Countries that are part of the Organization of Economic Co-operation and Development (OECD) have been the dominant force in foreign aid to developing countries in Africa. But in recent years, China has emerged as a game changer, reshaping the global aid landscape and becoming Africa’s biggest donor. Here is a breakdown of the Chinese foreign aid package to Africa and what it means to China.
Chinese investment in Africa rocketed from a mere $210 million in 2000 to more than $3 billion in 2011 and has continued to grow. As a matter of fact, Africa is the largest recipient of Chinese foreign aid, accepting 45.7 percent of China’s ¥256.29 billion total foreign aid by the end of 2009.
The aid is divided into eight categories: complete projects, goods and materials, technical cooperation, human resource development cooperation, medical teams sent abroad, emergency humanitarian aid, volunteer programs in foreign countries and debt relief. By the end of 2009, China had sponsored more than 2,000 development projects in African countries.
Unlike OECD countries, China does not officially disclose its aid information on a regular basis. Data about Chinese foreign aid often comes from media reports and governmental documents. Research labs like AidData are scrutinizing streams of sources and have constructed a fairly solid picture of Chinese foreign aid.
According to AidData, between 2000 and 2013, the largest sector of Chinese aid to Africa was transport and storage, summing to $29 billion distributed to 36 countries. South Africa received $5.2 billion and Kenya accepted $4.8 billion. Sudan, Mozambique and Angola received $3 billion, $2.6 billion and $2.5 billion worth of aid in this sector, respectively.
The second-largest sector was energy generation and supply. Among the $25 billion aid package, Sudan got the largest amount of aid at $4.6 billion. Ethiopia received $3.9 billion and Nigeria, Zambia and Angola each received about $2 billion.
Other multisector and unallocated/unspecified sectors were the third and fourth largest sectors in Chinese aid to Africa. The former sector comprised $20 billion worth of aid and the latter $8.7 billion. Due to China’s non-disclosure policy, the specific items that these budgets financed are difficult to pinpoint. What is worth noting is that Angola received $4.1 billion, the second-most amount of aid in the other multisector category, making Angola the largest recipient in the top three categories.
A total of $6.9 billion was devoted to projects in the communications sector. Nigeria, Ethiopia and Tanzania were the top three recipients, receiving $1.7 billion, $1.2 billion and $676 million respectively.
Chinese foreign aid projects in Africa focus on infrastructure, with transportation, energy and communication dominating almost half of the total aid package. China is also very careful in selecting recipient countries for its aid. Most of the African countries that are endowed with generous aid are very rich in terms of natural resources.
For example, Angola, being the top recipient of more than $12 billion over the thirteen-year span, has important reserves of oil, gas and minerals. Chinese aid to Angola focuses on infrastructure development that will make the export of this wealth accessible. Other leading recipient countries like Ethiopia, Nigeria and Sudan are also rich in natural resources.
Currently, Angola is one of the largest trading partners of China. The Chinese foreign aid agenda seems to indicate an intention to establish trade with the recipient countries, which is an understandably important reason for giving out foreign aid by any country in the world.
One issue that has been hotly debated over the past several years is that, as a non-OECD member, China constantly blurs the line between development finance and foreign aid. Chinese aid does not follow the definition of official development aid set by the OECD. As a result, many of China’s activities are deemed “evil” as they demonstrate a quest for the return of natural resources or trade partnership.
Nevertheless, trading opportunity is a fundamental benefit of foreign assistance that every aid donor is concerned with. In addition, according to Brookings Institution, in reality, China’s investment in and trade with Africa only accounts for a “tiny percentage”–less than five percent–of its global investment and trade. This disproportional aid-to-trade ratio proves China’s foreign aid to Africa agenda is not so selfish.
– Chaorong Wang
Photo: Pixabay
Progress and Development: How the Media Misrepresents India
India is the world’s second-most populated country with 1.3 billion people, and is ahead of the United States — the third highest population — by nearly 1 billion people. When comparing the populations of the two countries, it is easy to understand how the media misrepresents India as an overcrowded, poverty-stricken country.
While true that India has a high population and a large percentage of the nation lives off of incomes considered below the world poverty line, there is also financial and social growth leading to improved conditions in India.
