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Chinese Trade in Angola Helps Recovery

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Two-way trade between Africa and China has been an outstanding success story of the past decade. It has led to significant new investment in the continent and brought many new job opportunities. The Chinese community in Africa comprises a mix of entrepreneurs and workers. In formerly war-torn Angola, Chinese workers and investors have led an economic boom as the country recovers from decades of conflict.

The Chinese are generally young, well-educated, English-speaking, ambitious and hard-working. Estimates put the number of Chinese people in Angola at 100,000, and about 1 million across Africa.

The reason these bright young things need to come to Africa goes back to the essential reality of modern China: despite rapid economic growth, per capita incomes classify it as a poor country. While the outside world sees the glitzy, go-go progress of China’s cities, the country’s rural poor go unseen. Around 400 million of China’s 1.3 billion people have annual per-capita income equivalent to US $8,000, while the remaining 900 million have per-capita incomes as little as one-tenth that amount.

Some 6.3 million people in China will graduate this year from university, and it is still very hard for a well-educated Chinese person to get a good job right away. More than a quarter of these graduates will be unemployed, according to the Education Ministry.

There has also been disquiet in parts of Angola over China’s role, with some calling it “neo-colonialism”. But clearly, both Africa and China have much to gain by increasing cooperation.

In the southern Chinese city of Guangzhou (http://en.wikipedia.org/wiki/Guangzhou), a trading hub nicknamed “Africa Town” has emerged since 1998. There are officially 20,000 African traders and entrepreneurs in the city of 18 million, but unofficial estimates put the number at more than 100,000. This African trading hub has emerged to the benefit of both the Chinese and Africans. It is a coming together of small traders matching Africa’s strong demand for consumer goods with China’s manufacturing powerhouse.

In Angola, the mix of entrepreneurs and workers is having a big impact on the country’s development.

Betty, a 22-year-old Chinese woman who has various projects in Angola, including the local Chinese language newspaper, is a typical go-getter.

“I am doing much better here than if I had stayed in China,” she told the BBC.

Another beneficiary of the two-way trade is Deng, a construction a worker: “I earn twice as much as I would at home and I have got a better job,” he said.

For most Chinese, foreign travel is still rare and the excitement of going to Africa to work both attracts and repels because of the continent’s reputation.

“At first I found it frightening, “said Wang. “You hear lots of stories of Chinese people being robbed by the locals.” But he found “there are great opportunities here.”

Another, Jet, who runs an air conditioning business, came to Angola five years ago.

“Everything had been destroyed,” he recalled. “There were no roads, railways, shops, nothing. Some Western companies were already here selling their products but I knew I could import things cheaper from China.”

The large infrastructure projects being undertaken by major Chinese companies are also creating new opportunities. Many Chinese labourers are working on building roads, railways, hospitals and vast housing complexes.

One of the more visible symbols of Chinese investment in Angola is the restoration of the Benguela Railway (http://en.wikipedia.org/wiki/Benguela_railway), considered one of the great routes of Africa and built by British contractors. An engineering triumph, its 1,344 kilometres (835 miles) of track stretch up the Angolan coast, right into southern Congo. The railway took almost 30 years to build in the late 19th and early 20th centuries, but little remained. Until very recently all but a tiny stretch of the line was closed. Now Chinese investment is rebuilding the railway and bringing economic improvement in its wake.

“I couldn’t do this before the railway was fixed,” a woman using the train to get to the market to sell her plump red tomatoes told the BBC. “Before, I had to travel by car which was much more expensive.”

And her income has improved along with the refurbished railway. “I am not rich, but a bit richer,” she said.

And unlike the British, who used the railway to export copper without paying for the resource, the Chinese labourers are getting paid and the Angolan government is paying back the Chinese loan for the railway repairs by selling oil overseas for a market rate.

Published: October 2010

Resources

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2022

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CASE STUDY 6: International Consulting | 1999 – 2014

Expertise: Project evaluation, strategy, project management, project delivery, UN system, MDGs, research papers, media strategies and digital media strategies.

Locations: Ulaanbaatar, Mongolia, Kiev, Ukraine, Pretoria, South Africa, Ashgabat, Turkmenistan 2000 to 2006

Consultant: David South

Click here to view images for this case study: CASE STUDY 6: International Consulting | 1999 – 2014 Images

Abstract

From 1999, I worked as a consultant for United Nations (UN) missions in Africa, Asia, Central Asia and Eastern Europe, for USAID Mongolia and for a UK-based international development consultancy. 

About

Was the United Nations being effective and reflecting the potential for change in the mobile and information technology age? What needed to change? Who were the policy innovators?

This work included overseeing various digital media projects, including the strategic re-development of the UN Ukraine web portal, aiding in the rolling out of the media campaign for the Millennium Development Goals (MDGs) in Mongolia, including the first use of infographics in the Mongolia UN mission, advising on strategies for youth engagement in development goals in South Africa, and support to the UN mission in Turkmenistan as it finalised its United Nations Development Assistance Framework (UNDAF) with the government and also work with UNICEF there. What I learned during this period proved crucial to the insights and thinking reflected in two highly influential United Nations publications, e-newsletter Development Challenges, South-South Solutions, and Southern Innovator magazine (developed in 2010). 

