2. A “Beijing Consensus”?
• First suggested by Joshua Cooper Ramo in
2004
• Like the ‘Washington Consensus’ the
‘Beijing Consensus’ can now mean many
different things. Some analysts prefer the
term ‘China Model’
• It is usually regarded as involving:
– Investment
– Infrastructure loans
– A ‘no-strings-attached’ approach
3. Consensus:
‘Beijing’ versus ‘Washington’?
• For some, this Beijing Consensus offers
developing countries wider possibilities
• The absence of conditionality: the Western
insistence on structural reforms and good
governance makes Chinese involvement
seem more attractive to some developing
countries
4. China and Africa:
beginnings under Mao
• Modern Chinese
involvement in Africa
began in the late 1950s
with the signing of
trade agreements with
newly independent
countries
• Chinese specialists
were involved in many
agricultural initiatives in
Africa in the 1960s
5. China’s Cold War strategies
• China’s motives during the Cold War were
political and ideological
• The ‘One China’ policy – recipients of
Chinese aid had to break off relations with
Taiwan
• African votes in the General Assembly
proved crucial in giving the PRC a seat on
the Security Council in 1971 (Resolution
2758)
6. The Eight Principles
• In January 1964, the Chinese government
declared the “Eight Principles for
Economic Aid and Technical Assistance to
Other Countries”
• These principles still inform development
policy today
7. The Eight Principles
• Equality and mutual benefit form the basis of Chinese aid
• China respects sovereignty, never attaches conditions or asks for
privileges
• China helps lighten the burden with interest-free or low-interest loans and
by extending repayment terms when necessary
• The purpose of aid is to help countries become self-reliant
• Projects that require less investment but yield quicker results are
favoured
• China provides quality equipment and materials manufactured in China at
international market prices
• China will help recipient countries master the techniques of any technical
assistance
• Chinese experts will have the same standard of living as those of the
recipient country and are not allowed to make special demands
8. A new approach
• Chinese investment in Africa has
escalated sharply since 2005
• Chinese investment now reflects its
developmental priorities – securing
resources and outlets for its manufactures
• However, China’s involvement in Africa is
still only a small percentage of its overall
foreign involvement
• China’s relations with Africa are consistent
with its approach elsewhere
9. A new colonialism?
• “We saw that during
colonial times, it is easy
to come in, take out
natural resources, pay
off leaders and leave.”
• Hilary Clinton, US
Secretary of State, June
2011
10. “no morals...”
• “China is a very aggressive and pernicious
competitor with no morals. China is not in
Africa for altruistic reasons. China is in
Africa for China primarily.”
• Johnnie Carson, US Assistant Secretary of State
for African Affairs, speaking in Lagos, 23 Feb
2010
11. Frequent criticisms
• China is carrying out a grab for resources
(minerals and food)
• China’s ‘ask-no-questions’ approach allows
corrupt and authoritarian regimes to stay in power
• Chinese investment is tied – recipients of Chinese
loans must buy Chinese goods and services
• Chinese companies ignore health and safety
issues
12. A resource grab?
• China is certainly interested in securing
raw materials from Africa:
• Between 2004 and 2010, oil (64%) and
iron ore and other metals (24%) accounted
for nearly 90% of China’s imports from
Africa, and the oil exporter Angola is
China’s biggest trading partner in Africa
13. More than resources
• Despite China’s obvious interest in raw materials for
its energy and manufacturing industries, China’s
involvement in Africa is far more than a crude
resource grab
• China pays world prices – above world prices in
some cases – for the resources it acquires
• Chinese competition for resources often ensures
that African states receive higher prices for their
exports
14. Sinopec and Angola
• China’s state-owned oil
company Sinopec paid a
very high price for the right
to drill in Angola’s oil fields
• Sinopec’s bids for the
exploration blocks were 10
times higher than those
from Exxon Mobil
15. Supporting corrupt regimes?
• China’s involvement in Africa
avoids the conditionality typical of
the World Bank and other western
agencies of development
• This can act as a disincentive to
carry out reforms
• The economic relationship with
China undoubtedly strengthens
the position of leaders like Sudan’s
al-Bashir
16. Other criticisms
• Some of the criticisms on tied assistance
and working conditions in Chinese-owned
ventures have an element of truth (though
there is much exaggeration)
• However: does the West have a pure
record on such issues? Who has the right
to lecture China on these matters?