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21. The Heterogeneity of FDI in Sub-Saharan Africa: How Do the Horizontal Productivity Effects of Emerging Investors Differ from Those of Traditional Players?

Author:
Birte Pfeiffer, Holger Görg, and Lucia Perez-Villar
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
It is generally accepted by policymakers that outward foreign direct investment (FDI) can contribute to economic development in host countries via knowledge spillovers to the domestic economy. Given that multinational corporations (MNCs) possess technological or managerial advantages, they can generate positive externalities through the diffusion of knowledge to domestic firms. This knowledge transfer can occur horizontally, if firms in the same sector benefit from the presence of multinationals, or vertically, if upstream or downstream domestic sectors gain from the presence of foreign investors. Yet, whereas the FDI literature has reached a certain level of agreement that vertical relationships with local suppliers generate positive productivity spillovers, the evidence on horizontal spillovers is still mixed and inconclusive, and estimates differ in terms of statistical significance and magnitude (Havranek and Irsova 2013).1 These inconsistencies derive largely from differences in the measurement of foreign presence and the type of data used – cross‐sectional versus panel – across studies (Görg and Strobl 2001). Further, there are determining factors at the firm and country level that enhance the realization of spillovers and need to be taken into account. Görg and Greenaway (2004) show that studies accounting for the heterogeneity of domestic firms, and especially their absorptive capacity, tend to report positive results.
Political Geography:
Africa and Europe

22. Regional Sanctions against Burundi: A Powerful Campaign and Its Unintended Consequences

Author:
Julia Grauvogel
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper examines the impact of regionally imposed sanctions on the trajectory of the Burundian regime and its involvement in the peace process following the 1996 coup in the country. Despite the country's socioeconomic and geopolitical vulnerability, the Buyoya government withstood the pressure from the sanctions. Through a vocal campaign against these sanctions, the new government mitigated the embargo's economic consequences and partially reestablished its international reputation. Paradoxically, this campaign planted the seed for comprehensive political concessions in the long term. While previous literature has attributed the sanctions' success in pressuring the government into negotiations to their economic impact, the government actually responded to the sanction senders' key demand to engage in unconditional, inclusive peace talks under the auspices of the regional mediator once the economy had already started to recover. The regime's anti-sanctions campaign, with its emphasis on the government's willingness to engage in peace talks, backfired, with Buyoya forced to negotiate after having become entrapped in his own rhetoric.
Topic:
Government, Regime Change, and Sanctions
Political Geography:
Africa and Burundi

23. Does Violence Pay? The Effect of Ethnic Rebellion on Overcoming Political Deprivation

Author:
Carlo Koos
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Studies have found that politically deprived groups are more likely to rebel. However, does rebellion increase the likelihood of achieving political rights? This article proposes that rebellion helps ethnic groups to overcome deprivation. I illustrate this by using a "typical" case (the Ijaw's struggle against the Nigerian government) to demonstrate how ethnic rebellion increases the costs for the government to a point where granting political rights becomes preferable to war. Further, I exploit time-series-cross-sectional data on deprived ethnic groups to show that rebellion is significantly associated with overcoming deprivation. The statistical analysis shows that democratic change is an alternative mechanism.
Topic:
Conflict Prevention, Political Violence, Ethnic Conflict, Poverty, and Armed Struggle
Political Geography:
Africa and Dhaka

24. Perceptions, Practices and Adaptations: Understanding Chinese–African Interactions in Africa

Author:
Karsten Giese
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
Over the last few years, Sino-African relations have become a hot topic both in the general media and for scholars worldwide. Large parts of the global mass media are still engaged in painting the big picture of the relationship between China and Africa by conflating the multiple stakeholders and actors on both sides and generalizing about China's "neocolonialist" strategies vis-à-vis weak African states: its exploitation of African raw materials and populations, its support for non-democratic regimes and its undermining of all Western efforts for reforms across the continent. Where media reports transcend this stereotyping and homogenizing on the macro-level and portray Chinese–African encounters on the ground, it is power differentials, competition, tension and conflict between disempowered African locals and (at least economically) powerful Chinese – the latter as exoticized as alien "others" – that are often the focus of attention.
Political Geography:
Africa and China

