Abstract:

Western observers sometimes shockingly reduce Chinese Aid to Africa to a way of securing access to natural resources. A closer look does not only reveal that China’s disbursement of Aid to the continent is relatively unrelated to natural resources, but also that it fills exactly the areas that Western aid has increasingly neglected: Infrastructure, industrialization and manufacturing. Chinese and Western aid work but in many ways can be seen as complementing rather than competing. Western aid since the 1980s focuses almost exclusively on basic social needs, while China’s Aid to Africa is more based on industrial cooperation. The tools, such as preferential loans, that China uses hereby are often similar to what has been successful when China was in the role of the Aid recipient. Aid should therefore not be seen as a philanthropic one way transfer, but part of a mutually beneficial strategy that uses policy to channel investment into areas in which they are needed most. There is a fine line between aid and business, but in its relations with Africa today, China is well aware that at home it was not aid that lifted 200 million people out of poverty. Key words: Chinese Aid, industrial cooperation, basic social needs, structural adjustments, development sustainability.

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