China

China: The Neo-Colonialist?

Zimbabwe arms shipment returns to ChinaA few weeks ago it was announced that Zimbabwe will use the Chinese yuan as an official currency.  In exchange, China will cancel the southern African country’s $40 billion debt. Mind you, the US dollar and the South African rand are also de facto currencies in Zimbabwe.  Many economists may argue that using the yuan is a good idea to getting around American sanctions.

This is just the latest maneuver by China to further penetrate the African continent through trade and development.  According to the International Monetary Fund, of the 20 countries worldwide projected to grow the fastest by next year, 10 of them are in Africa.  Africa’s population is also expected to double to 3.5 billion by the 2050.

So it would make sense for China and other countries to make a move on potentially big economic opportunities related to the continent’s rich resources and minerals.  Approximately over a million Chinese people have moved to Africa in the last 10 years alone as part of a new scramble for Africa.  However, many feel that China is doing more harm than good.

Journalist Howard French wrote a book a couple of years called China’s Second Continent: How a Million Migrants Are Building A New Empire in Africa.  He traveled to half a dozen African countries to meet with these Chinese migrants about their motivations.  They work in a wide variety of occupations, including factory owners, farmers and even prostitutes.  Many of them come to Africa because they are either tired of the competitiveness, lack of freedoms and/or lack of economic mobility back in China.    

The book left a really bad taste in my mouth and a fear for the worst.  Many of the Chinese interviewees sounded the same way European colonizers did during the original Scramble for Africa over a one hundred years ago.  Most of the interviewees speak of Africans in a very racist manner, commonly calling them the derogative hei ren.  

The biggest gripe with the Chinese businesses is that they hire other Chinese workers – not African workers – to construct big development projects in Africa.  The Chinese businesses say they do this because they feel the Africans are not smart enough, childish, and don’t eat bitter, or work as hard as the Chinese.  Then when Africans are hired for jobs, they are paid low wages with very limited benefits and in dangerous environments. But many of these problems stem from African governments allowing Chinese business to come into their countries while ignoring their labor laws.

It seems like China is setting up these African countries to be totally dependent on them by just hiring only Chinese workers.  It would be more valuable for the continent to practice capacity building, where they train Africans to build and maintain their own infrastructure.  Sure, American aid and development projects in Africa have also been known to have shady, ulterior motives in the past as well, including most recently with PEPFAR, but at least Americans mostly hires Africans to work on African projects.  Even when I work on any media development projects in Africa, we make a conscious effort to hire locals because the whole point of development is all about, in my opinion, “ teaching someone how to fish.”

There is also a Chinese presence throughout the Caribbean.  In Jamaica, where my family is from, there have been similar complaints about Chinese development projects, mostly in the tourism sector with resorts.  Recently I was in Kingston and I noticed that the Chinese community self-segregates themselves from other Jamaicans and don’t usually hire locals in their businesses.  Jamaicans that are hired are treated poorly.  Because of this there is growing hostility towards the Chinese migrant community.  A Jamaican friend once told me, “We have replaced British colonization and exploitation with the Chinese.  They are only here to exploit us.”

What is most interesting about the Zimbabwe situation is that introducing Chinese currency into the country’s economy takes the Chinese neo-colonialist agenda to a whole new level.  China, a country that has a long rap sheet of human rights abuses, is hooking up with Zimbabwe, another country with serious human rights problems. Furthermore, despite the fact that he has been an egomaniacal despot in recent years, Mugabe was originally a freedom fighter 40 years ago who helped Zimbabwe become a free country.  Now it feels it feels like the country is moving back into colonialism.   

Ghanaian business executive Ed Brown said the best quote in French’s book:

“This [relationship] is going to be determine Africa’s future for the next fifty years.  This big question is whether African countries are dynamic enough to take advantage, or whether they’ll end up being the appendage of somebody else all over again.”  

Network Security in Africa = Cyber Redlining?

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Cyber security gained attention again last week as both the United States and the European Union put forth strategies for combating the growing threat of cyber attacks.  The European Commission released its new plan, An Open, Safe and Secure Cyberspace, which seeks to “ensure a secure and trustworthy digital environment throughout the EU” with three main strategies:

• Each member state must set up a computer emergency response team (Cert).

• Each member state must nominate a competent authority to deal with network and information security, to which companies would report breaches. These authorities need to have plans for dealing with major incidents.

• Specific sectors – such as banking, transport, energy, health, internet companies and public administrations – must adopt risk management practices and report major incidents.

