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theeconomist: Daily chart: world peace. This global peace index...

Sun, 17 Jun 2012 21:09:30 -0300

Daily chart: world peace. This global peace index produced by The Institute for Economics and Peace, a think-tank, is composed of 23 indicators ranging from murder rates to weapons imports to conflicts being fought. It throws up some surprising results, such as that China was more “peaceful” than America in 2007.

Note that Brazil improved :]

theeconomist: Daily chart: America vs China. America’s economy...

Sun, 17 Jun 2012 21:06:06 -0300

theeconomist:

Daily chart: America vs China. America’s economy made up 22% of world GDP in 2011; China’s just 10%. The perception in some countries that America is no longer the world’s pre-eminent economy is therefore somewhat premature. Nevertheless, on current trends China will surpass America somewhere around 2018.

How strong is China’s economy?

Thu, 31 May 2012 21:16:00 -0300

How strong is China’s economy?:

CHINA’S weight in the global economy means that it commands the world’s attention. When its industrial production, house building and electricity output slow sharply, as they did in the year to April, the news weighs on global stockmarkets and commodity prices. When its central bank eases monetary policy, as it did this month, it creates almost as big a stir as a decision by America’s Federal Reserve. And when China’s prime minister, Wen Jiabao, stresses the need to maintain growth, as he did last weekend, his words carry more weight with the markets than similar homages to growth from Europe’s leaders. No previous industrial revolution has been so widely watched….

(…) Unlike the tigers, China relies very little on foreign borrowing. Its growth is financed from resources extracted from its own population, not from fickle foreigners free to flee, as happened in South-East Asia (and is happening again in parts of the euro zone). China’s saving rate, at 51% of GDP, is even higher than its investment rate. And the repressive state-dominated financial system those savings are kept in is actually well placed to deal with repayment delays and defaults.

Most obviously, China’s banks are highly liquid. Their deposit-taking more than matches their loan-making, and they keep a fifth of their deposits in reserve at the central bank. That gives the banks some scope to roll over troublesome loans that may be repaid at a later date, or written off at a more convenient time. But there is also the backstop of the central government, which has formal debts amounting to only about 25% of GDP. Local-government debts might double that proportion, but China plainly has enough fiscal space to recapitalise any bank threatened with insolvency.

That space also gives the government room to stimulate growth again, should exports to Europe fall off a cliff. China’s government spent a lot on infrastructure when the credit crunch struck its customers in the West. But there is no shortage of other things it could finance. It could redouble its efforts to expand rural health care, for example. China still has only one family doctor for every 22,000 people. If ordinary Chinese knew that their health would be looked after in their old age, they would save less and spend more. Household consumption accounts for little more than a third of the economy.

foreignaffairsmagazine: Threat Inflation with Micah Zenko After...

Mon, 14 May 2012 19:11:26 -0300

foreignaffairsmagazine:

Threat Inflation with Micah Zenko

After yet another foiled terrorist plot, what does the United States really have to fear? Editor Gideon Rose discusses “threat hyping” with author Micah Zenko, who argues that the nation is much safer than politicians and government officials would lead the public to believe. A near-nuclear Iran, unstable Middle East, occasionally aggressive Russia, and unstoppable China do not, in fact, pose these often cited dangers. Cutting military spending should not incite such anxiety, when even international terrorism does not qualify as a real threat to the existence or freedom of the United States.

Avoiding a Zero-Sum Game in Africa

Sun, 06 May 2012 10:00:48 -0300

Avoiding a Zero-Sum Game in Africa:

China and the U.S. are often portrayed as struggling for influence around the world. But to look at it this way is to risk a self-fulfilling prophecy, as this view implies that international relations are a zero-sum game and are, in fact, about being “either with or against” one or the other. European countries do, for instance, have quite elaborate contacts with Beijing – and the U.S. does not see that as a power struggle about influence there.

African states are enjoying the liberty to broaden the scope of their external relations, going beyond the limitations that the U.S.-Soviet cold war inflicted on them. This has several aspects: First, it is comforting to be in demand by numerous partners and to see some more options beyond the previously marginalized position. Second, it gives additional choices and makes international relations more complex, but also more flexible. Third, most African states do not want to throw themselves at either the U.S. or China, but want to be members of the international community with diversified foreign relations.

Thus, to avoid a U.S.-China “cold war,” we should ensure that African states do not face an either-or choice. The development toward a more multipolar world is a fact of life, with not only China but also India, Brazil, Indonesia, South Africa and others playing an increasingly important role in their regions and globally. This might be making the world a less predictable place, as there is more than one or two actors to consider. But it is the world beyond the cold war. We should engage constructively with it — and leave African states their choices in this world.

foreignaffairsmagazine: If Walmart were a country, it would be...

Thu, 03 May 2012 21:21:34 -0300

foreignaffairsmagazine:

If Walmart were a country, it would be China’s sixth-largest export market.

