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21. The Heterogeneity of FDI in Sub-Saharan Africa: How Do the Horizontal Productivity Effects of Emerging Investors Differ from Those of Traditional Players?

Author:
Birte Pfeiffer, Holger Görg, and Lucia Perez-Villar
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
It is generally accepted by policymakers that outward foreign direct investment (FDI) can contribute to economic development in host countries via knowledge spillovers to the domestic economy. Given that multinational corporations (MNCs) possess technological or managerial advantages, they can generate positive externalities through the diffusion of knowledge to domestic firms. This knowledge transfer can occur horizontally, if firms in the same sector benefit from the presence of multinationals, or vertically, if upstream or downstream domestic sectors gain from the presence of foreign investors. Yet, whereas the FDI literature has reached a certain level of agreement that vertical relationships with local suppliers generate positive productivity spillovers, the evidence on horizontal spillovers is still mixed and inconclusive, and estimates differ in terms of statistical significance and magnitude (Havranek and Irsova 2013).1 These inconsistencies derive largely from differences in the measurement of foreign presence and the type of data used – cross‐sectional versus panel – across studies (Görg and Strobl 2001). Further, there are determining factors at the firm and country level that enhance the realization of spillovers and need to be taken into account. Görg and Greenaway (2004) show that studies accounting for the heterogeneity of domestic firms, and especially their absorptive capacity, tend to report positive results.
Political Geography:
Africa and Europe

22. Does Violence Pay? The Effect of Ethnic Rebellion on Overcoming Political Deprivation

Author:
Carlo Koos
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Studies have found that politically deprived groups are more likely to rebel. However, does rebellion increase the likelihood of achieving political rights? This article proposes that rebellion helps ethnic groups to overcome deprivation. I illustrate this by using a "typical" case (the Ijaw's struggle against the Nigerian government) to demonstrate how ethnic rebellion increases the costs for the government to a point where granting political rights becomes preferable to war. Further, I exploit time-series-cross-sectional data on deprived ethnic groups to show that rebellion is significantly associated with overcoming deprivation. The statistical analysis shows that democratic change is an alternative mechanism.
Topic:
Conflict Prevention, Political Violence, Ethnic Conflict, Poverty, and Armed Struggle
Political Geography:
Africa and Dhaka

23. Perceptions, Practices and Adaptations: Understanding Chinese–African Interactions in Africa

Author:
Karsten Giese
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
Over the last few years, Sino-African relations have become a hot topic both in the general media and for scholars worldwide. Large parts of the global mass media are still engaged in painting the big picture of the relationship between China and Africa by conflating the multiple stakeholders and actors on both sides and generalizing about China's "neocolonialist" strategies vis-à-vis weak African states: its exploitation of African raw materials and populations, its support for non-democratic regimes and its undermining of all Western efforts for reforms across the continent. Where media reports transcend this stereotyping and homogenizing on the macro-level and portray Chinese–African encounters on the ground, it is power differentials, competition, tension and conflict between disempowered African locals and (at least economically) powerful Chinese – the latter as exoticized as alien "others" – that are often the focus of attention.
Political Geography:
Africa and China

24. Sino-African Encounters in Ghana and Nigeria: From Conflict to Conviviality and Mutual Benefit

Author:
Ben Lampert and Giles Mohan
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
China's renewed engagement with Africa is often framed as a form of imperialism, with the growing number of Chinese migrants on the continent seen as an exploitative presence. Such claims have generally been based on little evidence, and where more detailed empirical studies have emerged, they tend to emphasise the tensions and conflicts that have arisen. Our research on Chinese migrants in Ghana and Nigeria suggests that while there are concerns about Chinese competition in the informal retail sector and the treatment of local labour in Chinese enterprises, narratives of apparent tension and conflict are often much more nuanced than is generally recognised. Furthermore, more convivial and cooperative relations have also emerged and these have facilitated important opportunities for Africans to benefit from the Chinese presence. However, while the presence of Chinese migrants in African socio-economic life can be more integrated and mutually beneficial than is often assumed, the ability of African actors to benefit from this presence is highly uneven, placing the politics of class at the centre of any understanding of Sino-African encounters.
Topic:
Development and Migration
Political Geography:
Africa, China, and Nigeria

25. The Chinese Presence in Burkina Faso: A Sino-African Cooperation from Below

Author:
Guive Khan Mohammad
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
Burkina Faso currently has no diplomatic relationship whatsoever with the People's Republic of China. Engaged in cooperation with Taiwan since 1994, it is one of only three African countries not a part of the Forum on China–Africa Cooperation. This unusual situation has produced a unique manifestation of the Chinese presence in Burkina Faso, where the estimated 600 Chinese migrants are primarily private entrepreneurs. This phenomenon of "globalization from below" – or, this migration of entrepreneurs that transcends the absence of diplomatic relations – creates new intimate social relations between the Burkinabe and Chinese people who come into contact with each other. Far from simply turning Chinese and Burkinabe into economic competitors, these relations have also led to the emergence of many forms of interpersonal and business cooperation. In this paper, I therefore demonstrate how Sino-African cooperation from below has developed in Burkina Faso, which stands in radical contrast to the latter's cooperation with Taiwan, which takes place almost exclusively on a broader state-to-state level. The empirical evidence of this study is drawn from field survey interviews and observations of both Chinese and Burkinabe entrepreneurs in Burkina Faso between 2010 and 2011.
Political Geography:
Africa, China, and Tanzania

