He Wenping-The Belt & Road: China Shares Its Development with Africa & the World

Below are excerpts from a speech by Prof. He Wenping discussing “President Xi’s Perspective for the Year 2050 and the Perspective of African Development.”

Germany, November 25, 2017

The Industrialization of Africa 

      “Let’s quickly go to the One Belt, One Road: This is just what I call—this is not official, it’s what I call it—I think this is a 1.0 version of One Belt, One Road, because all those things you see, the Maritime one and the Silk Road continental one, go through 64 countries. In this 1.0 version, only Egypt is from Africa, among these 64 countries. But now, I think One Belt, One Road is entering 2.0 version—that is, now facing all the countries in the world. As President Xi Jinping mentioned to  the Latin American countries, “you are all welcome to join the Belt and Road.” In the Chinese “40 Minutes,” Xi said, all the African continent is  now on the map of the One Belt, One Road, the whole African continent, especially after the May Belt and Road Summit in Beijing had taken place. 

      “So now, its face is open to all the countries in the world, now it’s inclusive. Any country that would like to join, I would like to say. You see, these are two leaders in the world: People are saying “America First” is the idea. You see from abroad, Trump in the White House saying, “America First.” If anything is not too good for America, it’s not good at all. But, for President Xi Jinping, the One Belt, One Road is to make the world better. It’s not, “make China better,” because with all this Belt and Road, the Chinese foreign exchange reserves, we’re now enjoying the number-one highest foreign exchange reserves in the world.

      “So, we’re going to use those foreign exchange reserves to build all those roads—connectivity! Connect China and other countries to join together, to build trade. And there are three connectivities we are talking about: First is the policy connectivity, China’s One Belt, One Road initiative is relevant to countries, their own development strategy. For example, Ethiopia.   Ethiopia has now been named as the “next China” on the African continent. It’s not my invention, these words—many scholars have been published talking
about which country in Africa is going to be the China in Africa, which means, developing faster! Faster and leading other countries forward. Most of them refer to Ethiopia.

    ” Ethiopia has now reached an GDP growth rate, last year, as high as 8%, but the whole rest of the continent, especially the oil rich countries, are suffering from lower oil prices. So they have developed an industrialization strategy; their strategy and the China strategy should be connected. One is called the policy connectivity

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President Trump’s US-Africa Policy Criticized

This article points to a weakness in President Trump’s Africa Policy: the lack of a full throttled commitment to economic development. The author correctly highlights in the final two paragraphs, the limitation of relying on the “market” and private sector when it comes to “large investments and long payback periods.” Africa needs infrastructure on a scale that requires public credit and long term-low interest financing that is beyond the capability and capacityof the private sector. U.S. President Franklin Roosevelt demonstrated through his successful transformation of the U.S. economy that government directed credit for infrastructure works.

Shift in US aid to Africa signals emphasis on politics

By Song Wei-Global Times Published: 2017/11/19 

The US House of Representatives held a hearing on appropriations for US aid to Africa in October. The Donald Trump administration requested $5.2 billion for Africa in fiscal 2018, which would be close to 35 percent less than in 2015. Of the total, $3.7 billion, or 70 percent, will be allocated to 10 countries in line with US strategic interests including Kenya and Nigeria.

The hearing reflected the focus and direction of Trump’s African policy, as well as the discrepancy between the US Congress and its Department of State, which exposed the political logic and moral risk of the US foreign aid management structure.

Cheryl Anderson, the acting assistant administrator at the US Agency for International Development (USAID) for Africa, attended the hearing and mentioned the importance of supporting development in Africa. Disease and conflict have no borders, she said, so underdeveloped markets can limit potential global economic growth. Supporting economic development in Africa not only creates jobs that increase economic growth and political stability in Africa; it also provides economic opportunities for US companies and workers. 

There are four policy priorities for Trump administration when it comes to allocating Africa budget. First, advance US national security interests in Africa through programs that support partners fighting against terrorism, advance peace and security, and promote good governance. Second, ensure programming asserts US leadership and influence in the continent. Third, design programs that foster economic opportunities and spur mutually beneficial trade and investment arrangements for the American people and African partners. Fourth, focus on efficiency, effectiveness, and accountability to the American taxpayers.   

