...Macroeconomics - The US Dollar Appreciating Versus Other Currencies Economic statistics link trade deficits to investment prospects and fiscal growth. A rise in the budget deficit of the U.S. government causes a rise in actual interest rates. Capital inflows affect such trade balances for example, if the U.S. economy offers better investment opportunities than other nations, the country’s capital flow will increase significantly. With flexible exchange system, the capital inflow tends to increase the value of the U.S dollar in correlation to other currencies. This rise in value of the dollar consequently makes U.S. exports rather less appealing to foreigners and U.S. imports become relatively less expensive; thus, net exports go down. Since 2008, the global economy has gone through significant changes influencing crosscutting growth in all the regions. However, Africa has been resilient in the face adverse challenges such as domestic conflict, worldwide headwinds, and internal supply shocks. Thus, Africa has experienced robust economical growth over the past decade. Africa’s fiscal growth has drastically increased over the past decade. This robust economic growth has seen the continent become a hub of new commercial vibrancy. Figure 1.0 below illustrates Africa’s GDP trends between the years 2001 and 2012, with projections for 2013-2014. The figure illustrates an average growth of Africa’s economic performance since the year 2001, averaging above 5%. It also approximates the...
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...Introduction Nowadays, we live in a world that is converging in a fast-paced as a result of globalization with its active forces—leading to the tremendous rise in global capitalist economy. The demand for energy continue to sky-rocket in this modern world whilst major players in the world today; such as the United States, countries in the European Union and Japan are at alert in the sense that, China, one of the world fastest growing economy has been considered as a new competitor in the competition of securing a long term energy supplies around the globe. As China’s economy is rapidly growing and in other to acquire the needed resources to support its rapid growth, the government have taken a great step in focusing in other part of the world to secure oil which they deemed necessary coupled with other raw materials across the world. The rising economy of China was stated to have grown in an extraordinarily large number of nine (9) per cent per annum in the last twenty five (25) years whereas its consumption of energy has been said to have doubled to the extent that it outstripped the production of domestic energy. (Africa-practice report, 2007, p.2) Significantly, to catch up with the demand of its market, the economic powerhouse has channelled its attention to Africa. A continent widely known for its social and political unrest, though Chinese active involvement in Africa is a necessary mission in other for them to secure new export market for their manufactured goods, there...
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...ECONOMIC DEVELOPMENT IN AFRICA.DISCUSS COMMENTS ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….......................................................................................................................................... Since the Tang Dynasty, Chinese activity in Africa has been seen and has grown exponentially in the past decade. China’s enhanced role within the global economy has profound political implications across the world, but takes a particular form in Africa. Recently, there has been an ongoing move by the Chinese to tap in and secure natural resources in Africa through the Chinese-African trade and diplomatic relations. Though its growing interest in Africa has resulted in huge capital flows into the continent and increased exports of natural resources from Africa, it is the purpose of this paper to determine if this relationship is creating shared prosperity for both countries. It is also vital to outline the contexts of African crisis and Chinese expansionisms. The paper also tries to explain how Chinese renewed interest in the continent has been manifested and provides an analysis of its main effects. However, though Chinese involvement in Africa is subject to debate, it certainly does no, to a greater extent, merit accusations of neo-colonialism. It also brings with it some potential for greater socio-economic development, although...
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...of Africa less risky and a more attractive proposition than western multinationals? - MSc BD7 Ping SUI Introduction: As an important global player and the main drive for economical growth, China’s massive investment in Africa has drawn the world’s attention. People can see European multinationals everywhere in Africa in the 80s, while now Chinese companies seem to take over the leading role. For example, in Angola, China helped to build the Angola Benguela railway, which is the longest railway Angola has had so far; in Nigeria, Chinese Telecom companies “Huawei” has a dominating presence both in fixed and wireless services by taking more than 90% of the market share. Not only can you find commodities made in China everywhere, but Chinese companies now build the infrastructures in many African countries too. On the contrary, the presence of European multinationals is not as strong as the Chinese ones: the amount of the funds flowing from Europe to Africa has decreased from 70% to 17% since the 70s; Western Europe’s share of overall international trade with Africa has decreased from 51% to 28%, while China has taken the place and become the biggest trading partner Africa has by surpassing America in 2009. Why are European MNCs less and less preset in Africa? What are the difficulties they have encountered? Do Chinese companies have same barriers? Why do the Chinese companies find the African market less risky and more attractive compared to the European multinationals...
