Sunday, July 29, 2007

I Still Don't Understand Why We Aren't There Already


Building a Better Tomorrow

by Stephanie Grimmett Editor, Taipan
I'm reading all of the reports on Africa I can get my hands on because the continent may finally be awakening to its economic manifest destiny.
Last month, the World Economic Forum in Africa called for wealthy nations to look past the AIDS epidemic. According to leaders from Senegal and South Africa, all of the funding for AIDS prevention and treatment in the continent is great, but Africa is in need of more than just health programs.
Ignoring Bono’s constant pleas for help in the continent's fight against disease, Africa’s leaders said the best way to combat AIDS, malaria and tuberculosis is to build up its economy and give it the tools to fight those illnesses for itself. Africa wants money for infrastructure and education, first and foremost.
Locals, as opposed to the exploitive European companies that dominated the continent for more than a century, are beginning to take control of their native natural resources. And the effect of that control is rippling through the economy. Africa posted a 5.7% economic growth rate for 2006, and it’s heading for a more than 6% growth rate in 2007.
That's the highest rate in more than 30 years. And it's partly because of the continent's new relationship with America's favorite outsourcer: China.
China is establishing Africa as its own personal cache for natural resources. Chinese companies are investing heavily in the continent and getting their investment back in trade.
Late last year, China agreed to pour a total of $1.9 billion into contracts with African countries that will help build new roads and lay phone lines. Chinese President Hu Jintao promised to double his country’s aid to Africa in the next three years. And China is looking to collect oil and iron ore, among other resources, in return for its investment.
The West fueled China’s economic awakening. And now China is turning around and doing the same for Africa. After all, it’s only fair.

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