Categories
Archive UNDP Mongolia 1997-1999 United Nations Development Programme

High Impact Communications In A Major Crisis: UNDP Mongolia 1997-1999 | 18 February 2016

I was head of communications for the United Nations mission in Mongolia from 1997 to 1999. The mission had to primarily tackle three major crises: the country’s turbulent transition from Communism to free markets and democracy, the social and economic crash this caused, and the Asian Financial Crisis (Pomfret 2000) (Quah 2003)*.

The Economist: “Those free-trading Mongolians” was published Apr 24th 1997. I arrived in May of 1997 to find a country on the cusp of great and turbulent change.

Richard Pomfret said in 1994 “In 1991 Mongolia suffered one of the biggest peacetime economic collapses ever (Mongolia’s Economic Reforms: Background, Content and Prospects, Richard Pomfret, University of Adelaide, 1994).”

From Curbing Corruption in Asia: A Comparative Study of Six Countries by Jon S. T. Quah: “The combined effect of these three shocks was devastating as ‘Mongolia suffered the most serious peacetime economic collapse any nation has faced during this century’. Indeed, Mongolia’s economic collapse ‘was possibly the greatest of all the (peaceful) formerly'” Communist countries. 

“The years 1998 and 1999 have been volatile ones for Mongolia, with revolving door governments, the assassination of a minister, emerging corruption, a banking scandal, in-fighting within the ruling Democratic Coalition, frequent paralysis within the Parliament, and disputes over the Constitution. Economically, the period was unstable and rife with controversies.” Mongolia in 1998 and 1999: Past, Present, and Future at the New Millennium by Sheldon R. Severinghaus, Asian Survey, Vol. 40, No. 1, A Survey of Asia in 1999 (Jan. – Feb., 2000), pp. 130-139 (Publisher: University of California)

Writing in 2018, author John West  found, in a chapter titled Mongolia’s Corruption Curse (Transparency International and the World Bank had found corruption worsened in Mongolia after 2001), “In many ways, Mongolia has everything going for it. After being a satellite state of the former Soviet Union for much of the twentieth century, Mongolia regained its independence with the end of the Cold War. A relatively peaceful political revolution in the early 1990s ushered in a multi-party democracy and open society which have remained in place. … And it is blessed with vast reserves of copper, gold, coal, molybdenum, fluorspar, uranium, tin and tungsten deposits. True, Mongolia experienced great upheavals as the breakup of the Soviet Union saw its trade decline by 80%. But Mongolia was also perfectly placed to benefit from the commodity super cycle driven by China, which is now the destination for the vast majority of its exports.

“However, despite much hype about the Mongolian “wolf economy”, this country of so much promise is being dragged down by massive corruption. …

“Mongolia’s corruption is greatly weakening its attractiveness as an investment destination, is fracturing society and weakening its fragile political institutions. Its culture of corruption has also fed its love-hate relationship with foreign investors, which has destabilized the economy.” Asian Century … on a Knife-edge: A 360 Degree Analysis of Asia’s Recent Economic Development by John West, Springer, 24 January 2018.  

In this role, I pioneered innovative use of the Internet and digital resources to communicate the UN’s work and Mongolia’s unfolding crises. The UN called this work a “role model” for the wider UN and country offices. A survey of United Nations country office websites in 2000 ranked the UN Mongolia website I launched in 1997 and oversaw for two years (1997-1999), third best in the world, saying: “A UN System site. A very nice, complete, professional site. Lots of information, easily accessible and well laid out. The information is comprehensive and up-to-date. This is a model of what a UNDP CO web site should be.” (https://www.scribd.com/document/35249986/United-Nations-2000-Survey-of-Country-Office-Websites)

As part of a strategic plan to raise awareness of Mongolia’s development challenges and to spur action on meeting them, a Communications Office was established for the UN mission in 1997. Acting as a strategic hub, the Communications Office and its dynamic and talented team, were able to leverage the existing budget to spur action on many fronts, including: 

Media

Working with journalists and media both within Mongolia and outside – including organising frequent cross-country media tours – the Communications Office was able to significantly raise awareness of Mongolia and its development challenges. This was reflected in a substantial increase in media coverage of the country and in the numerous books and other publications that emerged post-1997. The book In Their Own Words: Selected Writings by Journalists on Mongolia, 1997-1999 (ISBN 99929-5-043-9) archived the stories by theme.  

