ac

1
Chinas Growth Implications for Poverty
Reduction in SADC
Presentation to SARPN Dr Martyn J. Davies
Director, Centre for Chinese Studies,
CEO, Emerging Market Focus,

Senior Lecturer, Gordon Institute of
Business Science 29th March 2006
2

• Some questions to ponder this afternoon
• How will Chinas growth impact us?
• What are Chinas motivations in Africa?
• Can Africa compete commercially?
• What drives development?
• Is Africas approach to development flawed?
• What is Chinas economic destination?
• What if China ran Africa?

Centre for Chinese Studies
3
I see growing on the horizon the greater peril
than Germany or Japan ever wereour terrible
enemy, America Enoch Powell (1912-1998),
British MP
Centre for Chinese Studies
4

• Chinas Impact on the Global Economy
• Shift of manufacturing
• Consumer market
• Commodity super cycle
• Emerging multinationals
• China and the global value chain
• Intense competition
• Marginalization of SEMs

Centre for Chinese Studies
5
Is Africa a continent that shuns rather than
embraces foreign competition?
Centre for Chinese Studies
6
Chinas Emerging Multinationals
Centre for Chinese Studies
7

• But Chinese SOE firms are largely
  non-collaborative in nature. Why?
• Politically determined business models
• Do they seek profit?
• A mercantilist approach to business

Centre for Chinese Studies
8
Chinas Growth Trajectory
Source www.gs.com

Centre for Chinese Studies
9
Questioning the WBM. A new
model for development Q. What if the Chinese
ran Malawi? Q. The role of the state as a driver
of development? Q. Reaganism vs Dengism
Centre for Chinese Studies
10
Chinas Marketized Economy

                                             
 

• Free Market
• Open to foreign investment
• Full competition
• Limited state involvement

• Government controlled
• Closed to foreign investment
• Limited/no competition
• High state involvement

Consumer electronics
Light industrial manufacturing
Government agencies
Finance, insurance
Electronics, telecom equipment
Real estate
Radio, film, TV
Automotive
Wholesale/retail trade, catering services
Postal, telecom services
Apparel, textiles
Size of circle indicates sectors contribution to
GDP
3
5
15
11
Africas knowledge bridge to China