Latest Edition: Emerging Powers News Roundup

1. General

NDI Hosts Democracy Support Roundtable with Emerging Powers
A group of politicians, civil society leaders and academics from the transatlantic community and emerging powers – including Argentina, Brazil, India, Indonesia, Mexico and South Africa – convened recently in Washington to discuss the potential for greater cooperation on democracy support.
Read More

Raw materials: Towards a global resource war?
While Europe tries to ensure undistorted access to raw materials for its industries, commercial conflicts over export restrictions are a growing area of tension in international trade, with developing countries defending their right to curtail global access to their resources in support of domestic economic development. "World history has been influenced by hostile resource wars and much of the European expansion and colonisation of Africa was to control raw materials," said Mogens Peter Carl, former director-general of the European Commission's trade department. Speaking in Brussels on Tuesday (1 March), Carl, who is now senior advisor at communications consultancy Kreab Gavin Anderson, warned that "there is a danger of a resource war even today – but from the commercial aspect only".
Read More

2. China in Africa

China's Leading Construction Company Halts Projects in Libya amid Unrest
China State Construction Engrg. Corp. Ltd. (China Construction), China's leading off-shore construction outsourcing company, on Monday said it is suspending its projects in Libya as the unrest continued in the North African state. Company sources said China Construction has signed construction contracts amounting to 17.6 billion yuan (2.67 billion U.S. dollars) in Libya since 2007. More than half of the projects are still underway.
Read More

Libya: China evacuates nearly 29 000
China said on Monday it had evacuated nearly 29 000 of its nationals from strife-torn Libya, where a popular uprising has left at least hundreds dead and triggered a mass exodus of foreigners. The foreign ministry said around 2 500 Chinese citizens had already returned home and 23 000 more had been sent to Greece, Malta, Tunisia, Sudan and the United Arab Emirates, where they were waiting to board flights home.
Read More

Bui Project needs additional $168m funding
The Government of Ghana is seeking an additional $168 million funding from the EXIM Bank of China to complete Ghana’s third hydroelectric power dam, the Bui Hydroelectric Dam in 2013. The Deputy Minister of Energy, Mr. Inusah Fuseini disclosed this to the Business Chronicle at the project site at Bui, in the Tain District of the Brong-Ahafo Region.
Read More

China rail firms look abroad for expansion
China's rail and train builders, who gained valuable experience at home in projects with Western heavyweights, are now competing with them for global contracts, but analysts say a lack of international savvy could clip their ambitions. China already has 8,300 kilometres (5,150 miles) of high-speed rail and from next year will boast more than half of the world's fast tracks. The country is also pouring money into its urban underground networks, with nearly two dozen major cities given the green light in late 2009 to build 89 metro lines by 2016 -- at an estimated cost of 880 billion yuan ($134 billion).
Read More

China helps build state intelligence complex for Mugabe
Construction of the government’s secret electronic eavesdropping complex just outside Harare is moving at a ‘very fast pace’ SW Radio Africa learned on Thursday. It’s believed the complex will, amongst many other things, be used to monitor internet use and telephone calls in Zimbabwe. The ‘snooping’ project, according to a source, is to become the government agency that monitors communications around the whole country. Robert Mugabe officiated at the launch of the building site in 2007.
Read More

Chinese 'driving ICT agenda' in Africa: Wikileaks
The US embassy cable, from Nairobi to Washington, says Chinese firms selling into Kenya's ICT sector are “throwing a lot of money around” and influence may be so great “that it is distorting important investment decisions in the country”, according to industry contacts. “Putting aside corruption, Chinese ICT vendors are difficult to beat on price and quality, and therefore often win government procurement tenders. However, companies that buy Chinese equipment often find that they end up paying the piper later due to poor after-sales service,” the leaked cable reads.
Read More

Exports of metal to China fall short
A breakdown of foreign trade last year shows China was South Africa’s biggest trading partner with total trade between the countries worth R143.3 billion. The second biggest global economy, China bought R59.3bn worth of South Africa’s goods, of which more than R52bn were in the sectors that include base metals, coal and iron ore.
Read More