Top journalists covering Asia in the late 1990s contributed to the book.
The BBC’s Charu Shahane joined other journalists on a UNDP Mongolia media tour in 1998.

Ger Magazine

Ger Magazine (the Mongolian word for home and traditional tent dwelling) was published as the country’s first e-magazine in 1998. There were four issues in total from 1998 to 2000. The launch issue was on the theme of youth in the transition. Mongolia was transitioning from Communism to free markets and democracy and this had been both an exhilarating time and a wrenching time for young people. The magazine drew on talented journalists from Mongolia and the handful of international journalists based there to create a mix of content, from stories about life adapting to free markets to stories on various aspects of Mongolian culture and life. 

The second issue of the magazine proved particularly effective, with its modern life theme and cover story on a thriving Mongolian fashion scene.

Archived issues of the magazine can be found at the Wayback Machine here: https://archive.org/. Just type in the UN Mongolia website address for the years 1997 to 1999: http://www.un-mongolia.mn.


Blue Sky Bulletin

The Blue Sky Bulletin newsletter was launched in 1997 initially as a simple, photocopied handout. It quickly founds its purpose and its audience, becoming a key way to communicate what was happening in the country and a crucial resource for the global development community, scholars, the media and anyone trying to figure out what was happening in a crazy and chaotic time. Blue Sky Bulletin was distributed via email and by post and proved to be a popular and oft-cited resource on the country. The quality of its production also paralleled Mongolia’s growing capacity to publish to international standards, as desktop publishing software became available and printers switched to modern print technologies. Blue Sky Bulletin evolved from a rough, newsprint black and white publication to becoming a glossy, full-colour, bilingual newsletter distributed around Mongolia and the world.

Archived issues can be found online here:

Blue Sky Bulletin Issue 1

Blue Sky Bulletin Issue 2

Blue Sky Bulletin Issue 3

Blue Sky Bulletin Issue 4

Blue Sky Bulletin Issue 5

Blue Sky Bulletin Issue 6 

Blue Sky Bulletin Issue 7 

Blue Sky Bulletin Issue 8

Blue Sky Bulletin Issue 9

Blue Sky Bulletin Issue 10


Publishing

MHDR 1997

The Mongolian Human Development Report 1997 (MHDR), the country’s first, placed the story of the Mongolian people during the transition years (post-1989) at its heart, using photographs, stories and case studies to detail the bigger narrative at play.

This groundbreaking Mongolian Human Development Report went beyond just chronicling Mongolia’s state of development in statistics and graphs. Designed, laid out and published in Mongolia, the report broke with the practices of many other international organisations, who would publish outside of Mongolia – denying local companies much-needed work and the opportunity to develop their skills. The report’s costs helped to kick-start a publishing boom in the country and significantly raised standards in design and layout in the country. The foundations laid down by the project producing the report ushered in a new age in publishing for Mongolia.

The report’s launch was innovative, not only being distributed for free across the country, but also part of a multimedia campaign including television programming, public posters, town hall meetings and a ‘roadshow’ featuring the report’s researchers and writers.

The initial print run of 10,000 copies was doubled as demand for the report increased. To the surprise of many, once hearing about the free report, herders would travel to the capital, Ulaanbaatar, to pick up their copy. The report proved people cared passionately about the development of their country and that development concepts are not to be the secret domain of ‘development practitioners’. The report also became an English language learning tool as readers compared the Mongolian and English-language versions. 

You can read the report’s pdf here: http://www.mn.undp.org/content/mongolia/en/home/library/National-Human-Development-Reports/Mongolia-Human-Development-Report-1997.html

Mongolian AIDS Bulletin

Assembled by a team of health experts after the Fourth International Congress on AIDS in Asia and the Pacific, the Mongolian AIDS Bulletin was published in 1997 in the middle of an HIV/AIDS crisis. It provided timely information and health resources in the Mongolian language and was distributed across the country.
 
“Mongolia’s first AIDS Bulletin marked the beginning of the UNDP Response to HIV/AIDS/STDs Project back in the autumn of 1997. Over 5,000 copies of the magazine were distributed across the country, offering accurate information on the HIV/AIDS situation. The project has been pivotal in the formulation of a national information, education and communication (IEC) strategy, bringing together NGOs, donors, UN agencies and the government.”
 
