Foreign capital often results in the introduction of advanced foreign technologies, equipment and management, particularly into developing countries. African countries should acknowledge this benefit, and recognize that knowledge and skills can be only acquired through long-term learning. Rather than complain that Chinese companies employ too many laborers from home, African countries would do better to make an effort to train their labor forces to be skilled and disciplined. Since the Beijing Summit of the Forum on China-Africa Cooperation in 2006, China has drastically increased its investments aimed at helping African nations develop greater human resources.
China understands African countries' wishes to develop their own manufacturing sectors and to upgrade their industrial infrastructure, and supports Africa's efforts in this regard. It has set up several economic and trade cooperation zones in Africa, with the Lekki Free Trade Zone established in 2006 in Lagos, Nigeria as a prime example.
However, simply wishing for good outcomes doesn't make them happen. Proper infrastructure, supporting facilities, political environment, human resources, public services and macroeconomic stability are all indispensable to the development of manufacturing industries. Only countries that excel in these areas will stand out in the global economy. China's growth from a poor nation to a global manufacturing powerhouse did not depend on so-called "promotion by predatory policies" as Sanusi claims, but on controlling fiscal deficits, fostering macroeconomic stability, wiping out illiteracy, constantly improving infrastructure and establishing a complete support system. China is now the only country with an economy covering all industrial sectors mentioned in the UN International Standard Industrial Classification of All Economic Activities.
As global economic development advances, China's central and western regions, Southeast Asia, the South Asian Subcontinent, South America and Africa will compete. Is Africa ready to face all of these competitors? Sanusi proposes to set up incentives for manufacturing in Africa to be introduced. However, the continent has long been troubled by violent conflicts, inflation and currency instability. With so many problems plaguing Africa's business environment, blindly censuring China will not help develop Africa's manufacturing sector. Any progress in Africa's business environment will come from down-to-earth efforts. The success of Africa's economy depends on adopting the right development strategies.
Sanusi's argument will also put Africa at a disadvantage for international economic negotiations. Trade between China and Africa has grown rapidly since the 1990s, when Western countries all disregarded Africa, and when African countries were desperate for foreign trade. The reason why bilateral trade between China and African nations grew so quickly is because China never interferes in African countries' domestic affairs. By saying that "engagement must be on terms that allow the Chinese to make money while developing the continent," Sanusi may mislead readers into thinking that only China benefits from bilateral trade ties, which is not true. Although Africa has achieved tremendous economic growth in recent years, the foundation of its economy is still weak. The problem is not that it has too many trading partners, but too few. Africa faces challenges as it seeks to sustain its economic growth. Under these circumstances, will betraying its largest trade partner's trust reinforce the continent's negotiating position with its Western trade partners?
China is the world's largest exporter and second largest importer, and the source of a large amount of foreign direct investment (FDI). China is able and willing to share its economic prosperity with trade partners through imports and FDI, and has reasons to expect fair treatment for its labor, commodity and capital from all trade partners. In fact, more and more countries are benefiting from trade cooperation with China, including countries in Southeast Asia, Brazil, Angola and Sudan. Meanwhile, more and more developed countries are lowering trade barriers to China and are accepting more and more investment from China.
China values its trade relations with African countries. I believe that Sanusi's commentary is not the mainstream opinion among Nigerian policy-makers, and does not represent the views of the majority of African countries. |