SouthSouth cooperation The Political economy of the internationalisation of Chinese capital in Africa through Special Economic Zones University of Adelaide Lee Kuan Yew School of Public Policy ID: 791835
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Slide1
Edson Ziso
Chinese-led South-South cooperation: The Political economy of the internationalisation of Chinese capital in Africa through Special Economic Zones
University of Adelaide
Lee
Kuan
Yew School of Public Policy
, May 25, 2014
Slide2INTRODUCTION
South-South co-operation is not new, but a
historical
continuity which has now reached very significant levelsCurrent co-operation led by ‘rising’ Southern powers (China, India…)Multifaceted layers of co-operation. This paper focuses on Special Economic Zones (SEZs)
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Slide3Methods
Case studiesChinese-led SEZs found
in
Ethiopia
, Mauritius, Nigeria (2), Tanzania, Zambia, Botswana, Sierra Leone, EgyptJiangsu/Eastern Industrial Park – Addis Ababa, Ethiopiaconstruction materials, Steel productsChambishi Industrial Zone – Chambishi, ZambiaCopper processing3
Slide4Framework
Internationalisation of capital Gonzalez-Vicente: “Internationalisation of the
Chinese
state” Glassman: “internationalisation of clases of capitalist society” Bryan “… nation state ensures… the reproduction the class relations of capitalism”4
Slide5Framework (cont.)
2. International Political EconomyIs South-South co-operation a ‘win-win’ arrangementGlobalisation with Chinese
charactersistics
Are there winners only?
Or are there losers as well? Who wins, who loses?5
Slide6Findings
Chinese offshore SEZ policy-making is strategic
(
Ethiopia
is Africa-strategic diplomatically and politically)Spread of soft power Overprotection of State Owned Enterprises in China Resistance/restriction of foreign firms in ChinaChinese firms relocate to Africa and establish SEZ for their own survivalEthiopia and China
too
weak
(
politically
and
institutionally
) to
negotiate
better
deals with China
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Slide7Findings cont.
South-South co-operation is very much elite-based (fractions of capital) linked politically, state-state (Communist parties)A challenging new frontier of governancePublic sector/private sector paradoxShare of local investors is very low
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Slide8Some implications
ChinaDomestic pressure at home of soiled image abroad?Inefficient enterprises due to overprotection
Export of jobs abroad
‘Win-win’ not guaranteed but either way, China ‘wins’
China will always not want a common African position towards Beijing (hypothesis)8
Slide9Ethiopia/Zambia
No accountability in the case of SEZ failureReal economic benefits continue to accrue to those in the ‘big tent’Private sector blurred
Democratisation of the state compromised (not a priority)
Positives like technology transfer but still minimum benefit
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Slide10Tatenda
, Siyabonga, Amesa gena
lo, Thank you!
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