HOW CHINA IS INFLUENCING AFRICA’S DEVELOPMENT

Over the last 20 years, economic and political power has been shifting towards
emerging economies. A number of developing countries have become centres of strong
growth, raising their shares of global income significantly, which has made them major
players in regional and global affairs. Furthermore, flows of trade, aid and investment
between emerging and developing countries have all intensified.
The Perspectives on Global Development 2010 presents the evidence which documents
these changes, what we call ‘Shifting Wealth’. As the world emerges from the crisis, the
report clarifies this new global reality and what it means for development. Clearly, it implies
that development strategies need to be rethought in the new international environment. The
PGD 2010 suggests ways in which developing countries can best take advantage of the new
economic landscape and supports calls for global governance to be reformed, making it
more inclusive.
The  Perspectives on Global Development has been guided by and contributed to by
eminent scholars from developing and emerging countries, our Non-Residential Fellows. In
this paper, Dr. Martyn Davies, from the University of Pretoria, discusses how the global
financial crisis is accelerating China’s investment in Africa, a region that is becoming more
important to Chinese firms that are beginning to venture out into the global economy. In
particular, he poses three important questions: What contribution will China have on
industrialization efforts in Africa? Does China’s concessional finance model offer a new
mode of developmental finance for Africa’s extractive industries? And will China’s
investment in infrastructure on the continent assist regional integration of African
economies? Combined, these three questions provide an overview of the impact China will
have on the long term developmental prospects of Africa.
©Mkimya Ent.