209. ASIA AND THE ‘OTHER THIRD WORLD' IN THE 21ST CENTURY: POLITICAL ENGAGEMENT, ECONOMIC ROLE AND DEVELOPMENT POLICIES
209.
Panel Title : ASIA AND THE ‘OTHER THIRD WORLD' IN THE 21ST CENTURY: POLITICAL ENGAGEMENT, ECONOMIC ROLE AND DEVELOPMENT POLICIES
Convener :
Chair :
Discussant : Eric Ansah
Panel Abstract :
The recent publicity surrounding the growing role of China in Africa and Latin America has highlighted the fact that Asian states are increasingly important political and economic actors in the 'other Third World', that is Africa and Latin America. In many respects, Asian diplomatic and commercial activism in other regions has introduced new dimensions into relations between these regions and is itself indicative of a fundamental change in the pattern of international relations. Linking the foreign policies of all of the major Asia powers - Japan, India and China as well as second tier states like Malaysia and Indonesia - is an explicit commitment to multilateralism as well as a drive for resources to fuel the industrialization which has sustained their rapid economic growth. The quiet diplomacy of Japan can be contrasted with the exuberance with which China has proclaimed its interests and the flourishing presence of Indian trade and settlement on the continent. For all of these Asian states, Africa and Latin America represent a place where their global ambitions can be given expression at the same time their economic needs are being fulfilled. With regard to China, despite having sustained double-digit economic growth rates for the past three decades, the world only became conscious of its strength as a global player when began venturing abroad and by doing so competing with established industrial countries' interests. Since joining the WTO in 2001, China has broadened its economic contacts with the 'other Third World' through the acquisition of important developed countries multinational corporations and a rapid expansion into non traditional developing regions, namely Latin America and Africa. Cast in the language of Third World solidarity (not through ideological camaraderie of the past but as an expression of South-South economic cooperation), China is set on earning the support of a significant portion of votes in multilateral forums like the United Nations. The recent China-Africa Cooperation Forum meeting highlighted the fact that China-Africa trade had grown from less than 1 billion USD in 2000 to 40 billion in 2006, and it is expected to rise to 100 billion USD by 2010. The same rapid growth can be seen in China-Latin American trade (8,3 billion USD in 2000 to 40 billion in 2004). So too, one can see a intensification Chinese investment and overseas development aid flows to these regions. In 2004 LA accounted for a third of total Chinese outward direct investment, while Africa receives 44% of China's development assistance. Finally Chinese migration to these regions is increasingly a product of this engagement and raises new issues and concerns with local hosts. This is not the first time that an Asian power is attempting to project its influence over Africa and Latin America, which have been until now exclusive realms of European and US influence. Japan in the 1980s, driven by a similar resource rationale as China's and imbued with a sense of its pre-eminence, embarked on a campaign in Africa and Latin America to expand its commercial and diplomatic presence. Though motivated by economic interests and, especially in the case of Africa, supported by significant outlays of Overseas Development Assistance, a key diplomatic motive was laying the foundation for a permanent seat on the UN Security Council. The inauguration of the Tokyo International Conference on African Development (TICAD) in 1993, which meets in plenary session every five years, has provided a vehicle for cementing ties between Japan, its partners in Southeast Asia and African states. Latin America has also been high on Tokyo's agenda. In September 2004 Prime Minister Koizumi announced a new partnership with Latin America aimed at revitalizing economic relations through co-operation and exchange, while 2005 was officially declared the Japan-Central America year. Other Asian states such as India and Malaysia have increased their economic links with Africa and Latin America through the expansion of diplomatic representation and the economic activities of their major multinational companies such as Tata and Petronas. Their role in the political and economic life of Africans and Latin Americans is of growing significance and remains under-researched. The aim of this panel (and its separate sub-panels) will be to bring together academics from Asia, Africa, Latin America, Europe and North America in order to discuss different aspects of Asia's growing interaction with these developing regions and its economic and political impact. The panel will be divided in three parts, one focusing on Asia's political engagement with Africa and Latin America, another on Asia's economic relations with Africa and Latin America and a third focusing on comparative development policies of Asian states towards Africa and Latin America.
Participants :
Susana Moreira
Paper Title : China And Latin America: What Can We Expect, Now That The "Honeymoon"
Is Over?
