China in Africa; helping or hindering?

This year's Fairtrade Fortnight may be drawing to a close, but the noise it has generated in the UK alone will resonate for a long while.  Fairtrade Fortnight has highlighted how important trade is to Africa and if China's presence in Africa is anything to go by, the Chinese could help many African countries take advantage of this over the coming years.

Last November, China was looking to “bolster its African presence” by holding the fourth ministerial conference of the Forum on China-Africa Cooperation (FOCAC) at Sharm el-Sheikh.  In an interview with Chinese news agency Xinhua, Chinese Ambassador to Egypt Wu Chunhua said, “The conference will be held to comprehensively evaluate the achievements after the Beijing summit of the FOCAC in 2006 and draw up a plan on China-Africa cooperation for the next three years."  Wu believes that the conference will solidify any relations China has with Africa to “maintain and further bilateral ties”.  So what did they achieve? 

According to their website, FOCAC agreed that they would try to strengthen the "China-Africa strategic partnership through the announcement of eight new measures related to investment, aid, trade, cultural exchange, etc."  It is unclear, even on their website, exactly what these eight strategies are.  They have however, outlined areas they will be offering to support Africa in; by providing $10 billion in concessional loans, and pledging in "zero-tariff treatment on 95 percent of products from the least developed African coountries".  FOCAC also agree to "promote cooperation" in Africa through agriculture, infrastructure, ecological and environmental protection, and social welfare.

Many experts from the African countries involved with FOCAC agree that the relationship is wholly positive and that the suspicions arise from rival trading countries in the West.  Doctor Flora Musonda, Director of Trade for the East African Community, believes the relationship is nothing but beneficial to African markets.  “China’s prominence in Africa is a good thing as it diversifies the source of imports-exports markets and also foreign direct investment,” she argues.  “China is assisting many African countries in terms of infrastructure development such as roads, dams, buildings and trade.”

As Chinese-African business deals go from strength to strength, the unlikely alliance of China and Zimbabwe comes under closer scrutiny as China struggles to keep its promise of separating business and politics.  Late last year, Zimbabwe was granted a $950 million “credit line” from China to rebuild its economy.  Prime minister Morgan Tsvangirai, who shares power with president Robert Mugabe said that the money would go to rebuilding Zimbabwe’s infrastructure.  According to Tsvangirai, at least $10 billion is needed to rebuild Zimbabwe’s “dilapidated infrastructure and ease a 90 percent unemployment rate”.

The Chinese have stepped in to befriend a government which many Western powers are hesitant to be associated with, thanks to Mr Mugabe’s tyrannical reign.  Zimbabwe is a country struggling with huge amounts of debt and under-paid civil servants and teachers.  China is the only country who has offered the ailing country help because it claims not to interfere with the politics of Mugabe.

The truth about Chinese presence in Africa remains somewhat of an enigma to Western powers, with experts arguing over whether China is attempting to colonise Africa, or whether they are simply capitalising on the natural riches it has to offer.   Of all the African countries, China’s presence has left their heaviest footprints in Zimbabwe, which critics have berated at length.

The Chinese-African relationship already caused controversy last year during the Darfur conflict, as China supplied the Sudanese government with arms and ammunition.  China has a colourful history of selling arms to Zimbabwe and Sudan regardless of a United Nations embargo.  The Chinese president Hu Jiantao’s blossoming friendship with Robert Mugabe has become a highly contentious issue since an incident before the Beijing Olympics in 2008 when the Chinese vessel An  Yue Jiang bound for Zimbabwe was forced to return home loaded with ammunition, rockets and mortars in total weighing 77 tonnes.  Many believed that the ammunition was Mugabe’s response to his loss in the general elections after 28 years in power. 

Vessels such as An Yue Jiang are seen frequenting African ports because China has been known to provide Mugabe and his government in Zimbabwe with high-tech, Chinese-built gunships aircraft and warships.  Mugabe is thought to be allowing Chinese investors access to Zimbabwe’s minerals and raw materials in exchange for civilian and military aircraft.  Mugabe’s 25 bedroom mansion in Harare was also built by the Chinese with help from the Malaysian government and has been estimated to have cost around $10 million while many Zimbabweans still live in poverty.  Unapologetically, Mugabe told New Zimbabwe, "It is lavish because it is attractive.  Of course it is lavish, the Chinese are doing the roofing. They are our good friends you see."

China has large stakes in Zimbabwe’s platinum mines as well as stakes in Zambian copper mines, and Angolan oil reserves.  According to the Council on Foreign Relations Africa holds only nine percent of the world’s oil reserves in comparison to the Middle East’s 62 percent.  Currently China imports a third of its oil from countries such as Angola, Nigeria and Chad.  Africa’s oil reserves are exclusively accessed by China due to their numerous investments and experts at the CFR say there could still be untapped oil reserves still out there.   Angola only recently leapfrogged Nigeria to become Africa’s top oil supplier, making China Africa’s top crude oil stakeholder, overtaking Iran.

In an effort to become the world’s economic powerhouse it appears China will not be apprehended by any international pressure to curb its ambitions.  Business relations with Africa’s tyrant Mugabe may just be the beginning of a series of controversial economic partnerships.

