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221. The European strategy for a 'New Deal' with Africa

Author:
Ramona Bloj
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 17 and 18 February will take place in Brussels the 6th Summit between the European Union and the African Union - a vital meeting for Afro-European relations. The heads of state and government (twenty-seven Europeans and fifty-five Africans) are invited to discuss issues such as financing growth, the future of health systems, vaccine production, agriculture, education, vocational training, culture, immigration, mobility, support for the private sector and economic integration, governance, peace, security, climate change and the energy transition.
Topic:
Foreign Policy, Development, European Union, and COVID-19
Political Geography:
Africa and Europe

222. Sign of the Times: How the United Kingdom’s Integrated Review Affects Relations with Africa

Author:
Zainab Usman and Jonathan Glennie
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In March 2021, the British government published a vision document: “Global Britain in a Competitive Age: The Integrated Review of Security, Defence, Development and Foreign Policy.”1 Previously, the government had issued documents on security, defense, development, or foreign policy, but this integrated review bundled together all aspects of policy related to a vision of a so-called Global Britain. This newly integrated approach to policymaking mirrors a strategic consolidation within the UK government, specifically the merger of the Department for International Development (DFID) with the Foreign and Commonwealth Office to become a new Foreign, Commonwealth and Development Office (FCDO). While the review is framed as a necessary response to a changing global landscape, domestic political considerations around the British exit from the European Union (Brexit) weigh heavily. The review also points to the current UK government’s inclination to prize geopolitical competition over a previous emphasis on global cooperation. Steep cuts to the UK’s generous foreign aid budget as well as the abolition of DFID have already drawn significant academic, policy, and media attention. Yet these actions are part of a broader UK strategy to redefine the country’s relations to the rest of the world, with significant implications beyond the controversial foreign aid cuts for poor countries, including those in Africa. The review will shape relations with a continent that has deep historical ties from the colonial era, a large diasporic presence, and long-standing economic relations with the UK. This analysis draws out the implications of the UK’s 2021 integrated review for African countries and recommends next steps for African and other international stakeholders to navigate the UK’s overhauled external relations strategy.
Topic:
Security, Foreign Policy, Defense Policy, Development, and Integration
Political Geography:
Africa and United Kingdom

223. Negotiating Local Business Practices With China in Benin

Author:
Folashade Soule
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Commercial negotiations between Benin and China demonstrate how both sides navigate the dynamics of Africa-China business-to-business relationships. In Benin, Chinese and local Beninese officials engaged in drawn-out negotiations on a deal to construct a business center aimed at deepening business links between Chinese and Beninese merchants. Strategically located in Cotonou, Benin’s principal economic city, the center aims to promote investment and wholesale businesses by serving as a hub for China’s business-to-business relations not just in Benin but regionally in West Africa, especially in the large and growing neighboring market of Nigeria. This paper relies on original research and fieldwork conducted in Benin from 2015 to 2021 and the author’s access to draft and final contracts from the negotiations, which allow for a side-by-side comparative textual analysis, as well as initial field interviews and follow-up interviews with key negotiators, Beninese businessmen, and former Beninese students in China. The paper shows how Chinese and Beninese authorities negotiated the establishment of the center and, above all, how Beninese authorities made Chinese negotiators adapt to local Beninese labor, construction, and legal norms and put pressure on their Chinese counterparts. This strategy meant that negotiations took longer than usual to complete. China-Africa cooperation is often characterized by speedy negotiations, an approach that in some cases turns out to be harmful—since this can allow vague and unfair clauses to be featured in final contracts. The negotiations over the Chinese business center in Benin is a good example of how well-coordinated negotiators that take their time and work in coordination with various counterparts throughout the government can help facilitate better outcomes in terms of high-quality infrastructure and compliance with prevailing construction, labor, environmental, and business norms, while also preserving a good bilateral relationship with China.
Topic:
Foreign Policy, Development, Bilateral Relations, and Business
Political Geography:
Africa, China, Asia, and Benin