25. Sino-African Encounters in Ghana and Nigeria: From Conflict to Conviviality and Mutual Benefit

Author:
Ben Lampert and Giles Mohan
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
China's renewed engagement with Africa is often framed as a form of imperialism, with the growing number of Chinese migrants on the continent seen as an exploitative presence. Such claims have generally been based on little evidence, and where more detailed empirical studies have emerged, they tend to emphasise the tensions and conflicts that have arisen. Our research on Chinese migrants in Ghana and Nigeria suggests that while there are concerns about Chinese competition in the informal retail sector and the treatment of local labour in Chinese enterprises, narratives of apparent tension and conflict are often much more nuanced than is generally recognised. Furthermore, more convivial and cooperative relations have also emerged and these have facilitated important opportunities for Africans to benefit from the Chinese presence. However, while the presence of Chinese migrants in African socio-economic life can be more integrated and mutually beneficial than is often assumed, the ability of African actors to benefit from this presence is highly uneven, placing the politics of class at the centre of any understanding of Sino-African encounters.
Topic:
Development and Migration
Political Geography:
Africa, China, and Nigeria

26. The Chinese Presence in Burkina Faso: A Sino-African Cooperation from Below

Author:
Guive Khan Mohammad
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
Burkina Faso currently has no diplomatic relationship whatsoever with the People's Republic of China. Engaged in cooperation with Taiwan since 1994, it is one of only three African countries not a part of the Forum on China–Africa Cooperation. This unusual situation has produced a unique manifestation of the Chinese presence in Burkina Faso, where the estimated 600 Chinese migrants are primarily private entrepreneurs. This phenomenon of "globalization from below" – or, this migration of entrepreneurs that transcends the absence of diplomatic relations – creates new intimate social relations between the Burkinabe and Chinese people who come into contact with each other. Far from simply turning Chinese and Burkinabe into economic competitors, these relations have also led to the emergence of many forms of interpersonal and business cooperation. In this paper, I therefore demonstrate how Sino-African cooperation from below has developed in Burkina Faso, which stands in radical contrast to the latter's cooperation with Taiwan, which takes place almost exclusively on a broader state-to-state level. The empirical evidence of this study is drawn from field survey interviews and observations of both Chinese and Burkinabe entrepreneurs in Burkina Faso between 2010 and 2011.
Political Geography:
Africa, China, and Tanzania

27. Chinese Employers and Their Ugandan Workers: Tensions, Frictions and Cooperation in an African City

Author:
Codrin Arsene
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper analyses the context in which a group of African workers interact with their Chinese employers within a specific ethno- graphic space: Chinese-owned shops in Kampala, Uganda. By exploring enjawulo, the locally embedded cultural, social and economic notion of work and labour, I reveal how relations between Chinese employers and Ugandan employees are shaped by the former's knowledge and acceptance of this practice. This analytical lens contextualises the two groups' divergent goals, opinions and aspirations, examines the interpersonal dimensions of their social relations, and also analyses employers' and employees' opinions on labour conflicts, cooperation and understanding. The goal of the paper is to explore and deconstruct the context in which Chinese store owners and their local employees interact, cohabit, and sometimes even find common ground, despite markedly different economic, social, cultural, racial and linguistic backgrounds.
Topic:
Migration
Political Geography:
Uganda, Africa, China, and Kampala

28. Contingent Democrats in Action: Organized Labor and Regime Change in the Republic of Niger

Author:
Sebastian Elischer
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The effects of organized labor on regime change in developing countries are not clear‐cut. Optimists argue that union agitation is conducive to both democratic transition and consolidation processes. Pessimists hold that unions will support any regime that is conducive to their demands. Accordingly, unions may support regime transitions; however, once their economic interests are under threat, they will jeopardize the subsequent consolidation process. Systematic studies on the effects of organized labor on regime change in sub‐ Saharan Africa are sparse and largely confined to the (pre)transition phase. This article examines the role of organized labor in Niger between 1990 and 2010. Given the high number of regime breakdowns during the period, a longitudinal study of Nigerien labor enables a critical examination of motives and actions of organized labor toward different regime types. In contrast to other recent findings on African unionism, the article confirms the pessimistic view.
Topic:
Civil Society, Democratization, Development, Regime Change, and Labor Issues
Political Geography:
Africa

