Working to strengthen UK-China relations, one summit at a time

Britain's Chancellor of the Exchequer, Alistair Darling, weighs in on the potential benefits to be reaped from strengthened UK-China relations as leaders from both countries meet today for the second UK-China Economic and Financial Dialogue in London: 

Every country has benefited from China’s integration into the world economy in the past decade. Since 2000, China has accounted for a third of global economic growth. Chinese goods are now exported all over the globe — making it the world’s second largest exporter. And this is not a zero-sum game. We all benefit; 60 per cent of Chinese exports are produced by enterprises financed by other countries.

But I believe Britain is uniquely placed to benefit. The UK is the largest European investor in China. Some 6,000 British-invested projects there span the country in a number of sectors: Vodafone in telecommunications, BP in energy, AstraZeneca for pharmaceuticals, HSBC and Standard Chartered in financial services, to name a few.

And the UK is the second top European destination for Chinese inward investment. Nearly 400 companies have set up in our country, and more than 60 are listed on our stock exchanges. They offer high-skilled jobs in engineering, telecoms and financial services.

... The meeting between our countries today is about seizing these opportunities. But we meet against the background of the greatest global financial crisis for generations. Every country has been affected. And every country is working to get through this. So our first goal must be to agree the action needed to support growth. Both our governments have put more money into the economy now, when it is needed. China’s huge fiscal stimulus will benefit us all.

A 21st century scramble for African land

A reader from the University of Toronto alerted me to the following article in Tuesday's Globe and Mail on the issue of land acquisition in Africa:

Wealthy foreign investors have acquired, or begun negotiating for, an estimated 15 to 20 million hectares of farmland in the developing world – equal to roughly half the size of Newfoundland and Labrador – since 2006. Most of this is in Africa, where the soil is fertile, costs are low and the owners are weak.

Critics are calling it a “global land grab” with neocolonial overtones. The African Union has warned that Africans could be exploited by the massive farmland deals because of their weak bargaining position. Overwhelmed by the rapidly developing trend, they are failing to get sufficient benefits in return, the AU says.

The buyers and leasers of African farmland are the rich and powerful (Saudi Arabia, Qatar, South Korea and the United Arab Emirates) or the hugely populous and land-hungry (China and India). For all of them, Africa is the jackpot, a region where vast tracts of land are cheap and underutilized.

Madagascar, one of the poorest countries in the world, is a prime target of those hungry for land. But there are plenty of other African targets, too. China is seeking 2 million hectares in Zambia to grow crops for biofuels. Saudi Arabian investors are spending $100-million to acquire land in Ethiopia, $45-million for land in Sudan, and millions more for 500,000 hectares in Tanzania. Libya has secured 100,000 hectares in Mali to grow rice. Qatar has obtained 40,000 hectares in Kenya.

The land deals are a sign of a shift in the world's priorities. Farmland is becoming as much of a strategic resource as oil fields.

The issue is admittedly one about which I am not too well educated, though now realize I ought to be: implicit in the notion of 'China in Africa' (i.e. the arrival of Chinese in Africa) is the question of how they are acquiring land! Obviously! While the article tends to focus on larger-scale investors, I'd venture to guess that the matter is even more pronounced on the micro scale, with entrepreneurs scrambling for spaces from which to run their shops, restaurants, etc. Chinese in Africa tend not to be particularly active in any farmland activities at present, so my guess is that much of their 'land grabs' center around urban areas. That said, I wouldn't be surprised if they began to diversify their interests in the not too distant future. This may well be worth looking into in greater detail.

President Kagame on where foreign aid goes wrong

Paul Kagame, the President of Rwanda, has an interesting editorial on aid in today's FT. Somewhat to my surprise, certain elements of his argument seem to resonate with Bill Easterly's analysis in The White Man's Burden (which I happen to be re-reading at the moment), and Dambisa Moyo's book, Dead Aid, which he outrightly cites:

Dambisa Moyo’s controversial book, Dead Aid, has given us an accurate evaluation of the aid culture today. The cycle of aid and poverty is durable: as long as poor nations are focused on receiving aid they will not work to improve their economies. Some of Ms Moyo’s prescriptions, such as ending all aid within five years, are aggressive. But I always thought this was the discussion we should be having: when to end aid and how best to end it.

