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Thesis Yama by Mind Map: Thesis Yama

1. Africa

2. Economic development

3. Natural resources

3.1. Dutch disease

4. sustainability

5. Risks

5.1. Economic Risks

5.1.1. developments in raw material prices

5.1.2. Economic policies in African countries

5.2. Reputational risks

6. China

7. Importance of Africa for China

7.1. Trade

7.1.1. specially kobalt, wood and iron and oil

7.1.2. Africa needs china much harder

7.1.3. getting more important

7.2. Financial transaction

7.2.1. statistics not very sure, guestimates

7.2.2. China does not give much aid in cash. Less than usa, france, germany

7.2.3. non-concensional loan are increasing and china is biggest financer of Africa

7.2.3.1. 10 procent goes to natural resource extraction

7.2.3.2. Mainly financing infrastructurial projects that meets the countries broader needs

7.2.4. complementory of financing

7.2.4.1. Focus on production orientated infrastucture rather than social infrastructure

7.2.5. Private flow

7.2.5.1. even harder to estimate, lots of trade goes through offshore terrotories like singapor and cayman ilsand

7.2.5.1.1. New node

7.2.5.2. FDI is relatively low compared to other countries, but picking up. official numbers might be heavily underestimated

7.2.5.2.1. largely in Natural resource extraction

7.2.5.2.2. telecommunication, banking and contruction picking up

7.2.5.2.3. South Africa, Nigeria, Zambia, Sudan, Algeria

7.2.5.2.4. New node

8. Chinese African policy

8.1. Aid to most african countries rather than focus on a few smaller groups

8.1.1. withouth economic policy change

8.1.2. only requirement is '' one china policy''

8.2. Financing focuse on infrastructure projects

8.2.1. Package deal, experise. And quick implementation. Very attractive

8.3. part of export credit = infrastructure for natural resources

8.3.1. rather complex, because coordination between all parties

8.4. 5 principles of peacefull coexistance

8.4.1. Forum for china and arica corporation

8.4.1.1. each 3 years

8.4.1.2. 49 countries and china

8.4.2. Finance projects with expected economic return with less concessional loans or even commercial ones

8.5. relation between governemnt, FI and state enterprise is very close. so fast coordination

8.5.1. rol of private firms are growing

8.5.1.1. Government has less controle over this

8.6. much more trust due to no colonization past

8.7. China shares and exports own experience with development

8.7.1. financial incentives rather than grants and aids

8.7.2. infrastructural boost

8.7.3. Special economi zones

9. list of

9.1. http://www.cdc-crdb.gov.kh/cdc/development_coor/annix2.htm

10. Macroeconomic considerations for allocating assitance to Africa

10.1. Chinese rol cannot me be ignored due to increasing scale

10.1.1. Dutch disease

10.1.1.1. explanation

10.1.1.1.1. external financing scale up

10.1.1.2. chinese case

10.1.1.2.1. China mitigates the dutch disease effect through import of chinese laborers, services and goods

10.1.1.2.2. if chinese financing is associated with large component of domestic goods and services

10.1.2. Public expenditure management systems

10.1.2.1. chinese projects so big that risk of overwelming local public investment plans

10.1.2.2. many African countries have bad PEMs

10.1.2.3. China has had unique experience in scaling up infrastructure investment

10.1.2.3.1. Africa can learn allot from this

10.1.3. Debt sustainability

10.1.3.1. biggest concern

10.1.3.2. sub sahara africa had big issues with debt

10.1.3.3. little concern for china, since write off would be small relative to external reserves

10.1.3.3.1. could lead to serious problems for africa

10.1.3.4. china focusses on profitability rather than macroeconomic consequences.

10.1.3.4.1. according to Eximbank, the DSF of imf and WB too static

10.1.3.5. China backs loans with natural recources due to high risk financing

10.1.3.5.1. dangers of these are

10.1.4. Governance

10.1.4.1. extraction of natural resources has often been associated with lack of trnasparancy

10.1.4.1.1. responsibility of recipient government

10.1.4.1.2. extractor has also responsibility of good conduction

10.1.4.2. China does

10.2. New node

10.3. Africa is not homogeneous

10.4. It is in china's interest when projects are sustainable

11. Researsch proposal

11.1. Debt sustainability framework of IMF and the world bank is considered by china too static. Should a project that is projected to generate adequate economic return go ahead even if other elements i nthe conomy are not doing well?

11.2. In Which wat way does the Chinese approach toward africa difers from classical players?

11.3. How can the chinese investment in natural resources in Africa lead to sustainable economic growth to the continent ?

12. China's Economic motives to be active in Africa

12.1. introduction + research proposal

12.1.1. growth rate+ investment in Africa

12.1.2. Various reasons

12.1.3. New node

12.2. How is Chinese Financing and investment done?

12.2.1. What institutions are there ?

12.2.1.1. Government vs private

12.3. Theoretical motives of china

12.3.1. natural resources to stimulate it's own growth

12.3.1.1. Oil

12.3.1.1.1. middle east, diversifying risks

12.3.1.2. copper, cobalt, coal, ferrochrome, bauxite, manganese, niobium, project in uranium

12.3.2. reinforcing it's own position on rare resources

12.3.3. development aid

12.3.4. Market seeking

12.3.4.1. selling chinese goods

12.3.5. infrastructural works may be a source of labor for young chinese employees

12.4. Empirical Data to support this

12.5. Conclusion