Wednesday, 19 November 2014

African leaders abuse Chinese aid and channel to their home areas.

Ghana, Democratic Republic of Congo (DRC) and Ethiopia were the largest recipients of Chinese aid in Africa, which receives more than half of the superpower’s global assistance.
By Katy Migiro
NAIROBI, Nov 19 (Thomson Reuters Foundation) – China’s “no strings attached” aid is being abused by African leaders who channel the lion’s share of funds to their home areas, U.S.-led researchers found in the first geo-referenced database of Chinese aid to the world’s poorest continent.
China is a favoured donor for many African presidents, weary of the conditions attached to Western aid, ranging from combating corruption to respecting gay rights.
In contrast, China’s policy of non-interference means it rarely intervenes in domestic issues. This makes it easy for corrupt politicians to use Chinese aid to reward their political supporters, rather than direct it to the areas most in need.
“Our research found that the home regions of African presidents receive three to four times more Chinese aid,” Roland Hodler, a professor of economics at Switzerland’s University of St Gallen, said in a statement.
“This suggests that the Chinese principle of non-interference in domestic affairs allows African presidents to use Chinese aid for patronage politics.”
Researchers from German, Australian, Swiss and U.S. universities mapped more than 1,600 Chinese official development aid projects, worth $84 billion, in 50 African countries between 2000 and 2012.
Their paper highlights a “fancy new” Chinese-built school in the remote village of Yoni, hometown of Sierra Leone President Ernest Koroma, and the role of Chinese railway and dam projects in helping President Joseph Kabila of the Democratic Republic of Congo win re-election in 2011.
Ghana, Democratic Republic of Congo (DRC) and Ethiopia were the largest recipients of Chinese aid in Africa, which receives more than half of the superpower’s global assistance.
The researchers argue that projects funded for political reasons are less likely to contribute to development than those allocated on the basis of poverty or need.
“We hope that this effort will… facilitate evidence-based discussion and debate among those who want to see foreign aid put to more effective use,” Brad Parks, co-executive director of the AidData research lab at the College of William and Mary in the United States, said in a statement.

China says its aid must not interfere in other nations’ affairs

November 17 (Reuters) -China‘s foreign aid programmes must not interfere in domestic affairs of countries it donates to, according to new rules from the Ministry of Commerce released on Monday.
The regulations underscore the no-strings-attached philosophy underpinning China’s growing foreign aid programmes, particularly in African states, which stands in contrast to the approach of the West.
Critics have said China’s aid programme lacks transparency and turns a blind eye to conflicts and human rights abuses. China’s close links with oil-rich African states, including Sudan and Angola, have fuelled criticism as well that Beijing only cultivates relations to secure access to energy and raw materials to power its surging economy.
China said in July that more than half its foreign aid of over $14 billion (8.96 billion pounds) went to Africa.
China’s aid programmes must respect the sovereignty of the recipient country, the regulations said, even as they work to alleviate poverty, promote economic growth and develop diplomatic ties.
China has also worked to use its growing military muscle for humanitarian causes as it works to win over international support, dispatching an elite People’s Liberation Army team to West Africa to aid in the fight against the Ebola virus.
The rules also call for punishing fraud, bribery and other improper uses of aid funds, and for aid workers to avoid engaging in outside businesses.
China’s trade with Africa ballooned to $170 billion in 2013 from $10 billion in 2000.

Source: Reuters

China, Africa to deepen cooperation on poverty alleviation

Updated: Nov 19,2014 9:49 AM     Xinhua
ADDIS ABABA — Officials and experts from China and Africa met on Nov 18 at the African Union (AU) Headquarters in Addis Ababa, Ethiopia, for the China-Africa Poverty Reduction and Development Conference.
Officials at the opening of the Conference highlighted that Africa draws lesson from China’s success story on poverty reduction through industrial development.
The three-day Conference focuses on “Industrial Development: Cross-Perspectives from Africa and China”, and expected to discuss strategies and polices as well as to share knowledge and exchange experience between China and Africa on poverty reduction and development.
Eugen Owusu, UN Development Program Resident Representative in Ethiopia, noted that China has managed to lift millions of its citizens out of poverty in a short period of time.
Africa can benefit from China’s experience by using its collective institutions such as the African Union, said Owusu. “The success of China is quite inspiring, and we Africans are learning from that experience and intend to take more advantage of our privileged partnership with China to progress,” said Fatima Haram Acyl, AU Commissioner for Trade and Industry. The Commissioner stated that the trade between Africa and China has been growing rapidly, especially in recent years.
“In 2010, total trade between Africa and China exceeded $130 billion, and by 2013, it topped $210 billion, making China, Africa’s biggest trading partner, compared to Africa’ s trade with EU at $137 billion and with the US at $96 billion, although the bulk of the trade is still resource commodities,” she said.
The Official further said that the Africa-China relations have been deepening politically as well.
In 2000, the cooperation between Africa and China was institutionalized through the establishment of the Forum on China- Africa Cooperation (FOCAC), she said, adding the instrument of cooperation has deeply contributed to strengthening the strategic partnership between Africa and China.
Officially opening the Conference, Ethiopia’s President Mulatu Teshome said “benchmarking China’s experience of rapid industrialization will have significant positive impact should Africa emulate.”
“China and Africa are sincere friends and China’s support will greatly enable Africa to accelerate its rapidly growing economy,” said the President.
“The role of China in human development, infrastructure connectivity and technology transfer is quite significant and China’s investment in Africa is growing from time to time and we are thankful to China’s unwavering support for Africa’s economic development,” he said.
Si Shujie, vice-minister of the State of Council Leading Group office of Poverty Alleviation and Development (LGOP), underlined that the conference facilitates the communications and the cooperation between China and Africa on inclusive development and poverty alleviation.
Recalling that such first conference was held in November 2010, the Vice Minister revealed that various discussions have been held on economic cooperation, agriculture modernization, poverty reduction and sustainable employment and other issues of common concern of China and Africa.
The annual conference enables to share knowledge as well as to enhance mutual understanding and development cooperation between the two parties, he said.
“Chinese government always attaches great importance to the cooperation and communication with African Union.”
He recalled that Premier Li Keqiang visited Africa in May whereby China and Africa outlined to further strengthen cooperation on poverty reduction and other issues of common concern.
Xie Xiaoyan, Ambassador to Ethiopia, said China and Africa have attached great importance to poverty reduction and achieved substantial progress over the past years.
“Poverty remains one of main global challenges. As the biggest developing country and the continent with the largest number of developing countries in the world, China and Africa in comparison are facing more severe poverty challenges,” said the Ambassador.
Stating that China has accumulated experience on poverty reduction in more than 30 years, the Ambassador reiterated his country’s strong commitment to further strengthening cooperation with Africa on poverty reduction and industrial development on the continent.
“The Chinese characteristics on poverty reduction include the very important practice of industrial development, especially the development of labor-intensive industries such as manufacturing,” noted Xie.
The Conference will specifically look into three areas under this theme: scenario analysis of challenges and opportunities for Africa’s industrial development in an increasingly integrated and globalized economy building on regional and global value chains; experience from rapidly industrializing countries in both Africa and Asia to unleash industrial growth for equitable, sustainable and inclusive growth; and developing robust public-private partnerships to promote innovation and technology transfer for sustainable economic and social transformation in Africa

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