It is also easy to understand how the media misrepresents India as an environmentally unfriendly country: many cities in India suffer from problems of air and water pollution. However, India is instituting new policies to combat those issues and to improve the quality of the environment.
Economic Progress
Even though 68 percent of India’s population lives in poverty according to World Bank standards, the poverty level has declined since 2004. Further, India has one of the world’s fastest growing economies — growth of India’s GDP is expected to be 7 percent in fiscal year 2018, and increase to 7.4 percent by fiscal year 2020.
India also has a growing international business market that will increase industries and jobs. For example, solar panel manufacturing is becoming an important market and there are multi-billion-dollar investments being made to further expand and produce panels for both domestic and exportation purposes.
Social Progress
In recent years, India has improved in its quality of life measurements in addition to moving up from the low social progress category. This shift means that measured standards indicate that India is meeting an increasing number of basic human needs for all its people. One large factor in that advancement was progress made in providing shelter; 67 percent of the population now has access to affordable housing.
India also increased general access to information and communication. The numbers of both internet and phone users increased since 2014, allowing people to connect and obtain information more easily.
Environmental Progress
The smog in India’s capital, New Delhi, is infamously thick; however, solutions to the pollution exist that are less readily portrayed by the media. One such solution is an air purifier that can be used indoors to help clean the air, and bigger policy initiatives to help tackle the root of the pollution problems are also being pushed by the government.
India is trying to eliminate its manufacturing of gas-running engines by 2030 and turn toward electric vehicles to remove one source of pollution. Along with other policy measures, and investments in cleaning polluted air and water, India aims to alleviate its problems of environmental degradation.
How the Media Misrepresents India
How the media misrepresents India is through its focus on big picture negatives rather than on the positive growth of the country. All the separate instances of progress add together and help to create a more sustainable future for the people of India.
With monetary and policy support, further strides can be made in the media’s notation and highlighting of the resilience of India.
– Hayley Herzog
Photo: Flickr
Top Contributors and Efforts to Aid Orphans in Pakistan
Foreign aid is crucial to the well-being of the 4,400,000 orphans in Pakistan who do not have the support of immediate family to assist them with their everyday needs. From a young age, children in Pakistan face multiple challenges from an infant mortality rate of 8.55 percent to lack of everyday resources.
There are several factors that contribute to the issues that orphans in Pakistan face including limited access to resources such as food, education and financial stability. According to SOS Children’s Villages, approximately twenty-five percent of the 193.2 million people living in Pakistan do not meet the poverty line.
However, activists looking to reduce the effects of poverty in Pakistan — as well as assist children with meeting their everyday needs — have organized ways to assist children to locate support.
Foreign Aid
The U.S. Department of State provides information for those who seek to adopt or who plan to travel before finalizing their plans for adoption, and assists orphans in Pakistan as well as children looking for homes across the world. One organization, SOS Children’s Villages, allows people who are interested in sponsoring children to make a monthly donation.
The organization works to provide healthcare, counseling services and education to children who would otherwise have limited access these resources.
Role of USAID
USAID plays an influential role as well, working to create jobs and to support the agricultural industry in Pakistan through the introduction of new crops. According to USAID, the organization has been able to assist more than 1 million households through its agricultural aid efforts.
According to USAID, approximately forty percent of Pakistan’s working population is employed in agricultural industries. By working to support such endeavors, USAID not only helps create new jobs but it is also aids in cultivating industries to boost the economic health of the country overall.
Activism in All Forms
Among the top contributors to foreign aid efforts in Pakistan are the U.S. Government Department of Defense, the World Food Program, the International Rescue Committee and USAID. Although activists from these organizations have different specialties, different aid efforts are needed in this area where orphans do not have access to adequate education, defense or food resources.
Although these organizations support orphans in Pakistan and children in need by providing aid to Pakistan and, in many cases, providing resources directly to children, those who do not have access to the resources from foreign aid are forced to find alternate ways to support themselves.
Efforts to Aid Orphans in Pakistan
This issue has been going on for many years, and one video from the Associated Press shows some of the kinds of work children have had to do in the past to support themselves.
As Pakistan and the children living there continue to receive aid, however, the effects of poverty will continue to decrease. Aid organizations that have already made a difference will continue working to reduce the struggles orphans face in their everyday routines.
