China in Africa

The Ghost did sound the warning didn't it? We discussed the impending pollution problem.

We discussed the loans and investment from China. And responded to those who had issues with our analysis.

And so we find the following from the NY Times as further evidence of our warnings:

China’s approach to securing minerals in Africa has been to sign agreements to build huge projects in exchange for minerals. In Angola, this kind of arrangement has guaranteed Chinese access to oil in Africa’s second largest oil producer, which is now booming after emerging tattered and broke from a vicious civil war that lasted decades. Chinese and Angolan officials trumpeted this partnership as a model for Chinese investment in the continent, a win-win relationship benefiting both countries.



But that formulation has proved problematic in an economic downturn. African governments are now realizing that these deals are in essence loans against future revenue, and falling prices could leave them saddled with giant piles of debt...



In Guinea, China has backed away from what Guinean officials portrayed as a done deal to build a much-needed $1 billion hydroelectric dam.



“The dam is not a gift; it is an investment,” said Mr. Huo, the Chinese ambassador. “That is what win-win means.”



Guineans are increasingly suspicious of Chinese investment. Many people see Chinese companies as being just as exploitative as Western ones, if not more so. After the military took power in December, it raided Chinese companies suspected of selling fake medicines, but the raids degenerated into open looting of Chinese businesses, tapping a vein of resentment long suppressed.

So mad at the Chinese for looking out for their own interests? Mad at the Chinese for having the foresight to make sure they could enforce those interests. You would think that these "leaders" would only borrow that which they could project to pay for. Surely they didn't THINK that price fluxuations wouldn't happen? Anyway the picture from the Times says it all.

Who's doing the pushing and who's doing the managing? Same situation different race of people. Just not bright enough to notice.