have been easily manipulated into wanton violence. However, President Buhari has displayed a nationalist commitment for economic development, initiating the largest expansion of vitally needed infrastructure in Nigeria’s history. He has also demonstrated his determination to alleviate the horrible conditions of life in the Lake Chad Basin (where Boko Haram recruits), through his steadfast support to replenishing the shrinking Lake Chad.

The next President of Nigeria should be decided by the Nigerian people. One cannot dismiss the likely probability that violence will be instigated as means to undermine the legitimacy of the election. Not only is there a history of violence in Nigerian elections, but Boko Haram, which has brutalized the Nigerian people, is dedicated to using violence as a political weapon. In the last two weeks leading up to this Saturday’s election, over one hundred Nigerians have been killed or injured. Not just by Boko Haram, and other extremists, but also from clashes between the APC and PDP, ethnic conflicts, and attacks by suspected herdsman. This has created an opportune environment that provocateurs may exploit in their scheme to disrupt the voting process in this all-important election.

Watch: Will Nigerian Election Be Destabilized? Interview with Lawrence Freeman

 

China is NOT Exploiting Africa, But Investing in its Future: The Case of Nigeria

The article below, “Nigeria’s balanced and diverse relationship with China is key to sustainability,” provides a useful examination of the healthy bilateral relationship that China has developed with Nigeria, especially during the administration of President Buhari.  It is also important to note that Nigeria has officially joined China’s Belt and Road Initiative in January of this year. (excerpts below followed by a link to complete article)

1)    Infrastructure

Nigeria has one of the largest infrastructure deficits in the world; two thirds of the population still does not have access to safe water and over half of the population has no access to reliable electricity. Logistics costs are also extremely high; it costs more to transport a good from Lagos in Nigeria’s South to Kano in the North (1000km), than it does to ship a good from Shanghai to Lagos (over 12,000 km).

Nigeria’s government is investing in infrastructure, but external funding is needed. As cited in the National Integrated Infrastructure Master-plan (NIIMP) developed by Nigeria’s Ministry for Planning in 2015, it is estimated that the country requires $3 trillion over the next 30 years, with $500 billion required in the first 10 years. This estimate, which has wide sectoral scope, is reached by comparing Nigeria’s core infrastructure stock of around 20-25% GDP to international benchmarks of around 70%. Yet, even as the government increased its budget allocation for capital expenditure to 30% in 2017, this remains at least 80% short of the annual amount prescribed by NIIMP.

Alongside self-funding new infrastructure, Nigeria has also looked to the World Bank, European Commission and African Development Bank as sources of infrastructure capital. Yet while they might have the risk tolerance and investment horizons, their capital remains diluted over a number of countries. In its 60 years of operation in Nigeria, the World Bank has invested on average $100 million on infrastructure a year – significant but still a drop in the ocean versus Nigeria’s needs…

3)    Manufacturing    

While Nigeria is the richest economy in Africa, with the largest population and one of the better educated work forces, 4 in every 10 people still remain unemployed. Nigeria needs more inclusive industrialization that creates jobs for all, as opposed to focusing solely on sectors such as oil. Opportunities lie in the manufacturing sector, which creates more jobs through stronger forward and backwards economic linkages than any other sector.

Nigeria is again leveraging its relationship with China here. Some Chinese manufacturers have started relocating production to Nigeria, partly in response to rising wages in China and to take full advantage of the size of Nigeria’s domestic market. Sun Ceramics is one such example; they produce ceramics the size of 10 football fields every day, employ over 1,000 locals and also source all their raw materials from Nigeria. If it weren’t for Nigeria’s difficult business environment, Chinese firms claim they would commit greater amounts of investment.

Stronger ties to stand the test of time.

Nigeria, however, has managed to…build a balanced and more diverse relationship with China. Nigeria’s relationship with China extends beyond resources and infrastructure to security, financial planning and sharing of best-practice in manufacturing, to name a few areas of cooperation. Particularly in the realms of security cooperation; the Chinese have found an area that helps win them local support on the ground in Nigeria given a near-universal desire to eliminate insurgent forces. Nigeria also recognizes that the size of its domestic market offers the largest opportunity in Africa for Chinese companies; and that has helped to improve the balance in the relationship.

It is this combination of balance and diversification that is key to a sustainable relationship with China.

 

Read: Nigeria’s Balanced and Diverse Relationship with China

Guardian of Nigeria Publishes “Proposal for Nigeria’s Future” by Lawrence Freeman

The Guardian of Nigeria published on Monday, January 28, 2019, my article: “Proposal for Nigeria’s Future”  with included pictures of President Trump, President Xi, and myself that were omitted from the on-line article.

