II.B. Official Development Assistance and Debt Relief: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA
II.B. Official Development Assistance and Debt Relief: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA
44.4 billion yuan (US$5.7 billion) for more than 800 aid projects, according to a researcher at
the Chinese Academy of Social Science (He, 2006).7 The last officially reported flows are for
2002, when the Chinese government reported that it provided US$1.8 billion in economic
support to Africa.8 The Chinese National Bureau of Statistics reports annual data on
contracted projects in SSA countries, which include “projects financed by the Chinese
government under its aid program.”9 While the foreign aid component of the figures is hard
to pin down, it is even more difficult to estimate the value of Chinese technical assistance
and aid in-kind because of problems in pricing Chinese labor. Assuming Chinese aid,
including technical assistance, is about 50 percent of the value of contracted projects, China’s
official development assistance (ODA) to SSA could amount to US$1.0–1.5 billion annually
for 2004–05 (Figure 5).10 In comparison, China’s aid flows to Africa averaged about US$310
million annually for 1989–199211.
China has also been providing debt relief to African countries on its own terms. At the first
China-Africa Cooperation Forum in October 2000 in Beijing, the Chinese government
pledged to write off in two years overdue obligations on 156 loans owed by African
countries; these totaled 10.5 billion yuan (US$1.3 billion). The pledge was fulfilled ahead of
schedule (He, 2007). In November 2006 China announced that it would cancel another
10 billion yuan (US$1.3 billion) in debt—168 interest-free government loans that had
matured by the end of 2005 and were owed by 33 of the heavily indebted and least developed
countries in Africa. By mid-May 2007 China had signed debt forgiveness agreements with
11 of these countries and expected to conclude agreements with the other 22 by the end of
2007.
The terms of China’s ODA follow the principles established during late Primer Zhou Enlai’s
visit to Africa in the early 1960s: no conditions or demand for privileges can be attached to
ODA; China provides ODA in the form of grants, interest-free or low-interest loans (i.e.,
preferential loans that have an interest subsidy); and repayment will be rescheduled if
necessary.12 China’s aid program also includes technical assistance, with an emphasis on
agricultural technology and training in Chinese institutions. China’s ODA has focused on social and humanitarian projects, such as hospitals, schools, low-cost housing, sport venues,
and library and government buildings, and often is delivered in kind. ODA has also been
used for infrastructure construction (133 out of the more than 800 aid projects) and
agricultural development (137 projects).
IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007
IIB Official Development Assistance and Debt Relief TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA - To learn more about this author, visit International Monetary Fund's Website.
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China started providing aid to Africa in 1956. By May 2006, it had contributed a total of
44.4 billion yuan (US$5.7 billion) for more than 800 aid projects, according to a researcher at
the Chinese Academy of Social Science (He, 2006).7 The last officially reported flows are for
2002, when the Chinese government reported that it provided US$1.8 billion in economic
support to Africa.8 The Chinese National Bureau of Statistics reports annual data on
contracted projects in SSA countries, which include “projects financed by the Chinese
government under its aid program.”9 While the foreign aid component of the figures is hard
to pin down, it is even more difficult to estimate the value of Chinese technical assistance
and aid in-kind because of problems in pricing Chinese labor. Assuming Chinese aid,
including technical assistance, is about 50 percent of the value of contracted projects, China’s
official development assistance (ODA) to SSA could amount to US$1.0–1.5 billion annually
for 2004–05 (Figure 5).10 In comparison, China’s aid flows to Africa averaged about US$310
million annually for 1989–199211.
China has also been providing debt relief to African countries on its own terms. At the first
China-Africa Cooperation Forum in October 2000 in Beijing, the Chinese government
pledged to write off in two years overdue obligations on 156 loans owed by African
countries; these totaled 10.5 billion yuan (US$1.3 billion). The pledge was fulfilled ahead of
schedule (He, 2007). In November 2006 China announced that it would cancel another
10 billion yuan (US$1.3 billion) in debt—168 interest-free government loans that had
matured by the end of 2005 and were owed by 33 of the heavily indebted and least developed
countries in Africa. By mid-May 2007 China had signed debt forgiveness agreements with
11 of these countries and expected to conclude agreements with the other 22 by the end of
2007.
The terms of China’s ODA follow the principles established during late Primer Zhou Enlai’s
visit to Africa in the early 1960s: no conditions or demand for privileges can be attached to
ODA; China provides ODA in the form of grants, interest-free or low-interest loans (i.e.,
preferential loans that have an interest subsidy); and repayment will be rescheduled if
necessary.12 China’s aid program also includes technical assistance, with an emphasis on
agricultural technology and training in Chinese institutions. China’s ODA has focused on social and humanitarian projects, such as hospitals, schools, low-cost housing, sport venues,
and library and government buildings, and often is delivered in kind. ODA has also been
used for infrastructure construction (133 out of the more than 800 aid projects) and
agricultural development (137 projects).
IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007
IIB Official Development Assistance and Debt Relief TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA - To learn more about this author, visit International Monetary Fund's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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