Ruben Gonzalez Vicente M.Phil. Student

 Introduction  Theoretical issues: Dependency, resource curses and development  Review of China’s engagement in Africa’s resource sector  The South American case  Conclusions

 Other analyses of Sino-South American relations.  What is new about this paper: ◦ Development angle. ◦ Resource extraction as unit of analysis. ◦ Comparative approach.  External, internal and intrinsic curses of extraction.  China’s relations with national elites shape developmental outcomes in different ways.

 The dependency theory: ◦ Peripheries, international division of labor (Emmanuel, 1972) ◦ Commodities vs. Technology (Frank, 1969) ◦ State capitalism in Latin America, neoliberalism, new left. ◦ The limits of dependency:  Dependent development (Cardoso, 1982)  Challenges posed by China’s growth.

 The resource curse theories: ◦ Economic curses:  Declining terms of trade of resources (Prebisch, 1950; Singer, 1950)  Dutch disease  Low upstream and downstream links ◦ Political curses:  Patronage politics (Shaxson, 2007)  Weak government – civil society links (Karl, 2007)  Conflicts at the local level.

 Three categories: ◦ External curses. ◦ Internal curses. ◦ Intrinsic curses.

 Opportunities: ◦ China’s growth and commodity prices. ◦ Alternative investor. ◦ “Package deals”.  Problematical issues: ◦ Support of ruthless political elites ◦ Chinese labor, labor conditions, low salaries.

 The role of state in resource-driven development.  The role of China in shaping internal politics.  Review. Impact on: ◦ External curses. ◦ Internal curses. ◦ Intrinsic curses.

 Opportunities: ◦ Increasing investment. Commodity prices. ◦ Alternative investor.  Problematical issues: ◦ Overreliance on commodity exports.

 South American politics today: ◦ Democracy. ◦ Civil societies’ relevance.  China, South American states and development: ◦ Cooperation with political elites. ◦ Joint ventures and service provider contracts

 Persisting problems: ◦ Limits to technological upgrade. ◦ Inequality. ◦ Marginalization or remote areas where extraction occurs. ◦ Populism. ◦ Intrinsic curses of extraction.

 Review. Impacts on: ◦ External curses of extraction. ◦ Intrinsic curses of extraction. ◦ Internal curses of extraction.

 Resource curses. Three levels of comparison: ◦ External curses: Similarities. ◦ Intrinsic curses: Similarities ◦ Internal curses: Divergences

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 Cardoso, F. H. (1982). Dependency and development in Latin America. In H. Alaviand T. Shanin (eds.), Introduction to the Sociology of Developing Societies. New York: Monthly Review Press. Emmanuel, A. (1972). Unequal Exchange: A Study of the Imperialism of Trade. New York: Monthly Review Press. Frank, A. G. (1969). Capitalism and Underdevelopment in Latin America. New York: Monthly Review Press. Karl, T.L. (2007). Ensuring fairness: the case for a transparent fiscal social contract. In M. Humphreys, J. D. Sachs and J. E. Stiglitz (eds.) Escaping the Resource Curse. New York: Columbia University Press. Prebisch, R. (1950). The Economic Development of Latin America and its Principal Problems. New York: United Nations. Shaxson, N. (2007). Oil, corruption and the resource curse. International Affairs, 83(6): Singer, H. (1950). The distribution of gains between investing and borrowing countries. American Economic Review, 15: