With neither the social unity needed for cooperation, nor the size to reap the benefits of larger scale, they are structurally unable to provide the public goods—such as security—that are critical for decent quality of life and imperative for economic development. They have diverged from the rest of mankind. They will never tap their vast reservoir of frustrated human potential unless the international community, at least for a time, supplies basic public goods that go beyond the typical aid agenda. This, stated baldly, is the thesis of my new book, Wars, Guns, and Votes. It is a troubling thesis. I have come to it reluctantly, and the international community has shied away from it...and to be clear he's not talking about africa as a whole, but "about 60 small, impoverished, post-colonial countries that "came unnatural into the world.' "
Suspicion and disapproval have long attended the pursuit of profit in post-conflict societies. The economic incentives surrounding natural resources, in particular, are often seen as prolonging wars, obstructing peacemaking and holding back social progress. Yet now, driven principally by the growing desire of post-conflict governments to complement aid with trade and the increasing availability of long-term investment, a new path to development and peace is opening up... where a wave of state-backed investment in natural resources presents new options for leaders in the developing world.cf. China Railway wins $4.8bn Indonesia deal
The principal western charge against such investments, particularly those from China – that they are pursued as a matter of commercial, as opposed to charitable, interest – is both accurate and entirely unobjectionable to many African governments... the caricature of no-strings-attached, no-questions-asked macro-finance does not describe the growing number of state-backed investors seeking long-term, commercially and politically viable relationships that depend on providing lasting benefits to both sides. Nor does it take account of the ongoing re-examination among African governments of the benefits and risks of aid-dependency.
Finally, while the early period of macro-finance investments has been dominated by Asian, and in particular Chinese, state-backed companies, there is no reason why others cannot compete on the same terms. Many African governments are attracted to the Chinese development model, but there is also a desire to avoid going from one form of dependency to another. This is an opportunity for western and other macro-finance investors willing to engage African governments as economic partners.
...the latest in a string of offshore contracts for China's state-controlled rail companies. They have been winning rail projects across the world, including in the Middle East, Southeast Asia, Latin America, Africa and Australia. Chinese companies have also been snapping up global coal assets for the country's power stations...also interesting to me is the interaction between migrant populations with their host countries, the problems they face, and the attention that reflects back on why they left in the first place (to begin with) and what, if anything, can be done, viz. en terre étrangère
Beijing has made the transfer of sophisticated technology a prerequisite for international rail companies trying to enter the huge Chinese market and in the process, Chinese companies have rapidly become technologically competitive while offering much lower prices than their global rivals. State-owned Chinese financial institutions usually offer favourable financing terms for projects such as the coal transport line in South Sumatra, making Chinese bids even more attractive... Indonesia is the world's largest exporter of thermal coal. Last year 15 per cent of its coal exports went to China.
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The world has also attempted to intervene in Somalia several times now, sometimes simply to provide humanitarian relief, sometimes to try to prop up the Transitional Federal Government; I'd be hard-pressed to point to any way that Somalia is a better place today, or closer to stability, because of those actions.
One thing I find interesting is that even though any kind of genuine Somali government has been absent for almost 20 years now, Somaliland still has no international recognition at all, in spite of having a functioning democracy (imperfectly functioning to be sure, but better than many other East African states).
posted by strangely stunted trees at 1:14 PM on April 1, 2010 [3 favorites]