The Big Swap, it's not too late!

I just got back from a Fairtrade screening of Black Gold, the film made about how big a difference Fairtrade coffee makes to not just families in Ethiopia, but economically for the whole world.  Check it out, it might just change your mind and switch you over to Fairtrade for good.

Tonight, I may also have made a small breakthrough.  I asked a certain Starbucks-frequenting friend to accompany me to the screening, and while most friends excuse themselves one way or another, (so I braced myself for the answer) she, said she would "love to" attend.  I suppose it could have been the atmosphere and that everyone who had turned up for the showing of the film was a "Fairtrade activist" in one way or another, but I saw a change in her immediately after the film that no "preaching" (which I am guilty of when friends have urged me into a Starbucks) had ever successfully accomplished.  Seeing the film had demonstrated to her what my words were never able to convey, I believe.

The concern in her eyes as she turned to me and said, "I want to do something, but I don't know how," filled me with a hope which I had not felt for some time.  Then she voiced her fears.

"I see these things [happening in developing countries] and I want to help, but I have no idea how, so I tend to ignore the issue and carry on."

The idea had never occurred to me.  Education is the most valuable tool anyone can have, and Black Gold had opened my friend's eyes in a way I had never thought to.  I know many of my friends do not read this blog, but it had never occurred to me that they would not already know why fair trade is important and how it can change the economics of a developing country like Ethiopia.  I had always trusted my instincts and rather narcissistically believed that if people around me could see why I was passionate about something, then surely they could see its importance.

But not every consumer knows the impact, or the power they have over the coffee market for example.  That the deciding price of coffee beans are made not in Ethiopia, Kenya, or London, but at the New York stock market.  That coffee farmers in Rwanda were once denied a right to a fair price for their coffee beans because Starbucks refused to give them the trademark rights of the coffee they were selling on to their middle class customers.  That some coffee farmers get so little for every pound of coffee they sell that to translate that amount into English is impossible because there is nothing smaller than the pence in our language.  That a "fair price" does not mean enough money so that these farmers can go and buy cars, or big houses for themselves.  A "fair price" means enough money to provide enough nutritional food and an education for the members if their families.

My last comment then, is that once you know about something, it's even easier to do something about it.  The hard bit was discovering that something that you care about passionately.  Find that something, and hold on to it, whatever it is.  Research it, read up on it, act on it.

Because switching to buying Fairtrade really is just the first step.

Fairtrade isn't charity, it's justice.

Get involved in The Big Swap

Fairtrade Fortnight a roaring success

Though Fairtrade Fortnight is not officially over yet, it has been named as the most successful in promoting fair trade goods in all of Fairtrade Foundation's history. This year, over 20 villages, towns and cities have been certified Fairtrade and schools and committees up and down the country have been hosting Fairtrade fashion shows, proving support and awareness is steadily rising. Even Hadrian's Wall is officially certified Fairtrade as of this Fortnight.

The Fairtrade Foundation have also reported that "public loyalty" towards buying products at a fairer price for farmers, artisans, and producers in developing countries has increased, claiming even the tough economic climate has not hindered the "double-digit growth" of Fairtrade sales to £800m in 2009. With an extra £800m going straight into the pockets of farmers, factory workers, seamstresses and everyone involved in the Fairtrade process in a developing country, what's not to love about Fairtrade?

For anyone who's still unsure as to how to make the first step towards switching to a fairer product, start with the smaller pleasures in life - such as tea.  Whilst there are dozens of brands to choose from, you only have to look a little closer when doing your weekly shop to see ethically traded tea is easily bought for almost the same price as non-ethical brands from your local supermarket.  Brands such as Yorkshire Tea, Clipper (who are incidentally the very first Fairtrade certified tea in the UK), and Traidcraft to name just a few are doing their bit for their tea pickers, which means a fair wage, no pesticides, and investing money back into their local community.  100 percent fair for everyone involved.

Fairtrade fashion's image long ago lost its itchy hemp and stuffy anorak image, as it emerges stronger than ever this year thanks to a successful seventh season of London Fashion Week's ethical fashion exhibition Esthethica (sponsored by Monsoon and co-curated by Orsola de Castro and Filippo Ricci), which ensured dozens of high fashion ethical labels such as Angel Jackson and Noir showcased their goods.  Ethical fashion publicity has also been successfully drummed up this Fairtrade Fortnight by a certain Harry Potter actress. While I don't believe for a second Miss Watson single-handedly "designed" the pieces for the "Love From Emma" line at People Tree, anyone who is willing to raise awareness of the fact that workers in the clothing industry from developing countries are typically paid 5p an hour and work 80 hours a week, deserves a mention this Fortnight - especially since she is one of the first in her generation to lend her name to such a cause.

If People Tree's designs don't work for you, or what you do want is out of stock (as is quite often my case) why not try Bibico, Aura Que, Lowie, or Tara Starlet for some ethically made, lovingly-crafted, vintage, wooly and guilt-free shopping delivered to your door?  You know you want to, especially since their sales stuff is smoking hot and affordably so!

Just remember, Fairtrade Fortnight is about giving as well as receiving, so start receiving now =).