This period was particularly advantageous because I had a front-row seat to the unfolding digital and mobile information technology revolution sweeping across the emerging markets and the global South. I also had insight into what worked and didn’t in international development as well as the UN system. I also learned a great deal about development challenges first-hand in highly varied countries, how the Millennium Development Goals (MDGs) were actually being rolled out, and met amazing people who were challenging existing precepts on how to do development. All of this work proved very useful later on. 

I have either travelled to, or worked and lived, in many countries, enhancing my global perspective and affording me a valuable trove of knowledge that has in turn informed my work in international development. I have always paid attention to the level of development in the country, how it has organized itself, the quality of its design, and how it interacts with other countries for trade and relations. The countries visited to date include: Antigua and Barbuda, Australia, Azerbaijan, Belgium, Canada, China, Cuba, Denmark, Domenica, Finland, France, Germany, Greece, Guadalupe, Haiti, Hong Kong, Iceland, Ireland, Israel, Italy, Japan, Kenya, Luxembourg, Malaysia, Mexico, Monaco, Mongolia, Montseratt, Morocco, the Netherlands, Norway, Philippines, Portugal, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, the United Kingdom, the United States of America, Vatican City. A fascinating mix of countries – some holders of top place on the UN’s Human Development Index – and others where human development is at its worst. Seeing with your own eyes what works and what does not is highly illuminating, while knowing first-hand how human development can be improved is critical for giving informed advice.  

Timeline

1999/2000: USAID Mongolia (design and publicity strategy for business development brochure, US Mongol (Mongolia) Construct and US tour, work with Riverpath Associates in the UK on communications strategies and the drafting of papers for the American Foundation for AIDS Research, the Global Fund to Fight AIDS, Tuberculosis and Malaria, UNCTAD, Harvard Institute for International Development, and the preparation of the report and launch strategy for the World Bank’s Task Force on Higher Education. 

http://www.davidsouthconsulting.com/blog/2018/1/10/us-mongol-construct-2000-business-prospectus-building-a-new.html

http://www.tfhe.net

2000: UN Ukraine: strategic re-development of the UN Ukraine web portal and incorporation of the Millennium Development Goals (MDGs). 

2004: UN Mongolia (media campaign for MDGs) and UN South Africa (evaluation of youth NGO associated with the University of Pretoria and its projects and providing a strategic marketing plan).  

2005: UN Mongolia (media campaign for MDGs) and UN Turkmenistan (finalising its United Nations Development Assistance Framework – UNDAF).

Rukhnama publishers in Turkmenistan’s capital, Ashgabat (2005). Photo: David South
An infographic commissioned for UN Turkmenistan MDGs report (2006).

2006: UN Turkmenistan (work with UNICEF). 

Testimonials 

“I highly recommend Mr. David South as a communications consultant who gets results.” Brian DaRin, Representative/Director, USAID Investment & Business Development Project, Global Technology Network/ International Executive Service Corps-Mongolia, 23 September 1999

Impact 

Micro 

  • working as a communications consultant for UN missions – Ukraine, South Africa, Mongolia, Turkmenistan
  • redeveloping mission websites, preparing content, reports, advising on communications strategy
  • working with local designers on new ways to present development data through inforgraphics (2005/2006) 

Macro 

  • in the course of travel and work, seeing the unfolding impact of the global communications revolution, in particular the rapid roll-out and take-up of mobile technologies, and the urgent need for the UN system to take this on board. Also witnessed firsthand the grassroots solutions revolution brought about by information and mobile technologies and the Internet, which needed to be fully embraced by the UN 

Resources 

A Marketing and e-Marketing Strategy – the New SASVO, Prepared from December 2004 to February 2005 for the Southern African Student Volunteers (University of Pretoria). 

A Moment in Time: AIDS and Business, American Foundation for AIDS Research, 1999 

Closing the Loop: Latin America, Globalization and Human Development, UNCTAD, 1999 

David South Consulting Summary of Impact 1997 to 2014

Development Challenges, South-South Solutions

Innovations in Green Economy: Top Three Agenda

Mongolian Media Project Infographic

Peril and Promise: Higher Education in Developing Countries, World Bank/UNESCO Task Force on Higher Education, 2000

South-South Cooperation for Cities in Asia

Southern Innovator

Southern Innovator and the Growing Global Innovation Culture

Southern Innovator Summary of Impact 2011 to 2012

Southern Innovator Summary of Impact 2012 to 2014

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2017

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Accessing Global Markets Via Design Solutions

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The power of design to improve products and the way they are manufactured is increasingly being seen as a critical component of successful economic development.

The importance of trade – both South-South and South-North – as a reducer of poverty in developing countries is now widely acknowledged. Countries that have made the biggest gains in reducing poverty, like China, India and Brazil, have done it through trade.

