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Chinese-led South-South cooperation : The Political economy of the internationalisation of Chinese capital in Africa through Special Economic Zones. Edson Ziso. University of Adelaide Lee Kuan Yew School of Public Policy , May 25, 2014. INTRODUCTION.
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Chinese-led South-South cooperation: The Political economy of the internationalisation of Chinese capital in Africa through Special Economic Zones Edson Ziso University of AdelaideLee Kuan Yew School of Public Policy, May 25, 2014
INTRODUCTION • South-South co-operationisnot new, but a historicalcontinuitywhich has nowreachedverysignificantlevels • Currentco-operation led by ‘rising’ Southernpowers (China, India…) • Multifacetedlayers of co-operation. ThispaperfocusesonSpecialEconomicZones (SEZs)
Methods • Case studies • Chinese-led SEZsfound in Ethiopia, Mauritius, Nigeria (2), Tanzania, Zambia, Botswana, Sierra Leone, Egypt • Jiangsu/Eastern Industrial Park – Addis Ababa, Ethiopia • constructionmaterials, Steel products • Chambishi Industrial Zone– Chambishi, Zambia • Copperprocessing
Framework • Internationalisation of capital • Gonzalez-Vicente: “Internationalisation of theChinesestate” • Glassman: “internationalisation of clases of capitalistsociety” • Bryan “… nationstateensures… thereproductiontheclassrelations of capitalism”
Framework (cont.) 2. International Political Economy • Is South-South co-operation a ‘win-win’ arrangement • Globalisation with Chinese charactersistics • Are there winners only? • Or are there losers as well? • Who wins, who loses?
Findings • Chinese offshore SEZ policy-makingisstrategic (EthiopiaisAfrica-strategicdiplomatically and politically) • Spread of softpower • Overprotection of StateOwnedEnterprises in China • Resistance/restriction of foreignfirms in China • Chinesefirmsrelocate to Africa and establish SEZ fortheirownsurvival • Ethiopia and China tooweak (politically and institutionally) to negotiatebetterdealswith China
Findings cont. • South-South co-operation is very much elite-based (fractions of capital) linked politically, state-state (Communist parties) • A challenging new frontier of governance • Public sector/private sector paradox • Share of local investors is very low
Some implications • China • Domestic pressure at home of soiled image abroad? • Inefficient enterprises due to overprotection • Export of jobs abroad • ‘Win-win’ not guaranteed but either way, China ‘wins’ • China will always not want a common African position towards Beijing (hypothesis)
Ethiopia/Zambia • No accountability in the case of SEZ failure • Real economic benefits continue to accrue to those in the ‘big tent’ • Private sector blurred • Democratisation of the state compromised (not a priority) • Positives like technology transfer but still minimum benefit