Analyzing The Future of Angola's Economy via Chinese investment

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ACKNOWLEDGEMENT

I would like to thank my supervisors, friends and family, without their support this research study would not have been possible.

DECLARATION

I adjudge that the entire content of this dissertation is entirely my own work; the content used in this dissertation has not been submitted before in any educational institution and represents my own opinion.

Signed __________________ Date _________________

ABSTRACT

In this research study the aim of the study is to find out the role of Chinese investment towards Angola's economic development and prosperity. The study analyzes the current state of Angola's economy. This study focuses on the realist approach theory. Enormous evidence shows that Chinese presence on the African continent, especially in the country of Angola, is fuelled by it increasing growth rate and has produced some economic benefits. With Angola focusing on its ultimate goal of poverty reduction by 2020, some investments made by the Asian Giant in the country are increasing the likelihood for Angola to achieve that goal. Thus, the facts and figures suggested that the Chinese investment in Angola leads to its economic development and prosperity and in future if developed countries like china, US and EU countries make investment here then its economy gets developed.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the study1

Investment and Aid3

African-Chinese relations4

Aim and objectives7

Aim7

Objectives7

Significance of the study7

Research questions8

Dissertation layout8

CHAPTER 2: LITERATURE REVIEW10

FDI and Economic Growth10

Foreign Direct Investments and the Private Sector as Agents of Economic Growth in Developing Nations11

South-South Collaboration for Building Science and Technology in Africa14

China's Aid to Africa 1980s to 1990s15

Sino-African developments16

Theoretical framework18

The Investment Development Path Theory (IDP)18

Realist Theory20

CHAPTER 3: METHODOLOGY21

Research design21

Data collection22

Secondary Research Methods22

Sources for searching literature23

Reliability and validity23

Validity23

Using keywords24

Time table24

Gantt chart24

Summary and Transition25

CHAPTER 4: ANALYSIS AND DISCUSSION26

China and Development in Africa26

The oil factor in Sino-Angolan relations: Bilateral trade27

Human Security and the Resource Curse28

China's Development Aid30

Non-Interference Policy32

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS34

Recommendations37

REFERENCES39

CHAPTER 1: INTRODUCTION

Background of the study

Since the wave of African independence in the 1960s, Angola has served a leading role in influencing and shaping the political climate on the continent (Moss, 2007, 303). In spite of its rich natural resources, fertile agricultural lands and a politically stable government at the time of independence, Angola is currently counted among the most corrupt and poverty stricken African countries (Ministry of Commerce, 2009, 80). The country's economic instability as noted by the rising unemployment, high poverty level and crumbling infrastructure, has limited its political capital and created a situation in which the international community has neglected to listen to and engage the country's concern (Downs, 2007, 68).

In 2007, the country outlined a seven point agenda that aimed to address its declining economy and enhance its standing in the international community. Proponents of the agenda believed that these goals could be accomplished by forming partnerships with other nations, most notably China. China has the world's largest population and has recently attempted to sustain its economic growth by forging relationships with resource rich African nations. Though the nation is an attractive partner, it's questionable human rights record ...