– Gabriella Evans
Photo: Flickr
Redefining Common Conceptions: How the Media Misrepresents Iran
Western media has a notorious reputation for misrepresenting developing countries. This article will discuss how the media misrepresents Iran with framing, agenda-setting and manipulation. It will also debunk the common stereotypes embedded in these examples of misinformation.
Iran as a Pro-Terrorism Country
Categorizing Iran as a pro-terrorist country is the largest example of how the media misrepresents Iran. Western media is very quick to blame Iran-based problems on terrorism and, often times, radical Islam. In fact, Iran’s legislation and government officials have clearly proven that they’d prefer Iran to be on sound terms with other nations.
Iranian citizens have been dissatisfied about government spending and its foreign ventures for over a decade now; they would rather spend money internally. To note, reformist president Hassan Rouhani was actually approved for office because of his promise to improve relations with other nations.
Both him and Foreign Minister Javad Zarif are seen as national heroes for their desire for peaceful relations with other countries. To note, western media emphasizes this (false) aspect of Iran the most.
Iran as an Anti-Israeli Country
Characterizing it as a nation with a vendetta against Israelis is the next most common way of how the media misrepresents Iran. Though some Iranian leaders have verbally attacked Israel (like president Mahmoud Ahmadinejad, whose presidency ended in 2013), Iranian citizens have proven to contradict this anti-Israeli feeling.
Larry Cohler-Esses, Jewish journalist, decided to travel to Iran for an exclusive look at Iranian citizens daily lives and genuine feelings. He found that most Iranians are, again, more concerned with domestic issues, with fears surrounding isolation and struggling economically. Indeed, individual citizens have no interest in attacking Israel, but the Iranian government does.
Iran as an Oppressive Country
Western media also misrepresents Iran as a country that oppresses and discriminates against religious minority groups. Iran is known for typically having a conservative, Muslim government that many assume oppresses other religions.
It is true that there has been discrimination against the Baha’i community, but this is because the Baha’i faith has been consider heretical since the 19th Century; however, discrimination is only directed toward the Baha’i community but not to Jews, Christians, Zoroastrians and other religious communities.
Iran as a “Backwards” Nation
The media has presented Iran as an impoverished country that is struggling to modernize society. When Cohler-Esses traveled to Iran, he saw no evidence of this.
Instead, he saw a well-educated, youthful population that was fashionable, modern, and critical of their own government. The media also presents Iran as a country with little to no free press, but instead, reformist newspapers have gotten more popular over the years. While Iran does frequently have issues with legislation that constantly changes and effects freedom of press, the nation’s press ultimately has a fair range of freedom to vocalize their concerns.
The media continues to paint Iran as a country with little to no growth or progress, ignoring its efforts to modernize and industrialize society; fortunately, though, this myth continues to be disproven, time and time again.
The media landscape continues to paint blurry pictures of developing countries, but as countries continue to modernize, the reality will present itself — especially in the case of Iran.
– Chylene Babb
Photo: Flickr
Facts and Figures Towards Rising Above Poverty in Malawi
With severe poverty automatically comes hardships and struggles, and Malawians are no strangers to this reality. A largely agricultural country located in southeastern Africa, poverty in Malawi is widespread among the population of more than 18 million. Landlocked by Tanzania, Zambia and Mozambique, Malawi is faced with 50.7 percent of the population living below the poverty line, and a staggering 25 percent living in what is considered to be extreme poverty.
The Southern African Regional Poverty Network (SARPN), gives insight to the widespread poverty among Malawians by defining poverty: “…as a state of continuous deprivation or a lack of the basics of life.”
Similar to most poverty-stricken areas, their government lacks the means to expand the economy, meaning Malawians oftentimes do not receive adequate healthcare, environmental protection or education. Below is a list of five pertinent facts that illuminate the poverty that Malawians face on a daily basis.
5 Facts About Poverty in Malawi:
Although the majority of the people in Malawi live in destitute conditions, it is deservingly known as the “Warm Heart of Africa” because the residents are known to be among the friendliest and hospitable to tourists.