The power of trade in high quality goods to raise incomes has been proven for more than a decade. South-South trade grew by an average of 13 percent per year between 1995 and 2007. By 2007, South-South trade made up 20 percent of world trade. And over a third of South-South commerce is in high-skill manufacturing. Making finished goods, rather than just selling raw materials, improves workers’ skill levels and increases the return on trade.

But trying to get other people to desire and buy your products is very tricky. Design plays a major part in understanding the unique demands of countries and markets, and what people find appealing or repellent.

A product that has both a successful design (people want to buy it) and is produced efficiently (a well-designed manufacturing process), will generate a good profit.

In India, the Craft Resource Centre or CRC Exports Limited of Kolkata (http://en..wikipedia.org/wiki/Calcutta)has been successfully selling leather travel bags to the Vodafone (>http://www.vodafone.com/hub_page.html) mobile phone company in The Netherlands. It did this by teaming up with Dutch Designers in Development (http://www.ddid.nl/english/index.html), an NGO focused on matching European importers and retailers and professional designers with small and medium enterprises in the South.

Founded in 1989, CRC applies the concept of adding value to turn small-scale and poor artisans into successful and sustainable businesses. Many of these traditional handicraft artisans subsist on low incomes. CRC provides artisans across India with marketing, design, finance and exporting help. It also connects them with other artisans and helps to divide projects between them. This has the power of using networks to help in bad times while also sharing opportunities when they come up.

CRC’s director, Irani Sen, has divided the more than 15,000 artisans they work with into 15 different trading groups. CRC has also consulted to over 350 projects across Asia.

“The best thing fair trade gives (artisans) is the continuity of work … and with the continuity comes the basic security,” Sen said on the CRC website. “With that security they can develop, they can plan and then we try to motivate them for education, health (and) education for their children.”

It all began with a need: Dutch company Unseen Products (http://www.unseenproducts.com/home) needed somebody to make high-quality leather travel bags for their client, Vodafone, who in turn wanted the bags as an incentive for their employees. Unseen Products is a business connecting European retailers with small producers in the South to build long-term business relationships. They seek to make “unseen or hard to find products accessible at commercially interesting prices.”

They approached Dutch Designers in Development (DDiD), which in turn recommended CRC.

As a matchmaker, DDiD puts together European clients, Dutch designers and small and medium-sized enterprises in developing countries. The designers share their knowledge of European consumer tastes, product development, design and quality standards.

DDiD receives orders from companies, NGOs and government agencies to stimulate the production and sale of sustainable products from developing countries in Europe.

The Dutch group works with producers to develop skills and adapt producers’ products to present and future demands in Europe. By following this approach, Southern producers can reduce the risk of making products nobody wants, or that lack originality in the marketplace and thus won’t sell.

DDiD explains to producers the importance of design and how it improves the product and the business. Good design, the group believes, should reduce production costs and the time taken to get to market, and boost the reputation of the product brand and maker.

Well-known Dutch bag designer Ferry Meewisse (http://www.frrry.com/hiep/Entrance.seam?labelId=1) was brought in to work with CRC’s artisans to craft new bags and a new way of making them.

Meewisse said he was uncertain at first whether the artisans would be able to make the highly complex bags. The solution was to break down the bag into smaller parts. And that is where the knowledge of design process comes into play.

“The button bag for example is a complex bag that has been taken apart: compartments, pockets, handles,” said Meewisse. “This provided us with elements that were each really simple to manufacture. After that the pieces would only have to be clicked together with the buttons. And there it was: a complete bag with all the elements you need in a good bag.”

The bags can be seen here: http://www.frrry.com/hiep/guest/GuestSeries.seam?seriesId=9&conversationId=30930

Stella van Himbergen, a project manager at DDiD, said the concept is about introducing a new way of looking at things through the prism of design.

“Small producers in developing countries are not lacking craftsmanship,” said Himbergen. But, she added, “it is important for producers to receive support in production-led design, and not only in aesthetic design.”

Conceptually, this is the difference between designing and making something because it is aesthetically pleasing, and taking a market-driven design approach – letting market demands lead to the design solution. As a different way of looking at things, it takes in the company’s vision, brand values and positioning in the marketplace, production requirements (costs, sustainability), organization, and client’s needs.

DDiD helps producers learn how to quickly create new products based on market demands. They also raise the level of awareness of design to global standards, and show how to apply this across the production process, from graphic design, to packaging, retail and exhibition space, brand design and design management. Since 2005, the group has completed 46 international projects.

DDiD also stresses sustainability, encouraging the use of environmentally friendly materials such as biological cotton, bamboo and water hyacinth for paper and rope.

Apart from Vodafone, the CRC-made bags are sold in shops and on the web.

The extra attention to design seems to have paid off. CRC’s bags have been such a success that a second order has been placed. And CRC has picked up another project from Dutch importer Global Goodies (http://www.globalgoodies.nl/). 

Published: March 2009

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Google Books: https://books.google.co.uk/books?id=PBB0LYdAPx8C&dq=development+challenges+march+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmarch2009issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

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Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021