29. The Eritrean Diaspora: Savior or Gravedigger of the Regime? Diaspora Responses to the Imposition of UN Sanctions

Author:
Nicole Hirt
Publication Date:
10-2013
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This article examines the impact of UN‐imposed sanctions on the stability of the Eritrean regime, using diaspora behavior as an explanatory variable of crucial importance. It explores the transnational nature of Eritrean society, which is characterized by long‐distance nationalism, and examines the history and structure of the Eritrean diaspora as well as its transformation since the political crisis of 2001. The paper argues that the government and its supporters among the diaspora, as well as regime opponents, have all instrumentalized the sanctions for their own specific purposes. While the former use the sanctions to create a “rally around the flag” effect and for fundraising purposes, the latter campaign against the 2 percent diaspora tax levied by the government because it may be used for illicit purposes in breach of the sanctions regime. However, due to the opposition\'s disunity and failure to organize joint campaigns, its efforts have so far failed to decisively contribute to the demise of Eritrea\'s crumbling rebel regime. Meanwhile financial flows to both the government\'s coffers and to private individuals continue to play a stabilizing role. Nevertheless, unsuccessful domestic policies, the mass exodus resulting from the militarization of the entire society and an isolationist foreign policy are all contributing to the growing weakness of the regime, and with it the State of Eritrea.
Topic:
Conflict Resolution, Foreign Policy, Diaspora, Insurgency, Fragile/Failed State, and Governance
Political Geography:
Africa, United Nations, and Eritrea

30. When Voicelessness Meets Speechlessness – Struggling for Equity in Chinese-Ghanaian Employment Relations

Author:
Karsten Giese and Alena Thiel
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
In this article Chinese-Ghanaian employment relations are analyzed using the concepts of foreignness, the psychological contract, equity, and cross-cultural communication. Based on a qualitative study conducted in Accra, Ghana, we discuss the labor market in general and introduce the conditions under which Chinese sojourners operate their family trade businesses in the city. After discussing the phenomenon of Ghanaian employment within Chinese trade companies from a theoretical perspective, we explain how Chinese employers' and Ghanaian employees' culturally based perceptions of employment relations are contradictory and prone to conflict. We then show how, under the condition of the employers' foreignness, Ghanaian employees perceive their psychological contracts as being violated and Chinese employers regard the equity of exchange relations as distorted. We discuss how Ghanaian employees cope with this situation by means of voice, silence, retreat or destruction, while Chinese employers, who lack both sufficient language skills and effective sanctions, choose to endure perceived distortions of equity and in some cases ultimately terminate employment relations when inadequate cross-cultural communication results in a failure to mediate conflicts.
Topic:
Industrial Policy, International Trade and Finance, Labor Issues, and Foreign Direct Investment
Political Geography:
Africa, China, and Ghana

31. Institutional Conflict Settlement in Divided Societies: The Role of Subgroup Identities in Self-Government Arrangements

Author:
Alexander De Juan
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Institutions can contribute to regulating interethnic conflict; however, in many cases they fail to bring about lasting peace. The paper argues that their negligence of intraethnic factors accounts for some of this failure. Ethnic groups are often treated as unitary actors even though most consist of various linguistic, tribal or religious subgroups. This internal heterogeneity is often obscured by overarching collective ethnic identities that are fostered by interethnic conflict. However, when such interethnic conflict is settled, these subgroup differences may come back to the fore. This “resurgence” can lead to subgroup conflict about the political and economic resources provided through intergroup institutional settlements. Such conflict can in turn undermine the peace-making effect of intergroup arrangements. Different subgroup identity constellations make such destructive effects more or less likely. The paper focuses on self-government provisions in the aftermath of violent interethnic conflict and argues that lasting intergroup arrangements are especially challenging when they involve “contested” ethnic groups.
Topic:
Conflict Prevention, Political Violence, Ethnic Conflict, Religion, Governance, and Sectarian violence
Political Geography:
Africa and Iraq

