The Globalization of Foreign Investment in Africa : The Role of Europe, China, and India

The 21st century era of globalization has opened up many investment alternatives for Africa. There is now a rush by governments and private companies to expand in the rapidly growing region, to the extent that we can begin to talk of a process of world-wide investment. Both traditionally powerful economies in the West and emerging powers such as China and India have contributed to a vast proliferation of investment, raising questions of what intense competition will mean for Africa's economic development. The Globalization of Foreign Investment in Africa: The Role of Europe, China, and India compares the differing approaches between Asian and European players in Africa, with a particular focus on the role of foreign direct investment (FDI) in the socio-economic, socio-political, and socio-cultural development of the region. First documenting the historical context of Western dominance from European colonial powers, the book follows the paradigm shift that occurred with China's 21st century foray into Africa in search of oil and other raw materials to fuel its own rapidly rising economy. Using an interdisciplinary approach, the author proposes that Africa will only get maximum benefits from high-level investment activities if it succeeds in evolving an Africa-driven foreign investment policy. This strategy presents the best scenario for an African economic renaissance in the 21st century. An important contribution to research on contemporary Afro-Asian dynamics, this book will be of interest to students and academics of African Studies, Asian Studies, globalization, and economics, as well as potential investors and investing agencies. -- Provided by publisher Front Cover The Globalization of Foreign Investment in Africa Copyright Page Contents Notes Acknowledgements Foreword Chapter 1 Introduction: Globalizing Foreign Investment in Africa 1.1. Socio-Economic Theories 1.2. Socio-Political Theories 1.3. Socio-Cultural Theories Chapter 2 Conceptual Groundings: The Role of FDI in National Development 2.1. Introduction 2.2. FDI: Definitions and Conceptualizations 2.3. Arguments for FDI 2.4. Arguments against FDI 2.5. Conclusion: We Need FDI Note Chapter 3 Looking Back into History: European Investment in Africa 3.1. Introduction 3.2. Historical Overview 3.3. Essential Features and Constraints of European Investment in Africa 3.3.1. European Socio-Economic Conditionalities 3.3.2. The Export of Global Socio-Political Values 3.3.3. European Views of Africa as a Humanitarian Burden 3.4. How Europe Can Re-Invent Itself in Africa 3.4.1. Let Politics Be Politics and Investment Be Investment 3.4.2. Trade and Investment, Not Aid 3.4.3. The Role of the African Diaspora 3.5. Conclusion Chapter 4 In Comes the Dragon: Chinese Investment in Africa 4.1. Introduction 4.2. Features of Chinese Investment in Africa: A Paradigm Shift 4.2.1. Conditions of Engagement But No Conditionalities 4.2.2. Equality of Partnerships 4.2.3. Aid Versus Investment 4.3. Global Growth Companies 4.4. China’s Success in Africa: Lessons for Other Investors 4.5. Conclusion Note Chapter 5 The Elephant Stands Up to the Dragon: India’s 21st Century Investment Initiatives as a Reaction to China in Africa 5.1. Introduction 5.2. History of Indian Investment Presence in Africa 5.3. Indian Awakening in Africa: Evaluating Investment Initiatives 5.4. How Unique Does India Want to Be? 5.5. Conclusion Notes Chapter 6 Newer Alternative Foreign Investment Sources in the 21st Century 6.1. Introduction 6.2. The GEEP or the ‘BRICS’ 6.2.1. Brazil 6.2.2. Russia 6.3. Rising Asian Stars: Turkey and Indonesia 6.3.1. Turkey 6.3.2. Indonesia 6.3.3. Other Asian Players 6.4. Central and South America: Cuba and Beyond 6.5. Conclusion Notes Chapter 7 The Lion Must Roar: Towards an Africa-Driven Investment Policy in an Era of Globalization 7.1. Introduction: Critiquing Africa–China relations 7.2. The Fallacy of the ‘Win-Win-Win’ Hypothesis for Africa, China and the West 7.2.1. WWW-Hypothesis 7.2.2. Four Formal Arguments against an Africa–China–West Trilateralism Hypothesis 7.2.2.1. Why Africa as a Locus for China–West Cooperation? 7.2.2.2. Benefits for Who? 7.2.2.3. The Albatross of Differences in Diplomatic Philosophies 7.2.2.4. Lessons from Contemporary Scenarios 7.3. The WWW-Hypothesis versus an Alternative AWA-Hypothesis 7.3.1. Africa-Driven Win-for-All (AWA)-Hypothesis 7.4. The Role of the African Union (AU) 7.5. Conclusion 7.5.1. Africa-Driven Win-for-All (AWA)-Hypothesis Notes References About the Author Index The 21st Century era of globalization has opened up many investment alternatives for Africa. This book examines the role of foreign direct investment (FDI) in Africa's socio-economic development with particular reference to Europe and Asia's two biggest emerging economic powers, China and India. The book starts with a focus on the conceptualizations of FDI and the debate about its benefits or otherwise to the economic development and political sovereignty of the recipient country. It then provides a historical overview of FDI in Africa, arguing that a paradigm shift occurred with China's 21st Century intensified foray into Africa in search of oil and other raw materials to fuel its rapidly rising economy. The book then explores India's presence in Africa, and how it had to wake up to challenge the sudden rise in Chinese investment in the country with its "Focus - Africa" investment programme. This is followed by a brief overview of new emerging players in the African Investment stratosphere, with particular reference to other 'BRIC' countries such as Brazil and Russia. The book concludes with the idea that maintaining clear investment alternatives in Africa's investment stratosphere presents the best scenario for an African economic renaissance in the 21st Century. As Africa becomes a locus for an intensified investment by both traditionally powerful economies and emerging powers, this book provides both a much needed overview and new proposals for foreign investment in the nation