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| China: 'rogue' donor or beacon of south-south co-operation? | China: 'rogue' donor or beacon of south-south co-operation? |
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| Mandarin, now there's a word. In China, it first gained currency as a term for a high-ranking government official in the late 16th century, when the Ming dynasty borrowed it from the Portuguese "mandarim". In 1907, China returned the noun to Europe: a reference in the National Review offers the first recorded instance of its use in English to denote a person of importance in political or intellectual circles. The term rapidly acquired negative connotations; the following year, the New Age magazine wrote waspishly of English mandarins having lost the power to restrict discussion, "at least by open means". | Mandarin, now there's a word. In China, it first gained currency as a term for a high-ranking government official in the late 16th century, when the Ming dynasty borrowed it from the Portuguese "mandarim". In 1907, China returned the noun to Europe: a reference in the National Review offers the first recorded instance of its use in English to denote a person of importance in political or intellectual circles. The term rapidly acquired negative connotations; the following year, the New Age magazine wrote waspishly of English mandarins having lost the power to restrict discussion, "at least by open means". |
| The history of Chinese aid reveals a similar pattern of take, give and negativity, which may partly explain why a country with knowledge and ideas gleaned from its own development has not engaged more fully with traditional donors. In 1979, when China was just starting to broaden its international horizons, it received $4.3m (£2.8m) in foreign aid; since then, the cumulative total has risen to more than $500bn. At the same time, China's influence as a donor has increased exponentially. A landmark government white paper, published in April 2011, put foreign aid expenditure between 1950 and 2009 at 256.29bn yuan ($38.45bn). | The history of Chinese aid reveals a similar pattern of take, give and negativity, which may partly explain why a country with knowledge and ideas gleaned from its own development has not engaged more fully with traditional donors. In 1979, when China was just starting to broaden its international horizons, it received $4.3m (£2.8m) in foreign aid; since then, the cumulative total has risen to more than $500bn. At the same time, China's influence as a donor has increased exponentially. A landmark government white paper, published in April 2011, put foreign aid expenditure between 1950 and 2009 at 256.29bn yuan ($38.45bn). |
| Seen through western eyes, however, Chinese development assistance has become a focal point for scepticism. Beijing has been variously accused of lacking transparency, establishing bilateral relationships in Africa purely to milk the continent's natural resources, saddling poor countries with debt, and – because China eschews conditionality – supporting poor governance. | Seen through western eyes, however, Chinese development assistance has become a focal point for scepticism. Beijing has been variously accused of lacking transparency, establishing bilateral relationships in Africa purely to milk the continent's natural resources, saddling poor countries with debt, and – because China eschews conditionality – supporting poor governance. |
| Like the negative reappropriation of the word 'mandarin', such interpretations suggest an endemic western distrust towards China. For New Age magazine's casual association of mandarins with behind-the-scenes machinations, read the oversimplified suggestion that Chinese aid bankrolls corrupt regimes. | Like the negative reappropriation of the word 'mandarin', such interpretations suggest an endemic western distrust towards China. For New Age magazine's casual association of mandarins with behind-the-scenes machinations, read the oversimplified suggestion that Chinese aid bankrolls corrupt regimes. |
| Confronted by – and perhaps even complicit in – such crudely reductive thinking, is it any wonder that traditional donors often appear blind to the merits of China's approach? Equally, just how surprised should we be that China, the subject of so much scrutiny and criticism, would only endorse a diluted version of the global partnership on aid effectiveness agreed in Busan? The reality all sides need to embrace is that Chinese development assistance is no more a paradigm of best practice than a model of how not to approach aid. | Confronted by – and perhaps even complicit in – such crudely reductive thinking, is it any wonder that traditional donors often appear blind to the merits of China's approach? Equally, just how surprised should we be that China, the subject of so much scrutiny and criticism, would only endorse a diluted version of the global partnership on aid effectiveness agreed in Busan? The reality all sides need to embrace is that Chinese development assistance is no more a paradigm of best practice than a model of how not to approach aid. |
| "People often speak from a position of deep ignorance about the actual terms in which Chinese assistance is delivered," says Andrew Rogerson, a senior research associate at the Overseas Development Institute. "They tend to try to caricaturise everything as being about rapacious, mercantilist deals, missing the wider lessons that can be picked up." | "People often speak from a position of deep ignorance about the actual terms in which Chinese assistance is delivered," says Andrew Rogerson, a senior research associate at the Overseas Development Institute. "They tend to try to caricaturise everything as being about rapacious, mercantilist deals, missing the wider lessons that can be picked up." |
