China has just signed a USD $2.6 billion contract with Liberia to develop the derelict steel mills in Bong County, a 25 year agreement that will directly add 3000 jobs. Wow. That is an enormous amount and will be life changing for the region.
http://steelguru.com/news/index/2009/01/21/Nzk0NzQ%3D/Liberia_inks_pact_with_China_Union_for_Bong_iron_ore_mines.html
In the last couple of years there has been a huge move by China to invest in African infrastructure. As opposed to the Western aid model, the Chinese have more of a peer to peer business model. The relationship is very controversial as it is in direct competition to Western interests, and the western (US, EU) approach, which is still a bit paternalistic. Obviously the Chinese want to establish partnerships to access Africa’s oil and resources, but in general the response by African leaders has been positive. There was a summit in Beijing a year or so ago at which almost all African leaders were represented. Only 3 countries now do not have a trade agreement in place. The jury is still out on the long term benefits.
If you really want to start an argument at a dinner party, read the book ‘Dead Aid’ or quote the author, Dambisa Moyo, who argues that all aid into Africa increases debt, discourages real business and investment, and leaves everyone worse off (with the exception of natural disaster relief aid). I just finished reading it.
http://www.guardian.co.uk/society/2009/feb/19/dambisa-moyo-dead-aid-africa
She is a fan of Chinese investment. In the case of Liberia, USD billions with none of the usual aid strings is huge. Usually the IMF/World Bank give a country money for food or infrastructure, then as a condition, nominate the Western food suppliers or engineering companies who they need to give the money back to to buy the food or service. Local farmers miss out. It does seem more like global money laundering and jobs back home, rather than assistance sometimes.
I will be in Bong County soon so I will be curious to learn more about the Chinese investment strategy there.