It is important to note that among the struggles and inconveniences, Malawians are increasing their quality of life more and more as the years go on. Listed below are five facts delineating the efforts being made to combat poverty in Malawi, according to the Malawi Vision 2020 Statement:
5 Facts About Combating Poverty in Malawi:
Efforts being made by works such as the Malawi Vision 2020 Statement set the tone of a less impoverished nation for millions of individuals. The people of Malawi are taking strides and uniting together to generate a more sound and prosperous country.
– Angelina Gillespie
Photo: Flickr
Developing STEM Education for Women in Vietnam
At the beginning of 2016 in Vietnam, the United States Agency for International Development (USAID) and Arizona State University created and implemented the Building University-Industry Learning and Development through Innovation and Technology (BUILD-IT) project.
BUILD-IT
BUILD-IT exercises the goal of connecting science, technology, engineering and math (STEM) instruction in Vietnamese higher education institutions to students, who then can advance inclusive, technology-based growth. The project works mainly to promote STEM Education for women in Vietnam.
To increase educational innovation in STEM, BUILD-IT hosts semi-annual solutions councils and meetings to discuss problems and potential solutions. Additionally, the project funds innovation labs to develop ideas through technology. To assist in tracking educational innovation, the Higher Education Learning and Innovation Exchange acts as a database for all innovations.
One main priority of the initiative is to facilitate collaboration between universities and the private sector by providing students experiential opportunities in preparation for STEM careers. The project hosts leadership forums to develop academic initiatives, scholarships and networking opportunities for women in STEM.
Women in STEM Leadership Forum
The first leadership forum for the Women in STEM Leadership Program was held at the University of Danang in Vietnam in August 2016 and attracted over several hundred participants. The forum featured female role models, inspired the transfer of knowledge and established paths to entrepreneurship through STEM Education for women in Vietnam.
Katy Wigal, BUILD-IT project director and associate director for Curricular Innovation at Arizona State University, stated “the Forum enabled open discussions on the roles of women in the high demand professions of math, engineering, technology and science. The insights they (female speakers) offered about their personal journeys were inspiring to a new generation of women.”
The USAID Vietnam Mission Director Michael Green also said that “increasing opportunities for women in these fields are critically important in realizing greater economic success and equality for women across the board.”
Report on Women-Owned Enterprises in Vietnam
In a recent report of a market study on women-owned enterprises in Vietnam, the IFC Asia Manager for Financial Institutions Group Advisory Services, Rachel Freeman, concluded that social and traditional expectations can sustain prejudices against female business owners and, in particular, young women.
Businesses traditionally can involve women, but these prejudices can have negative impacts against women and their businesses. From STEM to the business field, social and traditional expectations can infiltrate all aspects of society in Vietnam.
Women in STEM: Sustainable Development
For sustainable development and participatory citizenship, STEM education is innovative and essential for every citizen, especially in regard to women. Women’s involvement in the STEM field benefits social engagement and domestic work in addition to sustaining technological innovation.
Vietnam has successfully increased enrollment rate of female students at the university level from 30 to 52 percent between the 2012-2013 and 2013-2014 academic years. The STEM Education for Women in Vietnam initiative is one main priority of the BUILD-IT project because of the importance of inspiring women to modify the status quo and facilitate a global revolution.
– Andrea Quade
Photo: Wikimedia Commons
The Effects of Child Brides on Poverty & the Benefits of Abolishment
The “Economic Impacts of Child Marriage” project (funded by the Bill & Melinda Gates Foundation), the Children’s Investment Fund Foundation, and the Global Partnership for Education are a few of many projects whose goals were to abolish child marriages. These movements were apart of a three-year research project led by the World Bank and the International Center for Research on Women.
A Global Research Project
The research project explored the impacts of child marriage in fertility and population growth, educational attainment and learning, labor force participation, decision-making and investments, health, nutrition and violence. Through this project’s research, the organization concluded that ending the practice of child marriage could save the global economy trillions of dollars between now and 2030.
Poverty-ridden families offering their daughters as child brides is a common means at eliminating certain living costs. Once a daughter is sent away for marriage, there is one less person to feed, clothe and educate; moreover, a dowry or “bride price” is often welcome income for these poor families. However, younger girls are often the chosen demographic for this practice since the older a girl gets, the more expensive the dowry becomes.
