6 Apr 2022

369

Signs of Economic Growth in Africa

Format: Chicago

Academic level: University

Paper type: Essay (Any Type)

Words: 1098

Pages: 3

Downloads: 0

Africa, especially its sub-Saharan region, is experiencing an obvious economic boom since 1996 when poverty rates started to fall. With an average GDP rate of 5% and powerful Chinese support, this continent today has all chances to obtain the desired political, social, and economic goals in the closest future. Along with a valuable financial aid from European and American regions, post-war African countries are quickly rehabilitating to take part in the international trade. The region has high business indicators thanks to the access to numerous minerals and rare resources. In addition, its labor is highly appreciated in Asia. That is why many scholars and economists around the world have decided to observe the issue in details. The goal of this paper is to analyze three articles on African development by different authors.

Mohen, Giles, and Lampert, B. (2013). “Negotiating China: Reinserting African Agency 

into China-Africa Relations,” African Affairs 112(446): 92-110.

Mohen and Lampert have decided to observe the impact of China on the overall African development. There is no secret China is a driving force for the economic growth of its African partners. However, little attention is paid to the role of African agencies in Chinese engagements. That is why Mohen and Giles take a look at the actual role of African party in determining the tendencies and results of China’s renewed engagement with the continent. The authors applied Chinese state investments in such countries as Angola, Ghana and Nigeria in order to analyze the role of African agency 1 . China-Africa politics are focused on increased Chinese power and expanded African territories. On the whole, the relations between these parts of the world are best characterized as bilateral and are carried out by the state elites. On the example of Zambia, it can be said that (il)liberal deals between local and Chinese political elites’ are the core of Chinese-African political and economic relations.

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The authors have enough evidence to claim that African side implements agency outside the confines of the state as well. The beginning of this article is dedicated to the existing political relations between the largest Asian country (after Russian part) and African continent. Reinserting African agency is the section dedicated to exploring the role of agency through the external capitalism perspective. Both authors stress that Africa still serves as a supplier for an increasing demand for rare minerals and other resources. This part explains how local, national and transnational actors forge via negotiation. Angola’s post-war economy is often recalled to highlight African growing opportunities and chances to become absolutely independent. External financing has helped most of the African countries to quickly recover.

Next, Mohen and Lampert move to the question of social institutions and how Chinese presence may be facilitated. National development and regime legitimacy are two things China is handing perfectly, so, just like many other nations, Africa receives some assistance and support regarding these issues. The reader learns that African traders in China, but not vice versa, have to do with the massive influx of cheap Chinese products and services. By sourcing various goods, labor, and raw materials, African countries play crucial role in Chinese economic presence on the world’s market. African companies, in their turn, view China as the source of hard-working and skilled labor. That is the reason for them to inspire Chinese immigration, offering worthy salaries and living conditions. Next, the authors discuss advantages for African workers in Chinese corporations. It was interesting to find out that the majority of Chinese employees working at huge enterprises consist of African citizens. 

So, instead of challenging Chinese presence, Africans should cooperate with this Asian country as the consequences of this economic partnership are positive for both sides, especially in terms of cheap labor. To conclude, African continent is not another passive space of intervention for China 2 . Sino-African relationship has to be studied further because it is far deeper and localy driven than most of the politicians and researches can think.

Devarajan, Shantayan, and Fengler, Wolfgang (2013). “Africa’s Economic Boom.” 

Foreign Affairs 92 (3): 68-81.

There are usually two critical points of view regarding the economies of sub-Saharan Africa. The first one sounds rather positive: the moment of its glory is about to arrive, and the prosperity will come soon. This belief is based on the region’s improved GDP despite the recent series of financial crisis. A lot of world’s countries have added up to this noticeable growth. 5% GDP or more is noticed in oil-producing countries, while the rest of the region has stable 4%. Foreign aid and rich resources support domestic economic boom. These GDP rates might sound still too small in comparison to the developed world. Meanwhile, the article’s authors cannot deny the fact of falling poverty levels. For the last two decades, the poverty has fallen 1% down for sub-Saharan region 3

Devarajan and Fengler, however, do not ignore the fact the numbers are far from optimistic. It should be noted that obvious rise in commodities prices is not a good economic leverage. Consumers’ opportunities are limited. But strong political reforms and the growing openness of African community provide the continent with an excellent chance of maintaining the solid economic-political boom for years to come.

Frynas Jedrzej G. and Paulo, Manuel (2007). “New Scramble for African Oil? 

Historical, Political, and Business Perspectives,” African Affairs 106(423): 229-251.

When speaking about economic globalization, African contiennt cannot be ignored. Its contribution to the overall wealth is significant due to its oil and gas resources. Jedrzej and Paulo explore Africa in order to review current modifications in employment rates, literacy, economic growth, and political forces responsible for such progress. So-called ‘New Scramble’ phenomenon, which involves business, historical, and international relations, is analyzed by the two researchers. Because of the political and commercial interests, such giants as China and North America are actively investing in the development of the ‘Third World.’ 

Jedrzej and Paulo first discuss decoloniation and other historical factors that led to the enormous improvement. In particular, top oil-producing states have added to the general push and higher GDP. Oil boom and freedom pushed the development in historic sense.

According to international relations aspect, the overall success of African ciuntries may be connected with the disbalance and economic conquest between China and the US. The rivalry caused by the rich African resources make it possible for African states to dictate own oil and gas prices. For China, for instance, the main benefit from cooperation with Africa is the energy security. At the same time, the United States concentrated more on receiving oil concessions for further observations and production. 

The authors at last move to the business perspective. From the perspective of the global oil industry, the importance of Africa as a source of global oil supplies is undeniable 4 . Oil production will greatly rise by 2025. Fiscal regimes are, perhaps, the core factor though the taxes vary worldwide. Speaking about the main good, which is oil, it is 1) high-quality, and 2) requires low operational costs. Altogether, oil and gas corporations offer favorable advantages for the number of international firms.

To sum up, the authors admit the undoubtful role of such Asian players as China and India, as well as rich for the natural resources lands of African continent. At the same time, oil and gas investment might have many adverse economic and social consequences.

Bibliography

Devarajan, Shantayan, and Fengler, Wolfgang (2013). “Africa’s Economic Boom.” 

Foreign Affairs 92 (3): 68-81.

Frynas Jedrzej G. and Paulo, Manuel (2007). “New Scramble for African Oil? Historical, 

Political, and Business Perspectives,” African Affairs 106(423): 229-251.

Mohen, Giles, and Lampert, B. (2013). “Negotiating China: Reinserting African Agency 

into China-Africa Relations,” African Affairs 112(446): 92-110.

1 Mohen, Giles, and Lampert, B. (2013). “Negotiating China: Reinserting African Agency into China-Africa Relations,” African Affairs 112(446): 2.

2 Mohen, Giles, and Lampert, B. (2013). “Negotiating China: Reinserting African Agency into China-Africa Relations,” African Affairs 112(446): 15.

3 Alberto Ades and Rafael Di Tella, “National champions and Corruption Unpleasant Interventionist Arithmetic,” Economic Journal 107. 443 (1997): 1023.

4 Frynas Jedrzej G. and Paulo, Manuel (2007). “New Scramble for African Oil? Historical, Political, and Business Perspectives,” African Affairs 106(423): 240.

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StudyBounty. (2023, September 14). Signs of Economic Growth in Africa.
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