ARTICLE: "China Competes With West in Aid to Its Neighbors," by Jane Perlez, New York Times, 18 September 2006, p. A1.The new face of Chinese foreign aid is described quite simply as "difficult construction in remote places that benefits the recipient, and China, too."
SysAdmin on the cheap. Development-in-a-cardboard-box.
Sitting on nearly a trillion U.S. hard currency reserves, China is learning to make friends throughout Asia, handing out big loans "that used to be the sole preserve of the World Bank, the Asian Development Bank, the United States and Japan."
Interesting division of labor here, yes?
China feels incompetent (for now) to direct investments in its own country, so it recycles a huge chunk of that money into U.S. financial markets, which then choose how to invest in China--for China.
Meanwhile, the U.S. and the Old Core in general beg off the SysAdmin-type work in the Gap, instead outsourcing that function--somewhat unwittingly--to the Chinese through our massive trade imbalances with China.
China outsources the Leviathan role to the U.S. (it prefers to free ride on major security issues) and the U.S. outsources the SysAdmin-style dirty, dangerous and difficult development jobs to China. Our chocolate, their peanut butter.
I know, I know. Impossible and unwise and inconceivable to unite such efforts in some larger understanding of shrinking the Gap. I mean, the Chinese would never get that notion, and when their top energy guy suggests the U.S. and China jointly explore and protect raw material reserves in the Gap, he's just whistling Dixie.
So I ask you, as people so often ask me: Where are we going to find the money and the people willing to engage in this tough nation-building in these remote locations?
As the story states:
Beyond its no-strings approach, China is often appreciated as a donor by poor countries because it is willing to take on complicated projects in distant areas that others are not.And yet China would never consider sending its troops abroad for anything like the Leviathan function that the U.S. military so excels at.
So again, look at Sudan: U.S. balks at sending any troops and China balks at having its aid held up. China suggests the U.S. and China should cooperate on securing energy assets in dangerous places. Only America is willing to send forces into truly dangerous locations and only China is willing to make big projects happen in remote locations.
Ah, but such logic clearly makes me a panda-hugger. I guess I'll just have to wait until I sit down next with the Chinese in Beijing in late October.
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Comments (5)
Sounds like the outbrief from the 2005 "New Map Game", when Team Gold (China) took the SysAdmin "dirty work" while Team Blue (U.S.) wallowed in debate.... :-)
Posted by shane deichman | September 23, 2006 5:05 PM
China's investment in Africa will be an interesting social experiment.Western governments have always been politically cornered into putting the cart before the horse. In general, the recipient country has to meet minimum standards for democracy and human rights before aid can be sent. Of course, they can't get to that standard without aid.
It would be a great irony if China, not highly regarded for democracy or human rights, ends up being the catalyst for Africa's economic and political progress.
Posted by Jeff | September 23, 2006 6:14 PM
I JUST HOPE YOU RUN FOR PRESIDENT IF YOU DONT WE ALL LOSE PLEASE THINK ABOUT YOUR WISDOM AS POWER TAKE A FLIGHT TO CHINA NOW AND LETS BEGIN.
Posted by UNKNOWN | September 23, 2006 6:29 PM
Maybe we should invite the Chinese to rebuild Iraq.
Posted by Gerry | September 24, 2006 2:07 AM
China is wise to cycle its huge trade surpluses through US banks back into investments in China. The US banking system is pretty transparent and there are things like Sarbanes-Oxley.
The Chinese banks are notoriously corrupt and opaque. When they eventually melt down, China will avoid a whole lot of pain and instability if their exposure to the Chinese banks is minimized.
In their search for energy sources, China can build Brazilian type sugar refinery/ethanol production plants anywhere that sugar can be grown. As ethanol is mixed with motor fuel and consumed locally, the foreign exchange that does not need to be paid for petroleum can be used to buy stuff from China. That also decreases demand for oil and lowers the price that China has to pay for it.
As the African production of ethanol increases, China gains an alternative source of motor fuel.
Posted by Mark in Texas | September 25, 2006 11:46 PM