Wednesday, October 6, 2010

The Next Empire Notes

Link: http://www.theatlantic.com/magazine/archive/2010/05/the-next-empire/8018/

1. Note the author's key arguments. Make an outline of his points.

- China is the largest investor of Africa:
“Statistics are hard to come by, but China is probably the biggest single investor in Africa,” said Martyn Davies, the director of the China Africa Network at the University of Pretoria. “They are the biggest builders of infrastructure. They are the biggest lenders to Africa, and China-Africa trade has just pushed past $100 billion annually.”

“Africa is the source of at least one-third of the world’s commodities”—commodities China will need, as its manufacturing economy continues to grow—“and once you’ve understood that, you understand China’s determination to build roads, ports, and railroads all over Africa.”

- Building a Middle Class:
I see the explosive development of infrastructure. I see people producing more food and having more jobs … And besides, I don’t see how otherwise you are going to get a civil society, except by building up a middle class.”

- China is in it for the long term:
“And they asked to see all the old colonial maps of the Congo. These are the only maps that reflect reasonably accurate surveys of Congo’s underground, and they want to use them for development plans in Katanga and elsewhere. If you look at Chinese policy documents, it is very obvious that they are focused on opening up the heart of the continent. There is clearly a long-term strategy for doing this, and it seeks to break up the north-south flow of minerals, to build east-west lines that will allow them to bypass South Africa.”

In spring 2008, Congo’s beleaguered government unveiled a package of Chinese investments totaling $9.3 billion, a figure later reduced, for complex reasons involving International Monetary Fund pressure, to $6 billion—still roughly half of Congo’s GDP. China will build massive new copper and cobalt mines; 1,800 miles of railways; 2,000 miles of roads; hundreds of clinics, hospitals, and schools; and two new universities. Speaking before the parliament, Pierre Lumbi, the country’s infrastructure minister, compared the package to the Marshall Plan, and called it “the foundation on which the growth of our economy is going to be built.”

In exchange, China will get almost 11 million tons of copper and 620,000 tons of cobalt, which it will extract over the next 25 years—a “resource for infrastructure” swap that China first pioneered, on a smaller scale, in Angola in 2004. Congo will choose from a menu of Chinese construction companies—pre-vetted and supplied with credit by China’s Export-Import Bank—which typically begin (and end) their work quickly, dispatching hundreds or thousands of workers to do the job.

-Is China the new Belguim:
A prominent Congolese lawyer who is part of a loose citizens’ network that is investigating the Chinese package said the deal will leave Congo in the same position it was in after decades of exploitation by Belgium. “We could have said, ‘You can have our copper, but we want some of it transformed here.’ We’ve negotiated for billions of dollars without determining if those investments are productive, without thinking through the sequencing of things, without thinking about the creation of a metallurgy industry. We have cheap labor and abundant electricity,” so refining would make economic sense. “But we negotiated without experts and without analysis.”

Chinese are doing humanitarian work but only working so far as infastructure.
----I asked whether the huge building program—the roads and schools and hospitals—would produce dividends, and he shook his head grimly. “Six billion dollars in infrastructure is not development. Schools with desks are not going to educate our population. A road is not going to develop this country … Schools require a school system, and they need teachers. In this climate, roads last only 10 years without maintenance, and the Congo has no capacity in this regard.”


2. Record what you do not understand. It is always good to bring up what you were unclear on in a discussion, as your classmates will be able to help you clarify your thinking.

-What is China's secret that the west doesn't know?

-Is China succeeding?
As soon as we have problems, we ask someone else to take care of them for us,” Isaac continued. “We ask the Europeans. We ask the Americans. We ask the Chinese. We will run this train into the ground, and then we will tell the Chinese we need another one. This is not development.” I thought of the wreckage by the tracks. In China, there is no such thing as metallic waste. Armies of migrant workers scour the countryside with hammers and chisels, collecting and selling every scrap to the insatiable smelters that feed the country’s industries. Here, by contrast, was a land without industry.

-Is China the new Belgium and Why?
Things turned sour, though, when the new Chinese managers banned union activity and began paying Zambian employees less than the $67-a-month minimum wage.

-Is anything getting better because of China


3. Identify two or three areas of potential disagreement or debate.

-Is China making a huge impact on Africa?

-Will Africa change because of China?


4. Develop a critique of the article.

I believe that this article is very informational. I would like to do more research on this topic by reading another view because this is only one view. I would like to see more facts and figures to see if China is really making a huge impact on Africa or not.

No comments:

Post a Comment