Giving is an aid to prosperity

Sun, 29 Apr 2012 12:25:55 -0300

Giving is an aid to prosperity :

There shouldn’t need to be a debate about whether China should provide economic aid and technical assistance to other countries. Yet voices have been raised in recent years decrying China’s foreign aid as an unnecessary face-saving project that it cannot afford. These naysayers argue that China is still a developing country with a large poverty stricken population and can’t afford to give aid on such a large scale, and that aid is not an effective way to develop diplomatic relations as some recipient countries have turned against China.

But such arguments are false. Aside from humanitarian reasons, foreign aid to other countries is necessary for the survival and development of China. This can clearly be seen if we take the historical background into account.

Foreign aid played an irreplaceable role in helping China to break the trade embargos imposed by both the Western and Eastern blocs soon after the People’s Republic of China was founded. It enabled the country to make friends and deepened mutual understanding with many other developing countries and their people…

China’s film market is proving tough for foreign studios to crack

Sun, 29 Apr 2012 12:22:20 -0300

China’s film market is proving tough for foreign studios to crack:

China is now the world’s second-biggest film market after America. It has a booming home-grown film industry, making historical dramas and romantic comedies, but foreign blockbusters are the big money-earners. Although most films are pirated on release and viewed online and on dodgy DVDs, the rising middle classes are increasingly willing to fork out for a night at the cinema. Last year China’s box-office take rose by more than 30%, to over $2 billion, according to the Motion Picture Association of America. The number of cinema screens in China has doubled in five years, to nearly 11,000—again, second only to America. China’s box-office revenues may overtake America’s by 2020.

Yet China will not grant Hollywood the access it desires. Until recently only 20 foreign films could be screened at Chinese cinemas each year. In February the number increased to 34—though only if the extra 14 are shown in 3D or large format.

How Not to Write About Africa: The media shamefully neglects Africa -- until it decides to swarm a story with terrible coverage.

Thu, 26 Apr 2012 14:53:47 -0300

How Not to Write About Africa: The media shamefully neglects Africa -- until it decides to swarm a story with terrible coverage. :

There is an easy solution to this problem: Hire local reporters. One notable exception to the history of poor coverage of Africa is the BBC, whose World Service has long maintained correspondents in most of the continent’s capital cities. Although the World Service’s budget has been slashed repeatedly due to declining government support, the BBC has managed to keep much of its Africa coverage afloat by relying largely on local reporters to get the story. This has been particularly important in Somalia. For two decades, it has been nearly impossible for Western reporters to fully and freely report from Somalia due to safety concerns, but the BBC Somali Service’s team of local correspondents and producers do an excellent job of getting the news out from their own country. There’s no reason that other major media providers couldn’t hire local reporters to improve their coverage as well. Rather than relegating them to second-tier or co-author status, why not hire Africans as country or regional correspondents? A reporter does not have to be Caucasian to provide objective and well-written reporting from the continent, and in many cases, this reporting is more nuanced than that of an international correspondent who spends five days reporting a story. For example, by far the most thoughtful reporting and analysis on Ugandan reactions to the Kony 2012 viral video came not from American journalists, but from Ugandan reporter Angelo Izama who, to the New York Times’ credit, was able to publish an opinion article in its pages. Why can’t the Times hire Izama or someone equally qualified to report on Uganda full time?

China creates jobs in Africa while the West continues to sleep

Wed, 25 Apr 2012 12:39:20 -0300

China creates jobs in Africa while the West continues to sleep:

While western nations are reluctant to open up trade with Africa and prefer to support the Continent by donating money to poor countries, the Chinese have taken a different approach. There is an old Chinese saying that goes: “Give a man a fish, you feed him for a day. Teach a man to fish, you feed him for life.” China is living up to that mantra and has dominated Africa in every aspect.

The West is baffled as to how deeply embedded China’s tentacles have become in Africa, in such a short period of time. The Chinese have succeeded in investing in Africa’s infrastructure and are also training African workers to prepare them for the job market. This approach has yielded trust between native Africans and the Chinese, because Africans do not view Chinese as attempting to recolonize them.

The West on the other hand is not trusted by native Africans. Every move is second-guessed. Every donation is looked at suspiciously with the recipients wondering when the strings attached to each donation will be pulled. The Chinese have refrained from sending any military-related assistance to the Continent…

A Study of Chinese Traders in South Africa, Lesotho, Botswana, Zambia and Angola

Mon, 23 Apr 2012 14:16:00 -0300

A Study of Chinese Traders in South Africa, Lesotho, Botswana, Zambia and Angola:

The ‘China in Africa’ story brims with ambivalence and ambiguity. Nowhere is this more evident than on the African street. The influx of Chinese products and the proliferation of small Chinese enterprises are affecting ways of life in African towns and cities, but exactly how and to what extent is hotly contested. Their presence has sparked outbreaks of xenophobic violence, led to increased competition with local businesses and prompted calls for tougher regulation and government intervention. They have become the whipping boy for Africa’s politicians, merchants and labour unions upset by Beijing’s growing ties to the continent. However, Chinese traders have also afforded millions of African consumers the opportunity to purchase a range of goods for the first time.