32. How Africans Pursue Low-End Globalization in Hong Kong and Mainland China

Author:
Gordon Mathews and Yang Yang
Publication Date:
09-2012
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This article looks at the livelihoods and lives of African traders coming to Hong Kong and Guangzhou. These traders are practising “low-end globalization”, involving small amounts of capital, and semi-legal or illegal transactions under the radar of the law. The article first considers who these traders are, portraying them as, typically, members of the upper crust of their home societies. It then considers these traders in Chungking Mansions, Hong Kong, a building that is an entrepôt between China and the developing world. Finally, it looks at traders' livelihoods and lives in Guangzhou, South China, and traders' efforts to succeed in mainland China. The article argues that one essential economic role China plays today is in manufacturing the cheap, sometimes counterfeit goods that enable Africa and other developing-world regions to experience globalization; the African traders who come to China help make this possible.
Topic:
Globalization
Political Geography:
Africa, China, Hong Kong, South China, and Guangzhou

33. Renewables in the Energy Transition: Evidence on Solar Home Systems and Lighting-Fuel Choice in Kenya

Author:
Jann Lay, Janosch Ondraczek, and Jana Stoever
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
We study the determinants of households' choices of lighting fuels in Kenya, including the option of using solar home systems (SHSs). The paper adds new evidence on the factors that influence the introduction and adoption of decentralized and less carbon‐intensive energy sources in developing countries. We capitalize on a unique representative survey on energy use and sources from Kenya, one of the few relatively well‐established SHSs markets in the world. Our results reveal some very interesting patterns in the fuel transition in the context of lighting‐fuel choices. While we find clear evidence for a crosssectional energy ladder, the income threshold for modern fuel use – including solar energy use – is very high. Income and education turn out to be key determinants of SHSs adoption, but we also find a very pronounced effect of SHSs clustering. In addition, we do not find a negative correlation between grid access and SHSs use.
Topic:
Development, Education, and Energy Policy
Political Geography:
Kenya and Africa

34. Origins and Outcomes of Electoral Institutions in African Hybrid Regimes: A Comparative Perspective

Author:
Sebastian Elischer, Gero Erdmann, and Alexander Stroh
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
In the early 1990s most African countries carried out extensive reforms of their electoral regimes. Adopting a historical institutionalist approach, this paper critically examines the role of institutional path dependence in accounting for the setup of six African electoral regimes. For this purpose, we distinguish between different types of path dependence. The paper further analyzes the extent to which the development of electoral institutions contributed to the regime-type outcome (democratic/hybrid/autocratic). The main emphasis herein is on so-hybrid regimes;” in other words, regimes existing in the grey zone between democracy and autocracy. The paper finds that, while institutional path dependence has a limited but important impact on the setup of the electoral regimes, it is ultimately the process of decision-making during critical junctures that accounts for the regime type outcome. Hybrid regimes lack long-term institutional ownership.
Topic:
Civil Society, Democratization, Human Rights, and Governance
Political Geography:
Africa

35. Does Uranium Mining Increase Civil Conflict Risk? Evidence from a Spatiotemporal Analysis of Africa from 1945 to 2010, September 2012

Author:
Matthias Basedau and Carlo Koos
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
We employ a two‐tier spatiotemporal analysis to investigate whether uranium operations cause armed conflict in Africa. The macrolevel analysis suggests that – compared to the baseline conflict risk – uranium ventures increase the risk of intrastate conflict by 10 percent. However, we find ethnic exclusion to be a much better predictor of armed conflict than uranium. The microlevel analysis reveals that uranium‐spurred conflicts are spatiotemporally feasible in four countries: the Democratic Republic of Congo (DRC), Namibia, Niger and South Africa. We find strong evidence in the case of Niger, and partial evidence in the case of the DRC. Namibia and South Africa do not yield substantial evidence of uranium‐ induced conflicts. We conclude that uranium may theoretically be a conflictinducing resource, but to the present day empirical evidence has been sparse as most countries are still in the exploration phase. Considering that the coming years will see 25 African countries transition from uranium explorers into producers, we strongly suggest that our analysis be revisited in the coming years.
Topic:
Conflict Resolution, Political Violence, Post Colonialism, and Natural Resources
Political Geography:
Africa

