The Rise of China and India in Africa
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This PDF is made available under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) Licence. Further details regarding permitted usage can be found at http:// creativecommons.org/licenses/by-nc-nd/4.0/ Print and ebook editions of this work are available to purchase from Zed Books (www.zedbooks.co.uk). A frica Now Africa Now is an exciting new series, published by Zed Books in association with the internationally respected Nordic Africa Institute. Featuring high-quality, cutting-edge research from leading academics, the series addresses the big issues confronting Africa today. Accessible but in-depth, and wide-ranging in its scope, Africa Now engages with the critical political, economic, socio logical and development debates affecting the continent, shedding new light on pressing concerns. Nordic Africa Institute The Nordic Africa Institute (Nordiska Afrikainstitutet) is a centre for research, documentation and information on modern Africa. Based in Uppsala, Sweden, the Institute is dedicated to providing timely, critical and alternative research and analysis of Africa and to cooperating with African researchers. As a hub and a meeting place for a growing field of research and analysis, the Institute strives to put knowledge of African issues within reach for scholars, policy-makers, politicians, the media, students and the general public. The Institute is financed jointly by the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden). www.nai.uu.se Forthcoming titles Ilda Lindell (ed.), Africa’s Informal Workers Iman Hashim and Dorte Thorsen, Child Migration in Africa About the editors Fantu Cheru is the Research Director at the Nordic Africa Institute in Uppsala, Sweden and Emeritus Professor of International Develop- ment at the School of International Service, American University in Washington, DC. Previously, he was a member of UN Secretary- General Kofi Annan’s Panel on Mobilizing International Support for the New Partnership for African Development (NEPAD) as well a Convener of the Global Economic Agenda Track of the Helsinki Pro cess on Globalization and Democracy. Cheru also served as the UN’s Special Rapporteur on Foreign Debt and Structural Adjustment for the UN Commission for Human Rights in Geneva from 1998–2001. Dr Cheru’s previous publications include: African Renaissance: Roadmaps to the Challenges of Globalization (2002); The Millennium Development Goals: Mobilizing Resources to Tackle World Poverty (2005); Ethiopia: Options for Rural Development (1990); The Silent Revolution in Africa: Debt, Development and Democracy (1989). His articles have appeared in Third World Quarterly, World Development, Review of African Political Economy, International Affairs and Review of International Political Economy, among others. Cheru also serves on the editorial board of a number of international journals. Cyril Obi is a Senior Researcher, and Leader, Research Cluster on Conflict, Displacement and Transformation at the Nordic Africa Institute, Uppsala, Sweden. He has been on leave since 2005 from the Nigerian Institute of International Affairs (NIIA), Lagos, where he is an Associate Research Professor. In 2004, Dr Obi became the second Claude Ake Professor at the University of Uppsala. He had earlier received international recognition/awards: Council for the Development of Social Science Research in Africa (CODESRIA) Governance Institute fellow in 1993; fellow of the Salzburg Seminar in 1994; SSRC-MacArthur Foundation visiting fellow in 1996; visiting fellow to the African Studies Centre (ASC), Leiden in 1998; and visiting post-doctoral fellow to St Anthony’s College Oxford in 2000. In 2001, he was a fellow of the 21st Century Trust, Conference on ‘Rethinking Security for the 21st Century’, also held at Oxford. He is a contributing editor to the Review of African Political Economy, and is on the editorial board of the African Journal of International Affairs, the African Security Review and the Review of Leadership in Africa. Dr Obi has been a guest editor to journals such as African and Asian Studies, and African Journal of International Affairs. The rise of China and India in Africa Challenges,opportunities and critical interventions edited by Fantu Cheru and Cyril Obi Zed Books london | new york The Rise of China and India in Africa: Challenges, opportunities and critical interventions was first published in association with the Nordic Africa Institute, PO Box 1703, se-751 47 Uppsala, Sweden in 2010 by Zed Books Ltd, 7 Cynthia Street, London n1 9jf, uk and Room 400, 175 Fifth Avenue, New York, ny 