... Do not get me wrong. We appreciate support from the outside, but it should be support for what we intend to achieve ourselves. No one should pretend that they care about our nations more than we do; or assume that they know what is good for us better than we do ourselves. They should, in fact, respect us for wanting to decide our own fate. [...] Entrepreneurship is the surest way for a nation to meet these goals...

These are quite bold statements for the President to be making, no less so given that Rwanda is one of the world's most aid dependent countries, with foreign assistance averaging US$55 per capita - approximately 23% of the country's GDP. Regardless, Kagame's push for entrepreneurship over aid appears the correct one (perhaps this is why we see Rwanda rising?). While not mutually exclusive, of course, if long-term economic growth and development are the objectives, the former should indubitably trump the latter.

'No worries mate' no more?

Australia's defense white paper, "Defending Australia in the Asia-Pacific Century: Force 2030," has been stirring up controversy since its release earlier this week. At the heart of the controversy is a proposed $72 billion expansion of the military over the next 20 years, prompted in part by the potential threats posed by a rising India - and especially a rising China. Included in the upgrades is the purchase of 100 F-35 fighter jets, hunter-killer submarines, Tiger helicopters, armored vehicles, and significant investments in cyber and electronic warfare technologies. With China and India likewise seeking to expand their capabilities, one can't help but wonder whether we may be witnessing a new arms race underway in the Pacific.

Australia is seemingly also jumping on the Africa bandwagon, and has been actively seeking to improve relations with African countries and expand its influence across the continent. Historically, Africa has not been a major foreign policy issue on Australia's agenda, but the tide appears to be turning:

Since early 2008, the Rudd government has signaled its intention to change direction on Africa and pursue a much stronger engagement strategy. The elevation of African issues in foreign and defence policies appears to be based partly on a judgment about shifting strategic priorities among the major powers. 

The Australian government believes that Africa is drawing closer to the centre of international security politics. For this reason, a policy of benign neglect towards a quarter of the world’s countries is no longer sufficient to meet Australia’s long-term national interests.  

This judgment is reinforced by the actions of several major players in African affairs, including China, the USA and the European Union.

I'd venture to guess that the Australian concern is less with the U.S. or Europe, otherwise the government would have pushed for such a policy of engagement quite a while ago - well back in the 1960s and 70s if we really want to exaggerate the point. Rather, the Australians appear to be highly cognizant of the reality of a quickly rising China - both in their own backyard and indeed globally - and rightfully want to protect their national interests and perhaps thwart China's rapidly expanding geopolitical influence in any way they can (enter Africa). [Sidenote: for an interesting read on China's international intentions, see yesterday's piece in the China Post written in response to Australia's defense paper].

Because Australia has little history of bilateral cooperation with African states, my guess is that any sort of diplomatic ties will evolve only gradually. Nevertheless, this shift in policy presents a curious opportunity for African policymakers to harness viable strategies and reap the benefits of what appears to be a multifaceted scramble for their continent. The huff and puff surrounding Australia's defense paper, too, is a curious example of just how rapidly China is assuming a prominent role on the international stage, and how worrying this is to those in Beijing's own backyard, and beyond.

Nigeria's booming entertainment industry

I confess to be just as surprised as the next person (sadly my knowledge of African pop culture doesn't quite measure up to what I know of the continent's politics): Nigeria's music and film industries are booming. So much so, in fact, that the country's film industry (known as Nollywood) has surpassed Hollywood (!) to become the world's second largest after Bollywood:

According to the UNESCO Institute for Statistics (UIS) survey, Bollywood – as the Mumbai-based film industry is known – produced 1,091 feature-length films in 2006. In comparison, Nigeria’s moviemakers, commonly known as Nollywood, came out with 872 productions – all in video format – while the United States produced 485 major films.