 

Proposal for Nigeria’s future

 

Nation State vs Ethnicity in Africa

Mahmood Mamdani raises proactive questions on the role ethnicity in Africa and Ethiopia in particular. (See excerpts and article below).

Africa has been plagued to this day by two legacies from colonialism (British): 1) the intentional failure to build infrastructure; 2) the deliberate fostering of ethnicity. Historical literature is replete with evidence of the British creation of ethnic and/or native administrative units as a central feature of their divide and rule colonial policy. Lord Frederick Lugard, who authored the infamous “indirect rule” stratagem, implemented his scheme in Nigeria when he became the Govern General Nigeria in 1914, and ruled the North and South differently. Similarly, the British cultivated the North versus South conflict in Sudan with their separate Southern policy exemplified by their 1922 Passport and Ordinance Act. There are more examples available.

Accentuating ethnic, tribal, religious, and geographical distinctions is used as a means to thwart the creation of sovereign Nation States, particularly in Africa. A functioning Nation State is not founded on a collection of minorities, or even a majority. Instead, it is created on principles that define its responsibilities to provide for the general welfare of its citizens and their posterity, which must include nurturing the creative potential of each child. Nation States transcend differences within their populations by uniting all their people in a common mission, not only to develop their nation, but to contribute to the future of mankind as well.     

Ethiopia uniquely evaded colonization with its 1896 military victory against the Italian army in Adwa, led by Menelik II. Yet as Mamdani points out, Ethiopian Federalism accommodates ethnicity, which is divisive today, and is being used to undermine the central-federal government. By following the core economic thesis of Meles Zenawi’s “Developmental State” Ethiopia has embarked on a bold campaign to transform their country through government directed investment in infrastructure, while protecting their economy from being invaded by foreign financial predators. As a result of Ethiopia’s relative success among African nations in performing this necessary Nation State function, it has become the “enemy” to those forces-internal and external-that oppose development of African nations. Not surprisingly in the last six months there have been renewed efforts to liberalize-deregulate Ethiopia’s financial system in an attempt to weaken its commitment to the “Developmental State” model. 

Therefore, the suggestion of a new kind of non-ethnic federalism is a conception that could lead to strengthening the institution of the Nation State in Africa.   

The new Tram in Adds Ababa typifies Ethiopia’s approach to infrastructure.

“Ethiopians used to think of themselves as Africans of a special kind, who were not colonized, but the country today resembles a quintessential African system, marked by ethnic mobilization for ethnic gains.

In most of Africa, ethnicity was politicized when the British turned the ethnic group into a unit of local administration, which they termed “indirect rule.” Every bit of the colony came to be defined as an ethnic homeland, where an ethnic authority enforced an ethnically defined customary law that conferred privileges on those deemed indigenous at the expense of non-indigenous minorities.

An interesting book worth reading by Mahmood Mamdani is: “Saviors and survivors.” It about Sudan and Darfur, but also discusses the creation of ethnic groups.

Subscribe to my blog.

Presidents Kagame and Museveni Discuss; Democracy, China, Infrastructure, and Jobs

President Paul Kagame: Time for Europe To Invest in Industry and Infrastrucure

December  26, 2018)

In an exclusive interview with Austria’s {Die Presse} news daily, Rwandan President Paul Kagame stated that “Europe has invested billions upon billions of dollars in Africa. (But) something must have gone wrong…. Part of it is that these billions had a return ticket. They flowed to Africa and then back to Europe again. This money left nothing on the ground in Africa.” The European money was invested in the wrong place, he said.  Instead it should go to investments “in industry, infrastructure, and educational institutions for Africa’s youth, whose number is growing fast. That is the only way to create a  demographic dividend.” It would be a better way of preventing migration of young Africans to Europe, which the Europeans were so much worried about. Europe could cooperate with China, Kagame hints: “China is active in Rwanda, but not in an inappropriate way. The new roads in Rwanda are largely built with European money. Sometimes there are Chinese subcontractors.”

 What Africans do not need, is Europeans trying to give them lessons on democracy, Kagame said. The European model of democracy is a failure, Europe is in a profound political crisis, as shown by the recent mass protests and other aspects, this model cannot be one for Africans to follow. Europe finally has to give up its attitudes of fake generosity, and begin accepting Africa as a real partner, he said.

