Forest-related implications of Chinese trade and investment in Africa across sectors: Introduction to case studies

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CIFOR Scientist Louis Putzel gives an introduction of the initial findings and implications of CIFOR's research on "Chinese investments in sectors affecting forests and livelihoods in Africa" with …

CIFOR Scientist Louis Putzel gives an introduction of the initial findings and implications of CIFOR's research on "Chinese investments in sectors affecting forests and livelihoods in Africa" with case studies from the Congo Basin (Cameroon, Democratic Republic of Cong, Gabon) and the Miombo Woodlands (Mozambique, Zambia, Zimbabwe.

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  • 1. THINKING beyond the canopyForest-related implications of Chinesetrade and investment in Africa acrosssectors: Introduction to case studiesPhoto: G. Schoneveld
  • 2. THINKING beyond the canopy Research on three main trends:• Growing demand for primary goods (e.g., cropcommodities, timber, minerals) from major emergingeconomies driven by industrialization, foodconsumption and increased income levels• Increasing investment in large-scale land and forestacquisition linked to a growing role played bytransnational corporations in production• Informal or Illegal timber harvesting and tradeCIFOR’s work on Global Trade andInvestment
  • 3. THINKING beyond the canopyProject on China’s Trade andInvestment in Africa Understand the social, economic and environmentaleffects of Chinese investment in sectors affecting forestsand livelihoods in Africa (e.g. forestry, mining, agriculture) Promote better management of forests and improvedlivelihoods of communities through understanding thegovernance of investments, lands, forest management,and trade Enable governments and development agencies toincrease the economic benefits from developing Africa’sforests and raw materials
  • 4. THINKING beyond the canopyPreliminary publicationsDATA AND INFORMATION SHARING JOURNAL ARTICLES
  • 5. THINKING beyond the canopy0102030405060051015202530OFDI Flows Policy NumberStage Analysis of China OFDI PolicyMarket opening Controling of ODFISFA OverseasSFM GuidelineGoing out policyBillion USDPhase 1: 1979-1990: Tentative developmentChina formally recognized the legal status of overseas investments and severaltentative but favorable policies were published to facilitate OFDI activities.Phase 2: 1991-2001: Sporadic developmentRestrictive policies were published to control the large-scale investments.Phase 3: 2002 – present: Fast and stable development“Going out” strategy was implemented and the whole policy system wasreformed to promote the OFDI. Regulatory activities were also strengthened.
  • 6. Early investments and growing political relations
  • 7. Today... roads, railways, dams, retail,immigration, resource extraction, imports…Photo: G. Schoneveld
  • 8. Two different regions inAfrica:1.Congo Basin(Cameroon, DRC, Gabon)2. Miombo Woodlands(Mozambique, Zambia,Zimbabwe)Research Areas
  • 9. THINKING beyond the canopyFramework for selection of casesA. Timber Industry B. Small-scale/informal/artisanalsector• Cross-countrycomparisons oflarge scale timber• Comparisonsof large-scaleto smallscale timberindustry• Cross-sectorcomparisons ofsmall-scale/informalbusiness models• Timber• Agriculture• Mining(Going “Legit”?) (Going Local?)Social and environmental effects of Chinese vs. non-Chinese activity in:
  • 10. Marie-Luce BiaZafinikamia & Christian MvogoHousehold research methodology: MeasuringDifferencesLarge-scale vs. large scaleDID = ( A-D) – (B-C)
  • 11.  Larger and State-owned companies are more likely to followa set of established industry norms including• Forest management plans• Environmental impact assessments and mitigationrequirements Small-scale companies likely to follow local informalpractices There is still a high degree of interaction between large-scale/formal and small-scale/informal There is a significant migration event (individual & smallscale) in process, which is not governed by multinationalcorporate policies, international norms, or Chinese laws andpoliciesInitial project findings
  • 12. Implications Green guidelines established by multinationals andinvestment banks have potential to mitigate effects of large-scale investment• Workers conditions• Environmental impacts• Local land and resource rights?? Small-scale and informal activities are an issue of nationaland local level regulation unless market-based instrumentsare effective• Certifications, moratoria on illegal goods, etc. Lack of pro-poor land tenure and access rights in much ofsub-Saharan Africa underlies ongoing environmentaldamage and sub-optimal livelihood outcomes
  • 13. Towards Greener Investment inAfrica Understanding of current nature of corporate interests inAfrica Understanding of existing legal norms and their efficacy inimproving environmental outcomes Understanding of how colonial history has affecteddevelopment trajectories and avoid repeating mistakes ofthe past Understanding of degree of vulnerability of humanpopulations: land rights, resource ownership, economicchange