“Film and video production are shining examples of how cultural industries, as vehicles of identity, values and meanings, can open the door to dialogue and understanding between peoples, but also to economic growth and development,” said UNESCO Director-General Koïchiro Matsuura.

“This new data on film and video production provides yet more proof of the need to rethink the place of culture on the international political agenda,” he added.

To gain a better appreciation of the Nollywood industry, I strongly suggest you watch Franco Sacchi's film, 'This is Nollywood.' 'This is Nollywood' shows not only how the introduction of digital technology has revolutionized (loosely stated) one of the world's poorest (and by some accounts failing) countries, but also speaks to the very theme of culture highlighted in the UNESCO report. Ethan Zuckerman blogged about the film back in 2007 (I'm a bit behind, it would seem).

But there's more: according to CNN, Nigeria's hip hop industry is also growing. Like the film industry, Nigerian hip hop is regarded as a cultural alternative to Western music and in some sense serves as a unifier in what is a most ethnically diverse state:

While no one is so naive as to suggest that the film and hip hop industries are the panacea to Nigeria's problems, their respective success may nevertheless be a small, albeit important, step on the road to economic growth and development. One can only hope and, indeed, enjoy.

[HT: Joshua Keating, Africa is a Country]

Morning grumbles on sensationalized aid

As though reading my mind this morning (I appear to be on an anti-celebrities who want to save the world/Collier's "headless hearts" kick today), Ryan Hahn, writing in the World Bank's PSD blog, notes the following:

In her book Dead Aid, aid critic Dambisa Moyo proclaims that the 2000s were the era of glamor aid. (Think Bono and Bob Geldof.) So what will the 2010s be? I think we already have an idea. This morning I received a newsletter from Kiva, the well-known P2P microfinance lender, and the title proclaimed proudly that "Brad Pitt Twitters about Kiva." (You can even follow a link to get a screenshot of Brad Pitt's twitter message.) I happen to be a fan of Kiva, but I have to wonder - am I the only one whose stomach turns at the prospect of aid flows being determined by the whims of celebrities through their Twitter feeds?

No, Ryan, you're absolutely not. I am right there with you... stomach churning and all.

On Sri Lanka (for want of a better title)

It's quite a curious exercise, isn't it, observing which humanitarian crises receive international attention? Perhaps not surprisingly (though most unfortunately), the most talked about issues are often those that have somehow  been sensationalized by the media and/or altogether clueless celebrities who mean well but often lack the knowledge necessary to raise proper awareness, let alone do anything about the problems at hand. Darfur, the Congo, the AIDS crisis more generally, Somalia - which was brought into the international spotlight only when pirate attacks escalated on mostly Western cargo ships - the list goes on.

Yet what about other parts of the world? Places like present-day Sri Lanka, for instance, where the populace is suffering on an unimaginable scale. Yet who can honestly say that they have heard much about Sri Lanka, let alone the country's problems? Few will likely know that a humanitarian catastrophe is raging on in the country after Tamil Tiger rebels ignored a surrender deadline from the government and the government likewise rejected the rebels' offer of ceasefire on the grounds that the offer was "meaningless." While exact figures are unavailable, it is estimated that there are upwards of 6,500 civilian deaths, with over 100,000 refugees and 50,000 civilians trapped in a space roughly the size of Central Park. According to one British official, Sri Lanka's conflict makes "what happened in Gaza look like a sideshow."

Indeed, comparisons are being drawn between Sri Lanka's plight and the Israeli-Palestinian conflict. Tamils are using refugees as human shields; the rebels are accusing the government of trying to starve the population into submission; and foreign media is kept beyond the conflict zone. Indeed:

This is a situation of armed conflict in which both parties are acting in ways that pose a grave risk to innocent civilians. The party that is perhaps more culpable -- the rebels -- answers to no one. And the Sri Lankan government has been able to operate with virtual impunity because it is fighting "terrorists." Even Western states that usually condemn violations of international law have given the situation a wide berth.

