Pros and cons of China investing in Africa

In recent years China expanded into the African continent, providing much needed infrastructure and economic development but also sustaining despotic governments and corrupt practices.  This article from the Economist caught my eye for presenting both sides of what is essentially an economic story very well in terms that are very easy to understand.

The article uses both personalized and macro-level framing to discuss the question of whether Africa is benefiting from Chinese investment.  It starts out using the personalized frame, beginning with the interview of a Chinese shoemaker doing business in Africa and how the attitudes of his African partners towards him have changed.  The article consists of several quotes from people such as Zimbabwe's environment minister and Chinese factory owners that help personalize a continent-wide issue.  At the same time, the article also uses statistics and charts to give an overall picture of the situation, hence also giving it a macro-level frame.

Unlike most other articles I have come across which show a clear bias towards or against the Chinese, the Economist gives a fair argument for both sides of the story.  They are not immune to dramatization, as seen from the quotes used and the pictures painted ("a young factory-owner"..."sleep on a dirty mattress on the factory floor").  However, such quotations and dramatization is used more to drive home each point they make and a fair case is presented both for and against Chinese investment in Africa.  The African nations are shown to be taken advantage of from time to time ("Mots loans and payments are 'tied' -- ie, the recipient must spend the money with Chiense companies"), but it is also acknowledged that they are not helpless ("[Angola's] president publicaly told his Chiense counterpart, "You are not our only friend."").  It is refreshing to see both sides of the story given voice.

Additionally, the article discusses economic concepts such as imperfect competition and gains from trade in layman terms that the average reader will not even realize economic theory is being discussed.  At the same time, it also acknowledges that the economic models don't work perfectly and point that out as well.  All in layman's terms.  What is even more impressive is that the article not only reports, it also offers advice to the African nations as to how to influence events ("Growing policy co-ordination between African embassies in Beijing is a useful first step in improving African bargaining power.").

All in all, a very well-written article that is not filled with paranoia or glorification.

Note: for more on the discussion of Chinese in Africa, please see the debate on the Economist as well as another article that discusses the backlash.