The budget cut is a compromise between maintaining US strategic goals and promoting efficient spending. According to Donald Yamamoto, the acting Assistant Secretary of State for African Affairs, Africa is emerging, which forms the foundation of US-Africa relations. The assistance will go to countries of the greatest strategic importance to the US. To mitigate the impact of reductions, the US will use its programs to leverage more private-sector funding while encouraging countries and donors to make more contributions. 

The budget proposal encountered much criticism during the hearing. Democrat Karen Bass described the budget as shortsighted, highlighting several contradictions such as touting peace while cutting peacekeeping and development efforts. Democrat Joaquin Castro warned the cuts will reduce US influence and open political opportunities for rival powers. 

Can a US budget for foreign aid guided by national strategy go far? US foreign aid is decided by the Department of State, which is responsible for foreign affairs. The Africa budget is drawn up by USAID and the Bureau of African Affairs. Trump’s “American First” ideology has placed Africa at the bottom of US strategy. The budget reflected its policy.

US foreign policy is influenced by pragmatism. Development issues have become important topics of global governance, so a depoliticization trend is inevitable. But US is linking its strategic goals in Africa to development funding, with a compromise between resource allocation and strategic interests. The pragmatic method goes against the essence of development.

US policy contradicts its goal. The evaluation of global development assistance has shifted from “aid effectiveness” to “development effectiveness”. The national strategic goal of the donor is seldom included when evaluating the effectiveness of a program. Prioritizing America’s important partners shows the misalignment between the declared development assistance and actual resource allocation. 

Leave the “development issue” to the market. With geopolitical thinking, the US focuses more on its business interests in Africa. As a result, the Trump administration is trying to leverage more private investment through public-private partnerships, generating economic opportunities for US companies. 

But development assistance is meant to provide public goods that support the development of recipient countries. This means large investments and long payback periods. Whether this is compatible with business motives is still unclear. 

The author is an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation. bizopinion@globaltimes.com.cn

 

ARGUMENT:Trump’s Dangerous Retreat from Africa

Below are excerpts from the blog of John Campbell reviewing the Trump administrations’ policies for Africa during his first nine months in office

Noveember 3, 201

     An Africanist Donald Trump is not. Unlike his two immediate predecessors, who had signature initiatives on the continent, the U.S. president has shown little interest in Africa and had minimal contact with its leaders.
     But the deaths of four American soldiers in Niger and the inclusion of Chad, a key U.S. counterterrorism partner, on the latest iteration of Trump’s travel ban have made Africa increasingly difficult for the administration to ignore. These events have also exposed the administration’s startling lack of expertise when it comes to the continent and its reticence to tap the knowledge of career diplomats and analysts in the executive agencies — missteps that have already cost the administration and which could have additional consequences down the road.
     Trump’s disinterest in Africa appears to be shared by many in his cabinet, including Secretary of State Rex Tillerson, who at an hourlong meeting with State Department employees on Aug. 1 embarked on a “little walk … around the world” that did not mention Africa and its 1.2 billion inhabitants — roughly 17 percent of the world’s population. The administration’s political point person for Africa seems to be U.N. Ambassador Nikki Haley, who had little foreign experience
prior to her appointment. Last month, she visited Ethiopia, South Sudan, and the Democratic Republic of the Congo, the most senior Trump administration official to have set foot on the continent thus far.
     Making matters worse, the Trump administration has shown little respect for the expertise that resides at the departments of State and Defense, within the intelligence community, and within the academic and policy communities. Important African diplomatic posts remain unfilled, and domestic positions concerned with Africa have been filled only very slowly. For his meetings with African heads of state on the margins of the U.N. General Assembly, career State and Defense
officials were not invited to be present.
     The Trump administration’s freezing out of State, Defense, and intelligence community expertise predictably results in mistakes. The most costly to date was the inclusion of Chad — a major U.S. ally in the fight against terrorism — on Trump’s travel ban, which also targets travelers from seven other countries. Not long after the latest version of the ban was announced on Sept. 24, Chad shifted troops from Niger, where they had been involved in operations against Boko Haram, to its border with Libya. A reported upsurge in jihadi activity followed the troops’ departure.
     The travel ban blunder may yield additional negative consequences that are difficult to predict. The current chairman of the African Union Commission is Moussa Faki Mahamat, a Chadian. And to the extent that the travel ban is interpreted as a Muslim ban, it’s not just Chad that the administration risks alienating. Islam is the majority religion in some 22 African countries, 13 of which are in sub-Saharan Africa. In certain parts of Africa where the rivalry between Muslims and
Christians is acute, some Christians, especially of the Pentecostal tradition, are welcoming and exaggerating what they see as the Trump administration’s anti-Islam policy. If African elites perceive Trump’s immigration and refugee policies as part of a larger “war on Islam,” then a general hostility to the United States is likely to grow. 
     While there is still no permanent assistant secretary of state for African affairs, Donald Yamamoto, a career diplomat and former ambassador with deep knowledge of Africa, has been appointed as an interim secretary with a term of up to one year. The defining feature of the administration’s Africa policy so far is its ramping-up of military and counterterrorism engagement, a trend that began before Trump took office. In a recent conversation with senators, Defense Secretary James Mattis indicated that the U.S. military presence in Africa is set to increase, with continuing training, reconnaissance, and air support missions that accelerated under Obama (though from a very low baseline).
    This shift is also reflected in the administration’s budget proposal, which may end up having the biggest initial impact on U.S. policy toward Africa. The Defense Department budget would swell by roughly 9 percent, enabling it to increase its presence in Africa, while the State Department would see a roughly 30 percent cut, if the administration gets its way. Included in that cut would be USAID, meaning that almost all development assistance would be eliminated, as would many health-related programs. Africa would be disproportionately affected; at present roughly one third of USAID funds go to the continent. Trump’s budget would also nearly halve the U.S. contribution to U.N. peacekeeping operations, more than half of which are in Africa.
     Finally, while the administration’s budget proposal explicitly states that it will be “continuing treatment for all current HIV/AIDS patients” under PEPFAR (which provided life-saving antiretroviral drugs to 11.5 million people last year), the proposal would lower the yearly contribution by 17 percent, or about $800 million. Congress is likely to oppose many of these cuts, however, and in the end they are unlikely to be as deep as Trump’s budget proposal would indicate. Even so, cutting just half of what the president has proposed would significantly reduce the scope of department and agency activities, with the exception of defense. So far under Trump, U.S. foreign engagement is declining with respect to Africa. China and India have already begun to fill the void by steadily increasing their political and economic activity, as have Turkey, the Gulf states, and Iran. Larger African states, notably Nigeria, South Africa, and Ethiopia, may also assume a more significant role than in the past. 