Source: YouandAids: The HIV/AIDS Portal for Asia Pacific 

Green Book

In the Mongolian language, the Mongolian Green Book details effective ways to live in harmony with the environment while achieving development goals. Based on three years’ work in Mongolia – a Northeast Asian nation coping with desertification, mining, and climate change – the book presents tested strategies.  

EPAP Handbook

The Environmental Public Awareness Handbook was published in 1999 and features the case studies and lessons learned by UNDP’s Mongolian Environmental Public Awareness Programme (EPAP). The handbook draws on the close to 100 small environmental projects the Programme oversaw during a two-year period. These projects stretched across Mongolia, and operated in a time of great upheaval and social, economic and environmental distress. The handbook is intended for training purposes and the practice of public participation in environmental protection.

In its 2007 Needs Assessment, the Government of Mongolia found the EPAP projects “had a wide impact on limiting many environmental problems. Successful projects such as the Dutch/UNDP funded Environmental Awareness Project (EPAP), which was actually a multitude of small pilot projects (most costing less than $5,000 each) which taught local populations easily and efficiently different ways of living and working that are low-impact on the environment.”

Mongolia Updates 1997, 1998, 1999

Mongolia Update 1998 detailed how the country was coping with its hyperinflation and the Asian economic crisis.

The mission simultaneously had to deal with the 1997 Asian Crisis (http://en.wikipedia.org/wiki/1997_Asian_Financial_Crisis) and the worst peacetime economic collapse in post-WWII history (http://www.jstor.org/pss/153756).  

Mongolia Update 1998 – Political Changes

1998 proved a tumultuous year for Mongolia. The country’s existing economic crisis caused by the transition from Communism to free markets was made worse by the wider Asian Crisis. The government was destabilised, leading to an often-confusing revolving door of political figures. In order to help readers better understand the political changes in the country, a special edition of Mongolia Update was published that year.  

UNDP Mongolia: The Guide

The Guide, first published in 1997, provided a rolling update on UNDP’s programmes and projects in Mongolia during a turbulent time (1997-1999). The mission simultaneously had to deal with the 1997 Asian Crisis (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis) and the worst peacetime economic collapse in post-WWII history.

Each edition came with short project and context summaries, key staff contacts, and facts and figures on how the country was changing. For the first time, any member of the public could grasp what the UN was up to in the country and be able to contact the project staff. An unusual level of transparency at the time for a UN mission.

Memoranda of Understanding

Three Memoranda of Understanding were negotiated with the Mongolian Government to help focus efforts and aid the attainment of internationally-agreed resolutions. This was affirmed by a series of youth conferences, One World, held in 1998 and 1999.

Strategy and Leadership in a Crisis

The scale and gravity of the crisis that struck Mongolia in the early 1990s was only slowly shaken off by the late 1990s. The economic and social crisis brought on by the collapse of Communism and the ending of subsidies and supports from the Soviet Union, led to a sharp rise in job losses, poverty, hunger, and family and community breakdowns. 

The challenge was to find inspiring ways out of the crisis, while building confidence and hope. The sort of challenges confronted by the UNDP Mongolia Communications Office included: 

1) A food crisis: agricultural production was down sharply, and the traditional nomadic herding economy, while at peak herd, was failing to get the meat to markets and to a high enough standard to restore export levels to where they once were. As a result, a cross-border trading frenzy became the solution to falling domestic food production and availability.

2) HIV/AIDS/STDs crisis

3) A major banking crisis

4) Both the Asian Financial Crisis and the Russia Crisis.

5) An ongoing political crisis and an inability to form stable governments.

“Mongolia is not an easy country to live in and David [South] showed a keen ability to adapt in difficult circumstances. He was sensitive to the local habits and cultures and was highly respected by his Mongolian colleagues. … David’s journalism background served him well in his position as Director of the Communications Unit. … A major accomplishment … was the establishment of the UNDP web site. He had the artistic flare, solid writing talent and organizational skills that made this a success. … we greatly appreciated the talents and contributions of David South to the work of UNDP in Mongolia.” Douglas Gardner, UN Resident Coordinator and UNDP Resident Representative Mongolia

UNDP: Country Cooperation Frameworks and Related Matters – First Country Cooperation Framework for Mongolia (1997-2001).