The international community has, in fact, stepped in, calling for both a ceasefire and permission for aid groups to access the war zone. Neither call appears to have been met. What becomes of Sri Lanka remains to be seen. As Robert Templer observes: either the conflict will end in a bloody massacre, likely resulting in decades more of war and suffering, or there will be a breakthrough of sorts, heralding in peaceful negotiations and the hope for a peaceful Sri Lanka. But no matter: I don't think Bono has sung about this one yet, has he? 

All roads lead to China. Even (especially?) those in the Middle East

In his recently released book, The New Silk Road: How a Rising Arab World is Turning Away from the West and Rediscovering China, Ben Simpfendorfer, chief China economist at the Royal Bank of Scotland in Hong Kong, examines China's rising popularity in the Arab world. This, marked in part by the migration of Arabic traders to the Mainland and what Simpfendorfer terms a "new silk road" emerging between China and the Middle East. The resurgence of such ties, however, is part and parcel of a much bigger picture:

The relations have already been strengthened by the Middle East’s energy wealth and China’s voracious appetite for oil and gas. Simpfendorfer forecasts that China will overtake the U.S. as the chief supplier of goods to the Middle East within a year or two. While the U.S. exports SUVs and Boeing airplanes to the Arab world, China has been providing DVD players, mobile phones and other consumer goods. The Middle East now sends more visitors to a single Chinese city, Yiwu, than to the entire United States (200,000 vs. 180,000 a year, according to Simpfendorfer). Before long, we may even see Gulf States moving away from pegging their currencies to the dollar, instead adopting a basket peg approach similar to China’s, he says.

But Simpfendorfer emphasizes that the relationship is not just economic, but also cultural. Islam, which came to China as early as the 7th Century, “is central to the silk road story,” he says.

Chinese development assistance, conditional aid, and a huge question mark

After a time away from blogging I have finally found my way back to it, admittedly slightly intimidated by the blinking cursor before me and the seemingly insurmountable amount of news, stories and random quips I've been unable to comment on.  I can never quite sort out whether the moment to do so has passed... ah, well. Nevermind: the Yale conference was a great success, as was my time spent traveling through the Northeast. Regardless, it's great to be back.

Among the first stories that caught my eye (one of many, to be sure), is a piece by Paul Collier in last week's Guardian on aid programmes. The reason it caught my eye is that it left me somewhat confused. Collier notes that the world's largest aid programme has been Chinese assistance to the U.S. Its outcome, he further observes, gives credence to the claim of conditional aid:

Chinese aid to America was provided in NGO-approved form: the US government has been free to use the money in any way it chose. But unconditional aid can be perilous: on occasion it is important for donors to ensure that money is spent not as the government prefers, but in a way that would be in the best interests of the society. Chinese aid to the US has been like EU aid to Chad, but on the grand scale: China paid for Iraq.

A seemingly valid point, though it appears that Collier may be slightly confused between a loan and foreign aid, leading him to proffer a rather muddled argument. Indeed, the Chinese purchase of U.S. bonds is not really "aid" by any definition of the term. If we're concerned with the larger global imbalances, then a much better analysis is that by Martin Wolf in the FT. If not, then I'm not sure that Collier is saying anything that hasn't already been said before, only now attempting to do so with China as his main focus (jumping on the bandwagon, perhaps?). Am I missing something?

The life of a nomad

I will be away (yes, I know, again) for the next week. Aside from speaking at what is shaping up to be a most interesting conference at Yale, I will be tending to business (and pleasure) in and around the great American Northeast - indubitably my most favorite region in America.

Should you find yourself longing for international development and politics - and indeed China-Africa - related literature (do blogs constitute 'literature' now?) in my absence, I strongly suggest that aside from following the blogs noted in my blogroll you also peruse the following (in no particular order):

James Fallows: http://jamesfallows.theatlantic.com/

Cheap Talk: http://cheeptalk.wordpress.com/  (NB. The posts don't often fall into the categories delineated above, but they are generally quite brilliant regardless)

FP Passport: http://blog.foreignpolicy.com/

David Axe: http://warisboring.com/

G. Pascal Zachary: http://africaworksgpz.com/

Scarlett Lion: http://ugandascarlettlion.blogspot.com/ 

The Bottom Billion Blog: http://bottombillion.com/

Owen Barder: http://www.owen.org/

Tim Johnson: http://washingtonbureau.typepad.com/china/

Will Lewis: http://www.experiencenotlogic.com/

Right, well that ought to keep you busy until my return. Happy reading, and do have a wonderful week!