3. India in Africa

Cautious India supports UNSC vote against Libya
India dropped its customary caution to agree late this evening to a unanimous United Nations’ Security Council vote imposing sanctions against Libyan dictator Muammar Gaddafi, including a travel ban and a freezing of the assets of his inner circle, as well as a referral to the International Criminal Court (ICC). India is not a member of the ICC. The 15-0 vote at the Security Council came despite objections by the Chinese and the Russians, who sought to dilute critical language in the prepared text against Gaddafi, but dropped these when the Arab League issued a strongly worded statement against the Libyan leader, and Libya’s permanent representative to the UN, Abdurrahman Mohammed Shalgham, strongly supported the UN move.
Read More

Indian vaccine to save 250 million lives in Africa
A new India-made vaccine against meningitis is to be administered to nearly 250 million children and adults in sub-Saharan Africa, thanks to a joint campaign by the World Health Organisation (WHO) and PATH, an NGO. MenAfriVac has been produced by the Serum Institute of India and is to be administered to those in the age group of 1 to 29 in 25 sub-Saharan African countries.
Read More

Africa’s Aids patients biggest losers if India/EU drugs deal sails through
Jimmy Gideyi has been on free antiretroviral generic drugs manufactured in India since 2004, when he was confirmed HIV positive. In the past decade, the 56-year-old man has received a constant supply of the drugs, which are almost 10 times cheaper than branded ones, thanks to the humanitarian organisation, MSF (Doctors Without Borders). However, Gideyi, like other HIV positive patients in East Africa, fears all that might come to an end, if the controversial Free Trade Agreement between the European Union and India goes through.
Read More

Airtel kicks off Africa-India job transfer program
Airtel Africa weekend announced the kick off of a unique staff transfer program that will see the first batch of employees from Africa work within the operations of its parent company in India, starting 23rd February, 2011. The initial phase of the program saw the integration of specialized staff from Bharti airtel into some markets. In this phase of the program, the initial group from Africa to India will be employees from airtel’s operations in Congo, Tanzania, Kenya, the democratic Republic of Congo (DRC), Niger and Zambia.
Read More

South Africa and India seek to build economic edifice on strong political foundations
When South African and Indian government Ministers meet, the language is always warm and often effusive. At a function in Johannesburg, in January, marking the opening of a South African office by a major Indian State-owned company (MMTC), South African Trade and Industry Minister Rob Davies described South Africans and Indians as “two very, very closely allied peoples with much shared history”. And, at the same function, Indian Commerce and Industry Minister Anand Sharma said: “[The relationship between the two countries is"> strategic and special, which no two countries share with each other. That is not only documented in history. That is how it is shaping the future.”
Read More

India, Africa must stick together: Top UN envoy (Interview)
Ahead of a crucial round of negotiations on reform of the UN Security Council next month, Cheick Sidi Diarra, the top UN envoy for Africa, says India and the 53-nation continent should 'stick together' through twists and turns to realise their long-standing quest for permanent seats on the global high table. 'It's important that India and Africa stick together. India and Africa, whatever shape the discussions take, should stick together,' Diarra, UN under secretary-general and the UN's special adviser on Africa, told IANS in an interview here.
Read More

4. In Other Emerging Powers News

Russia: Libya: Russia fears the contagion of violence in North Africa
Russia fears the disorder and violence in North Africa could spread to the northern Caucasus and a series of recent attacks in the Russian Muslim majority region, renews these fears. In less than a week, the President Dmitri Medvedev and Prime Minister Vladimir Putin have spoken on the subject. Yesterday, in Brussels, Putin admitted: "Despite the reassuring claim according to which it is unlikely that radical groups will take power or increase their influence in North African countries, we are concerned."
Read More

Russia could 'lose $4 bn' in Libya arms deals
Russia could lose almost $4.0 billion in arms export contracts to Libya after Moscow joined other world powers in slapping an arms embargo on Moamer Kadhafi's regime, a report said on Sunday. The Interfax news agency quoted a military source as saying that Russia had an order book for contracts from Libya worth $2.0 billion while negotiations had been in progress for deals worth $1.8 billion more. "Among the countries of the Middle East and North Africa, Libya is one of the main buyers of Russian weapons," the source, which was not identified, told the agency.
Read More

Russia to send envoy to Middle East and North Africa
Russia would send an envoy to the Middle East and the North Africa to discuss the possible impacts of the ongoing "dramatic events" in some countries, the Russian Foreign Ministry said in a Friday statement. The high-ranking Russian diplomat Sergei Vershinin, who is the head of Russian Foreign Ministry's Middle East and North Africa Department, was scheduled to visit Syria, Israel and the Palestinian from Feb. 28 to March 4, the statement said.
Read More