Citations

The response by the Communications Office has been cited in numerous articles, stories, publications and books. It has also contributed to the development of the human development concept and understanding of human resilience in a crisis and innovation in a crisis. Book citations include: 

Modern Mongolia: From Khans to Commissars to Capitalists

Wild East: Travels in the New Mongolia

A more detailed list of citations can be found here: http://www.davidsouthconsulting.com/about/

For research purposes, key documents were compiled together and published online here: https://books.google.ca/books?id=K76jBgAAQBAJ&dq=undp+mongolia+key+documents&source=gbs_navlinks_s

In 2001, the UN won the Nobel Peace Prize for “their work for a better organized and more peaceful world” and its communications innovations, with work such as that in Mongolia being cited as a contributing factor to the awarding of the Prize

In 2000, the Millennium Development Goals (MDGs) were launched in a 15-year bid to use a focused approach to development centred around eight goals to accelerate improvements to human development. From 2000 to 2005, work was undertaken in various UN missions (Mongolia, South Africa, Turkmenistan, Ukraine) to communicate the goals and to reshape communications activities around the goals.

*Curbing Corruption in Asia: A Comparative Study of Six Countries by Jon S. T. Quah, Eastern Universities Press, 2003 

Transition and Democracy in Mongolia by Richard Pomfret, Europe-Asia Studies, Vol. 52, No. 1 (Jan., 2000), pp. 149-160, published by Taylor & Francis, Ltd. (http://www.jstor.org/stable/153756?seq=1#page_scan_tab_contents

UNDP Mongolia team photo in 1997. I am sitting front row centre left of the UN Resident Coordinator Douglas Gardner.
Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Categories
Archive Blogroll Southasiadisasters.net United Nations Office for South-South Cooperation

South–South Cooperation For Cities In Asia

Published: July 2014

Publisher: Southasiadisasters.net

Issue No. 114, July 2014

Theme: Towards Urban Resilience

The coming wave of technological innovations aimed at global South cities will dominate civic debates whether people wish it to or not. Already, futuristic, 21st-century cities are being built around Asia from scratch. I had the privilege of visiting a couple of them in 2012 while researching the fourth issue of our magazine, Southern Innovator (  h t t p : / / w w w . s c r i b d . c o m / SouthernInnovator). Each city had a different focus for its construction – one was seeking to be an “eco-city” and the other one called itself a “smart city,” focused on becoming a regional business and technology hub. Both aimed to use the latest information technologies to make the way Asian cities operate on a day-to-day basis smarter – and greener.

Large information technology companies – including India’s Infosys (infosys.com) – have their sights set on selling all sorts of technological solutions to common problems of urban living. This aspiring revolution is built on two foundations: One is the Internet of Things – in which everyday objects are connected to the
Internet via microchips. The other is Big Data, the vast quantities of data being generated by all the mobile phones and other electronic devices people use these days.

Much of this new technology will be manufactured in Asia, and not just that – it will also be developed and designed in Asia, often to meet the challenges of urban Asia.

By their nature, cities are fluid places. People come and go for work and pleasure, and successful cities are magnets for people of all backgrounds seeking new opportunities. This fluidity puts stress on cities and leads to the constant complaints familiar to any urban dweller – inadequate transport, traffic jams, air pollution, poor housing, and a high cost of living.

If handled well and with imagination, new information technologies can ensure Asian cities do more than pay lip service to aspirations to improve human development. They can make cities resilient places – able to bounce back from disasters, whether man made or natural.

During the late 1990s, I saw first-hand the pressures placed on one Asian city, Mongolia’s capital, Ulaanbaatar. The country endured the worst peacetime economic collapse since World War II while confronting the wrenching social and economic stresses of switching from a command economy during Communism to a free-market democracy. The city’s population grew quickly as rural economies collapsed and poverty shot upwards. I can only imagine now how the response could have been different with the technologies available today.

In 2010, I interviewed one of the editors of the Cities for All book, Charlotte Mathivet (http://globalurbanist.com/2010/08/24/cities-for-all-shows-how-the-worldspoor-are-building-ties-across-theglobal-
south), and she stressed the importance of South-South cooperation to ensuring cities are good places to live for everyone.

“A lot of social initiatives based on the right to the city are coming from these ‘new cities of the South,'” Mathivet said. “The book highlights original social initiatives: protests and organizing of the urban poor, such as the pavement dwellers’ movements in Mumbai where people with nothing, living on the pavements of a very big city, organise themselves to struggle for their collective rights, just as the park dwellers did in Osaka.”

