Download PDF by Harry G. Broadman: Africa's Silk Road: China and India's New Economic Frontier

By Harry G. Broadman

ISBN-10: 0821368354

ISBN-13: 9780821368350

ISBN-10: 0821368362

ISBN-13: 9780821368367

China and India's new-found curiosity in exchange and funding with Africa - domestic to three hundred million of the globe's poorest humans and the world's such a lot bold improvement problem - offers an important chance for progress and integration of theSub-Saharan continent into the worldwide financial system. Africa's Silk highway reveals that China and India's South-South trade with Africa isabout way over ordinary assets, commencing the way in which for Africato develop into a processor of commodities and a aggressive provider of products and companies to those international locations - an incredible departure from its lengthy proven family members with the North. increasingly more chinese language and Indian companies lively in Africa function on a world scale, paintings with world-class applied sciences, produce services and products based on the main hard criteria, and foster the combination of African companies into complicated markets.There are major imbalances, even if, in those rising advertisement relationships. those may be addressed via a chain of reforms in all countries:'At-the-border' reforms, similar to removal of China and India's escalating price lists on Africa's best exports, and removal ofAfrica's price lists on sure inputs that make exports uncompetitive'Behind-the-border' reforms in Africa, to unharness aggressive marketplace forces and advance its simple marketplace institutions'Between-the-border' advancements in exchange facilitation mechanisms to diminish transactions costsReforms that leverage linkages among funding and exchange, toallow African companies to take part in international productionnetworks that investments by means of chinese language and Indian companies can generate.

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Additional resources for Africa's Silk Road: China and India's New Economic Frontier

Example text

That oil dominates Africa’s exports to China and India is part of the larger profile of Africa’s global export pattern. Africa’s rapidly growing exports to China and India are not limited to fuels and other mineral and metal products. Labor-intensive raw or semiprocessed agricultural commodities that are used for further processing either for industrial use (timber, cotton) or for consumer use (food products) are also increasingly imported by China and India. Still, taken together, petroleum, metals, and agricultural raw materials account for 85 percent of Africa’s exports to China and India.

Examining the Determinants of the Patterns of African-Asian Trade Flows What are the principal factors that account for the differences observed in the patterns of African-Asian trade flows? At-the-border formal trade policies are often at the forefront of negotiations and discussions on international commerce. Obviously, tariff and nontariff barriers (NTBs) are the primary targets of trade liberalization. It is thus important to investigate the impact of such factors on the patterns of Africa’s trade flows with Asia.

China is a relatively liberalized market. It has zero tariffs for its most highly demanded raw materials, including crude petroleum and ores, but has moderate-to-high tariffs on other imports, especially on inedible crude materials from the South. China has announced plans to further lower its tariffs and bring about lower dispersion in the structure of tariffs by the end of 2007. Particularly problematic is the fact that in certain cases, tariff escalation in Asian markets has been discouraging the export of higher value-added processed products from Africa.

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Africa's Silk Road: China and India's New Economic Frontier by Harry G. Broadman

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