Why Africa is more open to China than the U.S.

Understanding the difference between economic development and economic growth is essential to any economist. But understanding which countries have succeeded in recent years with that notion is even more essential. With the recent global economic downturn the U.S has been the central focus and often considered the beginning of the house of cards that caused the entire disaster. However, the downturn has stabilized from its massive drop off and economic expansion has begun in many parts of the world. The interesting economies to study are those that were relatively unaffected by the global recession and majority of those are developing countries in Sub Saharan Africa.

Sub Saharan Africa has emerged in 3 waves of independence to the present day. They include political independence, social independence, and now economic independence. Political independence began with the end of European colonization and the beginning of autonomous rule and democratic elections. While the process of full democratic elections are still evolving across the entire continent, we are aware that a fully democratic region is attainable in the near future. Social independence coincided with the political independence and will always evolve within every country globally. Being socially independent means that a citizen is not ashamed of who they are and will not allow past stereotypes to determine their future outcome.

Economic independence is a self- sustaining economy that relies on its tax base rather than foreign aid to fund its GDP. This independence has always been desired but it hasn’t come into light as a possibility until recent years. One of the main advocates for this independence is Dr. Dambisa Moyo who is the author of a book entitled “Dead Aid: Why aid is not working and how there is a better way for Africa”. In the book she exposes the future of Africa without aid and why it’s necessary many aid programs are phased out. As well as arguing for African countries to participate in the capital markets to raise government funds instead of utilizing the aid model.

Chinas’ interest in Africa isn’t a new interest because trade between the regions dates back millennia. One of the worlds’ most famous trade routes, the silk road, connected the regions over 2,000 years ago and the trade continues today in a different capacity. In recent years China has emerged as the worlds’ greatest economic success story and many African countries have taken notice due to the fact that Chinese development has lifted hundreds of millions of people out of destitute poverty and created sustainable jobs and investments for its citizens.

What has separated the U.S. from China as this economic example? The answer is development versus growth. The U.S. has been a developed country in economic terms since the industrial revolution 150 years ago. So the country as a whole hasn’t experience development in this current technological dispensation which has limited the U.S. influence in developing world. Many of these developing countries have primarily interacted with the U.S. on a basis of international aid and not necessarily investment.

China has launched a massive campaign to assist many African countries through investments in infrastructure, trade, and development. The Chinese example has promoted a way of developing to reduce poverty and increase economic lifestyles. The U.S. example has not been to reduce poverty but rather to preserve wealth. Wealth preservation can’t be attainable if it isn’t a present factor in the lives of citizens in a developing country.