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Chinese FDI and Zambian Development: A Critical Evaluation of the its Relevance through key Socio-Economic and Political Indicators

Thesis (MA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: Since 2000, Chinese FDI in Zambia has steadily increased. Focused predominantly on
resource extraction, China is now the third largest investor in Zambia, after only the
United States and South Africa. As the title suggests, this FDI is recognized as
relevant to Zambia’s developmental discourse. However, with general development
indicators, there is challenge in establishing immediate causality between (Chinese)
FDI and development. To address this, this study employs Capability Approach
development theory, which utilizes a framework to evaluate social and political
realities. Utilizing this framework, key indicators are used to look more deeply into
the discussion around China’s FDI for Zambia’s development. There has been a great
deal of speculation as to potential costs and/or benefits Chinese FDI may offer
Zambia. As China offers Zambia a partnership of non-domestic interference, unique
from Zambia’s traditional western syndicates, debate is raised as to what influence it
will have on Zambia’s developmental progress.
With challenges including limited information, numerous potential indicators to
utilize, and a large number of contributing voices, the debate thus far lacks a means
for evaluating the substance of claims made within the context of national trends. This
study reviews and evaluates the debate within the framework of seven key socioeconomic
and political indicators. While within economic growth and infrastructure
expansion Chinese FDI are shown to indicate a conduciveness to development, FDI is
not shown to be conducive for market diversification, challenging corruption, or
strengthening institutions. The study therefore shows that trends of Chinese FDI’s
relevance to Zambian employment and state dependency to be mixed and that
assessments will need to disentangle various Chinese activities and will also need to
consider contradictory effects. / AFRIKAANSE OPSOMMING: Sedert die jaar 2000 het Chinese direkte buitelandse belegging (DBB) in Zambië
stelselmatig begin toeneem. Die groei is hoofsaaklik gekonsentreer in die hulpbron
ontgunnings sektore. China is tans die derde grootste belegger in Zambia naas die
Verenigde State van Amerika en Suid Afrika. Soos die titel van die tesis aandui, word
DBB beskou as relevant tot Zambië se ontwikkelings dialoog. Aangesien die
oorsaaklikheid tussen DBB en ontwikkeling nie maklik vasgestel kan word nie, word
sleutel aanwysers gebruik om dieper in die gesprek rondom Chinese DBB ten opsigte
van Zambiese ontwikkeling in te kyk. Tans is daar 'n groot mate van spekulasie aan
potensiële risikos en/of voordele van Chinese DBB vir Zambië. China bied Zambië ‘n
venootskap sonder inmenging in binnelandse beleid, anders as Westerse finansiering
wat gekoppel word aan voorwaardes, en dit is wat die vraag lig; wat gaan die
uiteindelikke invloed en effek wees op Zambiese ontwikkeling in die toekoms.
Met uitdagings soos beperkte inligting, vele moontlikke aanwysers en ‘n groot aantal
opinies, kort die debad tot dusver die vermoë om die waarde van argumente te
evalueer binne die konteks van nasionale tendense. Hierdie studie evalueer die debat
binne die raamwerk van sewe sleutel sosio-ekonomiese en politiese aanwysers.
Chinese DBB word bevind om bevorderlik te wees ten opsigte van ontwikkeling in
die infrastruktuur ontwikkeling- en ekonomiese groei sektore; dit word egter nie
bevind as bevorderlik in terme van mark-diversifikasie, die teenkanting van korrupsie,
of in die versterking van politieke instellings nie. Chinese DBB se invloed op
indiensneming en op die afhanklikheid van die Zambiese staat toon gemengde
resultate, en dat assesering verskeie Chinese aktiwiteite sal moet ontrafel en ook
teenstrydigge effekte in gedagte moet hou.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/20234
Date03 1900
CreatorsDunkin, Cameron
ContributorsGrimm, Sven, Stellenbosch University. Faculty of Arts and Social Sciences. Dept. of Political Science.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Formatix, 97 p. : col. ill.
RightsStellenbosch University

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