224. How Huawei’s Localization in North Africa Delivered Mixed Returns

Author:
Tin Hinane El Kadi
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Trade between China and North Africa has increased significantly since the early 2000s, but it has largely reproduced patterns of unequal exchange. Since they were unveiled, the Belt and Road Initiative (BRI) and the Chinese government’s 2016 Arab Policy Paper have signaled the promise of a qualitative shift in China’s engagement with the region. China has committed to increase investments in high-value-added sectors and to boost cooperation in science and technology with countries across North Africa. The digital space is a notable aspect of recent China–North African partnerships. Chinese tech firms are becoming ever more important actors in North Africa through the Digital Silk Road, the digital component of the BRI. North African governments see the Digital Silk Road as an opportunity to help bridge the digital divide and bolster their own national efforts to build digital economies and create high-quality jobs for the millions of unemployed university graduates across the region. In recent years, the region has become home to notable Digital Silk Road projects such as smart cities, satellite navigation centers, data centers, and network infrastructure. Huawei’s localization strategies in Algeria and Egypt show that, far from imposing a one-size-fits-all blueprint on other countries, as Beijing is often depicted as doing in U.S. and European media and policy discussions, Chinese tech players adapt their engagement depending on local development agendas. Flexibility, customization, and services tailored to local demand have been cornerstones of Huawei’s localization strategies in North Africa. Accommodating local development priorities is central to Huawei’s success in globalizing its business ventures. The Chinese firm has responded favorably to Algeria’s and Egypt’s attempts to leverage foreign companies for conducting more value-added activities within their respective economies. Among other things, Huawei opened its first African factory in Algeria, employing Algerians to assemble products for and beyond the Algerian market. It also launched an OpenLab for conducting research and development (R&D) activities in Egypt and established partnerships with several universities in the region to train local students. However, closer scrutiny of Huawei’s localization in both Algeria and Egypt indicates that the company improved its brand image without engaging in meaningful capacity building. For all its success at winning the hearts of government officials across the region, Huawei has engaged in training, manufacturing, and R&D in a way designed to maintain the firm’s technological edge. The Chinese tech giant has managed to localize seemingly developmental activities in North Africa without contributing much to technological upgrading. North African governments should take lessons from China’s playbook of how it became a technological superpower. This means adopting policies that could maximize the benefits of Chinese and non-Chinese investments by ensuring positives spillovers and protecting potential local tech champions. Increasing economic integration across North African countries and moving beyond fragmented bilateral commercial negotiations with China are two steps that may help level the playing field with the Asian giant.
Topic:
Development, Science and Technology, Telecommunications, Huawei, and Digital Space
Political Geography:
China, Asia, Algeria, North Africa, and Egypt

225. Roadmap to Zero-Carbon Electrification of Africa by 2050: The Green Energy Transition and the Role of the Natural Resource Sector (Minerals, Fossil Fuels, and Land)

Author:
Jeffrey D. Sachs, Perrine Toledano, and Martin Dietrich Brauch
Publication Date:
01-2022
Content Type:
Special Report
Institution:
Columbia Center on Sustainable Investment
Abstract:
All Africans—whether living in urban or rural areas—need access to affordable, clean, efficient, reliable, climate- proof, and renewable energy for both residential and productive uses to achieve sustainable development objectives. This report sets out a comprehensive and actionable roadmap for Africa’s zero-carbon energy transformation by 2050, with most advances achieved by 2030. Natural resource management in minerals, fossil fuels, and land sits at the core of the strategy. The world is moving to decarbonization by 2050. This is the dominant geopolitical message of 2021, appearing, for example, in U.S. President Joe Biden’s online summit with world leaders in April 2021 and in the new IEA Report on Net Zero by 2050: A Roadmap for the Global Energy Sector. Africa will be part of this global trend. Prospective oil and gas projects in Africa will no longer be pursued as overseas markets and financing will shrink. At the same time, Africa’s vast renewable energy potential, in the solar and hydropower sectors especially, will engage increasingly bankable and highly attractive investments. In net terms, Africa has a huge amount to gain from a decisive build-up of renewable energy and the capacity to produce the minerals, hardware, and software of the new zero-carbon energy economy. Starting from a simple and transparent model of the annual investment volumes needed to provide continent-wide access to electricity based on renewable sources (Section 2), the report addresses various imperatives and challenges regarding Africa’s energy planning (Section 3) and financing (Section 4) and outlines recommendations for immediate implementation of the strategy from 2022 (Section 5).
Topic:
Climate Change, Development, Energy Policy, Environment, Sustainable Development Goals, Sustainability, Decarbonization, and Energy Crisis
Political Geography:
Africa

