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Thesis Yama by Mind Map: Thesis Yama
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Thesis Yama

China

Africa

Economic development

Natural resources

Dutch disease

sustainability

Risks

Economic Risks

developments in raw material prices

Economic policies in African countries

Reputational risks

Importance of Africa for China

Trade

specially kobalt, wood and iron and oil

Africa needs china much harder

getting more important

Financial transaction

statistics not very sure, guestimates

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

non-concensional loan are increasing and china is biggest financer of Africa, 10 procent goes to natural resource extraction, Mainly financing infrastructurial projects that meets the countries broader needs

complementory of financing, Focus on production orientated infrastucture rather than social infrastructure

Private flow, even harder to estimate, lots of trade goes through offshore terrotories like singapor and cayman ilsand, New node, FDI is relatively low compared to other countries, but picking up. official numbers might be heavily underestimated, largely in Natural resource extraction, telecommunication, banking and contruction picking up, South Africa, Nigeria, Zambia, Sudan, Algeria, New node

Chinese African policy

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

withouth economic policy change

only requirement is '' one china policy''

Financing focuse on infrastructure projects

Package deal, experise. And quick implementation. Very attractive

part of export credit = infrastructure for natural resources

rather complex, because coordination between all parties

5 principles of peacefull coexistance

Forum for china and arica corporation, each 3 years, 49 countries and china

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

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

rol of private firms are growing, Government has less controle over this

much more trust due to no colonization past

China shares and exports own experience with development

financial incentives rather than grants and aids

infrastructural boost

Special economi zones

list of

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

Macroeconomic considerations for allocating assitance to Africa

Chinese rol cannot me be ignored due to increasing scale

Dutch disease, explanation, external financing scale up, currency appreciates and makes tradable goods sector less competitive, impact depends on use or absortion of external financing, Country A, external financing is used to pay domestic labor goods and services., leads to inflation and wages and exchange rate appreciation, New node, Country B, external financing is fully matched by imports and external labor is brought in to the ocuntry, no adverse impacts on domestic wages or inflation, chinese case, China mitigates the dutch disease effect through import of chinese laborers, services and goods, if chinese financing is associated with large component of domestic goods and services, discuss with recipient country

Public expenditure management systems, chinese projects so big that risk of overwelming local public investment plans, many African countries have bad PEMs, China has had unique experience in scaling up infrastructure investment, Africa can learn allot from this

Debt sustainability, biggest concern, sub sahara africa had big issues with debt, little concern for china, since write off would be small relative to external reserves, could lead to serious problems for africa, halting supply of raw material, loss of export markets, reactionary policies such as nationalizatio of mines, china focusses on profitability rather than macroeconomic consequences., according to Eximbank, the DSF of imf and WB too static, China backs loans with natural recources due to high risk financing, dangers of these are, price shocks in commodities, not consistent with the practics of official export credit., complictaed the reestructing of debt, should it become necessery, hard to calculte the effective terms of the lending, because of flexible parying schedual and about the oil price shocks

Governance, extraction of natural resources has often been associated with lack of trnasparancy, responsibility of recipient government, extractor has also responsibility of good conduction, China does

New node

Africa is not homogeneous

It is in china's interest when projects are sustainable

Researsch proposal

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?

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

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

China's Economic motives to be active in Africa

introduction + research proposal

growth rate+ investment in Africa

Various reasons

New node

How is Chinese Financing and investment done?

What institutions are there ?, Government vs private

Theoretical motives of china

natural resources to stimulate it's own growth, Oil, middle east, diversifying risks, copper, cobalt, coal, ferrochrome, bauxite, manganese, niobium, project in uranium

reinforcing it's own position on rare resources

development aid

Market seeking, selling chinese goods

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

Empirical Data to support this

Conclusion