| Central to seeing the bigger picture is a proper appreciation of domestic constraints. Critics portray China's failure to provide country-level information about aid flows as evidence of a lack of transparency. An equally credible explanation might be that it results from domestic sensitivities about overseas aid spending – a phenomenon western governments should understand only too well. Despite the remarkable economic growth that has lifted half a billion Chinese people out of poverty over the past three decades, more than 200 million still live on less than $1.25 a day. Consequently, China can ill afford to be seen as purely philanthropic – perhaps explaining its emphasis on bilateral aid and reluctance to trumpet details about its aid programmes. | Central to seeing the bigger picture is a proper appreciation of domestic constraints. Critics portray China's failure to provide country-level information about aid flows as evidence of a lack of transparency. An equally credible explanation might be that it results from domestic sensitivities about overseas aid spending – a phenomenon western governments should understand only too well. Despite the remarkable economic growth that has lifted half a billion Chinese people out of poverty over the past three decades, more than 200 million still live on less than $1.25 a day. Consequently, China can ill afford to be seen as purely philanthropic – perhaps explaining its emphasis on bilateral aid and reluctance to trumpet details about its aid programmes. |
| In the absence of such detail, however, it seems disingenuous to cast China as a "rogue" donor. "Discussion on whether Chinese aid helps questionable regimes is difficult to build, as we lack the data," says Sven Grimm, director of the Centre for Chinese Studies at Stellenbosch University. "Aid flows by country are state secret in China. As a researcher, one is automatically referred to African sources: [the attitude is] 'Ask them, we won't tell you'." | In the absence of such detail, however, it seems disingenuous to cast China as a "rogue" donor. "Discussion on whether Chinese aid helps questionable regimes is difficult to build, as we lack the data," says Sven Grimm, director of the Centre for Chinese Studies at Stellenbosch University. "Aid flows by country are state secret in China. As a researcher, one is automatically referred to African sources: [the attitude is] 'Ask them, we won't tell you'." |
| What China will say is that its aid strategy is founded on equality and mutual benefit with no political strings attached, principles it frames as south-south co-operation or "mutual help between developing countries". Many recipients – not least in Africa, where 51 countries receive Chinese aid – welcome this approach. | What China will say is that its aid strategy is founded on equality and mutual benefit with no political strings attached, principles it frames as south-south co-operation or "mutual help between developing countries". Many recipients – not least in Africa, where 51 countries receive Chinese aid – welcome this approach. |
| "China, its amazing re-emergence and its commitment for a win-win partnership with Africa, is one of the reasons for the beginning of the African renaissance," enthused former Ethiopian prime minster Meles Zenawi at the opening of the $200m African Union headquarters in Addis Ababa, built and funded by China, in January 2012. | "China, its amazing re-emergence and its commitment for a win-win partnership with Africa, is one of the reasons for the beginning of the African renaissance," enthused former Ethiopian prime minster Meles Zenawi at the opening of the $200m African Union headquarters in Addis Ababa, built and funded by China, in January 2012. |
| Such rhetoric suggests China must be doing something right. Beijing might benefit but, unlike some western governments, it doesn't pretend otherwise, emphasising instead its mantra of mutuality. | Such rhetoric suggests China must be doing something right. Beijing might benefit but, unlike some western governments, it doesn't pretend otherwise, emphasising instead its mantra of mutuality. |
| "Country and government officials have become used to dealing with quite a patronising approach from certain other donors," says Dr Philippa Brant, research associate at the Sydney-based Lowy Institute. "The ones I spoke to found China's approach refreshing. In promoting itself as a provider of south-south co-operation rather than an aid donor, China is attempting to approach the relationship in a much more mutual way. Symbolically, I think that's quite powerful and meaningful." | "Country and government officials have become used to dealing with quite a patronising approach from certain other donors," says Dr Philippa Brant, research associate at the Sydney-based Lowy Institute. "The ones I spoke to found China's approach refreshing. In promoting itself as a provider of south-south co-operation rather than an aid donor, China is attempting to approach the relationship in a much more mutual way. Symbolically, I think that's quite powerful and meaningful." |