Presidents Museveni of Uganda and Kagame of Rwanda

China Creating Tens of Thousands of Jobs for Ugandans in Infrastructure Projects

Ugandan President Yoweri Museveni revealed in an interview with {Xinhua} with its focus on infrastructure development, the country wanted to attract more invest-ment from China: “We are likely to advance the project of the Standard Gauge Railway (SGR)… in the government-to-government (talks).” Extending the Chinese-built SGR line from the Kenyan seaport of Mombasa, which is expected to reach the border areas with Rwanda, South Sudan, and the Democratic Republic of Congo, to Uganda would make sense as a catalyst of economic growth. To finance its infra-structure development agenda, Uganda looked at China because of the country’s favorable lending terms compared to some of the Western global financiers.

Other major infrastructure projects in Uganda will benefit from Chinese support as well: A few months ago, the Kampala-Entebbe Expressway, linking the capital Kampala to Entebbe Airport, the country’s gateway to the world, was completed. China financed the construction of the mega road  project, the first of its kind in the country. China is also financing the expansion of Uganda’s Entebbe International Airport. Official figures show that after completion of the first phase of expansion, the cargo center can handle up to 150,000 metric tons of goods, compared to the previous 69,000 metric tons.

In the northern part of Uganda along the River Nile, the world’s longest river, China is constructing the 600MW Karuma Hydropower Plant. While touring the facility in July, President Museveni said he was amazed by the progress noting that the plant will not only address Uganda’s inadequate power supply, but also that youths have become skilled through the construction process.

Farther upstream on the River Nile, in the central Ugandan district of Kayunga, construction of a Chinese-funded 183MW Isimba Hydro-power plant that is nearing completion according to the Chinese engineers on site, power generated by the plant is expected to come onto the national grid early next year.

The power development plan is crucial for the Uganda’s industrialization policy, which has designated over 22 industrial parks across the country where investors can set up base, taking advantage of the incentives that come with establishing their factories in the parks. In October, President Museveni launched the first phase of a $620 million Chinese industrial project in the eastern district of Tororo. The project has dubbed the Uganda-China Free Zone of International Industrial Cooperation, undertaken by the Dongsong Energy Group, will manufacture glass, steel, and organic-fertilizers, creating about 3,000 jobs at peak when completed in 2020.

President Museveni, in March of this year launched another Chinese-owned Mbale Industrial Park. The park owners, Tian Tang Group, said it will attract more than 30 investors with a total investment of about $600 million and an annual output value of $1.5 billion. The park will directly employ about 12,000 locals.

 The $220 million Kehong China-Uganda Agricultural Industrial Park, is another park that will play a critical role in transforming the economy. According to government figures, almost 80% of the country’s population derives its livelihood from agriculture.

 When fully operational, Kehong China-Uganda Agricultural Industrial Park is expected to produce about 600,000 tons of agro-products annually to meet the domestic and regional market demands.

 It will also create 25,000 jobs as well as making opportunities for training local people available, according to the managers of the park.

Pres. Trump’s Non-Africa Strategy

The so-called US African strategy articulated by National Security Adviser John Bolton, with the approval of President Trump has little, if anything to do with Africa. It is essentially a geo-political strategy aimed primarily at China and to a lesser extent Russia. The true believers of the bankrupt geo-political ideology live in a “global zero-sum game”-a world with only winners and losers among the super-powers. All other (lesser) nations are treated as movable pieces in their fantasy game. In other words, in this administration’s policy, Africa is a pawn on their geo-political chess board. Sadly, this so called African strategy does nothing to improve the conditions of life for the African people, and nothing to enhance US security. Bolton’s explicit attack on China’s successful Belt and Road policy, which for the first time since the days of imperialist/colonial domination of Africa, is providing vitally needed infrastructure across the African continent, demonstrates how little the Trump administration actually cares about the economic welfare of African people. The Trump/Bolton policy has already failed from the start. It is too late to stop China’s on-going collaboration with African nations. However, if the Trump administration was more thoughtful about Africa, they would join with China and Russia to assist in developing the continent, which is still suffering from massive deficits in vital categories of infrastructure. There is still time for the US to reverse course, but this would require jettisoning their adherence to the age old British geo-political world view.

Image result for us africa
The US Lacks A Development Strategy for Africa

Read Bolton’s Non-Africa Strategy

Nigeria Continues Demand for Transaqua Project to Save the Shrinking Lake Chad

Shrinking Lake Chad can only be saved by bringing water from the Congo River with Transaqua inter-basin water transfer project

December . 24, 2018–

Nigeria’s daily {The Vanguard} reported hat the Nigerian government “on Sunday pledged to strengthen trans-boundary partnerships with Lake Chad Basin member countries to save the lake from extinction. Minister of Water Resources Mr. Suleiman Adamu made the pledge in Abuja. Adamu said that it was a matter for regret that the lake had depleted from its original size, saying its benefit for livelihood could not be over-emphasized.”

