DOSSIER: Analysis: Behind China’s aid structure, IRIN - Humanitarian new and analysis
"China has at least nine kinds of aid," Deborah Bräutigam, a leading scholar on Chinese aid to Africa and a professor at the Johns Hopkins School of Advanced International Studies, notes in her book, The Dragon’s Gift. "Medical teams, training and scholarships, humanitarian aid, youth volunteers, debt relief, budget support, turn-key or ‘complete plant’ projects [infrastructure, factories], aid-in-kind and technical assistance."
The country gives money through three mechanisms: interest-free loans; grants; and preferential interest loans or tied loans, according to Xue Lei, a research fellow of Shanghai's Institutes for International Studies. "Most of the foreign aid is provided in the form of project aid," he told IRIN. (...) While the US Agency for International Development (USAID) and the UK’s Department for International Development (DFID) provide large amounts of funding to support government budgets in areas such as education, China prefers to instead to work on a single project, such as building a school, or provide scholarships to students to study in China. (...) "In many contemporary accounts of Western aid and capacity-building in Africa, there would not be a close connection between aid and trade," King writes in his book. China by contrast, sees a very important link between private business and aid. Indeed, this is a core element of China's official view to development. There are three main organs controlling Chinese aid: the Ministry of Commerce, the Ministry of Foreign Affairs and China's Eximbank. The State Council - China's cabinet - has oversight, and approves the annual budget, grants and aid projects over a certain amount, as well as aid to politically sensitive countries. The Ministry of Finance is also responsible for giving aid to multilateral organizations, such as UN agencies. The Ministry of Commerce (MOFCOM) is the principal institution for Chinese aid, and houses the Department of Aid. It is in charge of distributing all zero-interest loans and grants. The Ministry of Foreign Affairs coordinates with MOFCOM to decide aid allocations, and is the on-the-ground diplomatic point of contact for Chinese firms and interests in Africa. But the relationship between the two ministries is often tense, and, as experts have argued, conflicting interests between the multiple agencies sometimes hurts Chinese aid policy.
http://www.publicintegrity.org/2011/11/09/7108/china-based-corporate-web-behind-troubled-africa-resource-deals
ReplyDeleteChina-based corporate web behind troubled Africa resource deals.
Incomplete promises of public works cast doubt on Chinese firms.
In late 2010, Thiam flew several times to Madagascar with CIF representatives to negotiate with the government, which came to power after a March 2009 coup. He was a friend of the country’s mining minister, and CIF was interested in Madagascar’s Tsimoro oil field, which is estimated to have reserves of almost a billion barrels.
In January, the finance minister announced formation of the Madagascar Development Corporation. Registered in Singapore, the joint venture between the government and CIF was to be given priority in the exploration of oil and minerals.
http://www.globaltimes.cn/content/825381.shtml#.Uoo0OtK-q9e
ReplyDeleteEconomist Razaka Alphonse said, "Because China is very influential in the world trade and economy, the decision taken by China will also influence other countries, especially the poor countries."
The expert in sociology, Heriniaina Joseph, told Xinhua that China is a very populous country, which boasts a population of 1.3 billion out of the 7 billion in the world. "If its leaders do not know how to take adequate measures to establish peace in their country, it will be a big problem for the world. In my opinion, this is another way to avoid problems in China."
The CPC's decision on major issues concerning comprehensively deepening reforms was made public on Friday. It provides a roadmap for China's further development.
The Chinese community in Madagascar applauded the CPC's decision.
The CPC Central Committee decided to support the development of the private economy, and stimulate its vitality and creativity, according to an explanation of the decision made by Chinese leader Xi Jinping.
http://www.globaltimes.cn/content/825271.shtml#.Uoo1atK-q9c
ReplyDeleteThe key point in the economic reforms is the reduction of government intervention and letting market forces play a decisive role. The reforms will break local protectionism, strengthen anti-monopoly efforts and combat unfair competition.
"The reform of State-owned enterprises (SOEs) will be an important breakthrough," Chi Fulin, president of the Hainan-based China Institute for Reform and Development, told the Global Times Friday.
China has decided to allow more private capital into the market to develop a mixed ownership economy. Non-State-owned capital will be allowed to take equity stakes in projects featuring investment by State-owned capital, and employees of multi-ownership enterprises will be able to hold shares in their companies, the document said.
(..) One of the fiscal reforms included in the document is to step up legislation on the property tax as well as adjusting the scope of taxation to cover energy-consuming and high-polluting products.
A market-driven pricing mechanism is to be set up, and China will push forward pricing reforms on water, oil, natural gas, electricity, transportation and telecommunications, while government pricing is only constrained in important public utilities and public welfare, according to the document.
The document also states that China will further open up the financial sector to domestic investors. Under strengthened supervision, qualified private investors are allowed to set up small- and medium-sized banks.
It added that China will push forward financial reform including the liberalization of interest rates, and also accelerate the convertibility of the yuan.
http://www.cnbc.com/id/101205322
ReplyDeleteChina’s economic reforms: What you need to know...
1) One-child policy relaxed: The reason they (China's leaders) have to change the one-child policy is because China has aging population...
2) Welfare-system reformed: China said it would relax its system of household registration, known as the hukou system. Under this system, migrants give up the public services they are entitled to when they move to urban areas. Analysts say changing this system is a key step towards liberalizing the labor market, allowing the free movement of labor and encouraging urbanization.
3) Greater rights for farmers: ... farmers will be granted rights to "possess, use, benefit from and transfer their contracted land, as well as the right to use their land ownership as collateral or a guarantee.
4) Stepping up financial reforms: These include setting up a deposit insurance system by early 2014, giving qualified private investors the go ahead to set up banks, loosening controls on the pricing of water, electricity and natural resources and revamping the system for Initial Public Offerings (IPOs)
5) State-Owned Enterprises (SOEs): SOEs will be required to pay larger dividends to the government, with 30 percent of earnings from "state capital" to be paid back to the state and used for social security by 2020. Private firms, meanwhile, will be encouraged to play a greater role in the economy.