| Grimm likewise believes Chinese engagement, particularly in Africa, is greeted by poor countries as "a welcome change from being regarded – and, politically, treated – as a basket case that needs help". But he also argues that China's rhetoric may be laying the groundwork for problems further down the line, fostering a sense of equality based on nothing more substantial than words. | Grimm likewise believes Chinese engagement, particularly in Africa, is greeted by poor countries as "a welcome change from being regarded – and, politically, treated – as a basket case that needs help". But he also argues that China's rhetoric may be laying the groundwork for problems further down the line, fostering a sense of equality based on nothing more substantial than words. |
| "In the longer term, delivering on an equal partnership will be difficult if you are perceived as the stronger partner," says Grimm. "And non-interference becomes hard to practice when – with investments having reached a certain level, and the stakes high – the going gets tougher." | "In the longer term, delivering on an equal partnership will be difficult if you are perceived as the stronger partner," says Grimm. "And non-interference becomes hard to practice when – with investments having reached a certain level, and the stakes high – the going gets tougher." |
| There may also be downsides to other perceived benefits. On the plus side, Chinese aid tends to be fast, efficient and flexible, avoiding the procedural bureaucracy associated with some western donors. Rather than predefined country strategies, support tailored to individual needs is favoured, with China drawing on its own experience of economic growth as a driver of development by targeting key areas such as infrastructure, agriculture, education and healthcare. | There may also be downsides to other perceived benefits. On the plus side, Chinese aid tends to be fast, efficient and flexible, avoiding the procedural bureaucracy associated with some western donors. Rather than predefined country strategies, support tailored to individual needs is favoured, with China drawing on its own experience of economic growth as a driver of development by targeting key areas such as infrastructure, agriculture, education and healthcare. |
| Yet Chinese engagement is not always well received. When Brant asked people in Papua New Guinea what they felt about Chinese versus western intervention, she found many were frustrated by the involvement of smaller Chinese companies, and by Beijing's failure to engage minor stakeholders. | Yet Chinese engagement is not always well received. When Brant asked people in Papua New Guinea what they felt about Chinese versus western intervention, she found many were frustrated by the involvement of smaller Chinese companies, and by Beijing's failure to engage minor stakeholders. |
| "I went in expecting that there would be a real sense of 'Yes, we really like all these things that China is doing and we'd be really keen if traditional donors could take on board and learn some of these lessons'. But actually it wasn't like that at all," she says. | "I went in expecting that there would be a real sense of 'Yes, we really like all these things that China is doing and we'd be really keen if traditional donors could take on board and learn some of these lessons'. But actually it wasn't like that at all," she says. |
| Part of the problem lies with a lack of administrative co-ordination. While the ministry of commerce devises China's aid programmes, they are managed at country level by its embassies and consulates, which are run by the foreign affairs ministry. The absence of a dedicated development agency presents an obvious barrier to monitoring and evaluation. Western donors have long since recognised this problem, underlining the reality that learning is a complementary process. | Part of the problem lies with a lack of administrative co-ordination. While the ministry of commerce devises China's aid programmes, they are managed at country level by its embassies and consulates, which are run by the foreign affairs ministry. The absence of a dedicated development agency presents an obvious barrier to monitoring and evaluation. Western donors have long since recognised this problem, underlining the reality that learning is a complementary process. |
| "China is not going to revolutionise development if it is determined to reinvent the wheel," says Grimm. "There is certainly a need to learn from traditional donors about what worked and what did not … But learning is a two-way street – it is not just about China understanding what the west is doing and then falling into line." | "China is not going to revolutionise development if it is determined to reinvent the wheel," says Grimm. "There is certainly a need to learn from traditional donors about what worked and what did not … But learning is a two-way street – it is not just about China understanding what the west is doing and then falling into line." |
| "I think there is starting to be a recognition, slowly, that everybody has something to learn from each other," adds Brant. "China is keen to share its own experiences with others, and it would be unwise for traditional donors to simply ignore that. But like any donor, China has its problems. There's no black and white answer about who is better or who should be learning from whom." | "I think there is starting to be a recognition, slowly, that everybody has something to learn from each other," adds Brant. "China is keen to share its own experiences with others, and it would be unwise for traditional donors to simply ignore that. But like any donor, China has its problems. There's no black and white answer about who is better or who should be learning from whom." |
| Mandarins on all sides would seem to have their work cut out. | Mandarins on all sides would seem to have their work cut out. |
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