Recently, an Indian restaurant uploaded to the Internet a video of what it claimed to be the first drone delivering a pizza in an Indian city. While this may or may not be a practical solution to traffic congestion, the subsequent negative fallout – angry police and public officials – from this use of new technology highlights the promise
and perils of innovating in the real world of Asian cities (http:/
/www.bbc.co.uk/news/
b l o g s – n e w s – f r o m –
elsewhere-27537120).

Micro electronics are becoming cheaper and more powerful by the month. Small businesses armed with a only laptop computer, access to the Internet and/or mobile phone networks, and cloud computing services, can offer very powerful business and public services solutions. And sharing solutions across the global South via information technologies has never been easier.

The U.S. Pentagon published various reports and studies in the 2000s forecasting a dark future for cities in the global South. As author Mike Davis revealed in his seminal work, Planet of Slums (http://www.amazon.com/exec/obido/ASIN/1844670228/nationbooks08), the Pentagon saw the developing world’s cities as the “battlespace of the twenty-first century.” It imagined sprawling, crime ridden cities full of poverty and slums and needing tiny drones and robots darting back and forth, keeping an eye on everything and suppressing unrest. This threat-based view of future cities is one to be avoided. It is possible, through the right application of quick solutions to the challenges that arise as cities grow, to turn to cooperation across the cities of the global South to avoid this pessimistic fate.


David South, Editor,
United Nations Office for
South-South Cooperation
(UNOSSC), UK

https://reliefweb.int/report/india/southasiadisastersnet-issue-no114-july-2014-towards-urban-resilience

Southern Innovator’s fifth issue on Waste and Recycling (https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s), shows how innovators are tackling the challenge of improving human development on a planet with finite resources and a growing population.

https://davidsouthconsulting.org/2021/10/21/cities-for-all-shows-how-the-worlds-poor-are-building-ties-across-the-global-south/

https://davidsouthconsulting.org/2020/12/14/innovation-in-growing-cities-to-prevent-social-exclusion/

https://davidsouthconsulting.org/2021/10/22/innovations-in-green-economy-top-three-agenda/

https://davidsouthconsulting.org/2021/10/22/lima-to-delhi-what-can-be-learned-on-urban-resilience/

https://davidsouthconsulting.org/2021/02/23/southern-innovator-in-southasiadisasters-net/

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-4/

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-5/

https://davidsouthconsulting.org/2021/03/12/southern-innovator-magazine/

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Categories
Archive Blogroll Southasiadisasters.net United Nations Office for South-South Cooperation

Innovations In Green Economy: Top Three Agenda

By David South

southasiadiasters.net December 2013

The transition to a green economy has reached a crossroads: while multilateral global initiatives have been long-running and complex, the idea of a green economy still seems fragile and achieving it far from certain. In the face of the ravages of the global economic crisis that has raged since 2007/2008, countries are now trying to roll back their green pledges or slow the pace of transition. 

This exposes a dilemma: a perception that a green economy is in conflict with economic growth, prosperity and the advance of human development, particularly in developing countries seeking to make rapid gains in reducing poverty and building a middle class, consumer society. 

Three things need to be foremost in the minds of those who care about creating a global green economy in the 21st century: innovation in design, in market prices and in business models. I think these three factors will be the deciding elements in whether green technologies are taken up quickly and used by large numbers of people to improve their lives. 

The green option needs to always be the more appealing, cheaper option that also improves living standards. Happily, many people are doing this all around the world – you just may not have heard of them yet (unless you are reading Southern Innovator magazine that is). 

As editor of the magazine Southern Innovator since 2011, I have had the privilege to meet, interview and see first-hand green economy innovators across the global South and profile them in the magazine. What has stood out for me is this: the ones who have achieved sustainable success have put a great deal of effort into design – how the technology is made, what it looks like and how it is used, how efficiently it is made and distributed – while also thinking through the business case for their work and how to make it appealing to others. 

We have tried to apply this thinking to the magazine as well, by using clear and modern design with bright, eye-pleasing colours, and by choosing to use 100 per cent renewable energy (much of it from geothermal sources) for the magazine’s design and layout and to have it printed on paper from sustainable forest sources. 