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...section provides statistics that reveal the extent of trade between China and Africa since 2000. The specific statistics center around the amount of natural resources exported to China and compares that to the amount of imports from China. After gaining insight into the extent of business between the two, one can begin to understand why Africa is so important to China. This importance is discussed in more detail against the backdrop of the historical background of these two regions. The following section explains the strategy that China has adapted to trade with Africa and introduces the concept of the “Chinese Model”. This model highlights the driving forces behind China’s strategic decisions and introduces some controversial arguments around some of the methods that China has adopted. An important part of this discussion is the comparison of China’s strategy with that of the West (i.e. regions like the United States of America (USA/US) and the European Union (EU). Some interesting statistics reveal that Africa is attracting significant amounts of Foreign Direct Investment (FDI) and is most likely to continue doing so. 1. Analyse and Discuss the Extent of Trade between China and Africa since 2000. (Jones S. 2012; Alessi C. 2012; China Daily.Com 2011; African Development Bank 2011; The Forum on China-Africa Cooperation 2011) China will overtake the United States of America (USA/US) as the world’s largest trade partner by.2016. (Jones, S. 2012). China is Africa’s...
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...Introduction China’s insatiable appetite for natural resources, oils deposits and other raw materials to power its economic engine questing her to emerge as the new superpower, has catalyzed her desire to engage Africa in her Foreign Policy. This has heightened the Chinese desire to geo- strategic reach into Africa as a going global strategy this has been the plan as far back in the 1978 eras of Mao Zedong. China’s objective in the new phase of assertiveness is to maintain strong economic ties in Africa, unlike the previous objective of building a coalition of sharing common goals with Africa as ‘Third World’. This geo-economic factor is influenced by the desire for resources to fuel its economic growth and gain energy security. China in strengthening her diplomatic and political ties sees Africa not just as ally to bid for influence and power, but as a source for natural resources . China has established Confucius Institutes (state-funded Chinese Cultural Centers) that have sprung up throughout Africa, teaching local people the culture and traditions. One wonders if China is positioning itself for taking over supremacy and advancing her Soft Policy in Africa. It is perhaps important to see our languages and cultures going out there too. The China- Africa Cooperation which was aimed at strengthening China’s diplomatic and political ties stared in post colonial Africa. The African plight of political freedom from their colonies, referred to as aggressors according to...
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...SOUTHERN AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2011-2015 Copyright © 2011 African Development Bank Group Angle de l’Avenue du Ghana et des Rues Pierre de Coubertin et Hédi Nouira BP 323 -1002 TUNIS Belvédère (Tunisia) Tél: +216 71 333 511 / 71 103 450 Fax: +216 71 351 933 E-mail: afdb@afdb.org Rights and Permissions This document may be ordered from: The Knowledge & Information Center (KVRC), African Development Bank Address: BP 323 -1002 TUNIS Belvédère (Tunisia) Telephone: +216 71103402 Telefax: +216 71833248 E-mail: b.abdul-karim@afdb.org The findings, interpretations and conclusions expressed in this report are those of the author/s and are not necessarily those of the African Development Bank. In the preparation of this document, every effort has been made to offer the most current, correct and clearly expressed information possible. Nonetheless, inadvertent errors can occur, and applicable laws, rules and regulations may change. The African Development Bank makes its documentation available without warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use. All rights reserved. The text and data in this publication may be reproduced as long as the source is cited. Reproduction for commercial purposes is forbidden. Legal Disclaimer For more information about this report and other information on Southern African countries, please visit http://www.afdb.org/ en/countries/southern-africa/ ii Strategy Report FOREWORD...
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...Study on sales channel of Total S.A in sub-Sahara Africa Name University Affiliation 1.1 Introduction and Background Total S.A is a French multinational oil and gas company whose headquarters is in Tour Total, Courbevoie near Paris in France. Total S.A was one of the major six world oil companies when the French prime minister rejected the idea of a partnership with Royal Dutch Shell. He instead favored the idea of forming an independent French oil company because petroleum was considered as a very important in the case of new war with German (Total.com, 2015). It was formed in 1924 after World War I and was initially called French Petroleum Company (CPF). Initially, this company was a taken as a private sector company (Total.com, 2015). In the 1930s, Total S.A engaged in the oil exploration and production mainly in Middle East countries and after World War II, it diversified its exploration to Canada, Venezuela, and Africa as it pursued energy sources in France. In 1980, Total Petroleum North American wing controlled about 50% CPF it bought the refining and marketing assets of Vickers Petroleum. This action enabled it to have the capacity of transportation and networking over 350 service stations in 20 states. Between the years 1985 -2003, Total CPF rebranded itself to boost the popularity of its gasoline brand. The name of this company changed to “Total” when it became a public company as it was listed on New York Stock Exchange. In the early 1990s, the foreign ownership...