A touch of joy on this Wednesday afternoon

With all the doom and gloom seemingly emanating from my posts this morning, I felt it necessary to bring some good cheer to this blog of mine (and to you, the readers!). While I can't buy you ice cream or transport you to far-away beaches (life's simple pleasures), I can share with you my love of photography which, in my humble opinion, is quite close to the next best thing.

I've long admired the photography of writer and photojournalist Glenna Gordon who blogs at Scarlett Lion. Among my most favorite recent photographs is this one taken in Monrovia:

Despite the decrepit architecture, the photograph conveys a wonderful sense of playfulness and childhood innocence, doesn't it? A wonderful contrast to the cynicism implicit in African politics. A wonderfully hopeful image. Cheers for this, Glenna.

Madagascar's post-coup update

The prognosis: Not. Good. (Shockingly enough).

Nearly a month after the coup d'état which overthrew then-sitting president Marc Ravalomanana, Madagascar appears to have spiraled from a political into an economic crisis - or some horrible agglomeration of the two. The country has been suspended from the African Union, and bloody protests continue to rage as the government cracks down on civil liberties, most recently curbing the media (ironically, the very matter over which opposition-leader-turned-president Rajoelina waged all-out political war on Ravalomanana). Recent findings from the World Bank further suggest that the country's economy is in as dire a state as are its politics, with the GDP growth rate expected to be negative for 2009 - down from a pre-crisis projection of 7.5%. More details can be found here.

[HT: Africa Can]

The more things change, the more they stay the same: The case of the South African election

South Africans are heading to the polls today for the fourth time since 1994, when the first democratic elections were held. The outcome is hardly any secret, with the populist Jacob Zuma expected to walk away victorious.

Yet despite the foretold outcome, larger questions loom: how will the opposition fare? How big of a majority will the ANC win? Will it retain the two-thirds majority it would need to change the constitution (Zuma has stated that he would like to review the status of the Constitutional Court, as he does not think South Africa should have people "who are almost like God in a democracy")? Recall that South Africa's government is based on strict proportional representation in which, among other things, the percentage of the vote is congruent to debate time in parliament. A most important factor given the plethora of pressing issues at hand. 

Indeed, while the ANC merits praise for upholding constitutional law, stabilizing the economy and expanding the social grant program, its overall record of governance remains mixed at best. Crime is on the rise, as is corruption. The education system is poor. Unemployment is high, and rising. Business confidence is at a ten-year low. Racial inequality persists. The list goes on. Adding more cause for concern, last week a mob overran a fruit and cane sugar farm, allegedly in frustration over the slow pace of the long-promised land reform, raising fears that the country may quickly be going the way of Zimbabwe. Not surprisingly, 42% of South Africans feel that their country is heading in the wrong direction. 

Will Zuma make things right? That much remains unclear and seems to hinge on the size of the ANC vote. As the ever-wise Economist aptly observes:

If it falls below 60%, it will be regarded as a severe blow to Mr Zuma, loathed by some as much as he is adored by others. He might then be persuaded to adopt a cautious approach to government. If, on the other hand, the ANC keeps its two-thirds majority, there are real fears that the already visible vices associated with one-party states—arrogance, corruption, nepotism, intimidation—could be reinforced, leading Africa’s biggest economy down the slippery path of other post-liberation failed African states.

For local election coverage, see South Africa's Independent Electoral Commission hompage and The Times. For South African commentary on the election, see the BBC's "Blog my beloved country" feature.

Noteworthy….

A new alliance between Rwanda and Congo is drawing many former Hutu guerrillas home to live at peace among their former enemies. 