Abstract :
2003 was China's year in Latin America. After a dramatic increase in exports to the Middle Kingdom, the China-related boom in commodity prices and Hu Jintao's visit and associated investment promises, China was perceived by many as a panacea for all of Latin America's problems. Though exports to China remain high, contributing to the region's strong economic performance, the perception of Beijing has changed. The initial excitement has been tempered by a series of developments: Broken Promises (Part 1): Chinese investment in the region's infrastructure has been much lower than originally anticipated (and agreed upon).Broken Promises (Part 2): China, contrary to expectations, didn't support Brazil's attempt to become a permanent member of the UN Security council; Increased ("unfair") competition: The negative impact of China's cheap exports, both domestically and internationally (as a competitor) have risen to the forefront in many countries in the region (especially Mexico and Brazil); Price tempering in the commodities' market: There is growing concern about China 's efforts in using its market power to influence/control the prices of several commodities; Nationalist concerns: By acquiring several companies in major sectors of the economy, there is also a concern that China is only "cherry picking" and also undermining the country's control of its major sources of wealth The impact of these issues has varied across Latin America, following the different economic and political endowments of each country. Chile, for example, has clearly assumed a pro-China posture, as exemplified by the signing of a new FTA with Beijing. Mexico, which has felt the largest impact from China's manufacturing might, has increasingly shown its discontentment towards China. What Latin American countries have to learn (and some have already done that) is that pragmatism dominates China's actions. When China assumed a larger presence in Latin America, it was moved by self-motivated but quite reasonable interests: without a secure source of inputs, its economy would necessarily break-down and with it, the main source of legitimacy of the Chinese government. If that meant help Latin-Americans improve their infrastructure and develop their extractive industry, then the Chinese would do it. If in the end, these investments would help the country's grow and create even more markets for Chinese exports, the better. "There are no free lunches" and Latin Americans just need to make the best out of this situation. Use the growth associated with their exports to increase the competitiveness of their economies, diversify their production, and invest in the education of their young population and in innovation. Use the growing concern with China's presence in the region among Europeans and North-Americans to obtain better access to European and US markets. If Latin-Americans play their cards right, there is a lot they can win from interacting with China. A panacea, maybe not, but surely the Middle Kingdom can help Latin America obtain a more sustainable growth pattern.
Iris de Brito
Paper Title : The Profile of ODA "Emerging Donors": The Role of Asian Countries in
Development Cooperation
Abstract :
Iris Official Development Assistance (ODA) constitutes a means to other ends beyond the goals of poverty alleviation and economic growth. There is a need to reframe the debate to focus on the most appropriate global problem on which to apply a reoriented approach to "development cooperation". It is recognized that the materialization of the Millennium Development Goals (MDGs) has been slow and irregular, especially in Africa, where the probability of achieving the MDGs in 2015 is still remote. Hence, according to the Millenium Project Report, in order to achieve the MDGs it will be necessary to increase ODA --of an estimated US$ 73 billion in 2006 -- to US$ 135 billion until 2015, representing, therefore, the need for an increase of US$ 62 billion. Since only five of the OECD member states have surpassed the 0.7% of the GNP target consigned to ODA (and one of the major donors -- the United States -- shows a clear reluctance in achieving this target), the contributions of new donors, such as China and India, become more and more important. In fact, it is acknowledged that the amounts of ODA made available by non-OECD countries have been significant. In this context, it is imperative to assess today's scenario of official aid provision. This panorama is changing as new, emerging donors, become more significant sources of financing for developing countries. We also find important to analyse the way in which these "emerging donors" will change the make-up of international cooperation and whether they will undermine the established position of traditional donors. The two Asian countries that have been playing major roles as far as Development Cooperation is concerned are China and India. These two countries have long been donors and, on a much larger scale, aid recipients. It is very interesting to observe how China and India are evolving from ODA recipients to donors and how their relationship with LDCs, in particular African countries, is changing. However, it is recognized that behind this incursion into Africa lie different goals, and Development Assistance may be merely one of the many tools of the Chinese strategy for Africa, institutionalized in 2000 with the establishment of the China-Africa Cooperation Forum. Another important aspect is that other Asian countries, such as Malaysia and Thailand, are beginning to develop bilateral programmes beyond Colombo Plan training and technical assistance. And Japan -- an OECD DAC member -- has encouraged these and other countries to provide expertise to Africa using Japanese financing, creating a sort of "triangular cooperation".
David Henley
Paper Title : Chalk and Cheese? Africa and the Lessons of Asian Development
Abstract :
The World Bank's 1993 report on The East Asian Miracle prompted a wave of comparative research aimed at extracting practical lessons for African countries from the development achievements of large parts of Asia in the late twentieth century. At the same time, however, other scholars questioned the relevance of Asian experience to the African predicament, pointing for instance to systematic contrasts between the two continents with respect to geography and demography, agricultural conditions, ethnic diversity, political cultures, and levels of indebtedness. This paper briefly surveys the literature on the applicability or inapplicability of Asian lessons to Africa's problems, assesses the arguments one way and the other, and discusses the role of ideological influences on both sides of the debate.
Ana Cristina Alves
Paper Title : China And The Third World: A Growing Political Synchronisation?
Abtstract :
Since the end of the last decade China has given signs of growing commitment with international multilateral fora, regionally and internationally and, simultaneously, has been intensifying its economic interaction with its neighbour region to the south, Southeast Asia, aswell as with other non traditional regions: Latin America and Africa.Along with this astonishing growth in bilateral trade with each of these 3 regions in the beginning of the 21st century, China is also becoming an important investor an aid donor, a role traditionally played by western developed countries and Japan. Contrasting, though, with the western approach (e.g. Washington Consensus and the Cotonou Agreement - introduction of transparency rules, respect for Human Rights, transition to democracy, etc.), China's handy help has ‘no strings attached' apart from the ‘one China principle' and, additionally, has much lower interest rates. China's approach is quite seductive and, given the present circumpstances, third world countries are understandably lining up at China's door. Third world countries, not only possess a very significant part of world natural resources, but also represent a powerful political force as they make up almost 2/3 of UN General Assembly voting countries as well as the majority of votes in other institutionalised international multilateral fora. The aim of this paper will be then, on the one hand, to try to understand, namely through vote cast in the UN, until what extent this growing economic interaction entails a growing political proximity of these regions to China's endeavours, and on the other hand, the degree of proactivity of Beijing in defending the Third World interests in International institutions.