During his State of the Union address, President Obama announced his new executive order on cyber security.  While many have already panned the order for either being anti-business or being weaker than what his administration had proposed two years ago, Obama stressed the importance of moving forward on securing the nation’s networks.

“Now, we know hackers steal people’s identities and infiltrate private emails,” Obama said.  ”We know foreign countries and companies swipe our corporate secrets.  Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, our air traffic control systems.  We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy”

Just in the last two weeks alone, Facebook, The New York Times and the U.S. Federal Reserve have become the latest victims of hacking. While some of the efforts to address cyber attacks should be applauded, have strict cyber security strategies become another contributor to the digital divide?

I happened to attend a great talk last week where Jenna Burrell, UC Berkeley professor and author of Invisible Users: Youth in the Internet Cafes of Urban Ghana, argues that the fear of online fraud and hacking in Western countries are possibly creating Internet access barriers in developing countries.  Burrell, an ethnographer by training, spent six years researching Internet cafe culture among young, middle-income Ghanaians.

She said that many websites that Westerners commonly use like Amazon, PayPal and Match.com have their IP addresses completely blocked in many African countries.  Burrell said she attempted to log into Amazon and PayPal accounts while in Ghana and her accounts were either suspended or detoured to another page to confirm that she really was who she said she was.  According to Burrell, the dating website Plenty of Fish blocks “all major traffic from Africa (yes, the whole continent of Africa!), Romania, Turkey, India and Russia.”

I have traveled to many countries throughout the developing world, and I have seen some of the issues Burrell has witnessed myself.  I remember traveling through South Africa and Botswana a few years ago, and noticing that when I looked up certain e-commerce websites, I was also detoured to another webpage.  The detoured page usually said that I was not allowed to look at that website.  At first I thought there was a random problem with my Internet connection, until a Tanzanian business partner I was traveling with told me that it was common for the IP addresses of major online companies to be blocked because of this fraud fear.  Interesting to note I have seen less blockage in countries where there is a high rate of Western tourists, like Thailand and Jamaica.

Mind you, online fraud and hacking is a big problem, and cyber criminals can be found in every corner around the world.  We have all received those annoying Nigerian emails seeking financial help for a family member who wants to go to school in America. But it seems a bit harsh and unfair to punish a whole continent, let alone a whole country, for the criminal actions of a few people.  Web address blocking also slows down the ability for many in the developing world to participate in the global economy, where so much about our way of life in general are more dependent on Internet access.  The New York Times was hacked by Chinese infiltrators, but there isn’t a movement to block IP addresses of Western companies in China?  In fact, since China is considered an “emerging market,” many major businesses have an online presence in the country, including Amazon and PayPal.

Redlining is the practice of denying access to services and products to a particular group of people.  In the United States, redlining is mostly associated with housing and credit discrimination against low-income African-Americans.  The severe IP blockage in Africa and other developing countries makes one wonder if this same level of discrimination is occurring.  Reginold A. Roylston, a UC Berkerley Ph.D candidate, first suggested to Burrell that cyber redlining might be happening here.

However, when is country-level IP address blocking justified?  There seems to be a fine line here between online censorship and free enterprise.  Legally, one can’t tell a private firm where they can and can not do business.  Companies such as Amazon likely do thorough market analysis of countries before they enter into a business relationship with them.  One analysis may look at “risks” and maybe Amazon feels that Ghana is too technologically risky not only because of the higher risk of online fraud, but it is also not commercially viable since Ghana is mostly a cash-based economy.

Over the last five years, many African governments have started to require new mobile phone users to register their SIM cards in the hope of reducing cyber attacks.  Nonetheless, more education is needed on this subject, especially in Western countries where Internet access can be taken for granted.  I want to do my part by bringing this issue up to the attention of my readers.   If you know of any IP address blocking going on anywhere in the world, you can report it to Herdict, a portal that “collects and disseminates real-­time, crowdsourced information about Internet filtering, denial of service attacks, and other blockages.”

Deval heads Far East to stir up business for the Bay State

By Talia Whyte

The Bay State Banner

Gov. Deval Patrick will depart tomorrow to lead a trade mission to the People’s Republic of China with a team of Massachusetts business executives, academics and senior government officials.

During the seven-day trip, intended to increase business between the Commonwealth and China, the delegation plans to visit business leaders in Beijing and Shanghai to discuss clean air initiatives, life sciences, education and transportation.

Read the full article here.