China Report

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Sunday, November 05, 2006

Asia's Africa Advantage


Recently, China pledged a billion dollar to Nigeria, almost a billion and a half to Zimbabwe and not long ago two billion to Angola. India opening its own EXIM bank to enter the African continent just as the US started when it began invading the developing countries. All of these countries continue to contribute to the Asian Development Fund and the African Development at the same time.

As I said, earlier, it is obvious that in any open trade marketing, there is always one who benefits more than the other. There is never a mutual beneficiary for if not the whole world would have been equal.

However, the Asian countries have one thing and one thing only that would make them more successful in Africa compared to the US. Despite the quality the US products are known for, it has better reputation in Africa and looked onto as the only super power in world politics.

The Asian countries are able to deal with African countries without being politically correct about it. They are able not to interfere in their trade partners political systems and just go for their own interest and economic advanatge. As the Chinese President put it in Nairobi during his last tour of some parts of Africa, "We respect the political model chosen by the African people."

The US constitution warrants the government to gauge any countries political system before doing any business with but when it announced that it is going to reopen ties with the Libyan government, African countries have come to see why and how much oil rich nations have leverage in the arena.

I doubt if even with open trade, the Asian countries will be mutually beneficiaries with Africa for history tells us differently. Just that may be Africa stands a better chance to gain more with them than with others.

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