Globalization IAFF 2093
Popular in Africa: Problems and Promise
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Popular in International Affairs
This 3 page Class Notes was uploaded by Amaris Mae on Sunday February 22, 2015. The Class Notes belongs to IAFF 2093 at George Washington University taught by Shinn in Winter2015. Since its upload, it has received 126 views. For similar materials see Africa: Problems and Promise in International Affairs at George Washington University.
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Date Created: 02/22/15
News Less people Bombing rebel positions in CAR Nigeria is to investigate human rights violations of internally displaced persons by local of cials Russia is helping Egypt build its own nuclear power plant UN peace keeping operation in the DRC has been providing support for local Congolese troops but as they have been engaged in human rights violations they suspended Pospotment of the Nigerian election May make things works US is going to use its tracking services to help track down illegal animal parts Ex rhino tusks Economy The bene ts to Africa of globalization 1 Access to global capital Huge potential for further entry into emerging markets It makes money available 2 Positive spillover effects on capital markets Risk sharing becomes international So international actors may take the losses with the local people 3 Forces world class services Increase ability of nancial information More transparent Trying to make the best business Problems 1 Adequate data Professional information 2 Possibility of adverse changes of government Or government policies le nationalization rare today 3 High degree of volatility Affects the market 4 Human rights abuses and other bad news cycles Hurts investment And particular hurts American investment because we don39t know the area well enough to delved more deeply and to nd out what s truly going on Can39t understand what the difference is between what we perceive and what is reality So smallmedium companies won39t invest in Africa The theories of AfroPessimist have prevailed We are hearing more now from the afrooptimistic Because of the strong GDP growth rate on average in Africa But even they fear that the economy of 54 countries will be driven by the economies of a few strong companies South Africa Nigeria Egypt All the other countries won t receive equal growth Africa has the highest level of consumption inequality in the world Africa39s principle role is as a supplier of materials Rise of China India and other developing countries This has become more Global scarcity has also promoted globalization in Africa China China is now Africa39s largest trading partner Passed the United States in 2009 Africa has minerals that are found in signi cant percentages in Africa Ex 10 of the known oil reserves and will be a future source of oil United States Importing a lot less oil form Africa Because of fracking from shell oil US imports from everywhere is way down Africa is the fastest growing market in the world for mobile phones From Asia Requires the mineral Colten From Africa 2008 Global economic crisis The fall in commodity prices did not have a devastating impact on Africa Odd when considering how they are exporters of raw materials only to industrialized nations that were severely affected Commodity prices with the exception of oil have largely recover Africa growth rates are rising again But leads to political con ict RESOURCE CURSE Globalization 1 million Chinese living in Africa Small traders South Africa Nigeria Egypt Top economies in Africa Oil and Todd Moss Trade One of the least integrated regions in the World Has actually dropped in percentage share in world trade Aggregate number has increased But other countries have moved faster In the past 5 years private capital has been moving into Africa Considerable growth potential Some areas are bene ting more than others due to globalization n Ghana Tanzania Kenya Botswana bene t Globalization Brings bene ts to the country Puts demand on the government While South Africa should be a leader It is reluctant to play that role It is a young democracy Nigeria Reforms have stalled A disappointment trade has not yet become a signi cant component Problems Landlocked countries Infrastructure is weak Too many African countries impose high duties for trading with neighbors So regional trade has not developed as it should The entire economic activity of subSaharan Africa is equal to that of the greater Chicago area re ection of formal economy only Important External Actors China France Britain US Which foreign entity is building most of the infrastructure China Usually goes to the DRC Oil 9 So China gets cheap oil Zimbabwe Only revolution group that China supported that was a winning faction Angola has gotten almost 20 billion dollars in loans But repays it in oil Ethiopia has 3 billion in loans Exports goat skins and sesame seed back to China 9 Would war be possible here If they never pay back Chinese loans are for the most part going to countries that have the resources to pay them back Economic Model India and China treat Africa differently Why India is the largest democracy Uses a different rhetoric Demographically young Private sector is larger in India 9 It could surpass China not yet not for a while China More successful in the economy than India Demographically Aging