Ethiopia, Nigeria, South Africa Moving Forward: What Will US Policy Be?

UN Envoy Haley Off to Africa While McCain and Graham Thump for More War

October 21, 2017–In all the controversy that has arisen around the deaths, earlier this month, of four U.S. Green Berets in Niger, the question that nobody seems to be able to answer is what is U.S. policy in Africa. The Trump Administration hasn’t spelled out a strategic concept, beyond giving U.S. military forces looser rules of engagement to go after terrorists. U.S. Ambassador to the UN Nikki Haley will be the first member of the Trump Administration to actually visit Africa when she travels to South Sudan, Ethiopia, and the Democratic Republic of Congo next week. Her mission, announced by President Trump last month on the sidelines of the UN General Assembly, is officially to review UN peace-keeping activities on the continent, but she may go ‘off-mission’ and freelance on policy.

       Back in Washington, the Senate Armed Services Committee is growing increasingly frustrated with what they say is a lack of information flowing from the Pentagon on the Niger attack, but the Committee clearly has war-making on its mind as well. Members of the Committee met with Secretary of Defense James Mattis, after which Sen. Lindsey Graham (R-SC) said that the Trump Administration plans to step up its counter-terrorism operations and loosen its military rules of engagement. “The war is morphing,” Graham said, reported {Politico}. “You’re going to see more actions in Africa, not less. You’re going to see more aggression by the United States toward our enemies, not less. You’re going to have decisions being made not in the White House, but out in the field, and I support that entire construct.

       “So the rules of engagement are going to change when it comes to counter-terrorism operations,” he said

Ethiopia to Inaugurate Two Industrial Parks

October 21, 2017 – The Adama and Dire Dawa industrial parks, whose construction was launched in 2016, will be inaugurated at the end of this month, reports Ethiopian News Agency. The industrial parks will specialize in textile, apparel, and agro-processing and will increase the number of parks with similar sector to five next to Hawassa, Mekele and Kombolcha, according to Ethiopian Investment commission.

