What should Washington's relationship with the developing World be?

[KingJaja]

$210 billion sounds like a lot until you realize that total US foreign trade in 2013 was over $5 trillion; China was over $4 trillion. African trade is a drop in the bucket.

That isn't how business men think

$210 billion could grow to $1 trillion in ten years if trade is aggressively pursued.

[Dayuhan]

$210 billion could grow to $1 trillion in ten years if trade is aggressively pursued.

It might, and it might not. Africa is seen as a high risk investment destination in the US, and there are many other places in the world (SE Asia and Latin America among them) with equal growth potential and far lower perceived risk.

Again, for trade to flourish there has to be some level of compatibility in the markets that are trading: you have to have something they want, and they have to have something you want. The Chinese and African economies are compatible in many ways: China imports large quantities of hydrocarbons and basic industrial raw materials. US demand in these areas is much lower and can generally be satisfied closer to home. China exports huge quantities of low cost manufactured goods, from textiles to machinery, that are in high demand in cost-sensitive developing countries.

In most of Asia Chinese goods are universally seen as being cheap but of poor quality: consumers seeking goods to flash or industries seeking durable capital goods show a strong preference for US, European, Japanese, or Korean goods. China-made goods carrying a foreign brand are more palatable, but a Chinese brand is pretty much the bottom of the pile. African consumers may get to that place as well, as consumers become more sophisticated, or the Chinese may up their game a bit.

I really can't see much basis for a campaign to increase trade with Africa at the level of national policy. What does the US need from Africa that can't be supplied closer to home? What can the US reasonably aspire to export to Africa?

[davidbfpo]

Somehow this 2009 short video statement by Scott Attran appeared today in my 'in tray' and is relevant to this thread. It is headlined:

US foreign policy is set by people who've almost no insight into human welfare, education, labour, desires or hopes.

Nice example of a USAID project in Morocco and the importance of the future generation:http://www.theguardian.com/commentis...n-policy-video

[KingJaja]

The relationship between China and Africa is rapidly evolving - and demands a much more nuanced treatment than the scare stories that are the staple of Western media.

Today, he owns a five million yuan (HK$6.3 million) flat in Zhujiang New Town, Guangzhou's smartest district, drives a car worth US$64,000 and speaks Putonghua. Issa ships 50 to 200 containers home per year - full of construction materials, because "they're the most lucrative" - and makes an average US$2,000 on each container.

A friend, Yusuf Sampto - a trader with three shops in West Africa's Burkina Faso - pulls up a chair. They excitably describe stuffing suitcases with "literally millions" of US dollars to move their profits back to China once the goods have sold (they declare the cash at customs, they say). African banks can't be trusted, they explain, and it's impossible for a migrant to open a current account in the mainland.

Like most of Guangzhou's successful traders, Issa has a Chinese wife.

"She used to work for a company I ordered from, and we became friends," he says. "We had a Chinese wedding and a Muslim wedding. Her name was Xie Miemie but I renamed her Zena."

Zena is from Hainan Island and Issa was the first African man her family had ever seen.

http://www.scmp.com/magazines/post-m...ampaign=buffer

[Dayuhan]

The relationship between China and Africa is rapidly evolving - and demands a much more nuanced treatment than the scare stories that are the staple of Western media.

Possibly so... but does that get us any closer to answering the question "what should Washington's relationship with the developing world be"?

China's relationship with Africa is a matter for the parties concerned to deal with. It's not a threat to the US, nor is it something the US can emulate. Washington needs to build relationships based on the synergies and compatibilities unique to US policy and the US economy, which are very different from those of China.

[davidbfpo]

There is merit in examining how China's relationship with the developing world, in places, notably Africa, has developed recently. If only as it suggests "trade works" and appears to be minus any security relationships (except weapons sales). I do not doubt China has relationships with those who possess political power, which so far ensure trade and a measure of emigration.

Given that the USA does not trade extensively with Africa in particular, except for oil & gas, maybe some minerals (diamonds and iron ore for example), what does the USG offer? It is easy to portray it as "Drones, Guns and Spies". All of which may affect US national security, do they impact public and national security needs?

[KingJaja]

Davidbfpo

There is merit in examining how China's relationship with the developing world, in places, notably Africa, has developed recently. If only as it suggests "trade works" and appears to be minus any security relationships (except weapons sales). I do not doubt China has relationships with those who possess political power, which so far ensure trade and a measure of emigration.

Given that the USA does not trade extensively with Africa in particular, except for oil & gas, maybe some minerals (diamonds and iron ore for example), what does the USG offer? It is easy to portray it as "Drones, Guns and Spies". All of which may affect US national security, do they impact public and national security needs?

US relationship with Africa hasn't changed that much since the Cold War, very little innovation, no new thinking - nothing new really. It all boils down to aid, oil & gas and security.

China has brought a lot of new thinking with it - examples:

1. Focus on trade. Obama's just concluded Africa/US summit is in response to China/Africa summits (5 have been held since 2000).

2. Focus on Infrastructure: China introduced innovative infrastructure financing - infrastructure for commodities. This limits cases of money simply being siphoned away to the Dictator's Swiss account. You see the value for the money.

China is building three very important dams in Africa - Bui in Ghana (400MW), Grand Renaissance in Ethiopia (6,000MW) and Mambilla in Nigeria (3,000MW).

Most importantly, China gives Africans greater bargaining power - the West was the only game in town during the 80s & 90s - and trust me, Africa wasn't better off for it.

Now, does the US really want to be a major player in Africa? I'm not sure.