Abstract

Over the past decade China has re-emerged as an important source of foreign aid for African countries. Providing aid on terms of its own choosing, China challenges the current foreign aid paradigm in four main ways: The donor-recipient relationship is challenged by a partnership of equals; The modes of provision are challenged by China’s focus on aid that is mutually beneficial; The use of conditionalities is challenged by China’s insistence on sovereignty and non-interference in domestic affairs; Multilateralism is challenged by China’s preference of going the major foreign aid projects alone. This article argues that China’s aid program is not likely to undergo drastic change, and that the effects of China’s foreign aid on the traditional donors are already discernible on the African continent. The potency of these challenges might herald that the Chinese approach will provide the frame of reference for foreign aid in the future.

Highlights

  • Recent observations of international trends in development aid strategies give fair reason to wonder if a Chinese model is substituting the traditional Western strategies

  • The disregard for the Washington Consensus by many developing countries has created a demand side for alternative policies. It is within this context that the Chinese foreign aid programme is rapidly expanding, as aid is provided without any reference to conditionalities of governance

  • African countries have been beneficiaries of Chinese foreign aid for over 50 years, over which course of time the Chinese relationship with Africa has evolved from ideological promotion, through phases of introvert focus and the use of foreign policy as a tool for economic policy

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Summary

Introduction

Recent observations of international trends in development aid strategies give fair reason to wonder if a Chinese model is substituting the traditional Western strategies. In November 2009, at the fourth meeting of the Forum on China-Africa Cooperation (FOCAC), Premier Wen Jiabao expressed China’s intent to deepen its relationship with African countries – a relationship that is fast growing more important for Africa. This relationship, of which Chinese foreign aid is the glue, challenges the very understanding of foreign aid and the development paradigm. A comparison of Chinese and traditional donors’ aid is made, aiming at highlighting the differences between them It is analysed how the Chinese model is challenging the frame of reference for foreign aid, before some concluding remarks are made

A Chinese model for economic development
History of Chinese foreign aid
Ideological promotion
Domestic pragmatism
Win-win cooperation
Going-out strategy
The Forum on China-Africa Cooperation
Aid serving political and economic goals
Foreign aid with no strings attached
Sector preferences
Symmetry of relations
China taking over?
Conceptualisation
Conditionalities
Multilateralism
Debt relief
A sustainable challenge?
Findings
Concluding remarks

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