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Political Economy

While Sweden and Europe stand by and watch African, China and the BRICS countries are poised to exploit

Tuesday, 26 March 2013
Africa is not really the Dark Continent as was previously known and disseminated in Europe and the West. But the way people of the rich countries continue to see Africa is evident of their interest when it comes to business. Governments and organisation in the west still look at Africa as a place for economic aid rather that a continent that could be ready for some real big business.

As Sweden and the rest of Europe lag behind, the emerging great economic forces of the world, led by China and the other BRICS countries see the potential that lurks in Africa and are coming to the continent with force.

One example is that the new Chinese leader, Xi Jinping has made one of his first visits to Africa pushing the Western countries and America to the rear of his country's agenda. Chinese President arrived in South Africa Monday for a state visit to promote bilateral ties and for a summit of the BRICS countries.

Today, the BRICS country, which is the economic association of some of the world's key emerging markets are meeting in Durban South Africa, which became a member of the BRICS countries.
"BRICS and Africa" - that is the title of the two-day meeting that begins today: Now the big countries in the BRICS wants to scoop the benefits of having invited South Africa as the fifth member country.

South Africa's economy is nowhere near as large like China or Brazil, but it is the gateway to Africa for the other big giants wishing to see how they can start prising the enormous wealth still lurking in Africa.
It should be recalled that Africa still has one billion potential consumers and rich and very attractive commodity assets sector.

China's growing trade with Africa in recent years is well known but now even the other BRICS countries want to take advantage of the economic opportunities on the continent, sometimes called the world's last growth market.

India, like China has interest of Africa's raw materials, such as the large gas deposits recently discovered in East Africa. The convenient short export distance across the Indian Ocean is one of the major drivers.

Brazil share a cultural heritage and thus has an edge in contacts with the former Portuguese colonies in Africa. Particular interest is in Angola which hopes to soon become the continent's largest oil exporter.

The meeting will discuss the increased investment in infrastructure in Africa, something that the continent badly needs, and that is also quite necessary for all who wish to trade with Africa, and able to access the oil, coal, copper ore etc.

However, the agenda which also contain very concrete proposal to start a BRICS Development Bank and a BRICS think tank initiative clearly shows that the economic powers such as China and Brazil are not only about trade and commodities exploitation. It looks like they are also about a new world order, where the countries with the fastest growing economies are looking to use their resources to create a world where they would likely have a more stronger bargaining power or influence.

Rolling around the African continent, it is easy to identify the effects of Chinese engagement in areas of road, schools, hospitals construction, and the flooding of goods from Chinese factories to the Africans.

Given the weak African political setups, wanton corruption, embezzlements, human rights abuses among others, who is there to act as a referee that what ever is gained from such co-operation will actually get to the people. Looking at the Chinese records, its just a matter of wait and see.
By Scancomark.com Team

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