Africa farmland has potential of Brazil: Quifel
African farmland investment has the potential to match the exponential growth of Brazil's agricultural industry, the head of business development at privately owned agricultural operator Quifel said. "The best benchmark is really Brazil. What took the Brazilians around 30 years, one should try to do it in 10-15 years," Pedro Marques dos Santos, head of business development at Quifel said, referring to how Africa could emulate Brazil's dominance in global agricultural investments.
Read More

S.Africa's Bidvest looking at Brazil acquisitions
South African industrial group Bidvest is on the lookout for food services expansion opportunities in fast-growing Brazil after emerging markets such as Asia helped lift its half-year profit. "Latin America is one of the geographies we are looking at, especially Brazil," Bidvest Chief Executive Brian Joffe told Reuters on Monday. "We're looking for other acquisitions," Joffe said.
Read More

Zuma says backs French G20 goals
South Africa backs France's goals for its presidency of the Group of 20 economies, President Jacob Zuma said on Wednesday, stressing that failure to address issues like food price swings would hit the poor hardest. Zuma is on a two-day visit to France at the invitation of President Nicolas Sarkozy, who has sought South African backing for a G20 agenda that includes reforming the global monetary system and reducing instability in commodity markets. "We support France's emphasis on the issues of commodity prices, food security and the future of the International Monetary System," he told a news conference on Wednesday.
Read More

South Africa pushes for continentwide beneficiation framework
South Africa plans to use its position as the current convener of the Council of African Ministers of Industry to develop a common continental framework for extracting greater value from the prevailing minerals boom, Trade and Industry Minister Dr Rob Davies has revealed. The rise in the demand for natural resources, which has been accompanied by strong commodity price increases, is already attracting foreign investor interest. But Davies says that South Africa is also keen to use the upturn to stimulate greater investment into minerals beneficiation across the continent.
Read More

China sets out disputes facing "arduous" climate talks
China, the world's biggest greenhouse gas emitter, wants rich nations to vow bigger cuts to emissions as part of a new international deal on fighting global warming, Beijing's top climate negotiator said on Tuesday. The negotiator, Xie Zhenhua, said he expects "arduous" wrangling about that and other issues facing governments seeking to settle on the key parts of a comprehensive climate change pact at talks in Durban, South Africa, in late 2011.
Read More

5. Blogs, Opinions, Presentations and Publications

China tamps down Middle East-inspired protests before they can gain momentum
Police and security officials displayed a show of force here and in other Chinese cities Sunday, trying to snuff out any hint of protests modeled on the uprisings in the Middle East and North Africa. In Shanghai, several hundred people trying to gather were dispersed with a water truck. Premier Wen Jiabao, meanwhile, used a morning Internet chat to promise to purge senior officials who are corrupt and to rein in inflation and rising home prices, directly addressing some of the most common grievances of ordinary Chinese.
Read More

Libyan Unrest Prompts China to Rethink No-Strings Investments
As Libya's political turmoil continues to affect Chinese business interests in the country, the potential loss is shaping up to be one of the gravest lessons for Beijing's decade-long "go-out" policy, analysts say. China has been aggressively promoting investment abroad, especially in the resource-rich African continent. It became Africa's largest trading partner in 2009, with total direct investment of more than $9 billion. a sum expected to soar 70 per cent by 2015, the South China Morning Post reported Friday.
Read More

Unrest rattles China's Africa policy
China has no immediate reason to fear the popular political upheaval rapidly spreading across the Middle East and northern Africa - the so-called "Jasmine" revolutions that have ousted leaders in Tunisia and Egypt, forced Libyan strongman Colonel Muammar Gaddafi to the brink and threatens regimes in Iran, Iraq, Yemen, Bahrain, Jordan, Oman and beyond. But, if Chinese leaders are smart, this viral regional turmoil should cause them to rethink, immediately, their commercial ventures in Africa.
Read More

Congo’s $6bn China accord: deal of the century or Africa’s “Great Chinese Takeout”?
While Washington is preoccupied with war in Afghanistan and Arab liberation movements, Beijing is feeding its insatiable “Made in China” machine by cranking out mega-deals to develop Africa’s infrastructure in return for rights to grab resources, such as minerals and oil. Some African leaders compare these resource-for-infrastructure swaps to Marshall Plans — deals big enough to jumpstart economies. But critics in the West say the swaps amount to a “Great Chinese Takeout” or a series of sweetheart deals for the Asian colossus.
Read More

