Best Of The Web
“Some Western observers worry that this represents a new form of colonialism. Given the continent’s history with European conquerors and rich countries trying to cheaply exploit its natural resources, that suspicion is understandable. But although China can sometimes be predatory — for example, when uneconomical projects saddle African companies or governments with unpayable debt — the new African investment bears little resemblance to the colonialism of old.
Colonialism, and the pseudo-colonial exploitation that sometimes followed independence, was mostly about extracting natural resources (and sometimes slave labor). Although securing access to natural resources is surely one of China’s goals, its investments in Africa go beyond extractive industries. The sectors receiving the most Chinese money have been business services, wholesale and retail, import and export, construction, transportation, storage and postal services, with mineral products coming in fifth. In Ethiopia, China is pouring money into garment manufacturing — the traditional first step on the road to industrialization.
Receiving foreign investment isn’t the only way that a country can industrialize. But as China itself has shown in dramatic fashion during the past few decades, attracting foreign capital can be a key part of an effective growth strategy. When a company from China — or the U.S., Japan, France or elsewhere — employs Africans to make clothes, program software or build houses, African workers immediately share the benefits. This also provides income to local African entrepreneurs, who create new businesses to sell things to the foreign companies and their employees.
And if countries are smart about appropriating foreign technology, it can lead to long-term productivity increases as well. As Africans learn techniques, ideas and tricks from foreign companies (and invent new ones themselves), they will gain the leverage to capture an ever-bigger slice of the value that foreign investments create — and as their productivity improves, that value will grow in size. Meanwhile, African governments will control access to an increasingly large share of the world’s young customers, and will be able to use this leverage to extract ever-greater concessions — money, technology and favorable contract terms — from multinational corporations.
Instead of standing on the sidelines and wringing their hands over China’s investments, Westerners and people in other rich countries should be looking to copy or surpass China’s efforts to tap the final frontier of emerging markets.”
JJ Editor's Daily Picks
"As Europe moved toward war in the summer of 1914, two battleships were being built for the Ottoman Empire in British shipyards. Worried about signs of an Ottoman-German alliance, Winston Churchill, then first lord of the admiralty, seized the..."
"For most of this year, Joe Biden has strutted across stages in New Hampshire and Iowa, and at swanky fundraisers in New York and California, as if he were already the Democratic nominee. Questions about attacks from his rivals were, more often..."
"A vast city that may have had as many as 1,500 to 3,000 inhabitants in its heyday 9,000 years ago was part of a sprawling Neolithic network of barter. Fresh findings in the mega site at Motza, the Jerusalem foothills, include an obsidian blade..."
"Befitting Stranger Things’ loving ode to the ’80s, the golden age of merchandising, there sure is a lot of Stranger Things crap for sale. Need a copy of Hopper’s Magnum P.I.–inspired Hawaiian shirt for your own date night? Provided you’re not...."
"Big Government lobbyists and entrenched bureaucrats are predictably hysterical about a common-sense congressional push to improve transparency and accountability about wasteful taxpayer-funded monkey experiments. They’re worried that once..."
"The economic summit in Bahrain organized by the Trump administration last month was the latest example of how Israel’s hi-tech industry created new diplomatic opportunities for a country with no apparent natural resources. While Israel had no..."
"The early ‘90s, famously, saw the “End of History,” as it was dubbed by the right-Hegelian political theorist Francis Fukuyama. With the collapse of the Soviet Union and thus the ostensibly final victory of capitalism and liberal democracy..."
"“Almost all books of aphorisms, which have ever acquired a reputation, have retained it,” John Stuart Mill wrote in 1837, aphoristically—that is to say, with a neat if slightly dubious finality. (“How wofully the reverse is the case with systems..."
"While we can easily misjudge, misunderstand, or even avoid a pregnant individual’s experience of miscarriage, we can also forget that the loss of a pregnancy may impact a wide range of other people too. There’s usually one other person..."
"I have never tried psychedelic drugs, but I imagine the experience is a lot like drinking a Starbucks Frappuccino. Strange sensations, unnatural colors, increased heart rate, heightened emotions, paranoia: It’s all there in that plastic cup..."
"Fifty years ago this week, more than a million Americans drove, flew and even boated to Florida’s Cape Canaveral to witness the launch of Apollo 11, which would culminate four days later on July 20, 1969, with America’s victory over the Soviet..."
"The incidents now pass without much notice, a steady, familiar drumbeat of violence and hate targeting visibly Jewish people in New York City. Early on the morning of June 15, a Saturday, two men in a white Infiniti drove around Borough Park..."