Issues with the Practice of Child Brides
One of the main problems with this practice is its invocation of an endless cycle of poverty. Younger girls married away for money often do not get the chance to continue their education; this occurrence severely limits the opportunities of economic growth for both her immediate and newly extended family.
Child brides also have to perform a great deal of unpaid work in the home, such as cleaning, cooking and caring for their husbands, in-laws and children. However, not marrying early and staying in school often leads to a girl becoming healthier and wealthier. In fact, an extra year of primary education for girls also can boost their future earnings by 15 percent.
Consequences of Premature Marriage for Child Brides
There are several severe consequences of child brides who are married off prematurely. Girls who get married early often have to break off previous relationships after marriage and cannot maintain connections with people outside of their families. Isolation can cause severe psychological consequences for both mothers and their babies.
There are also the strains the life of a wife can take on such a young girl’s body. Specifically, early child-bearing is a common incident that risks both young girls’ and their babies’ lives. According to the World Health Organization, the most frequent cause of death in young women aged 15 to 18 is complications during pregnancy and birth.
The non-governmental organization Girls Not Brides has also found “when a mother is under 20, her child is 50 percent more likely to be stillborn or die within its first weeks of life than a baby born to an older mother.”
The International Costs of Child Brides
The World Bank and the International Center for Research on Women has estimated that by 2030 child marriage will ironically cost developing countries trillions in dollars. These organizations push for an end of child brides as a means to alleviate immediate poverty and produce long-lasting economic growth.
The World Bank notes that ending child marriages would have a strong positive effect on the educational levels of girls and their children as well as increase women’s expected earnings. In addition, household welfare, substantial reductions in population growth over time and reduction in rates of under-five mortality and delayed physical development were found.
All in all, the marriage of child brides is a practice that should be abandoned for it numerous economic, personal and societal costs.
– Richard Zarrilli
Photo: Flickr
How the Media Misrepresents Jamaica
The media misrepresents Jamaica in a variety of ways. It portrays Jamaica as a population full of recreational drug users and criminals. It also depicts a land full of tourist scams and impoverished people struggling to survive.
Misrepresentation #1: Everyone in Jamaica smokes marijuana
The TNI Drugs and Democracy Programme reported in a survey taken by the National Council on Drug Abuse (NCDA), 60 percent of the Jamaican population smokes marijuana and uses tobacco and alcohol. The Jamaica Constabulary Force stated only nine percent of Jamaican’s use cannabis.
Marijuana use in Jamaica has been tied to the Rastafarian religion. Most Rastafarians consume it as part of spiritual rituals. However, not everyone in Jamaica is a Rastafarian and not everyone in Jamaica smokes or participates in the sale of marijuana. In fact, up until 2015 when lawmakers in Jamaica decriminalized it, selling and using marijuana was illegal for over 100 years.
Influenced by the U.S., Jamaica is set to become part of the legalized marijuana market, which will create income for its local farmers and change how the media misrepresents Jamaica.
Misrepresentation #2: Locals and tourists don’t mix
While tourist scams are real in Jamaica, tourism in the country is still at an all-time high. Tourism brought in earnings of more than $2.5 billion in 2016 from nearly 4 million visitors. The booming tourism industry can benefit both the locals and the tourists.
Jamaicans can set up shops for dining and shopping near tourist-heavy areas and the visitors can experience the local culture and interact with the locals. There is even a program in place called Meet the People that matches locals with tourists to spend time together based on similar interests.
Misrepresentation #3: Poverty is crippling Jamaica
More than 400,000 people in Jamaica live in poverty and 14,000 live in extreme poverty. That’s close to 15 percent of the country’s population who don’t have access to a decent way of survival. Although the percentage is not uplifting, it is far from the worst across all countries. Out of 164 countries, Jamaica ranks 119th on a scale of the percent of the population living below the poverty line. In comparison, the U.S. is ranked 126th.
Jamaica’s poverty concerns have to do with the country’s struggle to keep a consistent gross domestic product (GDP) growth rate. Jamaica’s GDP growth rate has fluctuated between .5 percent to 1.4 percent within the last few years, creating challenges for the poor. However, the growth rate is expected to rise significantly in 2018, creating a steady decline in the poverty rate through 2020.