226. Analysis of the Healthcare Sector in Africa and Its Policy Implications for Korea

Author:
Young Ho Park, Munsu Kang, Yejin Kim, Kyu Tae Park, and Young-Chool Choi
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
One of the main changes in Korea’s foreign affairs in recent years is the expansion of official development assistance (ODA), among which Africa is showing particularly rapid growth. Korea’s ODA to Africa accounted for 15% of its total ODA budget in 2010, and rose to 25% in 2019 as Korea emphasized its role in international development. Korea ranks 11th in terms of the cumulative size of ODA to the African healthcare sector between 2011–2019, totaling 674 million USD. As Korea’s expansion of ODA and solidarity in international development aid to respond to COVID-19 are related, the expansion of ODA in the African healthcare sector is anticipated to continue. This study analyzes features of the healthcare sector in Africa in an effort to suggest various plans for development cooperation, based on an evaluation of Korea’s ODA project design to enable the effective provision of ODA.
Topic:
Foreign Policy, Development, Health, Economic Growth, COVID-19, and Foreign Assistance
Political Geography:
Africa, Asia, and South Korea

227. The Winding Road to Marrakech: Lessons from the European Negotiations of the Global Compact for Migration

Author:
Lena Kainz and Camille Le Coz
Publication Date:
01-2022
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
In the summer of 2018, negotiations of the Global Compact for Safe, Orderly, and Regular Migration suddenly became front-page news, drawing far more attention than nonbinding UN agreements before it. The compact’s proponents argued it would help address transnational issues related to migration, while its opponents alleged it posed a threat to state sovereignty and would lead to an increase in migration to Western countries. Although the European Union was initially one of the driving forces behind the pact, as public demonstrations multiplied, these divisions culminated in the fall of the Belgian government and nine EU Member States voting against the compact or abstaining. This report from MPI's Transatlantic Council on Migration explores how the compact negotiations triggered a multilayered institutional and political crisis in the European Union. It charts how the pact became a proxy for broader debates about how external migration policy is decided within the European Union, especially when doing so touches on multiple policy areas, and about democratic accountability in handling nonbinding international agreements. This analysis, which draws in part on interviews with policymakers from EU institutions and Member States, offers lessons learned for public communications about migration policy and assesses the implications of these events for the European Union’s external migration policy, including its implementation of the compact and role in multilateral migration matters.
Topic:
Development, International Cooperation, International Organization, Migration, Governance, European Union, and Immigration Policy
Political Geography:
Europe and Global Focus

228. WILL COOPERATION BETWEEN THE WORLD BANK AND CHINA LAST?

Author:
Richard Clark
Publication Date:
02-2022
Content Type:
Commentary and Analysis
Institution:
Political Violence @ A Glance
Abstract:
International development organizations, which provide concessional loans and grants to help finance developing countries, often overlap with one another, performing similar tasks in similar countries. For instance, dozens of such organizations have offered COVID-19 relief to developing country member states. In one case, the World Bank approved a $95 million package for Uzbekistan to strengthen its medical systems in April 2020. The Asian Development Bank pledged another $1.1 billion to Uzbekistan over the last two years, and the World Health Organization doled out another $10 million in personal protective and laboratory equipment. Overall, 28 international organizations provide development assistance today.
Topic:
Development, International Organization, World Bank, and Finance
Political Geography:
China and Asia

