Qiuting li

Nigeria

History the Giant of Africa The British colony 1960 became independent half Christians and half Muslisms

China and Nigeria

Similar historical encounters.

Solid political basis Conforms to the fundamental interest of both peoples

Political Relations

10 Feb, 1971 established formal diplomatic relations

10 April, 2002 Chinese president Jiang Zeming visited to Nigeria.

In 2004 and again in 2006, Chinese President Hu Jintao made state visits to Nigeria

10 July, 2013, President Xi Jinping held talks with President Goodluck Jonathan of Nigeria at the Great Hall of the People.

Major Agreements Agreement on Trade, Investment Promotion and Protection1 2001 Agreement for the Avoidance of Double Taxation and Prevention of Fis

cal Evasion with respect to Tax on Income 2002 Agreement on Consular Affairs 2002 Agreement on Co-operation on Strengthening Management of Narcoti

c Drugs, Psychotropic Substances and Diversion of Precursor Chemical 2002 Agreement on Tourism Co-operation 2002 Agreement of South-South Co-operation among China, Nigeria and F

AO2 2003 Memorandum of Understanding on a Strategic Partnership 2006 Agreement against fake products exported to Nigeria from China 2009 Memorandum of Understanding on promotion bicameral economic c

o-operation and partnership between Ogun State of Nigeria and Zhejiang Province

of China 2009 Memorandum of Understanding on peace co-operation 2010

Yang Li

Why Neo-Confucianism is important?

Common factors HPAEs success:1. High level of domestic saving( frugality ). ( frugality ). 2. Good macroeconomic management

(leadership)(leadership)

3.3.Broad base of Human Capital (education, Capital (education, self-purifying )self-purifying )By establishing Confucian institutions, we can see that China

wants to inject the idea of Confucian to improve the Human Capital in Nigeria. Note the fact that Chinese is importing qualified Chinese to Nigeria for important positions, if the idea of Confucian can be successfully learned by Nigerians, the Human Capital will be improved, and the transportation cost can be saved.By learning the path of HPAEs success, Nigeria may step up the same path of EA successful development to some extent .

Infrastructure

Skill

Education

Agriculture

Evidence Evidence Establishing in Confucius Institute Nigeria ( cultural, language effect )

. Many of the changes in educational policies in Nigeria have been described as the product of confusion confusion and it was expected that educational reforms or re-organization would be carried out to enable Nigeria’s education cater for the future human resource

China is seeking to long term cooperation, thus to installing the Confucius in Nigeria, by this typical concept, the Nigeria may follow the trend of the Asia economy development strategy. However , there are certain problem to face with, before further cooperation

1. Chinese import of its labor force rather than employing equally qualified Nigerians.

Recommendation: in SR, it has to be tackled by regulations. However in the LR, it can be solved by education, which is under doing now.

implication

Concerns

 2. human rights violation more notably poor work environment in Nigeria. 

3. Chinese cooperation is the use of cheap and sub-standard materials to develop Nigeria’s infrastructure. 

Recommendation: impose stricter regulations on Chinese investorsIn conclusion:Though there are lots of issues in Nigeria (related to China) still, Chinese is doing well in Nigeria, it can be considered as a win-win situation of the relationship between the two countries.For applying the strategy of Asia economic development, there is possibility in line with the historical cooperation, but it takes time. Since Confucius just being applied in the education system. The change could be seen in the later generations .

overall cultural implications can Nigeria apply the strategy of EA

economy growth? Human Capital Human Capital (under the process of improvement, (under the process of improvement,

depends on if the Confucian can be accepted by depends on if the Confucian can be accepted by Nigerians )Nigerians )

Social capital: Social capital: (the infrastructure is under (the infrastructure is under processing ; but how well it can be done processing ; but how well it can be done depends on the level of social order, social depends on the level of social order, social cohesion and harmony)cohesion and harmony)

Institution( government ) : Institution( government ) : (export-orientation, (export-orientation, depends on if they can larger the scale of depends on if they can larger the scale of economy , and if the openness can achieve the economy , and if the openness can achieve the technology transfer)technology transfer)

What I am concerned

1. The reason for cooperation with Nigeria is that that China has smaller natural resource than Nigerian, and Nigerian has smaller Capital and Human Capital than China, what if the Natural resource run out in the future, can the cooperation be sustainable?

