Ruben Gonzalez Vicente M.Phil. Student. Introduction Theoretical issues: Dependency, resource...

Ruben Gonzalez VicenteM.Phil. Student

Introduction Theoretical issues: Dependency, resource

curses and development Review of China’s engagement in Africa’s

resource sector The South American case Conclusions

Other analyses of Sino-South American relations.

What is new about this paper:◦ Development angle.◦ Resource extraction as unit of analysis.◦ Comparative approach.

External, internal and intrinsic curses of extraction.

China’s relations with national elites shape developmental outcomes in different ways.

The dependency theory:◦ Peripheries, international division of labor

(Emmanuel, 1972)◦ Commodities vs. Technology (Frank, 1969)◦ State capitalism in Latin America, neoliberalism,

new left.◦ The limits of dependency:

Dependent development (Cardoso, 1982) Challenges posed by China’s growth.

The resource curse theories:◦ Economic curses:

Declining terms of trade of resources (Prebisch, 1950; Singer, 1950)

Dutch disease Low upstream and downstream links

◦ Political curses: Patronage politics (Shaxson, 2007) Weak government – civil society links (Karl, 2007) Conflicts at the local level.

Three categories:

◦ External curses.

◦ Internal curses.

◦ Intrinsic curses.

Opportunities:◦ China’s growth and commodity prices.◦ Alternative investor.◦ “Package deals”.

Problematical issues:◦ Support of ruthless political elites◦ Chinese labor, labor conditions, low salaries.

The role of state in resource-driven development.

The role of China in shaping internal politics.

Review. Impact on:◦ External curses.◦ Internal curses.◦ Intrinsic curses.

Opportunities:◦ Increasing investment. Commodity prices.◦ Alternative investor.

Problematical issues:◦ Overreliance on commodity exports.

South American politics today:◦ Democracy.◦ Civil societies’ relevance.

China, South American states and development:◦ Cooperation with political elites.◦ Joint ventures and service provider contracts

Persisting problems:◦ Limits to technological upgrade.

◦ Inequality.

◦ Marginalization or remote areas where extraction occurs.

◦ Populism.

◦ Intrinsic curses of extraction.

Review. Impacts on:

◦ External curses of extraction.

◦ Intrinsic curses of extraction.

◦ Internal curses of extraction.

Resource curses. Three levels of comparison:

◦ External curses: Similarities.

◦ Intrinsic curses: Similarities

◦ Internal curses: Divergences

.Baosteel Group

.Sinopec

.Chalco*

.CNPC

.Shougang

.Minmetals

.Zijin

.Chinalco

.CNPC

.Andes Petroleum

.CNPC

.Minmetals

.Chongqing Bosai

.Shandong Luneng*

.Minmetals*

Cardoso, F. H. (1982). Dependency and development in Latin America. In H. Alaviand T. Shanin (eds.), Introduction to the Sociology of Developing Societies. New York: Monthly Review Press.

Emmanuel, A. (1972). Unequal Exchange: A Study of the Imperialism of Trade. New York: Monthly Review Press.

Frank, A. G. (1969). Capitalism and Underdevelopment in Latin America. New York: Monthly Review Press.

Karl, T.L. (2007). Ensuring fairness: the case for a transparent fiscal social contract. In M. Humphreys, J. D. Sachs and J. E. Stiglitz (eds.) Escaping the Resource Curse. New York: Columbia University Press.

Prebisch, R. (1950). The Economic Development of Latin America and its Principal Problems. New York: United Nations.

Shaxson, N. (2007). Oil, corruption and the resource curse. International Affairs, 83(6):1123-1140.

Singer, H. (1950). The distribution of gains between investing and borrowing countries. American Economic Review, 15:473-485.