scholarly journals Catalysing China–Africa Ties for Africa’s Structural Transformation

Author(s):  
Fantu Cheru ◽  
Arkebe Oqubay

Economic cooperation between China and Africa has deepened in scope and scale in recent times, and FOCAC has emerged as the largest South–South economic partnership platform. However, evidence suggests that the catalytic effect of China–Africa engagement on the economic transformation of African countries has been uneven, primarily shaped by the strategic response of the respective African countries. This chapter proposes that China–Africa economic ties should be examined from a structural transformation perspective to adequately evaluate the catalytic effect of Chinese engagement on the economic growth and diversification of African economies, the development of domestic capabilities, and lastly on Africa’s successful insertion into the globalized economy of the twenty-first century. Based on the experience of Ethiopia, the chapter unpacks the pathways to structural transformation in the African context, and the role of the state in guiding the economy through a proactive and strategic approach to economic transformation. The chapter concludes with pathways to the future.

Author(s):  
Carlos Lopes

Ethiopia’s stellar growth performance, guided by amicable development planning, has created a common and shared agenda for economic transformation that has fostered better social outcomes in poverty, universal education, child health, and combating AIDS. This chapter attempts to explore the interest and fascination surrounding the Ethiopian development path, beginning with a consideration of the policy innovations that underpin the experience. It identifies the similarities that connect lessons from three disparate sectoral perspectives—industrialization, social protection/food security, and the success story of Ethiopian Airlines—underlining the pivotal role of coherence, ambition, and innovation in Ethiopia’s development trajectory. Central to these characteristics is the notion that structural transformation is an aggregate of socio-economic sector successes and its potential replicability by other African countries.


Author(s):  
Arkebe Oqubay ◽  
Justin Yifu Lin

This introductory chapter outlines the aims, analytical perspectives, and the organization of the volume. It sets the scene by describing China’s place in the changing dynamics of global economic order, the increasing role of China in Africa’s economic transformation, and the unevenness of the China’s economic footprint in Africa. It introduces the four thematic sections that primarily focus on the progress, foundations, challenges, and future trajectory of China–Africa cooperation. Part I: ‘China’s Rise and the Changing Global Development Discourse’ examines the meanings and global externalities of China’s economic emergence in an era of globalization. Part II: ‘Evolving China–Africa Relations: Context, Perspectives, and Framework’ examines China–Africa ties in their historical context, the institutional and policy frameworks for promoting cooperation. Part III: ‘The Dynamics of China–Africa Economic Ties’ describes the Chinese approach to doing business in Africa, while the last section Part IV: ‘China and Africa’s Economic Transformation’ discusses the conditions under which Chinese engagement in Africa can play a catalytic role in Africa’s industrialization and structural transformation.


Author(s):  
Arkebe Oqubay ◽  
Justin Yifu Lin

The chapter pulls together the underlying themes, analytical perspectives, and pathways to Africa’s economic transformation, and the catalytic role of Chinese investment and trade for Africa’s industrialization and long-term growth. It also reviews FOCAC VII (September 2018) as signalling latest directions in China–Africa economic ties for the coming years. Economic ties between China and Africa have made a significant contribution to the economic transformation of Africa; however, the outcomes of these engagements are characterized by unevenness and shifting dynamics across different countries. Hence there is a need for evidence-based productive discourse that puts Africa’s transformation at the heart of the dialogue on China–Africa economic ties in the context of a changing international environment. Variations in proactive strategic approach, policy ownership, and implementation capacity are major drivers of this disparity. This chapter highlights China as a source of learning and argues that deepening the economic ties (Chinese FDI towards building productive capacity, trade imbalances, debt sustainability and alternative mechanisms, and strengthening of FOCAC) can have an important role in the economic transformation of Africa.


Progress in Africa’s economic growth in the new millennium has been uneven across countries, and has not translated into structural transformation. The same can be said about the evolving China–Africa economic relations. Although economic ties between China and Africa have made a positive contribution, the impact of this dynamic engagement has been uneven, shaped by variations in strategic approach, policy ownership, and implementation capacity among African governments. As China undergoes major economic rebalancing to upgrade to an innovation-driven economy, this is bound to affect China–Africa relations, offering both opportunities and challenges. Authored by leading scholars on Africa, China, and China–Africa relations, this volume brings together stimulating and thought-provoking perspectives, and deeper analyses on the evolving China–Africa relations. Focusing on Africa’s economic development, the volume looks at core areas of structural transformation: productive investment and industrialization, international trade, infrastructure development, and financing. China–Africa relations are considered in the context of the global division of labour and power, and the particular role of both China and the continent of Africa in the evolving global hierarchy. This volume seeks to fill the gap in the existing literature, steer policy and scholarly debate on the progress and trajectory of China–Africa cooperation, and analyse China’s development path as a source of learning for Africa.