Key: according to Carlos Leite Natural resource decrease Human capital, which was happening in Nigeria, the key for being sustainable is to improve Human Capital, the country will still be attractive for economic investment even though Natural resource run out.

2.According to the reasons for Asia Financial Crisis, corruption at all levels can be considered as a reason. Corruption is a big issue in Nigeria, would corruption lead to crisis in the future?

Key: The government need to be more transparent for

Reference http://www.fao.org/in-action/south-south-cooperation-succe

ssfully-links-nigeria-china-and-fao/en/ http://www.academia.edu/1588636/Nigeria-Chinese_relation

s_The_frontier_for_economic_growth_and_development_within_Nigeria

http://www1.uneca.org/Portals/atpc/CrossArticle/1/WorkinProgress/77.pdf

http://www.nairaland.com/21869/chinese-nigerian-heart http://www.huffingtonpost.com/daniel-wagner/china-and-

nigeria-neocolo_b_3624204.html http://csis.org/files/media/csis/pubs/

080603_utomi_nigeriachina.pdf http://www.culturaldiplomacy.org/experienceafrica/

index.php?en_nmc

Abdullah Zain

Social Capital Definition: •“Generally defined as the information, trust, and

norms of reciprocity inhering in one's social networks“ OR,

•“The networks of relationships among people who live and work in a particular society, enabling that society to function effectively”

Social Capital The Role of Social Capital:

Social capital plays a major role in: •Outlining a culture•Reducing Poverty •One of the main determinates of a country’s economy•Establishing relationship among people that leads to a social network

Social Capital Nigeria Social Capital it is outlined as follow:

•Lack of social capital is standing in the way of economic prosperity (-)•Extreme poverty situation (-) •Great manpower (+)•Physical resources (+) •Material resources (+)

This implies that Nigeria has high potential but it is not been effectively utilized

Social Capital The City of Ijebu-Ode, Nigeria is an example of the role social capital in creating sustainable development:

•Community’s ceremonies of solidarity have become a key strategy for creating and maintain social capital in the city, ceremonies such as:

a. Obinrin Ojowu, b. The Ojude Oba, c. And the Agemo

Which re-establish and improve a sense of identity and unity among people which increase social capital.

Social Capital These several rituals benefits the community by:

•Bringing migrants to their homes to be with their families and enjoy the celebration •Re-establish and improve a sense of identity and unity among people.•They occur every year in order to create and maintain social capital in the city

Workers Condition Nigerian Workers, Activist, NGOs have criticized Chinese employers operating in Nigeria and complained about:

• Being treated as slaves• Having low salaries, no incentives or wage

increase• Lack of medical facilities • No job security • No Holidays • Health and safety issues

Workers Condition On the other hand, Nigerians and Chines officials claims the opposite, were they allowed some activist to visit some of those factories to observe a different experience where:

•Various lighting is provided•Cleanliness•Safety equipment are provided •Protective clothing are provided to workers

Yet, the gates at the factories are full with people wanting to find a job.

Who to believe ?

China Labor Watch released a report on Chinese workers' poor working conditions in china which can be use as indications of Chinese factories practices:

http://www.youtube.com/watch?v=yQPrbwWWUD4

 

Why Nigeria? • Strong relationship between the two

countries

• Mutual benefits: • Where Nigeria have a great manpower

but lacks jobs• China is looking for low cost, high

productive, hard-working human capital to move its factories and move up the flying geese model

• Improving Economy in both countries

Chinese Success in Nigeria• Since Africa first trading partner became

China, development started to affect positively the continent overall

• Nigeria is one of the African countries that got the most attention by Chinese were they seen the potential in the country and they started investing in its infrastructure

• An example is the incredible transformation of Uyo city, in the Nigerian state of Akwa Ibom (Nigeria is a federation).