The fourth issue of Southern Innovator (www.southerninnovator.org), on cities and urbanization, launched in October at the Global South-South Development Expo 2013 in Nairobi, Kenya. It profiles many practical initiatives and innovators that are currently building green homes, communities and even whole cities. The magazine’s fifth issue will focus on the theme of waste and recycling and hopes to be a one-stop source of inspiration to better use the finite resources of planet earth.

David South, Editor, Southern Innovator
United Nations Office for South-South Cooperation (UNOSSC)

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

https://wrd.unwomen.org/explore/library/climate-smart-disaster-risk-management-action

https://davidsouthconsulting.org/2022/09/28/asian-factories-starting-to-go-green/

https://davidsouthconsulting.org/2022/09/27/caribbean-island-st-kitts-goes-green-for-tourism/

https://davidsouthconsulting.org/2021/01/25/creating-green-fashion-in-china/

https://davidsouthconsulting.org/2023/02/03/environmental-public-awareness-handbook-case-studies-and-lessons-learned-in-mongolia/

https://davidsouthconsulting.org/2021/02/01/ethiopia-and-djibouti-join-push-to-tap-geothermal-sources-for-green-energy/

https://davidsouthconsulting.org/2021/08/29/indian-business-model-makes-green-energy-affordable/

https://davidsouthconsulting.org/2022/11/11/innovation-cairos-green-technology-pioneers/

https://davidsouthconsulting.org/2021/10/22/lima-to-delhi-what-can-be-learned-on-urban-resilience/

https://davidsouthconsulting.org/2021/08/07/mongolian-green-book/

https://davidsouthconsulting.org/2022/04/14/prisons-with-green-solutions/

https://davidsouthconsulting.org/2021/10/22/south-south-cooperation-for-cities-in-asia/

https://davidsouthconsulting.org/2021/02/23/southern-innovator-in-southasiadisasters-net/

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-5/

https://davidsouthconsulting.org/2021/07/15/undp-mongolia-handbooks-and-books-1997-1999/

https://davidsouthconsulting.org/2021/01/02/a-undp-success-story-grassroots-environmental-campaign-mobilizes-thousands-in-mongolia-1998/

https://davidsouthconsulting.org/2021/02/04/us-450-million-pledged-for-green-economy-investments-at-kenyan-gssd-expo/

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Categories
Archive Development Challenges, South-South Solutions Newsletters

Global South Trade Boosted with Increasing China-Africa Trade in 2013

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

It was announced in January 2014 that China has surpassed the United States to become the world’s number one trading nation, as measured by the total value of exports and imports. This new economic behemoth also continued to grow its trade relationships with Africa.

US exports and imports of goods totaled US $3.82 trillion in 2013, according to the U.S. Commerce Department. China’s annual trade in goods passed US $4 trillion for the first time in 2013 (Guardian).

Zheng Yuesheng, a spokesman for China’s customs administration, told The Guardian that becoming the world’s number one trading nation was “a landmark milestone for our nation’s foreign trade development.”

Significantly for Africa, 2012 was also a record year for China-Africa trade, which reached 5 per cent of China’s total foreign trade and made up 16 per cent of all of Africa’s international trade, according to a new report from South Africa.

Consultancy Africa Intelligence (consultancyafrica.com), a South African-based organization with more than 200 consultants focused on “expert research and analysis on Africa” highlights the achievements of this strong trade relationship – and also some of its threats and weaknesses – in its report.

Trade between China and Africa has surged during the decade since China joined the World Trade Organization (WTO) (wto.org) in 2001, rising from around US $10 billion in 2000 to US $198.49 billion in 2012, according to China’s Ministry of Commerce. Ambitiously, it could reach US $300 billion by 2015, announced Cheng Zhigang, secretary-general of the China-Africa Industrial Cooperation and Development Forum (www.zfhz.org) (China Daily).

China’s trade and poverty reduction.

The World Bank reported South-South trade now surpasses South-North trade, meaning exports from developing countries to other developing countries exceed exports to wealthy developed countries. South-South trade experienced rapid growth in the 2000s, accounting for 32 per cent of world trade by 2011 (World Bank).

South-South trade and investment between Africa and lower-income and middle-income developing countries rose from 5 per cent in the 1990s to almost 25 per cent in 2010 (Consultancy Africa Intelligence). Before the 1990s, over 90 per cent of trade for Africa was with high-income or developed countries.