Author(s):  
Manfred Knoche

Abstract: This paper discusses how the capitalist media industry has been structurally transformed in the age of digital communications. It takes an approach that is grounded in the Marxian critique of the political economy of the media. It draws a distinction between media capital, media-oriented capital, media infrastructure capital and media-external capital as the forms of capital in the media industry. The article identifies four capital strategies that media capital tends to use in order to try to maximise profits: a) The substitution of “old” by “new” media technology, b) the introduction of new transmission channels for “old” media products, c) the definition of new property rights for media sectors and networks, d) the reduction of production and transaction costs. The drive to profit maximization is at the heart of the capitalist media industry’s structural transformation. This work also discusses the tendency to the universalization of the media system in the digital age and the economic contradictions arising from it. It identifies activity fields of the media industry’s structural transformation and shows how the concentration of the capitalist media markets is an essential, contradictory and inherent feature of the capitalist media system and its structural transformation. The paper identifies six causes of why capital seeks to employ capital strategies that result in the media industry’s structural transformation. They include market saturation, overaccumulation, the tendency of the profit rate to fall, capital-concentration, competition pressure, and advertising. The paper finally discusses the role of the state as an agent of capital in general and media capital in particular. It discusses the role of the state in privatisations, neoliberal deregulation, the formation of national competitive states, and various benefits that the state provides for media capital. This contribution shows that capital and capitalism are the main structural transformers of the media and communications system. For understanding these transformations, we need an approach that is grounded in Marx’s critique of the political economy.Translation from German: Christian Fuchs and Marisol Sandoval


2021 ◽  
pp. 1-27
Author(s):  
Antonio Andreoni ◽  
Pamela Mondliwa ◽  
Simon Roberts ◽  
Fiona Tregenna

Structural transformation is a complex, long-term historical process entailing both structural change in the sectoral composition of an economy, as well as broader societal changes in the productive organizations, institutions, and political economy of a country. With a focus on South Africa as a middle-income country, this chapter advances a holistic and integrated perspective on the nature and dynamics of structural transformation and highlights a specific set of interlocking critical factors and dimensions. These are: the processes of learning and productive capabilities development and accumulation; technological change—digitalization, specifically—and its relationship with sustainability; power dynamics along global value chains (GVCs) and their relation to inequality; and finally, the political economy of development and the role of the state. Over the course of its democratic history, since 1994, South Africa has not undergone sustained and thoroughgoing structural transformation. Despite some areas of partial success, there has been premature deindustrialization, lack of sufficient development of the local production system alongside integration into GVCs, and persistent cross-cutting challenges of inclusiveness and sustainability. Here it is argued that the holistic and integrated framework developed by the authors can help in developing a policy approach towards effective and feasible packages of industrial policies for structural transformation.


2020 ◽  
Vol 53 ◽  
pp. 103-123
Author(s):  
Olefhile Mosweu ◽  
Donald Rakemane

Proper records management is central to the promotion of good governance. Africa is a continent which has generally been riddled with poor governance. Principles of good governance such as accountability, transparency and the rule of law are ascertained with available records. Poor records management practices promote bad economic practices such as corruption and fraud. An assessment of the performance of government can thus be realised through proper records management and access to information. Good records management practices therefore lead to good governance and vice versa; thus, the role of records management in promoting good governance cannot be overemphasised. However, there are some likely impediments that may hinder the promotion of good governance through records management in the African context. This paper explored the role played by records management in ensuring good governance in Africa. It then suggests strategies to promote good governance through proper records management practices. The paper contends that outdated archival laws, backlog of unprocessed records and absence of access to information laws in some African countries are the major impediments to the promotion of good governance. The paper recommends an amendment of outdated laws and the promulgation of access to information legislation as major initiatives, among others, which put records management in the forefront of promoting good governance in the continent.


Author(s):  
Hazel Gray

The terms of debate on the role of institutions in economic development are changing. Stable market institutions, in particular secure private property rights and democratically accountable governments that uphold the rule of law, are widely seen to be a prerequisite for economic transformation in low-income countries. Yet over the last thirty years, economic growth and structural transformation has surged forward in a range of countries where market and state institutions have differed from these ideals, as well as from each other. This book studies the role of the state in economic transformation in two such countries, Tanzania and Vietnam. These were two of the poorest countries in the world in the early 1980s but, over the last thirty years, both have experienced significant changes in the pace and character of economic development. While both countries experienced faster rates of GDP growth, their paths of economic transformation were very different. Vietnam experienced rapid manufacturing growth and poverty reduction while Tanzania’s path of economic change was characterized by the rise of mining and a much slower pace of poverty reduction. Employing a political settlements approach, this book argues that their paths of economic transformation were mediated by the lasting influence of differences in the institutions and distributions of power that had been forged during the socialist period. The comparison generates new insights into the variable relationship between political order and economic outcomes.


2007 ◽  
Vol 60 (1) ◽  
pp. 1-36 ◽  
Author(s):  
Cathie Jo Martin ◽  
Kathleen Thelen

This article investigates the politics of change in coordinated market econo\mies, and explores why some countries (well known for their highly cooperative arrangements) manage to sustain coordination when adjusting to economic transformation, while others fail. The authors argue that the broad category of “coordinated market economies” subsumes different types of cooperative engagement: macrocorporatut forms of coordination are characterized by national-level institutions for fostering cooperation and feature a strong role for the state, while forms of coordination associated with enterprise cooperation more typically occur at the level of sector or regional institutions and are often privately controlled. Although these diverse forms of coordination once appeared quite similar and functioned as structural equivalents, they now have radically different capacities for self-adjustment.The role of the state is at the heart of the divergence among European coordinated countries. A large public sector affects the political dynamics behind collective outcomes, through its impact both on the state's construction of its own policy interests and on private actors' goals. Although a large public sector has typically been written off as an inevitable drag on the economy, it can provide state actors with a crucial political tool for shoring up coordination in a postindustrial economy. The authors use the cases of Denmark and Germany to illustrate how uncontroversially coordinated market economies have evolved along two sharply divergent paths in the past two decades and to reflect on broader questions of stability and change in coordinated market economies. The two countries diverge most acutely with respect to the balance of power between state and society; indeed, the Danish state—far from being a constraint on adjustment (a central truism in neoliberal thought)—plays the role of facilitator in economic adjustment, policy change, and continued coordination.


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