Although some facts about Jamaica can’t be overlooked, grave information attached to those facts and how the media misrepresents Jamaica are skewed. Jamaica has grown into a thriving, middle-income country.
– Naomi C. Kellogg
Photo: Flickr
Access to Credit in Madagascar Needs Improvement
According to a report from the University of Göttingen, “agricultural firms with flexible microfinance loans have significantly higher credit access probabilities than non-agricultural firms and agricultural firms with standard microfinance loans.” Access to credit in Madagascar can be greatly improved by supplying the population with particular loans that allow them to enhance their financial stabilities.
Access to microcredit has a profound impact on Malagasy people. As The Guardian writes, “Microfinance is seen as a vehicle to help Madagascar attain some of its millennium development goals, particularly on eradicating extreme poverty.” Approximately 85 percent of the nation’s population lives on less than $1.25 a day. Credit availability in Madagascar has been able to create severe advancements for small businesses and provide a higher income for the average Malagasy family.
Since most individuals are without access to credit in Madagascar due to their financial status, providing goods for the family and bringing in a steady income can be very difficult. Many rely on informal moneylenders who charge annual interest rates anywhere from 120 to 400 percent for unsecured loans. These numbers are astronomical compared with the MFI’s average rate of 36 percent for the same period, equating to two to four percent a month.
Extremely high interest rates can be very dangerous for people who do not make enough money to continually make payments every month. Supplying the Malagasy citizens with microfinance loans would give them the opportunity to discontinue their relationships with informal moneylenders and ultimately save additional money for other necessary goods.
However, a country that mainly relies on farming can be slightly strenuous for the MFI. It can provide the people with loans to help supply their agricultural needs, but when the weather does not cooperate with the proper farming conditions, these loans can then be used for other purposes. This is what the institutions do not want to happen. According to Serge Rajaonarison, Chief Executive Officer of the Caisse d’Epargne et de Crédit Agricole Mutuels de Madagascar, by accurately determining the “areas and farmers affected by hailstorms, for example, we can subsequently compensate according to the losses caused.”
The prime concern for the MFI is for its loans to be paid back by the people of Madagascar. Even after the country is devastated by severe weather events, the MFI continues to obtain its money back from those who were given loans. Continued payments by the people and being able to provide a better life and workplace for the community will allow the MFI to implement a strategy that will give everyone access to credit in Madagascar.
– Matthew McGee
Photo: Flickr
The Effects of Poverty Are Widespread But Can Be Reduced
Poverty can have lasting impacts on both the people and communities in which it is present. The effects of poverty are often detrimental to both the health and education of people that are affected by it, and can lead to higher crime and mortality rates in neighborhoods and countries where the poverty level is high.
More than 10,000 children die every day because they live in poor housing. The effects of poverty on children are even more dangerous than for adults, because children are still developing. While in their developing stages, without access to healthy living conditions or secure access to food and water, children easily succumb to both disease and death. Living in a house that does not have adequate ventilation or proper heating can cause lasting damage to a child’s health, if they survive at all.
Poverty also affects education for people of all ages. Younger students will not be able to afford school supplies or clothes for school. As students get older, without a scholarship, secondary education and college are out of the question. Sometimes, even with a scholarship, they are not able to attend, because they have a family to support at home and need to work. Without adequate education, many people end up working for minimal pay, which keeps them impoverished for the duration of their lives and continues the cycle of poverty within the home.
The effects of poverty include high crime rates in affected communities. People without the proper resources to survive often resort to theft and violence in order to survive. Oftentimes, in high poverty areas there are also high unemployment rates, and because people are unable to obtain jobs, they resort to crime because they feel they have no other options.
The cycle of continued poverty also has a significant negative effect on the health of citizens. Substance abuse is often higher in areas with high poverty rates. This only continues to drive families deeper into poverty and continues the vicious cycle of poverty in the community. There are also more crippling accidents, because people in poverty tend to take jobs in unsafe working conditions to make money.
Poverty also has the power to divide society. The lower class is pitted against the higher class and vice-versa. This allows the gap between the two to become even larger without a chance to rectify the problem. In countries with large gaps between the two classes, the middle class is often small or nonexistent, which is an important stepping stone for people in a lower class to earn better wages. As that class disappears, the amount of impoverished citizens will continue to grow.