Chinese Success in NigeriaThe astronomical development that Uyo, the Akwa Ibom State capital has witnessed since the inception of Godswill Obot Akpabio administration in 2007, it is done by the combined effort of:

• Local effort of Godswill Obot Akpabio administration

• Driven by the Chinese investment and interest in developing the Nigeria as a whole

Chinese Success in NigeriaPrevious to the transformation led by both the Chinese and the Nigerian government, specially Akwa Ibom governor

•The city has no bridges•No well established houses •No functioning roads•No electricity•No health care system•No library

Chinese Success in NigeriaAfter the transformation the city is called “the land of promise” as it is growing and developing rapidlyNow the city has:

•New government building and Exquisite banquet hall•Free & compulsory education and free health care •Infrastructure renaissance•Flyovers and new international airport•Ibom e-Library (first in West Africa)•Tropicana (world class business and entertainment center)•African finest golf resort

Chinese Success in NigeriaAfter the transformation the city is called “the land of promise” as it is growing and developing rapidlyNow the city has:

•Non- stop road rehabilitation,•Housing and security infrastructure•Vibrant commercial atmosphere, •Advanced high power plant, •Rural development•Security •Underground drainage system (first in Africa)

Resources• AFRICA ECONOMIC RESEARCH CONSORTIUM (AERC) NAIROBI,

KENYAvBy :Okunmadewa, F.Y., Yusuf, S.A. and Omonona, B.T. Department of Agricultural Economics, University of Ibadan, Ibadan September, 2005

• Workers conditions in Nigeria http://www.nationsencyclopedia.com/economies/Africa/Nigeria-

WORKING-CONDITIONS.html 

• China Labor Watch released a report on Chinese workers' poor working conditions in china

http://www.youtube.com/watch?v=BPx1al_TwxI • Development of the city of Uyo, the Akwa Ibom State capitalhttp://www.youtube.com/watch?v=_rN07cbRdT8

Endogenous Model Utilization

The main contents of endogenous model

Technical innovation

Human capital

Institutions including government

Zhichun Tang

Endogenous Model Utilization

Technical innovation

President of Nigeria emphasizes the importance of science technical innovation.

The base to build up more human capital

Endogenous Model Utilization

Human Capital and Knowledge

Government expenditure on education is increasing every year

The establishment of Confucius Institutions in Nigeria makes a higher possibility to create more human capital

Ethical and ability

Endogenous Model Utilization

Institutions Including Government

Social element: Many Chinese communities in Nigeria

Economic element: Trade between China and Nigeria: focusing on import and export

(More evidence coming soon)

Utilizing Neo-Confucianism not the repetition of colonialism

Evidence of friendly aid: Back to Ming dynasty: “Zheng He’s

voyages” Different from Western’s colonialism: not

occupying every land and setting up for military force.

Supporting aids for developing their own development ability and expanding Africans’ vision including Nigeria. (Utilization of Endogenous model with respect to technical innovation)

Utilizing Neo-Confucianism not the repetition of colonialism

Evidence of trade investment: Hong Kong Chinese invested initially

in the northern part of Nigeria in the aspect of Textile manufacturing in the 1960s, especially cotton production. (Utilization of endogenous model with respect to technical innovation)

Utilizing Neo-Confucianism not the repetition of colonialism

Evidence of highest visitation: In 1997, the former premier of Sate

Council, Li Ping made a high level of visitation to Nigeria, several documents are signed based on the development of investment protection and enhanced cooperation in several fields. (Utilization of endogenous model with respect to technical innovation)

Utilizing Neo-Confucianism not the repetition of colonialism

China helped Nigeria to build higher level infrastructure:

China Civil Engineering Construction Corporation (CCECC) in 2000 helped Nigeria to build 5,000 housing units for international athletes participating in the eight annual All-Africa Games. (Utilization of endogenous model with respect to human capital)