With some imprecision, the report identifies the Transaqua plan adopted at the Abuja International Conference on Lake Chad last February though not calling it by name. Adamu “said that Federal Government was partnering with the Chinese and Italian governments to carry out a feasibility study for inter-basin water transfer from the Ubangi River in Congo. “He said that the proposed water transfer would be one of the biggest water transfer in Africa, stretching over 2,400 km with the sole aim of recharging the lake for maximum benefits,” the newspaper wrote.

Adamu is quoted saying: “What it means is that if we don’t do something, one day we wake up and find out that the lake does not exist. It has happened in other parts of the world where lakes just dried up. We don’t want that to happen, so there was a consensus that the lake must be saved from extinction, because it provides livelihood for as many as 40 million people currently.

And that area has the highest population growth rate in the world, so in the next 30, 40 years, only God knows what the population would be; but we expect it to be high if the trend continues. Unless the lake dries up, in which case, people will now migrate, and you know what those migration[s] would be –there have [been] only two or three options: some would migrate up into the North into Europe, some would go eastwards, into the Central Africa region where it is already a conflict zone.

Saving that lake and sustaining the livelihood of the people in that region is key, and it is a security issue for us in so many ways, including part of efforts to stem the scourge of Boko Haram. The best way to save the lake is to do the inter-basin water transfer, so we achieve that, and that is the premise in which we are working.”

Read article with remarks by Minister Adamu

 

 

Africa’s East-West Railroad is 50 years Over Due

An East-West railroad, along with Trans-African highways, and  electrical power, is essential for African nations to become  sovereign independent nations. It is coherent with the African Union’s “Agenda 2063.” Sudan is geographically situated to become the nexus of the East-West and North South rail lines. Africa’s collaboration in recent years with China’s Belt and Road Initiative, Russia, and other nations to build vitally necessary infrastructure is the only way to eliminate poverty, hunger, and disease. It will also lead to finally putting African nations on the path to building robust agricultural and manufacturing sectors. This policy stands in stark contrast to President Trump’s “non-Africa Strategy,” which will do nothing to help Africa, nor improve US Security.  

Russia Wants To Help Build an African Cross-Continental Rail Line

Dec. 16, 2018

The Russia-Sudan Inter-governmental Commission announced in a report that Russia wants to participate in the construction of a cross-continental rail line, which will connect East and West Africa. TASS reported that the commission document states: “The Sudanese side expressed interest in participation of the Russian companies in constructing of the Trans-African railway from Dakar-Port Sudan-Cape Town. The Russian side confirmed readiness to work out the opportunity for participation but asked for [the] provision of all the financial and legal characteristics of this project.”

TASS explained that “the Trans-African railway line is part of the African Union’s plans to connect the port of Dakar in West Africa to the port of Djibouti in East Africa. It will run through 10 different countries (many of them landlocked) and is expected to boost trade on the continent. The route will be the expansion of the existing Trans-African Highway 5 (TAH5). The first phase of the project will be an estimated $2.2 billion upgrade to 1,228 kilometers of existing rail between Dakar, the capital of Senegal, and Bamako, the capital of neighboring Mali.

The project has already attracted Chinese investment in African infrastructure through Beijing’s ambitious Belt and Road Initiative (BRI).” 

 
 
 

 

Despite Claims From the West: Report Reveals That China’s Africa Infrastructure Projects are Reducing Economic Inequalities

 

China’s New Silk Road/Belt Road Initiative is developing many parts of the world with infrastructure that are yielding positive economic results .

Chinese Investments in Developing Sector Decrease Inequality

December 12, 2018

A study done by the AidData institute at William and Mary College in Virginia showed that China’s investments in the developing sector between 2000 and 2014, unlike many western investments, reduce economic inequality in the targeted countries.

Financed by the UN, the Singapore Ministry of Education, the German Research Foundation, USAID, and several other foundations, the study collected data on Chinese projects in 138 countries, concluding: “We find that Chinese development projects in general, and Chinese transportation projects in particular, reduce economic inequality within and between sub-national localities,” and “produce positive economic spillover that leads to a more equal distribution of economic activity.”

“Beijing has demonstrated that it is  both willing and able to address the unmet infrastructure financing needs of developing countries. These development projects—in particular, investments in highways, railways, roads, bridges, tunnels, and ports—could strengthen economic ties between rural and urban areas and thereby help to spread the benefits of economic growth to more remote and traditionally disadvantaged areas.”

“The findings from the study are encouraging: Chinese development projects—in particular, “connective infrastructure” projects like roads and bridges—are found to create a more equal distribution of economic activity within the provinces and districts where they were located.”

Read the article with a link to the report