36. Subjective Risk and Participation in Micro Life Insurance in Ghana

Author:
Lena Giesbert
Publication Date:
12-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper analyzes the determinants of households' decisions to purchase micro life insurance, the most common but least investigated type of microinsurance. It uses household survey data collected in southern Ghana in 2009. Insurance participation and extent of coverage are examined against a standard benchmark model, which argues that life insurance uptake increases with risk aversion, the probability of risk, initial wealth, and the “intensity for bequests.” Many of these predictions indeed hold in the case of micro life insurance. However, the results of probit and tobit models show that nonstandard factors also explain the participation decision. Unlike the case with other available types of insurance, there is a significant negative association between households' subjective idiosyncratic risk perception and the uptake of micro life insurance. Additionally, households' micro life insurance participation is strongly related to their relationships with formal financial services providers and their membership in social networks. These findings suggest that poorer households view microinsurance as a risky option.
Topic:
Health, Poverty, and Health Care Policy
Political Geography:
Africa and Ghana

37. A Dragon and a Dove? A Comparative Overview of Chinese and European Trade Relations with Sub-Saharan Africa

Author:
Bert Jacobs
Publication Date:
03-2011
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
As China's footprint in African trade grows larger by the day, the need to contextualize this rise through comparative analysis becomes ever more necessary. This paper contrasts the sub-Saharan trade relations of both China and Europe with their respective designated stereotypes: those of a dragon and a dove. The article compares the trade dynamics on four levels: the policies and institutional mechanisms that shape the relationship; the composition of the trade flows; the geographic distribution of trade dominance; and the influence of norms and values on the trade pattern. It concludes that although there are empirical grounds behind these stereotypes, Chinese and European trade relations with sub-Saharan Africa are becoming more similar, partly due to a more hawkish European stance.
Political Geography:
Africa, China, and Europe

38. Redefining Foreign Policy Impulses toward Africa: The Roles of the MFA, the MOFCOM and China Exim Bank

Author:
Lucy Corkin
Publication Date:
03-2011
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
It has long been recognised that the actors involved in crafting and implementing China's foreign policy are not always in agreement. This paper argues that the prioritisation of commercial outreach over purely political objectives in Africa has led to a shift in influence from the Ministry of Foreign Affairs (MFA) to the Ministry of Commerce (MOFCOM). To that end, the paper examines the rising prominence of China Exim Bank's concessional loans as a foreign policy instrument in Africa along with the process through which they are negotiated and implemented. Using the case of Angola, this paper shows how despite formal institutional equality, the MOFCOM is playing a far more influential role than the MFA is in defining the direction of China's foreign policy toward Africa.
Topic:
Foreign Policy
Political Geography:
Africa and China

39. Regional Organizations in China's Security Strategy for Africa: The Sense of Supporting "African Solutions to African Problems"

Author:
Sara Van Hoeymissen
Publication Date:
03-2011
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
African regional organizations play a significant role in maintaining peace and security on their continent. This article looks at how China, as an emerging power in Africa, has incorporated these organizations into its policies on African security crises. It asserts that China has explicitly endorsed regional conflict resolution mechanisms, which it perceives as having a less intrusive impact on third world countries' sovereignty than have initiatives taken under the global collective security system led by the UN Security Council. Moreover, China strengthening cooperation with African regional organizations and aligning its stance with the views emerging from these regional bodies is an important way in which China has tried to respond to the rising security challenges and political demands it is faced with in Africa. The article briefly considers what influence China's increased attention to African regional bodies is having on efforts by Africa's traditional donors to help build – but also shape – Africa's emerging peace and security architecture.
Topic:
Sovereignty
Political Geography:
Africa, China, and United Nations

40. An Overseas Naval Presence without Overseas Bases: China's Counter-piracy Operation in the Gulf of Aden

Author:
Susanne Kamerling and Frans-Paul van der Putten
Publication Date:
03-2011
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This article aims to assess how China is using its navy to secure its interests in the Gulf of Aden, and what this means for the European Union. The analysis of how China's naval presence in the Gulf of Aden has evolved since early 2009 suggests that China's increasing interests and involvement in Africa do not necessarily lead to the establishment of Chinese naval bases in or close to the continent. To supply its ships, the Chinese navy may well continue using the commercial-diplomatic model that China has been developing. This model is based on China's close diplomatic relations with countries in the region and the extensive presence of Chinese companies to whom logistical services can be outsourced and who are under a greater degree of state influence than most Western multinationals. One of the consequences of this approach is that although China may not establish overseas military bases, it may be able to keep expanding its naval presence in or around Africa.
Topic:
Piracy
Political Geography:
Africa, China, Europe, and Aden