The effects of poverty are plentiful and widespread. The amount of crime, violence and death that run rampant in communities with high poverty rates are no coincidence, and are a direct result of the amount of poverty in that area. In order to diminish crime and violence in these areas, poverty has to be diminished first.
– Simone Williams
Photo: Flickr
Understanding the Top Sectors for Chinese Foreign Aid to Africa
Countries that are part of the Organization of Economic Co-operation and Development (OECD) have been the dominant force in foreign aid to developing countries in Africa. But in recent years, China has emerged as a game changer, reshaping the global aid landscape and becoming Africa’s biggest donor. Here is a breakdown of the Chinese foreign aid package to Africa and what it means to China.
Chinese investment in Africa rocketed from a mere $210 million in 2000 to more than $3 billion in 2011 and has continued to grow. As a matter of fact, Africa is the largest recipient of Chinese foreign aid, accepting 45.7 percent of China’s ¥256.29 billion total foreign aid by the end of 2009.
The aid is divided into eight categories: complete projects, goods and materials, technical cooperation, human resource development cooperation, medical teams sent abroad, emergency humanitarian aid, volunteer programs in foreign countries and debt relief. By the end of 2009, China had sponsored more than 2,000 development projects in African countries.
Unlike OECD countries, China does not officially disclose its aid information on a regular basis. Data about Chinese foreign aid often comes from media reports and governmental documents. Research labs like AidData are scrutinizing streams of sources and have constructed a fairly solid picture of Chinese foreign aid.
According to AidData, between 2000 and 2013, the largest sector of Chinese aid to Africa was transport and storage, summing to $29 billion distributed to 36 countries. South Africa received $5.2 billion and Kenya accepted $4.8 billion. Sudan, Mozambique and Angola received $3 billion, $2.6 billion and $2.5 billion worth of aid in this sector, respectively.
The second-largest sector was energy generation and supply. Among the $25 billion aid package, Sudan got the largest amount of aid at $4.6 billion. Ethiopia received $3.9 billion and Nigeria, Zambia and Angola each received about $2 billion.
Other multisector and unallocated/unspecified sectors were the third and fourth largest sectors in Chinese aid to Africa. The former sector comprised $20 billion worth of aid and the latter $8.7 billion. Due to China’s non-disclosure policy, the specific items that these budgets financed are difficult to pinpoint. What is worth noting is that Angola received $4.1 billion, the second-most amount of aid in the other multisector category, making Angola the largest recipient in the top three categories.
A total of $6.9 billion was devoted to projects in the communications sector. Nigeria, Ethiopia and Tanzania were the top three recipients, receiving $1.7 billion, $1.2 billion and $676 million respectively.
Chinese foreign aid projects in Africa focus on infrastructure, with transportation, energy and communication dominating almost half of the total aid package. China is also very careful in selecting recipient countries for its aid. Most of the African countries that are endowed with generous aid are very rich in terms of natural resources.
For example, Angola, being the top recipient of more than $12 billion over the thirteen-year span, has important reserves of oil, gas and minerals. Chinese aid to Angola focuses on infrastructure development that will make the export of this wealth accessible. Other leading recipient countries like Ethiopia, Nigeria and Sudan are also rich in natural resources.
Currently, Angola is one of the largest trading partners of China. The Chinese foreign aid agenda seems to indicate an intention to establish trade with the recipient countries, which is an understandably important reason for giving out foreign aid by any country in the world.
One issue that has been hotly debated over the past several years is that, as a non-OECD member, China constantly blurs the line between development finance and foreign aid. Chinese aid does not follow the definition of official development aid set by the OECD. As a result, many of China’s activities are deemed “evil” as they demonstrate a quest for the return of natural resources or trade partnership.
Nevertheless, trading opportunity is a fundamental benefit of foreign assistance that every aid donor is concerned with. In addition, according to Brookings Institution, in reality, China’s investment in and trade with Africa only accounts for a “tiny percentage”–less than five percent–of its global investment and trade. This disproportional aid-to-trade ratio proves China’s foreign aid to Africa agenda is not so selfish.
– Chaorong Wang
Photo: Pixabay