10010, usa www.zedbooks.co.uk www.nai.uu.se Editorial Copyright © Fantu Cheru and Cyril Obi 2010 Copyright in this collection © Zed Books 2010 The rights of Fantu Cheru and Cyril Obi to be identified as the editors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act, 1988 Set in OurType Arnhem, Monotype Gill Sans Heavy by Ewan Smith, London Index: [email protected] Cover designed by Rogue Four Design Printed and bound in Great Britain by the MPG Books Group Distributed in the usa exclusively by Palgrave Macmillan, a division of St Martin’s Press, llc, 175 Fifth Avenue, New York, ny 10010, usa All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of Zed Books Ltd. A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data available isbn 978 1 84813 436 2 hb isbn 978 1 84813 437 9 pb isbn 978 1 84813 439 3 eb Contents Tables and figures | vii Acronyms and abbreviations | viii Foreword by Gunilla Carlsson | xi Introduction – Africa in the twenty-first century: strategic and development challenges . 1 Fantu Cheru and Cyril Obi PART ONE The big picture: China and India as emerging giants 1 China, India and (South) Africa: what international relations in the second decade of the twenty-first century? . 13 Timothy M. Shaw 2 South–South strategic bases for Africa to engage China . 21 Dot Keet 3 India’s African relations: in the shadow of China? . 34 Sanusha Naidu PART TWO China and India’s relations with Africa: a historical perspective 4 China’s development cooperation with Africa: historical and cultural perspectives . 53 Liu Haifang 5 Engaging Africa: India’s interests in the African continent, past and present . 63 Sanjukta Banerji Bhattacharya 6 Indian development cooperation with Africa . 77 Pranay Kumar Sinha PART THREE China and India’s growth surge in Africa 7 China and India’s growth surge: the implications for African manu- factured exports . 97 Alemayehu Geda and Atnafu G. Meskel 8 Chinese investment in African network industries: case studies from the Democratic Republic of Congo and Kenya . 107 Peter Draper, Tsidiso Disenyana and Gilberto Biacuana 9 The role of India’s private sector in the health and agricultural sectors of Africa . 120 Renu Modi 10 Navigating Chinese textile networks: women traders in Accra and Lomé . 132 Linn Axelsson and Nina Sylvanus PART FOUR The conflict–development nexus: a precarious balance! 11 China and Africa: towards a new security relationship . 145 Kwesi Aning 12 The Darfur issue: a new test for China’s Africa policy . 155 He Wenping 13 China and Zambia: between development and politics . 167 Fredrick Mutesa PART FIVE The scramble for African oil and resources 14 African oil in the energy security calculations of China and India . 181 Cyril Obi 15 China and India in Angola . 193 Alex Vines and Indira Campos 16 The price of ‘openness’: towards Chinese economic control in Zambia . 208 Peter Kragelund PART SIX Conclusion 17 Countering ‘new imperialisms’: what role for the New Partnership for Africa’s Development? . 221 Fantu Cheru and Magnus Calais Notes | 238 Bibliography | 243 About the contributors | 266 Index | 268 Tables and figures Tables 3.1 ONGC investments in Africa . 37 3.2 Other oil companies in Africa. 38 3.3 India’s trade with Africa . 39 3.4 Presence of Tata in Africa 1991–2006 . 43 6.1 Indian development assistance outflow. 80 6.2 India’s aid and technical assistance outflows . 82 6.3 Ongoing Indian development cooperation activities with African regional/multilateral bodies . 87 6.4 Terms and conditions of Indian lines of credit . 89 6.5 Indian aid, trade and investment flows in Africa: geographical distribution . 90 6.6 Financing for trade. 91 7.1 G2LSLS IV regression result: dependent variable log of third market imports . 100 7.2 Spearman’s rank correlation coefficient between the RCAIs of African exporters and the Asian drivers (China and India). 103 8.1 Sectoral distribution of outward Chinese FDI stock, 2003–06 . 110 8.2 China’s OFDI outflows – regional distribution (stock), 2003–06 . 111 11.1 Ranking of countries by size of troop contribution to UN peacekeeping missions, as of 31 December 2006 . 151 13.1 Chinese engagement in Zambia, 1967–2006 . 169 15.1 Number of visas issued to Chinese nationals (2004–07) . 194 15.2 China’s exploration and production assets in Angola . 201 15.3 India–Angola trade . 205 16.1 Sectoral distribution of Chinese companies in Zambia . 212 Figures 3.1 India’s active lines of credit as of March 2006 . 44 6.1 Indian development cooperation instruments . 81 6.2 Indian lines of credit outlay . 84 6.3 Institutions and activity flow chart for approval of an LOC . 85 6.4 Institutions and activity flow chart