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...9/11 attack for example have created serious blow to the U.S. global leadership and its image. Like in the area of the U.S. foreign policy in which its global image defends upon that has also significant implications on its economy, global economic and political interest. Hypothesis The evolution U.S. Foreign Policy for example has been intertwined with the changes of the socio-economic-political and technological landscapes. But for the first time in U.S. History, Terrorism has become the major cause of the abrupt changed in its Foreign Policy which has some serious implications on its national security, political and economic interests in different regions of the globe including West African region which composed of countries like Angola, Benin, Cameroon, Cape Verde, Democratic Republic of Congo, Côte d'Ivoire, Equatorial Guinea, Gabon, Gambia, Ghana, guinea, Guinea-Bissau, Liberia, Mauritania, Namibia, Nigeria, Sao Tome and Principe, Senegal, Sierra Leone, Togo, and Congo. Purpose The purpose of this paper is to conduct discussion and analysis on the United States Security and Economic Cooperation (policy) for West Africa Since the terrorist attacks of 9/11. As one must take note that such region is entwined with serious economic and political factors that would help the United States...
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...In today's society, the prisons of America appear to cause more problems than assistance. The country penal system is expensive, overcrowded, and some argue that it is ineffective as well as inefficient. The cost to build, staff, and support these facilities increases dramatically each year. Prisons, which were created to be humane correctional facilities, are currently filled with violence, hostility, and a communal fear. These institutions are meant to control crime by deterrence, incapacitating criminals. This may protect society from potentially dangerous individuals, but these institutions' level of accomplishment is askew. The financial burden attached to the building, maintaining, and staffing of prisons constantly plagues the penal system. During the late 1960s, New York built prisons at a price of $2 million each. Since then, prices have risen dramatically. In 1990, each prisoner required $15,496 to support (“Bureau of Justice Statistics”). A prison containing 2,000 inmates amounts to over $31 million to operate on an annual basis. The United States spends an estimated $60 billion each year on corrections (Prisons in the United States). The operation price is synonymous with the level of security, ranging from the supermax, containing serial killers, to the minimum security, containing drug offenders. Violence is not confined to outside prison walls. In 2005 alone, federal and state prisons reported 885 incidents of sexual violence. Of the aforementioned...
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...Case study De Beers- An Ethical Idealism “At De Beers there has always been a clear recognition that, while our primary purpose as a business shapes what it is that we do, it is how we work that defines who we are.” -Nicky Oppenheimer Executive Chairman, De Beers Introduction For generations, diamonds have been marketed as tokens of power and love. For some however, diamonds have a more utilitarian appeal. Easily concealed, immensely valuable and largely untraceable, stones from rebel-held mines have raised billions of dollars on world markets to finance revolution in Angola, Sierra Leone and the Democratic Republic of Congo (DRC). For years these "conflict diamonds" have encourage rebel leaders to arm and equip their armies in violation of UN weapons and financial sanctions. Diamond monopoly De Beers is notable for its monopolistic practices throughout the 20th century, whereby it used its dominant position to control the international diamond market. The company used several techniques to exercise this manipulation over the market: Firstly, it persuade independent producers to join its single channel monopoly, it flooded the market with diamonds similar to those of producers who refused to join the cartel, and lastly, it purchased and stockpiled diamonds produced by other manufacturers in order to price control through supply. In 2000, the De Beers forced to change the model, due to certain unavoidable factors such as the decision by producers in Russia,...
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...“The World Bank and IMF exploit and oppress the "developing" countries for the benefit of the rich. In this scheme, their partners in crime are the big Western banks and financial institutions. Simply abolishing the IMF and World Bank is not enough. We need to break the power of the big banks that carry out the same exploitative policies as the IMF and World Bank do in relation to the less developed world.”- CWI, socialistworld.net Introduction Marginalization can be defined as the process in which groups of people are excluded (marginalized) by the wider society. Marginalization is often used in an economic or political sense to refer to the rendering of an individual, an ethnic or national group, or a nation-state powerless by a more powerful individual (ask.com, 2014). The process whereby something or someone is pushed to the edge of a group and accorded lesser importance. This is predominantly a social phenomenon by which a minority or sub-group is excluded, and their needs or desires ignored (Businessdictionary.com, 2014). As per UNLDC report, a number of countries are being marginalized on the basis of economic exploitation (Table 1). Why World Bank programs fail? According to Johnson & Sheehy, a majority of World Bank loan and grant recipients do not ave significant level of economic freedom (Table 2) and such nature prevents countries to utilize the loan or grant. • Of the 60 long-term recipients of World Bank aid, 37 have economies that are “mostly not free”...