Freedom is not always good and the Chinese need to be controlled, says actor Jackie Chan. Is he being racist/cynical/horrible [insert accusatory adjective here], or did he merely articulate what many (wealthy) Chinese feel?

New research released by the London Councils suggests there are not enough places in London's schools for new pupils. Third world (education) problems are evidently not confined to the third world alone.

The biggest electoral show on earth is now under way in India. Despite the country's growing role on the international stage, foreign policy appears to play only a marginal role in the decisions of nearly 714 million voters.

China's growing role in UN peacekeeping

An interesting report released today by the International Crisis Group examines China's peacekeeping contributions. The report argues that the emergence of such a trend is a positive step for UN peacekeeping more generally, especially at a time when both conflicts and peacekeeping operations are becoming more complex. Definitely worth a read.

Among the very few times I hope the media is lying...

Via World Politics Review:

Zimbabwe's national unity government faces imminent collapse, due to its failure to get critical financial aid from the international community. Experts have now warned that the government might soon fail to pay its workers, with the potential for serious civil unrest as a result.

Horrible news if indeed true, no less so given that the power-sharing arrangement came to fruition a mere two months ago. I sincerely hoped that I would have been proven wrong in my initial skepticism. ::sigh::

On China's shifting strategy in Africa. Finally, somebody gets it right.

Ever since the reality of the economic crisis took hold, international attention has remained squarely focused on the governments in both Washington and Beijing. What are they doing? What will they do? What does all of this mean? With respect to Beijing in particular, myths of China's withdrawal from Africa began to surface around the time the China-Congo deal began to flounder and seemingly haven't seized in their cries of armageddon (see here and here, for instance). Well, stop already. Not only is this annoying, it's horribly misinformed. The Asia Times finally gets it right:

China's engagement with Africa has barely begun. As far as the stock of foreign investment in Africa is concerned, the Asian giant is still dwarfed by the West 10 to 1, but not for long if Beijing has anything to do with it. For China, Africa is a strategic play, requiring the stamina for which its strategists have always been famous. 

It is true that Beijing is hurting badly from the global economic crisis much more than its Ministry of Commerce's massaged statistics will let on, but it would be analytically unsound to treat any perceived change in Sino-African trends as a panic-response dictated by the souring global economy. China is engaged in a deliberate, calculated, and carefully scheduled re-pricing of risk in its African project.

A long-term project, I might add.

On dealing with pirates

In an interesting letter to Barack Obama on the subject of Somalia, Senator Russ Feingold writes the following:

As you know, piracy off the coast of Somalia is a symptom of the state collapse and instability on land; thus, any military actions we take will only be stopgap measures.  In recent Congressional testimony, Director of National Intelligence Blair and Defense Intelligence Agency Director Army Lt. General Michael Maples cited lawlessness and economic problems on land for the rise in piracy at sea.  The ultimate solution to the problem of piracy, then, is the establishment of a functional government that can enforce the rule of law.  During the rule of the Council of Islamic Courts in 2006, there was a notable decline in piracy that can be attributed, in large part, to the rise of a central authority in southern Somalia. Without replicating the repressive rule of the Courts, we must keep in mind that establishing a central governing structure in Somalia is critical to resolving, not just stopping, the problem of piracy.

Feingold proposes closer U.S. cooperation with the Somali government to "help establish security and functional, inclusive governance within the country." At first glance this seems like the clear way forward. Given that a large portion of pirates are impoverished individuals attempting to make a livelihood for themselves in the absence of other options, an internal solution to the problem (i.e. establishing governance and subsequently creating opportunity) appears the right one. 

Yet while this nation-building route may be the most sensible of options, it does raise two questions. First, should the United States engage in yet another nation-building mission in the Islamic world? Recall that Somalia is in large measure (informally) controlled by al-Shabab, an extreme al-Qaeda aligned terrorist group that has been active in Somalia since 2006. Despite America's benevolent intentions, I remain highly skeptical that any sort of state-building activity would be welcomed, especially given America's recent track record (and reputation) in the Islamic world. And given, too, that Somalia is a sovereign nation. Arguably this would radicalize the pirates just as much as would the second option: military action.