China is attractive as a trade partner for many reasons. One of them is the strong admiration for its success in lifting millions out of poverty through an aggressive growth strategy and rapid urbanization with big investments in education, science, technology, infrastructure – modern airports, ports, roads and rail – and research and development.

Since 1978, it is believed China has lifted 500 million people out of poverty, out of a population of 1.3 billion people (World Bank). Incomes have doubled every 10 years with average GDP growth of 10 per cent a year, meaning the country has almost reached all the Millennium Development Goals.

Building a trade relationship with China has led to Zambia’s copper mines running again, Gabon’s oil fields being re-explored, and Sudan becoming a major oil exporter to China. Angola, Democratic Republic of Congo (DRC), Equatorial Guinea, Republic of Congo and South Africa are all benefiting from exporting commodities to China.

The relationship has not been entirely beneficial, according to the Consultancy Africa Intelligence report. Some African industries, such as textiles, have suffered from competition with cheaper Chinese imports, leading to factory closures and job loses.

Non-commodity exports from Africa to China amounted to just 10 per cent of the trade total. Many of the contracts signed for projects also go to Chinese companies, the report found.

Renewed concern has also emerged over rising debt levels in Africa.

In summary, the report finds a growing trade relationship with China has brought to Africa commodity booms, growing GDP (gross domestic product), and lots of foreign investment. On the negative side of the ledger, there have been job loses due to cheaper imports, rising personal and government debt levels and an over-dependence on minerals for economic growth.

Across Africa, new infrastructure has emerged where it probably would not have come about under the continuing debt burdens from the 1970s and 1980s. The continent has received a shot of energy, but it remains to be seen whether governments can sustain this  economic jolt and make the wise choices that create African jobs and build liveable cities for the 21st century.

Published: March 2014

Resources

1) Global South-South Development Expo: The Global South-South Development Expo (GSSD Expo) is the only Expo solely from the South and for the South. It showcases successful Southern-grown development solutions (SDSs) addressing the need to meet the Millennium Development Goals (MDGs). Website: southsouthexpo.org

2) World Trade Organization (WTO): There are a number of ways of looking at the World Trade Organization. It is an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other. Website: http://www.wto.org

3) Djibouti Free Zone: Djibouti Free Zone was created with one primary goal in mind – to bring about a sea-change in the way Africa thinks and does business. No red tape, ruthless efficiency and genuinely exhaustive services – in essence, it offers the ideal conditions for trade and commerce to flourish. Website: djiboutifz.com/

4) Forum on China-Africa Cooperation: Keep up with the busy diplomatic and trade contacts between China and African countries. Website: http://www.focac.org/eng/

5) China-Africa Cooperation Net: China-Africa Industrial Forum (CAIF) is the collective dialogue and cooperation mechanism that was set up by both China and friendly African countries in the year 2000. Website: http://www.zfhz.org/html/en_gywm.html

China has been a member of the WTO (World Trade Organization) since 11 December 2001. The World Trade Organization deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. 

https://davidsouthconsulting.org/2022/06/02/afghanistans-juicy-solution-to-drug-trade/

https://davidsouthconsulting.org/2022/11/02/african-online-supermarket-set-to-boost-trade/

https://davidsouthconsulting.org/2022/10/26/african-trade-hub-in-china-brings-mutual-profits-2/

https://davidsouthconsulting.org/2022/11/21/chinese-trade-in-angola-helps-recovery/

https://davidsouthconsulting.org/2022/04/12/djibouti-re-shapes-itself-as-african-trade-hub/

https://davidsouthconsulting.org/2022/10/26/perfume-of-peace-helps-farmers-switch-from-drug-trade/

https://davidsouthconsulting.org/2021/07/19/south-south-trade-helping-countries-during-economic-crisis/

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-2/

https://davidsouthconsulting.org/2022/11/01/southern-innovator-magazine-2010-2014/

https://davidsouthconsulting.org/2022/10/20/trade-to-benefit-the-poor-up-in-2006-and-to-grow-in-2007/

https://davidsouthconsulting.org/2020/12/30/unrisd-blog/

https://davidsouthconsulting.org/2022/10/05/women-empowered-by-fair-trade-manufacturer/

https://davidsouthconsulting.org/2022/06/16/women-mastering-trade-rules/

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023