cies IGTC Mumbai 2016 18 Africas Role in OBOR Africas early relations with

Cies igtc mumbai 2016 18 africas role in obor africas

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cies, IGTC Mumbai 2016-18. Africa’s Role in OBOR Africa’s early relations with China go back to the 1950s by providing infrastructure to the African Countries instead of Aid Current Investment and pledges include over $60 Billion in African Infrastructure covering land locked areas like TAZARA China is currently the largest donor to Sub Saharan African Countries (44 Countries) China invests roughly 9% of its GDP in Infrastructure projects; competitive advantage in Infrastructure WTO & Trade Policies, IGTC Mumbai 2016-18. China’s Debt Trap Diplomacy Strategy Out of the 44 countries that received Aid from China, out of a $60- 75 Billion ‘LOAN’, a commercial loan fund worth $5 Billion was set up Many Chinese projects require large investment and long pay-back terms that traditional donors are reluctant to provide They provide low interest rates to countries rich in natural resources; leading to a low credit rating worldwide. Unprecedented deals with Resource rich African countries E.g.: Secured Mining rights in Democratic Republic of Congo’s copper and cobalt mines under the slogan “Infrastructure projects for resources” WTO & Trade Policies, IGTC Mumbai 2016 -18. Business Opportunities to China China’s capital flows into Africa also create business opportunitie s for Chinese service contractors, such as construction companies- Running out of Lucrative projects back home Pushing of White Goods in African markets against African Products Beijing’s going out strategy ‘Tied aid’ is linked to the profitability of Chin ese companies, it becomes questionable whether China would prioritize Africa’s interests or its own. Negative perception - China is pouring aid, funding, and infrastructure projects to prop up corrupt governments in exchange for natural resources. WTO & Trade Policies, IGTC Mumbai 2016-18. Possible Benefits to
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9 Africa Modern Technology Market Access and Penetration Better Education Migration (Intra, Inter Country) Value added Industries WTO & Trade Policies, IGTC Mumbai 2016-18. South East Asia’s role in OBOR Infrastructure investments in LDCs or DCs - Cambodia, Malaysia, Indonesia, Philippines Myanmar, Bangladesh China is in the active process of outsourcing its low-tech manufacturing capacity to these countries among other projects Levels of Support of OBOR vary; no clear consensus (Laos, Cambodia, and Thailand are the most supportive states. Vietnam and the Philippines are least supportive. Myanmar, Singapore, Indonesia, Malaysia, and Brunei comprise the middle nations) Problems due to territorial dispute, investment environment, rise of populism WTO & Trade Policies, IGTC Mumbai 2016-18. India and OBOR The national priorities for sovereignty trump commitment for everything else China’s temerity to claim that CPEC does not affect the issues of national sovereignty but opposition to funding sought by India from international institutions for projects in Arunachal Pradesh India’s involvement in NDB, SCO, AIIB is likely to make way for increased cooperation with China
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  • Fall '19
  • jane smith
  • People's Republic of China, OBOR

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