Exit The Washington Consensus: Enter the Dragon


Trade between Africa and China has grown exponentially in the last decade breaching USD 40 billion in 2004. Most of this growth is fueled by commodity exports to China including oil and minerals. It helps that the Chinese government throws in the odd gift; a huge football stadium in Tanzania and a USD 150 million office complex for the African Union in Ethiopia are some of the recent signs of the benevolence of the People's Republic of China.

Unlike financial aid from the West which is often laden with strings and is increasingly considered intrusive by most African governments, Chinese investments are unconditional. These investments are almost always targeted at infrastructure development. Compared with the seemingly endless workshops, seminars and consultancy services preferred by donors from the West, Chinese help brings meaningful relief to local communities and could be the reason why Chinese engagement is highly sought after in Africa. As a bonus, the Chinese do not tag along NGO (Non-Governmental Organization) pollution, an unwelcome distraction for most African leadership.

There are also cultural similarities which strengthen the Sino-African relationship. For example, intellectual property rights are no more respected in Ouagadugu than they are in Chongqing. Software piracy in Africa and China is the norm rather than the exception.

And the similarities do not end at piracy. In both societies seniority supersedes intellect. Those first through the finish line, on account of age or rank, occupy the higher end of the food chain.

Guanxi, or mutually beneficial friendship, runs deep in both peoples. Personal and business relationships blend into one. Another name for guanxi could easily be corruption.

With this level of convergence in thought and deed, it is hardly surprising that the parties get on at least as well as penguins. Nothing so far suggests that trade between China and Africa will falter any time soon. Some governments, such as Zimbabwe, have openly declared a look east economic policy while others have not quite turned all the way but look askance at Beijing.

The World Bank and IMF, generally thought of as snooty and nosy, may have forfeited a firm purchase over economic policy in Africa to China. Nowadays, financially truant African states are deaf to threats from the Bretton Woods institutions while the roar of the dragon is pleasant to the ear.

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