Comparing South-South Cooperation

Practices: Brazil and China in

Africa Paulo Esteves

Senior-Researcher – BRICS Policy CenterInstitute of International Relations – PUC-Rio

esteves_paulo@puc-rio.br

Brazilian and Chinese engagements with Africa The Broader Context:

Emerging Powers Uni-multipolar world

“The BRICS” Effect A plural World beyond the West

International Development

After World War II, two paths: DAC – OECD:

Bretton Woods Institutions; Cold War alliances;

Technical Cooperation / South-South Cooperation (SSC): Nonaligned movement; G-77; UN System;

International DevelopmentOfficial Development Assistance

1990’s: Conditionalities; Alignment with broader

market oriented reforms; Emphasis on governance

and institutional reform; 2000’s:

Effective Assistance Agenda:

Paris Declaration: Ownership ; Alignment between

Donor and Recipient; Accra Platform

South-South Cooperation

1980’s and 1990’s: Unipolar system; Southern countries as

recipients; subjected to market oriented

reforms. 2000’s:

Emerging powers as emerging donors;

South-South Cooperation: Mutual benefit; Common but differentiate

responsibilities; Non intervention;

BRICS, Emerging Powers and SSC

ODA and SSCBiggest donors of ODA and South-South cooperation

(data from 2007, in billions of dolars)

Emerging DonorsEstimates of Foreign Aid as a Donor - 2009

DAC/OECD and Emerging Donors

Global Concessional Development Assistance to LICs, 2007

ODA and SSC (AFRICA)

ODA and SSC (AFRICA)

BRICS in AFRICA• Growing importance of BRICS as trading partners for African countries;• Decline of European relevance as trade partner;• Growing importance of BRICS as FDI sources;

Country and sectorial focus on emerging economies’ foreign direct investments in Africa,

2000-2006

BRICS in Africa (Trade)

Share in Africa´s Imports Share in Africa´s Exports

China and SSC Chinese Development

Cooperation takes place through three instruments: loans, grants and cooperation / assistance;

Loans are the most important instrument;

The Ministry of Commerce and the EXIM Bank are the most important players;

China in Africa (Aid by type)

Reported People's Republic of China Aid by type and region (2002-2007)

(in millions of U.S. dollars)

China in Africa (FOCAC)

China in Africa (FOCAC)

China in Africa (FOCAC)

China in Africa (Trends) Promotion of Special Economic Zones (SEZs) as

a preferential channeling of FDI flows; expansion of concessional credit transactions

with varying levels of restriction on hiring exclusive suppliers of goods and services from the creditor country (tied aid).

Diffusion of the Angola model which allows the use of natural resources as collateral.

Emphasis on projects that facilitate the increased production of goods in sectors complementary to the Chinese economy.

Emphasis on projects that facilitate the increased production of goods in sectors complementary to the Chinese economy.

Brazil and SSC Brazilian Development

Cooperation takes place through four instruments: humanitarian assistance, scholarships, technical cooperation, contribution to multilateral institutions;

Technical cooperation is the most important instrument;

Resources x Modalities 2005-09 (%)

Resources x Modalities 2005-09 (%)

Brazil and SSC ABC is the main player

in Brazilian SSC practices; ABC depends upon

presidential or other governmental inputs and incentives;

ABC works throughout projects either bi-lateral or triangular;

There is no financial cooperation;

Limited capacity for coordinating different governmental sectors.

Brazil and SSCResources channeled by ABC to technical cooperation across

world regions, 2006‐2009 (million US$)

Brazil and SSCABC’s technical cooperation budget, 2006‐2010

(million BRL)

Brazil and SSCNumber of technical cooperation projects initiated each year, 2003‐2009

Technical cooperation projects per world region, 2009 (million US$ and percentage)

Brazil in Africa (Trends)Technical Cooperation with Africa – Budget – 2003-10

Technical Cooperation with Africa – Main Countries

Brazil in Africa (Trends) Coordination problems between the

Cooperation Agency (ABC) and operators in the field: FIOCRUZ EMBRAPA Education Ministry

Lack of institutional and legal structure; Lack of coordination between FDI, trade

and cooperation;

Comparing SSC PracticesChina Development

Cooperation is subordinated to economic and political interests;

Verticality due to economic imperative as well as the lack of transparency and principles beyond non-intervention;

Brazil Development Cooperation

is either autonomous (depending on the operators) or driven by foreign policy;

Missed link between economic incentives and development cooperation;

Assumed horizontality due to relative autonomy between agents in a context of absence of principles and transparency.

Key Questions Key Challenges Brazilian and Chinese practices can be

analyzed under the same concept? Is South-South Cooperation fulfilling its

promises? Has South-South Cooperation answered the

main challenges presented to and by North-South cooperation practices?

How about: Ownership? Transparency? Accountability?