The industrial park in Hawassa, which was inaugurated last year, started operation. Companies have also shown keen interest to open shop at the recently inaugurated industrial parks in Mekele and Kombolcha.

The government spent about USD 315 million to develop the two industrial parks, deputy commissioner in charge of Industrial Parks, Belachew Mekuria  (PhD), said.

As Adama and Dire Dawa are in close proximity to the Port of Djibouti, it expected that they will contribute to the facilitation of foreign trade for the country.

The parks are expected to further strengthen industrial development in the country by facilitating the way in fulfilling its vision of becoming manufacturing hub in Africa.

Nigeria Should Join the AIIB to Muster Funds for its Infrastructure Development

October 19, 2017–Addressing a forum organized by the Center for China Studies to mark the 19th National Congress of the Communist Party of China and its implications for the Sino-Africa cooperation, held in Abuja, Nigeria, on Oct. 18, Director of the Center for China Studies, Charles Onunaiju urged the Nigerian government “to become a member of the AIIB, as many countries of the world, especially in developing countries, have accessed funds for infrastructure development from the bank,” {Business Day} reported. He also pointed out that there is a desperate need for infrastructure development in Nigeria, and lack of funds is a major reason why the country’s infrastructure has remained inadequate.

          Speaker of the House of Representatives Yakubu Dogara, who was represented by Mohammed Usman (APC-Kaduna), said, “China today is our important partner that has been supporting us, and indeed Africa, in our development strides. Nigeria and China have been cooperating in numerous areas such as in agriculture, education, finance, infrastructure and solid minerals,” Business Day reported.

          “It is in the light of this that we believe the 2017 National Congress of the Communist Party of China will most assuredly provide another opportunity to consolidate on the gains of the on-going bilateral relations between Nigeria and China in particular and Sino-African Relations [in general],” the Speaker said

South African President Zuma Appoints Mahlobo as Energy Mininster To Push His Nuclear Power Generation Plan

 October 17, 2017– In a major cabinet reshuffle, South Africa’s President Jacob Zuma has appointed his confidant David Mahlobo to head the Energy Ministry, raising speculation that Zuma will push through the nuclear deal before his second term ends in 2019, Reuters reported today. Mahlobo was the former state security minister. South Africa is preparing to add 9,600 MW of nuclear capacity — equivalent to up to 10 nuclear reactors — in a contract that could be worth tens of billions of dollars and would be one of the biggest nuclear deals anywhere in decades.

          Commenting on the cabinet reshuffle, including bringing in Mahlobo as the new Energy Minister, Lawson Naidoo of the Council for the Advancement of the South African Constitution (CASAC) said: “This is all about the nuclear deal. Mahlobo has accompanied the President on visits to Russia, presumably to lay the ground for the Rosatom nuclear deal,” according to coverage by Fin24 business site. CASAC is a private outfit which is critical of Zuma and his politics.

          What agitated the anti-nuclear cabal in South Africa further were two events occurring within days. These were: Last Friday’s nuclear site authorization and now today’s cabinet changes, including Energy Minister Mahlobo. On Friday, Oct. 13, Department of Environmental Affairs approved the Final Environmental Impact Report for the Nuclear-1 Power Station and its associated infrastructure, and has authorized the South African electricity utility Eskom to proceed with the construction of new 4 GW nuclear power plant complex at Duynefontein in the Western Cape.

          Nuclear reactor makers including Rosatom, South Korea’s Kepco, France’s EDF and Areva, Toshiba-owned Westinghouse and China’s CGN are eyeing the South African project, which could be worth tens of billions of dollars, Reuters reported

 

The New Name for Peace Is Economic Development

Helga Zepp LaRouche

July 7, 2017

    I think that we are all aware that we are involved in the historically important process of trying to improve the relationship between the United States and China, in the context of the Belt and Road Initiative. It is especially important in the area of agriculture and food production, because this is an extremely urgent question. While at the G-20 meeting in Hangzhou last year, China and all the other participating nations devoted themselves to eradicate poverty by the year 2020, we have not yet reached that goal.

    Because of what China has been doing in Africa for the first time; building up huge industrial complexes.   Africans have a new sense of self-confidence, and they are telling the Europeans that: “We don’t want your sermons on good governance, we want to have investments in infrastructure, in manufacturing, in agriculture, as equal business partners.” {There is no substitute for Africans having their own manufacturing sector to help expand their agricultural output. }

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