Utilizing Neo-Confucianism not the repetition of colonialism

Based on the Nigerians’ beliefs: “Nigerian state governors began

leading delegations to China—seeking investments, aid, and development partnerships—in the belief that increasing ties to China could significantly benefit their communities.” (Utilizing endogenous model)

 

Why Nigeria

The volume of trade increasing: As China started to sign joint-venture

contract with Nigerian oil companies, trade amount increased: 1.3 billion in 1990-> 5.3 billion in 1996

Implication: It is a good tendency to develop the enhanced cooperation between China and Nigeria.

Why Nigeria, not other African countries

Positive attitude towards developing economy based on the endogenous model

The foundation of Confucius Institutions (close connecting with Chinese culture) Common interest and common pursuit (Changing from developing country to

developed country and ensure a better life quality of the whole society)

References 1.

http://csis.org/files/media/csis/pubs/080603_utomi_nigeriachina.pdf

2. http://www.itedgenews.com/analysis.html 3.

http://seunoyeniran.blogspot.ca/2013/10/education-workers-strike-in-nigeria.html

4. http://college.chinese.cn/en/node_3822.html

Flying Goose Model Lucas Laskey

Overview

What is Flying Geese Model Plausibility of Africa What’s in Africa Why Nigeria? Nigeria vs. South Africa and Mauritius White Elephant or Flying Goose?

Pros & Cons as well as personal testimonies

Future for Nigeria

Japan is leading country with closest ties to US. The were first to have Assembly and Technical Improvement

Japan SouthKorea

China ???

South Korea provided Manufacturing for Japan, Now they are innovating more on their own

China provides Manufacturing for Korean and Japanese Companies

As China Develops, who will take over for the last goose?

What is the Flying Goose Model?

Plausibility of African Countries

A key feature of the flying geese model is the as you move down the chain, the

labour becomes cheaper and the work becomes more dangerous. This can be

seen in middle class lifestyles in Japan versus China. This means that for

China to add another geese to the chain, the labour must be cheaper, which

makes African countries a great candidate.

By this graph you can see how heavily China is investing, but the question remains, does it fit the model, and if so, does Nigeria suit best?

Labour Costs•Phenomena of Pro-Trade FDI (1)•Rapid Urbanization (1)•China in a Turning Period to increase industrial production (1)

Exchange Rates•Developing countries currencies tend to be undervalued (1)•China’s currency has pressure to appreciate (1)

Institutions•China’s “Go Global” Policy (1)•Overseas Processing Trade (1)•Investment Potential (1)

1- (Ozawa & Bellak 2011)

What’s in Africa

1 - http://www.eia.gov/countries/cab.cfm?fips=ni2- http://theafricaneconomist.com/ranking-of-african-countries-by-literacy-rate-zimbabwe-no-1/#.Uxfw_9y-3LQ3- https://www.cia.gov/library/publications/the-world-factbook/geos/ni.html4- (Brautigam 2007)

Why Nigeria?

1 Raw Resources•Nigeria has - 37.2 Billion Barrels of Oil (1)

-182 Trillion cubic ft of Natural Gas (1)

2 Labour Supply•A Population of 174, 507, 539 (3)•Literacy Rate of 61.3%, ranked 21 out of 52 African Countries (2)

3 Institutions•Nigerians travelled to China, saw how easy it was to assemble many products and imported the technology (4)•Received over 33 investment projects from China (4)•China imports technology, Nigeria assembles cars (4)

SouthAfrica

Mauritius

Pros•South Africa Received 83 investment projects (1)•Increase demand for linens in China and India, South Africa gains competitive advantage (leading goose) (2)•86.4% Literacy Rate (3)

Cons•Already developed to a similar level to China, less liked to adopt Neo-Confucianism

Pros:•Popular tourist Destination (1)•Many Chinese entrepreneurs (1)•84.4% Literacy Rate (3)•Largest Exporter of Wool Linens (1) •Lots of cultural ties (1)