26. Chinese Employers and Their Ugandan Workers: Tensions, Frictions and Cooperation in an African City

Author:
Codrin Arsene
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper analyses the context in which a group of African workers interact with their Chinese employers within a specific ethno- graphic space: Chinese-owned shops in Kampala, Uganda. By exploring enjawulo, the locally embedded cultural, social and economic notion of work and labour, I reveal how relations between Chinese employers and Ugandan employees are shaped by the former's knowledge and acceptance of this practice. This analytical lens contextualises the two groups' divergent goals, opinions and aspirations, examines the interpersonal dimensions of their social relations, and also analyses employers' and employees' opinions on labour conflicts, cooperation and understanding. The goal of the paper is to explore and deconstruct the context in which Chinese store owners and their local employees interact, cohabit, and sometimes even find common ground, despite markedly different economic, social, cultural, racial and linguistic backgrounds.
Topic:
Migration
Political Geography:
Uganda, Africa, China, and Kampala

27. Regional Sanctions against Burundi: A Powerful Campaign and Its Unintended Consequences

Author:
Julia Grauvogel
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper examines the impact of regionally imposed sanctions on the trajectory of the Burundian regime and its involvement in the peace process following the 1996 coup in the country. Despite the country's socioeconomic and geopolitical vulnerability, the Buyoya government withstood the pressure from the sanctions. Through a vocal campaign against these sanctions, the new government mitigated the embargo's economic consequences and partially reestablished its international reputation. Paradoxically, this campaign planted the seed for comprehensive political concessions in the long term. While previous literature has attributed the sanctions' success in pressuring the government into negotiations to their economic impact, the government actually responded to the sanction senders' key demand to engage in unconditional, inclusive peace talks under the auspices of the regional mediator once the economy had already started to recover. The regime's anti-sanctions campaign, with its emphasis on the government's willingness to engage in peace talks, backfired, with Buyoya forced to negotiate after having become entrapped in his own rhetoric.
Topic:
Government, Regime Change, and Sanctions
Political Geography:
Africa and Burundi

28. Contingent Democrats in Action: Organized Labor and Regime Change in the Republic of Niger

Author:
Sebastian Elischer
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The effects of organized labor on regime change in developing countries are not clear‐cut. Optimists argue that union agitation is conducive to both democratic transition and consolidation processes. Pessimists hold that unions will support any regime that is conducive to their demands. Accordingly, unions may support regime transitions; however, once their economic interests are under threat, they will jeopardize the subsequent consolidation process. Systematic studies on the effects of organized labor on regime change in sub‐ Saharan Africa are sparse and largely confined to the (pre)transition phase. This article examines the role of organized labor in Niger between 1990 and 2010. Given the high number of regime breakdowns during the period, a longitudinal study of Nigerien labor enables a critical examination of motives and actions of organized labor toward different regime types. In contrast to other recent findings on African unionism, the article confirms the pessimistic view.
Topic:
Civil Society, Democratization, Development, Regime Change, and Labor Issues
Political Geography:
Africa

29. The Eritrean Diaspora: Savior or Gravedigger of the Regime? Diaspora Responses to the Imposition of UN Sanctions

Author:
Nicole Hirt
Publication Date:
10-2013
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This article examines the impact of UN‐imposed sanctions on the stability of the Eritrean regime, using diaspora behavior as an explanatory variable of crucial importance. It explores the transnational nature of Eritrean society, which is characterized by long‐distance nationalism, and examines the history and structure of the Eritrean diaspora as well as its transformation since the political crisis of 2001. The paper argues that the government and its supporters among the diaspora, as well as regime opponents, have all instrumentalized the sanctions for their own specific purposes. While the former use the sanctions to create a “rally around the flag” effect and for fundraising purposes, the latter campaign against the 2 percent diaspora tax levied by the government because it may be used for illicit purposes in breach of the sanctions regime. However, due to the opposition\'s disunity and failure to organize joint campaigns, its efforts have so far failed to decisively contribute to the demise of Eritrea\'s crumbling rebel regime. Meanwhile financial flows to both the government\'s coffers and to private individuals continue to play a stabilizing role. Nevertheless, unsuccessful domestic policies, the mass exodus resulting from the militarization of the entire society and an isolationist foreign policy are all contributing to the growing weakness of the regime, and with it the State of Eritrea.
Topic:
Conflict Resolution, Foreign Policy, Diaspora, Insurgency, Fragile/Failed State, and Governance
Political Geography:
Africa, United Nations, and Eritrea

30. Does Uranium Mining Increase Civil Conflict Risk? Evidence from a Spatiotemporal Analysis of Africa from 1945 to 2010, September 2012

Author:
Matthias Basedau and Carlo Koos
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
We employ a two‐tier spatiotemporal analysis to investigate whether uranium operations cause armed conflict in Africa. The macrolevel analysis suggests that – compared to the baseline conflict risk – uranium ventures increase the risk of intrastate conflict by 10 percent. However, we find ethnic exclusion to be a much better predictor of armed conflict than uranium. The microlevel analysis reveals that uranium‐spurred conflicts are spatiotemporally feasible in four countries: the Democratic Republic of Congo (DRC), Namibia, Niger and South Africa. We find strong evidence in the case of Niger, and partial evidence in the case of the DRC. Namibia and South Africa do not yield substantial evidence of uranium‐ induced conflicts. We conclude that uranium may theoretically be a conflictinducing resource, but to the present day empirical evidence has been sparse as most countries are still in the exploration phase. Considering that the coming years will see 25 African countries transition from uranium explorers into producers, we strongly suggest that our analysis be revisited in the coming years.
Topic:
Conflict Resolution, Political Violence, Post Colonialism, and Natural Resources
Political Geography:
Africa