Cancun pact no proxy for Bali roadmap: Basic nations
After a step forward at Cancun, the global climate talks is heading backwards with the environment ministers from Basic group (India, China, Brazil and South Africa) agreeing on Saturday that Cancun Agreements cannot be a “substitute” for the Bali Road Map. “There are number of issues not addressed in the Cancun agreements which needs to be brought back on the table,” environment minister Jairam Ramesh said, after holding talks for two days with the ministers from other Basic countries in New Delhi.
Read More

Will Nigeria ever join the BRICS?
I am persuaded that in our ~quest to become a major world player we ought to aspire to membership of the BRICS within the next two years so that the club will become the BRINCS. More than South Africa, we are the gateway to the continent. Our banks have more continent-wide reach than those of any other country. Our vast hydrocarbon and other natural resources will bring considerable value to the table. But we would have to set our home in order first.
Read More

BRIC vs IBSA = China vs India?
The rivalry between India and China is intensifying—and going global. Their latest difference is over the BRIC (Brazil, Russia, India, China) and IBSA (India, Brazil and South Africa) group arrangements. China reportedly wants the non-military bloc to be known as BRICS (The ‘S’ for South Africa), and also seems to want to amalgamate BRIC with the IBSA Dialogue Forum. With this in mind, it is in the process of organizing a BRICS (BRIC plus IBSA) summit in Hainan in April this year. But India has seen through China’s game from the start. New Delhi knows the Chinese want IBSA closed down because Beijing has no direct role to play in it. It’s obvious that India, for its part, wants a diplomatic/strategic space for itself, where it doesn’t have to be in the company of its domineering, giant neighbour. In addition, South Africa is crucial for India’s efforts to counter China’s strategic forays into Africa.
Read More

When BRIC becomes BRICS: The tightening relations between South Africa and China
At the end of 2010, the news that the BRIC forum would accept South Africa as a full member of the group caught international media attention, as the current chair of BRIC, Chinese President Hu Jintao issued an invitation letter to South African President Jacob Zuma, inviting him to attend the third BRIC leaders’ meeting to be held in China in 2011. While addressing the significance of South Africa joining BRIC (Brazil, Russia, India, China), Chinese Foreign Minister Yang Jiechi said that China believes South Africa’s accession will promote the development of BRIC and enhance cooperation among emerging market economies.
Read More

Tougher than BRICs
The global economy is poised to enjoy decades of robust growth, as a number of poor countries play "catch-up" to the rich industrialised countries in terms of income and living standards, according to Citigroup’s global chief economist, Willem Buiter. In a major new report, Global Growth Generators, Buiter nominates 11 countries that are most likely to drive global growth – and generate profitable investment opportunities – over coming decades. These '3G' countries are Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka and Vietnam.
Read More

Research body leads rural study
An influential SA organisation that facilitates ground-breaking research is leading a study by multinational academic teams to find solutions to the enduring socioeconomic problems of rural areas in SA, as well as other countries. The South Africa-Netherlands Research Programme on Alternatives in Development (Sanpad) will host a three-day workshop in Beijing, China, from February 28 to launch the research project with academics from India, Zimbabwe and SA.
Read More

Cheques and balances
China is a very aggressive and pernicious economic competitor with no morals when it comes to trading in Africa. This is according to a memo by Johnnie Carson, a former US assistant secretary for African affairs. It was sent after a meeting with oil company representatives in Lagos earlier this year. It was among the 250000 confidential cables leaked by the website Wikileaks in recent months. Though the glib tone of the cable is said to best describe the current mood in Washington about China’s African adventures, it does belie a growing unease in most Western capitals, many of which are starting to scrutinise more closely the Asian giant’s moves into Africa.
Read More

Australian Mining Engagement in Africa
I am here at Indaba 2011 with the six other Australian high commissioners and ambassadors posted in sub-saharan Africa, with our senior trade commissioner, and with over 400 Australian companies. This visible and active presence at Indaba by team Australia is a reflection of Australia’s growing engagement with the continent and the constituent countries of Africa. Our enhanced engagement comes at a time when Africa is “on the move.” I’m sure I don’t need to tell an audience like this but the environment has never been better to realise Africa’s potential.
Read More

Now, China woos east and central African countries?
China has intensified efforts to improve ties with east and central African countries. The shift in focus from North Africa comes amid ragging unrest across Libya and other parts of the region and rising anti-Chinese sentiments in the region for its support to unpopular regimes.
Read More