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...Organization of the Petroleum Exporting Countries | | | | | Headquarters | Vienna, Austria | Official languages | English[1] | Type | Trade bloc | Membership | 12 states (2011)[show] * Algeria * Angola * Ecuador * Iran * Iraq * Kuwait * Libya * Nigeria * Qatar * Saudi Arabia * United Arab Emirates * Venezuela | Leaders | - | President | Rostam Ghasemi | - | Secretary General | Abdallah el-Badri | Establishment | Baghdad, Iraq | - | Statute | September 10–14, 1960 | - | in effect | January 1961 | Area | - | Total | 11,854,977 km2 4,577,232 sq mi | Website www.opec.org | | Currency | Indexed as USD-per-barrel | | | | Current members OPEC has twelve member countries: six in the Middle East, four in Africa, and two in South America. Country | Region | Joined OPEC[25] | Production (bbl/day) | Algeria | Africa | 1969 | 2125000 !2,125,000 (16th) | Angola | Africa | 2007 | 1948000 !1,948,000 (17th) | Ecuador | South America | 2007[A 1] | 0485700 !485,700 (30th) | Iran | Middle East | 1960[A 2] | 4172000 !4,172,000 (4th) | Iraq | Middle East | 1960[A 2] | 3200000 !3,200,000 (12th) | Kuwait | Middle East | 1960[A 2] | 2494000 !2,494,000 (10th) | Libya | Africa | 1962 | 2210000 !2,210,000 (15th) | Nigeria | Africa | 1971 | 2211000 !2,211,000 (14th) | Qatar | Middle East | 1961 | 1213000 !1,213,000 (21st) | Saudi Arabia | Middle East | 1960[A 2] | 8800000 !8,800,000 (1st) | United...
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...LECTURE 1 THE KHOISAN AND THEIR ENVIRONMENT Introduction: Khoisan are historically the earliest inhabitants of Southern Africa. They dominated Southern Africa for hundreds of years before the arrival of the Bantu groups. Archaeological evidence obtained from sites on the West Coast such as Kasteelberg show occupation by herders between 1600 and 1800 years ago, ie around 200-400AD They owed to a great extent their livelihood to the natural environment conditions which obtained. This is demonstrated by the fact that they derived the three basic fundamentals of life; food, shelter and clothing from the flora and fauna of the region. The San They were referred to as hunter-gatherers. [Bushmen by whites; Twa by Xhosa, Roa by Sotho and San by Khoikhoi] They occupied the mountainous, plateau and coastal areas of Southern Africa as evidenced by their paintings on rocks and cave walls throughout the sub-continent. They were neither herders nor agriculturalists, so they depended on hunting and gathering. [ie they survived on what the environment provided] Archaeological evidence has proven that the San might have made meat an important part of their diet before the invention of projectile weapons. How was this possible without weapons? The San killed newly born or sick animals Ran down animals Scavenging They drove large animals over cliffs or into swamps and then slaughtered them. Meat was thus an important part of their diet from time immemorial. As their Stone Age technology improved...
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...Kingdom of Kongo: Nation Formation The Kingdom of the Kongo, also known as Kongo dya Ntotila, is by far one of the most famous kingdoms in sub-Saharan Africa. Located in the southwest section of Africa, it is now northern Angola, Cabinda, the Republic of the Congo and the western part of the Democratic Republic of the Congo. Once a great colossus, it seems that the Kongo Kingdom came and went so fast. John K. Thornton, author of “The Kingdom of Kongo” and “The Origins and Early History of the Kingdom of Kongo”, gives vivid detail and insight to the Kongo Kingdom. He stresses that the societal creation of the Kongo was dominated by a single mode of production whose establishment and dissolution defined the beginning and ending of the period (The Kingdom). He wrote that “Its [Kingdom of Kongo] inception, in about 1390, was central to the constitution of the social formation of the Kongo, while the complex activity between its various levels and relations led to its eventual destruction and break-up of the social formation after 1678…” (Thornton, the Kingdom). In the 1480s, an explorer from Portuguese, Diogo Cao, happened to come across the Kongo Kingdom in his search for trade routes to Asia. And not long after he arrived in the Kingdom, explorers, missionaries and merchants followed suit. At first, it seemed as if they initially had a mutual attraction with each other. The Portuguese were looked at and reverenced as honorable and were welcomed at Mbanza, the capital (africafederation)...
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