/ 5 February 2008

World Bank sees change in China’s African role

China took part for the first time recently in World Bank meetings on the needs of some of Africa’s poorest countries in what the Bank sees as an important shift in Beijing’s role.

China has a growing presence in Africa and has spent billions of dollars to secure raw materials to fuel galloping Chinese economic growth, but participating with the World Bank on development issues marks a new type of engagement.

”It is a confirmation that China is playing a larger role in the region,” Bank president Robert Zoellick told Reuters during an African tour that ended in Mozambique on Monday.

”The question is, how China will work with their African hosts as well as others in the international development field to try to harmonise and have mutually supportive policies?” he said.

Zoellick said Chinese ambassadors recently joined meetings to discuss the needs of Mauritania and Liberia.

He has made a real effort to woo Chinese involvement in African development since he took over the World Bank last July, tapping into long-standing relations with Beijing from his time in US government posts.

Last year, Zoellick invited China to observe a meeting of the Bank’s largest donor nations on funding for the fund that lends to the world’s poorest states, most of them in Africa.

As the year-long talks neared completion, Zoellick flew to Beijing in December where he was greeted with a Chinese promise to contribute. He also held talks with China’s Export-Import Bank about cooperating on several projects in Africa.

Several weeks later, a team from Export-Import Bank arrived in Ghana unannounced and called on the local World Bank office.

At the talks with donors in the capitals of Mauritania and Liberia, it was not only China’s presence for the first time in such planning discussions that pleased Zoellick, but also the ambassadors’ declared interest in working with the Bank.

New generation

In a change from the traditionally taciturn Chinese diplomats, the ambassadors were of a younger generation.

”It was a symbol that they are willing to start up their own multilateral involvement,” Zoellick said.

China’s growing commercial interests and lending practices in Africa have unnerved Western donors, who worry its interests are mainly motivated by its acute need for natural resources and ignores human rights abuses.

But Zoellick argued that the Bank has to engage with rising powers like China if the institution is to effectively tackle problems that extend across borders and to turn around the fortunes of the poorest in Africa.

”It’s building relations but its also getting them to see a broader view of their own self interest,” Zoellick said.

”What I’m saying is, ‘Look I’m not going to criticise you for investing in Africa. I think it’s natural. But think about your own self interest and you don’t want to anger everybody. You don’t want to pile on too much debt, because you won’t get paid back, you have an interest in not supporting corrupt regimes and frankly, I can help you’,” he said.

While African heads of state tend to welcome China’s investments, there are signs of unease at a local level over the behaviour of Chinese companies — particularly in the forestry sector.

In Mozambique, containers full of illegally cut trees were recently found awaiting export to China in contravention of a law banning the export of unprocessed precious hardwood. Similar stories are told in Angola and Tanzania.

”My hope is that by working with the Chinese you minimise the effects that might undermine development,” Zoellick said, noting: ”There are also European companies in Africa that don’t necessarily operate by the best of standards.” – Reuters