The second option (and second question) is indeed that of air strikes on pirate land bases, an option currently being debated by the U.S. government. While I hesitate to believe that such action would do much to ameliorate the piracy problem in the long term, and would inevitably mar the vision of a peaceful, all-loving America which the Obama administration seems intent on creating, some argue that it may be the appropriate response to what are, in fact, acts of terror. Indeed, the fundamental question implicit in this option is that of what label we designate to pirates: are they merely (helpless) criminals (or a 'better class of criminal' as my colleague Jon Santiago comically muses), or are they terrorists? Hostis humani generis? 

Unfortunately, the recent string of events appears to point to the latter. Mortars were fired on upon a plane carrying U.S. Congressman Donald Payne as it took off from Mogadishu airport on Monday (al-Shabab has claimed responsibility for the act). Pirates attempted an attack on a second U.S. vessel today, and have hijacked four more ships since the rescue of Captain Richard Phillips. Where before I was willing to pass off acts of piracy as acts of desperate individuals attempting to sustain a livelihood, such events seem to suggest something quite different - no less so given the pirates' threats of defiant, bloody revenge.

The question of how to solve the piracy problem is fantastically complex, and I don't claim to have much in the way of a solution. There is much to consider and, as it stands, America appears caught between a rock and a hard place. Arrrghhh matey, indeed.

Rwanda rising

In January of this year, Oxford's Paul Collier and Jean-Louis Warnholz published an article in the Harvard Business Review entitled "Now's the Time to Invest in Africa." The title is quite self-explanatory: they argue that over the last several years trends have emerged throughout the continent to present a prime investment climate. This includes political stability, international and economic policies, and business profits and growth.

This is certainly true, and perhaps more surprisingly, is true especially of Rwanda - a country which commemorated 15 years since the genocide a mere week ago. In those fifteen years, however, much has changed and Rwanda is quickly moving towards establishing itself as one of Africa's most investment-friendly havens. Among those placing their faith in Rwanda are the CEOs of Starbucks and Costco, Google CEO Eric Schmidt, and former British PM Tony Blair. For them and others, Rwanda is regarded as the most undervalued 'stock' on the continent, and presents a unique opportunity to bring innovation to a nation.

Rwandan president Kagame has been credited with marshaling much of the country's turnaround. Indeed, though problems of civil liberties loom large, the economy is booming. Kagame's strategy is quite a curious one, closely mirroring Chinese strategies, rooted as they are in guanxi networks:

Kagame's strategy relies on wealthy and powerful friends to lure private investment, train a new generation of managers, build a globally competitive economy, and wean the country off foreign aid. Even as troubling questions remain about Kagame's involvement in the region's ongoing conflicts, this unpaid, business-savvy team is marketing the brand called Rwanda.

The spirit behind 'brand Rwanda' is a distinctly entrepreneurial one, and resonates across all industrial sectors. Most prominently, perhaps, is the emphasis being placed on the country's information and communications-technology sector, which is pivotal to Rwanda's ambitious development strategy and has been rocketing young entrepreneurs into the domestic and global marketplace. 

Fifteen years on, Rwanda is seemingly moving in the right direction. If the country is any example, it may be time for the West to invest in Africa after all. 

[HT: Elizabeth Palchik Allen]

Noteworthy….

There is so much that I want to say today, but alas I woke up running, as it were, and am fantastically behind in all that I'm meant to accomplish. Nevertheless, I do want to bring several things to your attention:

China today released a Human Rights Plan, a lengthy document promising to Chinese citizens a myriad of civil liberties they have thus far been denied. The full text of the plan (in English) may be found here.

The U.S. is considering attacking Somali pirates' land bases. I'm not quite sure the U.S. knows what it's getting itself into should this go ahead. A horrible idea, if you ask me (more on this in upcoming posts!)

Arguably one of the better summaries of all that is right, and all that is wrong, with Dambisa Moyo's controversial book, Dead Aid.

Money as art: billboards, flyers and posters made from worthless Zimbabwean dollars (you can view the images here)