7.8A - Emerging Powers and the Developing World
Developing economic ties between emerging powers and the developing world (China and African nations) increase interdependence, generate environmental impacts and bring opportunities and challenges. (P: role of emerging powers)
Low-income countries could have new relationships with emerging powers. An example is China's interest in Sub-Saharan Africa, the world's least developed region. China's interest is based on exploiting Africa's abundant and undeveloped physical resources:
- copper ore in Zambia
- crude oil in Angola, Sudan and Chad
- coltan (the ore of niobium and tantalum used in mobile phones) from the DRC
Opportunities
- China-Africa relations are based on trade, not ex-colonial ties
- Chinese mines and factories bring jobs and raise incomes and GDP
- In order to develop mining and factory investment, China has invested huge sums in HEP, railways, ports and roads - which can be used more widely
- China-Africa trade was worth $200 billion in 2016, a huge sum for a developing region
Challenges
- Countries without natural resources China wants are left out
- Many jobs area actually done by Chinese migrant labour which numbers over 1 million workers
- Mining and oil exploitation risks causing deforestation, oil spills and water pollution
- Cheap Chinese imported goods have undercut some local African producers, especially of textiles
- Africa's economic model is still cheap raw material exports, and expensive manufactured exports
China increasingly depends on Africa's raw materials and Africa relies on investment from China. This interdependence may benefit both, but a slow-down in China's economy would have the same effect on Africa's.
If developing countries align themselves economically and politically with emerging countries such as India, China and Russia this could have significant impacts on world trade patterns and geopolitical alliances. So far, only China has really achieved this in Africa.