229. Germany and the UK: Perspectives for Deepening the Bilateral Dialogue on Development Policy

Author:
Niels Keijzer and Ina Friesen
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Germany and the United Kingdom of Great Britain and Northern Ireland (UK) are the second- and fourth-largest providers of official development assistance (ODA) worldwide and are key actors in driving international policy discussions on global development in the Organisation for Economic Co-operation and Development (OECD), the G7, the G20 and other key groupings and platforms. The development policies of both countries witnessed important convergence and detailed cooperation during the first decade of this millennium – a period when Western countries understood development cooperation as a source of considerable soft power, which was demonstrated in rising budgets and like-minded policy directions. The austerity policies that followed the global economic and financial crisis, and the UK’s decision to leave the European Union (EU) in 2016, have challenged the bilateral relationship in the development policy area between Germany and the UK. The UK’s departure from the EU has reduced the number of joint interactions and corresponding opportunities for identifying cooperation initiatives. Halfway through the period envisaged for the completion of the 2030 Agenda, both countries are adjusting their development policies, seeking to determine their future European roles and global development ambitions, but they remain key partners in global development. Both the UK and Germany have recently revised or are in the process of preparing development policy strategies as part of their integrated foreign policies – a reflection process which in recent months has been challenged to adjust to the implications of the war in Ukraine. The case remains strong for regular exchanges and cooperation on development policy between both countries, including by intensifying dialogues and resuming formal secondments between the FCDO and the German Federal Ministry for Economic Cooperation and Development (BMZ). Two areas in particular offer good prospects. First of all, the UK and Germany should closely work together to deliver on the current G7 Presidency agenda – including the key focus on infrastructure investment, as initiated during last year’s UK Presidency. Other key opportunities for cooperation include gender and climate action, as well as the provision of global public goods. Secondly, Germany and the UK should seek to engage in and harness the role of the OECD as a provider of key standards for international development policy and as an important forum for peer learning. As key providers of global development finance, the legitimacy of its reporting system is essential to both countries’ influence and contribution to global development.
Topic:
Development, Bilateral Relations, European Union, Development Assistance, and Dialogue
Political Geography:
United Kingdom, Europe, and Germany

230. Is Foreign Direct Investment Losing Clout in Development?

Author:
Axel Berger and Alexandros Ragoussis
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Over the last decade, only a single projection of foreign direct investment (FDI) flows by the United Nations influential “World Investment Report” has proposed a negative outlook in the medium term. Based partly on surveys of business executives, these forecasts reflect ex¬pecta¬tions of investment growth which, however, have repeated¬ly failed to materialise. In fact, FDI flows to develop¬ing countries have remained stagnant over the past decade. Such wishful thinking is nurtured by a long series of positive narratives and facts about foreign investment. FDI has been one of the pillars of international development efforts for over 70 years. Its promise has not been limited to critical finance, but extends to longer term competitiveness through access to better technology, managerial know-how and, above all, prosperity through more and better paid jobs in the formal sector. From the old prescriptions of the so-called Washington Consensus to the hopeful Addis Ababa Action Agenda, the dominant development narrative has therefore favoured a rather indiscriminate pursuit of investment volume. This brief calls for rethinking of narratives and policies that help to improve the impact of FDI, based on secular trends that challenge our expectations. Four such trends stand out: First, while other sources of finance for development have grown considerably over the last decades, foreign invest¬ment has not followed the trend. Second, the kind of investment that is associated with stronger gains and longer term commitment in host economies – greenfield FDI – has also been in consistent decline as a share of total invest¬ment, while mergers and acquisitions and project finance have gained in importance. Third, the top 100 multinational enterprises (MNEs), accounting for nearly a quarter of global FDI stock, rely less on employment today than they used to in order to grow their foreign presence. Job creation, knowledge transfer and spillovers are therefore less likely to materialise through the presence of mega-firms and their corresponding investment at scale. Fourth, the growth of Chinese outward FDI within a strategic expan¬sionary political agenda stands to change rules and attitudes towards foreign investment moving forwards. We argue that, collectively, these trends invite a renewed conversation around the kind of foreign investment we want and expectations of this source of finance for develop¬ment. These facts obscure neither the broad benefits of FDI to developing countries, nor the value proposition of FDI attraction. Rather, they raise questions about expectations, priorities and the alignment of investment policy with the realities experienced across develop¬ing countries. To that end, we propose four priorities that stand to make a difference in the current context. We call for policy-makers to: 1) Place additional emphasis on retention of investment and linkages with the domestic economy. 2) Try new approaches for FDI attraction that focus on improving domestic investment facilitation frameworks. 3) Be selective as to investment sources and activities in order to mitigate political risks and align inward investment better with sustainable development. 4) Add evidence to improve our understanding of invest¬ment and inform decision-making. Overall, it is critical to engage in a serious multi-stakeholder conversation around expectations, actors and solutions that respond to the investment reality of today.
Topic:
Development, United Nations, Foreign Direct Investment, and Economy
Political Geography:
Global Focus