Analyzing The Future of Angola's Economy via Chinese investment

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TABLE OF CONTENTS

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

REFERENCES10

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. 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 (Aguilar, Goldstein, 2009, 709). 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.

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 (Tull, 2006, 479). Though the nation is an attractive partner, it's questionable human rights record and dictatorial style has raised many concerns about its flourishing courtship of Africa. Many of these concerns are rooted in the fact that Africa is a resource rich continent, but still poor because of historical problems with colonialism, bad governments, and mismanaged economies. Sparks, (2008, 223) posits that a long and disturbing history with outside powers exploiting the continent for its natural and human resources in furtherance of their own economic and developmental objectives is still fresh in the minds of Africans. Thus, the acceleration in trade from 2000 to the present between Angola and China has many questioning the motives of the Chinese government. Most notably among those questioning this relationship is the United States and other Western Nations. Brown, (2001, 236) lends credibility to these countries concerns by noting that China's relationship may be viewed as a legitimate attempt to counter prolonged Western political and economic dominance in the region. Regardless of the motive, Chinese influence in the region is undeniable. Giving the importance of the transformation of Angolan-Chinese relations, my research takes in depths look at how the partnership between the countries has served as a catalyst of economic growth and development within Angola.

Africa is well endowed with natural resources. China has enormous resource demands. China's entry into sub-Saharan Africa is driven not only by demand but also by strategy. For example, unlike countries that invest in natural resource industries, like Canada and Brazil, most resource-rich African countries are less likely and often unable to productively exploit their own resources (Bukarambe, 2005, 236). Chinese investors have progressively filled that gap and become increasingly active on the continent. In Zambia, for example, Chinese extraction companies have doubled copper production in less than ...