Cons•Loss of domestic jobs (1)•Not as much raw resources (1)•Smaller population •Tourist Destination = lack of industry (1)

1- (Brautigam 2007)2- (Geda & Mesjel 2008)3- http://theafricaneconomist.com/ranking-of-african-countries-by-literacy-rate-zimbabwe-no-1/#.Uxfw_9y-3LQ

Nigeria vs. South Africa and Mauritius

Counter Point – Is Nigeria a White Elephant or Flying

Goose? White Elephant – is an investment that is

intended to do good, but ends up being more of a pain than benefit for the investor

Refer to Paper: Mthembu-Salter, Gregory. (2011). “Elephants,

Ants and Superpowers: Nigeria’sRelations with China”. China in Africa Project. South African Institute of International Affairs. No. 42.

Note:This paper is extremely useful, I wish I found it for

the earlier version. Highly Recommended to gain an in-depth view of the relationship between China and Nigeria

Reasons for White Elephant Nigeria has major Problems in electrical

Generation Capacity of 6000MW, functioning Capacity

4500MW, actually produced 1500-3000MW Egypt Produced 18000MW South Africa

45000MW Difficulty in Chinese investment for MOU

with Nigerian Government for Railway projects

Loss of manufacturing in textiles due to competition elsewhere in Africa and China

Problems with Private Sector, all Chinese operations run through government

Personal Testimonies of Nigerian Working Conditions

Man in Lagos (2009)There have been complaints about Chinese attitudes to labour. They take all the managerial positions for themselves. They have discouraged labour unions, but in some cases they have been forced to accept them. But then they try to fight it. This is not just limited to Chinese. Also the Lebanese and Indians pay very low wages. They are slave drivers …. But also the British in their day thought we Nigerians couldn’t do the job. But finally that began to change. So now we are seeing the same process all over again.

Lebanese retailer in Kano, Nigeria (2009)I used to sell Chinese goods in my shop, but I stopped because they are so low quality. It is bad for my image. I haven’t actually seen any good quality Chinese material coming into Nigeria. The irony is that a lot of what I sell in this store actually comes from China, but it is high quality material, which we source, not from China, but from Europe. China sells higher quality material to Europe because of the standards they impose, whereas here in Nigeria, we are just a dumping ground for any kind of crap.

Is there Good in the China-Nigeria Relationship to support Flying Geese model?

Reasons for Flying Goose Success found with Chinese construction firms

operating in Nigeria construction companies Largest Company CCECC (China Civil Engineering

Construction Company) has been in Nigeria since 1980 Large competition between Chinese telecommunication

providers/manufactures in Nigeria ( ZTE and Huawei) Both manufacture and sell in Nigeria

Enormous Resource Supply High Demand for Infrastructure Massive Population These Point to Long Term Success outweighing the

negatives, and say that despite some of the unsettling views the Nigerians hold about the Chinese, they are there to stay. It will be interesting to see how the relationship plays out in the future

Future for Nigeria

Many of my sources doubt the legitimacy of Nigeria joining the Flying Goose

Model before other African Countries such as South Africa, Kenya, and

Mauritius, but I believe through evidence found in this study that Nigeria is well

on its way to being a strong contender. The people of Nigeria have a drive to

improve their country that isn’t found in other countries, to the point where they

are going out, learning, then returning to better their country. Nigeria has a long

hard path to travel, but the prize at the end is worth the struggle.

Works Cited

Brautigam, Deborah. (2007). Flying geese or hidden dragon? Chinese

business and African industrian development. The politics of

contemporary China-Africa Relations.

Geda, Alemayehu & Meskel Atnafu G. (2008). China and India’s growth surge:

is it a curse or a blessing for Africa? The case of manufactured exports.

African Development Band 2008.

Ozawa, Teruotomo & Bellak, Christian. (2011). Will the World Bank’s vision

materialize? Relocating China’s factories to Sub-Saharan Africa, flying

geese style. Global Economy Journal.