Transcript PPP2

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
Fiscal
• Evasion with respect to Tax on Income 2002
• Agreement on Consular Affairs 2002
• Agreement on Co-operation on Strengthening Management of
Narcotic 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
FAO2 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 cooperation
• and partnership between Ogun State of Nigeria and Zhejiang Province
of China 2009
• Memorandum of Understanding on peace co-operation 2010
Social Capital
1. Definition:
“Generally defined as the information, trust, and
norms of
reciprocity inhering in one's
social
networks“
2. The Role of Social Capital:
Social capital plays a major role in:
1. Outlining a culture
2. Reducing Poverty
3. One of the main determinates of a country’s
economy
Social Capital
3. Nigeria Social Capital:
1. Lack of social capital is standing in the way of
economic prosperity (-)
2. Extreme poverty situation (-)
3. Great manpower (+)
4. Physical/Material resources (+)
4.Example of social capital in creating sustainable
development in the City of Ijebu-Ode, Nigeria
1. community’s ceremonies of solidarity such as:
a. Obinrin Ojowu,
b. The Ojude Oba,
c. And the Agemo
Which re-establish and improve a sense of
identity and unity
Workers Condition
1. Chinese & Nigerian governments officials claim:
1. Lightning
2. Cleanliness
3. Safety equipment and protective clothing are
provided
4. Health and safety
2. Nigerian Workers, Activist, NGOs complain about:
1. Treated as slaves
2. Low salaries, no incentives or wage increase
3. Lack of medical facilities
4. No job security
5. No Holidays
Who to believe ?
http://www.youtube.com/watch
?v=yQPrbwWWUD4
Why Nigeria?
1. Strong relationship between the two countries
2. Mutual benefits
1. Where Nigeria have a great manpower but
lacks jobs
2. China is looking for low cost, high productive,
hard-working human capital to move its
factories and move up the flying geese model
3. Improving Economy in both countries
Flying Goose Model
China-Nigeria Relationship
What is the Flying Goose Model?
Japan
South
Korea
Japan is leading
country with
closest ties to
US. The were
first to have
Assembly and
Technical
Improvement
South Korea
provided
Manufacturing
for Japan, Now
they are
innovating more
on their own
China
China provides
Manufacturing
for Korean and
Japanese
Companies
???
As China
Develops, who
will take over for
the last goose?
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?
What’s in Africa
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)
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)
1 - http://www.eia.gov/countries/cab.cfm?fips=ni
2- http://theafricaneconomist.com/ranking-of-african-countries-by-literacy-rate-zimbabwe-no-1/#.Uxfw_9y-3LQ
3- https://www.cia.gov/library/publications/the-world-factbook/geos/ni.html
4- (Brautigam 2007)
Nigeria vs. South Africa and Mauritius
South
Africa
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)
Mauritius
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)
Cons
•Not as much raw resources (1)
•Already developed to a similar
•Smaller population
level to China, less liked to adopt
•Tourist Destination = lack of industry
Neo-Confucianism
(1)
1- (Brautigam 2007)
2- (Geda & Mesjel 2008)
3- http://theafricaneconomist.com/ranking-of-african-countries-by-literacy-ratezimbabwe-no-1/#.Uxfw_9y-3LQ
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.