This study is perhaps the first to investigate and compare the perceptions of Chinese traders in a systematic way, across several African countries.

Western discourses on the Chinese presence in Africa

Sat, 21 Apr 2012 14:09:40 -0300

Western discourses on the Chinese presence in Africa:

Elevator conversations can tell us a lot about public discourses. I recently struck up a conversation with a man in an elevator. When I told the man that my job entailed researching the Chinese presence in Africa, he responded with the comment: “We’d better keep an eye on them, soon they will be taking over the entire continent”. His response did not shock me if only because it was the most recent of a litany of like-minded comments I had heard since my return to South Africa a few months ago. Similarly, in my preced-ing years spent in the United Kingdom, protests of “neo-colonialism”, “exploitation” and “propping up tyrants” arose almost as knee-jerk reactions to the topic of China-Africa relations.

theeconomist: Daily chart: internet economies. Britain’s...

Wed, 18 Apr 2012 23:32:14 -0300

theeconomist:

Daily chart: internet economies. Britain’s internet economy is now bigger than its construction and education sectors. But Europe as a whole punches below its weight, mainly because its internet economy is held back by a lack of a single digital market.

China sets fund for new aims in Africa

Fri, 13 Apr 2012 19:53:38 -0300

China sets fund for new aims in Africa:

The China-Africa Development Fund is shifting its investment strategy with the focus now on infrastructure, manufacturing and agriculture, after a capital injection of $2 billion, Hu Zhirong, vice-president of the fund, said.

Besides energy and resources, the fund is looking at projects in “infrastructure, manufacturing, new energy and agriculture”, to boost Africa’s standard of living, he said in an interview.

Trade Gains Put China in Quandary

Wed, 11 Apr 2012 13:50:00 -0300

Trade Gains Put China in Quandary:

After months of weakness in overseas demand, especially from Europe, Chinese exports finally seem to be recovering. But now the country’s domestic economy is looking a little less robust.

Exports surged last month, helping to produce an unexpected trade surplus of $5.35 billion in March, according to government data released Tuesday.

But imports grew lethargically, a warning sign for a domestic economy where government policies have aimed to deliberately deflate a real estate bubble and as a growing number of wealthy Chinese appear to be moving money out of the country…

Could Africa Take 85 Million Jobs from China

Fri, 06 Apr 2012 14:46:50 -0300

Could Africa Take 85 Million Jobs from China:

The World Bank has said it’s in very early stage talks on cooperating with China to promote the transfer of low-value manufacturing jobs to Africa.

“Our forecast is that China will likely shed some 85 million manufacturing jobs in the coming years because of fast rising wages for unskilled workers, which could be an economic bonanza for Africa,” noted Mr. Moustapha Ndiaye the World Bank Uganda Country manager.

How Can Africa Compete With China?

Thu, 05 Apr 2012 23:41:40 -0300

How Can Africa Compete With China? :

It is accepted wisdom among economists that no country can out-compete China — it will always be cheaper, faster and tougher than any other. No matter how technologically sophisticated a country’s industries are, when their Chinese peers enter the market, they can out-price, out-speed and out-live anyone. If that’s the case, Africa has a big problem. Its hope of selling something aside from oil, gas and minerals — something that creates enough jobs — lies in the type of low-skilled manufacturing where China rules. Game over? Not quite.

Angola’s Labour Pains

Thu, 05 Apr 2012 13:46:00 -0300

Angola’s Labour Pains

Sino-Americana

Wed, 04 Apr 2012 12:24:01 -0300

Sino-Americana:

Books about China, popular and scholarly, continue to pour off the presses. In this ever expanding literature, there is a subdivision that could be entitled ‘Under Western Eyes’. The larger part of it consists of works that appear to be about China, or some figure or topic from China, but whose real frame of reference, determining the optic, is the United States. Typically written by functionaries of the state, co-opted or career, they have as their underlying question: ‘China – what’s in it for us?’ Rather than Sinology proper, they are Sino-Americana. Ezra Vogel’s biography of Deng Xiaoping is an instructive example. Detached for duties on the National Intelligence Council under Clinton (he assures the reader that the CIA has vetted his book for improper disclosures), Vogel is a fixture at Harvard, where the house magazine hails Deng Xiaoping and the Transformation of China as the ‘capstone to a brilliant academic career’.

What’s (still) wrong with ACTA

Wed, 04 Apr 2012 12:21:13 -0300

What’s (still) wrong with ACTA:

There have been demonstrations in European cities, a petition by 2.5 million people and resignations by officials involved with the passage into law of the Anti-Counterfeiting Trade Agreement (ACTA). The opposition is growing. Several countries (Germany, Latvia, Poland, the Czech Republic, Slovenia, Romania, Bulgaria and the Netherlands) have expressed their concerns. And now the European Commission, once a supporter, has withheld its signature and referred the draft law to the European Court of Justice to rule on whether ACTA could deny fundamental freedoms.