China’s Investment in Africa: Expanding ‘Yellow River Capitalism’ and its Implications Connie Zheng presented at seminar 12 November 2008

Talking points Why the study? personal, phenomenal, prospect Expansion of ‘Yellow River Capitalism’ and/or Development of ‘Special Economic Zones’ in Africa Economic, social, political and managerial implications Questions and discussion

Source: Goldstein et al ( ; data after 2003 was added by me from various sources).

Source: Alden, 2007, p. 81

Source: Goldstein et al ( ; data after 2003 was added by me from various sources).

Economic implication growth v. sustainability modelling China: is it suitable? happy consumers+happy tourists = happy jobs? ‘Dutch disease’: poverty escalation? diversified economies

Social implication tension between poor and rich relationship between Chinese and African locals corruption practices poor labour practices CSR and environment

Political implication Washing consensus v. Beijing consensus ‘de-valued’ democracy v. deliberate dictatorship international community v. national power post-colonialism v. new colonialism

Political implication …..Whereas the Washington Consensus is against state intervention in the economy and in favour of privatisation, strong property rights and economic ‘shock therapy’, Yellow River Capitalism encourages the use of public money to drive innovation, a push to protect public property, and the gradualist reforms of Special Economic Zones…. (Leonard, 2008, p. 121)

Managerial implication inexperienced in international businesses international management training skill development of local workforce (s) managing international labour relations

Skill development of local workforce (s) ‘….Africa has a billion population, almost half of whom are below the age of 15. The Youth is sure to be the key to its future economic development. The skill development system remains constrained by the inadequate quantity and quality of teaching staff. The disconnection between higher learning institution and the private sector has created the twin problems of high youth unemployment and shortage of middle to high skills…The private sector should respond to improve education and train and upskill the workforce…’ - Donald Kaberuka, President of AfDB

Questions & Discussion THANK YOU!