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Changing China

Giant on the move

June 30th, 2009

Why the BRICS like Africa

Posted by: Jeremy Gaunt

There is little doubt that the BRICs -- Brazil, Russia, India and China -- have become big players in Africa. According to Standard Bank of South Africa, BRIC trade with the continent has snowballed from just $16 billion in 2000 to $157 billion last year. That is a 33 percent compounded annual growth rate.

What is behind this? At one level, the BRICs, as they grow, are clearly recognising commercial and strategic opportunities in Africa. But Standard Bank reckons other, more individual, drivers are also at play.

In a new report, the bank looks at what each of the individual BRIC countries is trying to do. To whit:

-- Brazil's immediate intererest in Africa is securing access to natural resources, particularly oil. But is also motivated by a desire to create a new "Southern Axis" with itself at the forefront.

-- Russia is also interested in Africa's natural resources. But it faces a problem because of the sullied reputation of the Soviet Union during the Cold War. So Moscow has also embarked on a rebranding programme within the continent by ramping up its aid programmes.

-- India is attracted to Africa in part because of long historic ties. Commercial engagement, however, is also motivated by a need to guarantee the natural resources it needs for its own growth. Furthermore Africa is seen politically as a key ally in the pursuit of a competitive advantage over its Asian competitor China.

-- For China, Africa provides a long-term partner in its ongoing bid to gain global economic ascendancy, providing it with the resources, markets, geopolitical support, and, eventually, food and social security in the form of a growing and engaging diaspora.

A full copy of Standard Bank's report, which was written by Simon Freemantle and Jeremy Stevens, can be found here.

(Photo: Jeremy Gaunt)

June 17th, 2009

India, China leaders move to ease new strains in ties

Posted by: Sanjeev Miglani

While Indian Prime Minister Manmohan Singh's meeting with Pakistani President Asif Ali Zardari in Russia captured all the attention,  Singh's talks with Chinese President Hu Jintao may turn out to be just as important in easing off renewed pressure on the complex relationship between the world's rising powers.

India said this month it will bolster its defences on the unsettled China border, deploying up to 50,000 troops and its most latest Su-30 fighter aircraft at a base in the northeast.

While upgrading the defences has been a long-running objective, the timing seemed to suggest New Delhi's renewed fears of "strategic encirclement" by China by deepening ties with all of its neighbours, not just Pakistan but also Sri Lanka and Nepal.

The chief of the Indian air force, reflecting the anxieties in the security establishment, said China was a far bigger threat than Pakistan because so little was known about Beijing's combat capabilities.

Predictably enough, the Indian military moves and statements drew a strong response from China's official media warning that New Delhi's tough new posture was dangerous if it thought it would compel China to cave in. Beijing was in a different league, both in terms of national power, economic scale and global influence, the media said.

On Monday, Hu and Singh met on the sidelines of the Shanghai Cooperation Organisation and the BRIC meeting that followed in the Urals city of Yekaterinburg. Details from the meeting were sketchy, but the Press Trust of India said the two leaders supported an early meeting of a joint economic group to push trade ties. 

They also touched on the border dispute at the heart of the more than four decades of distrust, noting that top negotiators were due to meet in August. The People's Daily said Hu stressed on expanding economic cooperation and investment flows and aims to take bilateral trade to $60 billion in 2010. It stood at $51.8 billion in 2008, the paper said.

India's decision to attend the SCO, where it has observer status, was also a step forward. Since its inception the forum has been seen in India as China-centric with the main strategic objective of limiting U.S. dominance on China's periphery and in that way prevent the hemming-in of both China and Russia.

By attending the summit is New Dehi signalling its intention to engage China on a broad front and not shy away?

And did Beijing shift ground a bit by acceding to the declaration by the BRIC - Brazil, Russia, India and China - calling for U.N. reform and saying that the grouping understood and supported India and Brazil's aspirations to play a greater role in the United Nations.

Both Brazil and India are candidates for permanent members of the Security Council and Beijing has long been cold to the idea of at least its southern neighbour getting a place on the high table. It wasn't a ringing endorsement at Yekaterinburg but perhaps the first shuffling of chairs?

[Manmohan Singh and Hu Jintao at the SCO summit and a Chinese soldier at the border]

March 16th, 2009

Victory for emerging BRICs?

Posted by: Carolyn Cohn

Emerging market ministers, particularly those from the BRIC economies -- Brazil, Russia, India and China -- are painting this weekend's G20 meeting as a victory in dragging them out of the shadows of global policy-making.

The finance ministers' statement included the promise of more money for the International Monetary Fund and regional development banks, on whom struggling emerging economies rely for support.

It accelerated a review of IMF quotas by two years to 2011, which should give emerging economies more say in the running of the multilateral lender. It also suggested that the headship of IFIs -- international financial institutions -- would no longer be guaranteed to Americans or Europeans. 

BRIC countries even issued their own communique, ahead of the final statement. "There is a conclusion that has been reached in recent years, which is that the resolution to today's global problems is only possible with the participation of emerging countries," Brazil's central bank governor Henrique Meirelles told MacroScope.

 "There is a natural evolution of the decision-making process, which many important countries agree on, that decisions move from the G7 to the G20."

But were there actually any major concessions?  Tim Ash,  head of emerging Europe, Middle East and Africa research at RBS thinks not.

"Clearly they would like things to change, but I'm not sure that much has actually changed," he says.

June 9th, 2008

Oxana’s battle to save her son’s life

Posted by: Erik Kirschbaum

German gymnast Oxana Chusovitina is getting ready for her fifth Olympics for a third country in August. That would be by itself unusual enough under normal circumstances.  

oxana.jpg

The fact that the 32-year-old — who began her career for the Soviet Union before its demise and then for her native Uzbekistan before moving to Germany — is twice the age of some of her rivals in a sport long the domain of teenagers is another feat on its own.

But what makes Chusovitina’s tale even more incredible is that her ambition was fired by a battle to save the life of her son, Alisher. He was diagnosed with acute lymphocytic leukaemia at the age of 3 in 2002. There were no specialist oncology facilities in Uzbekistan and her family had no health insurance. So with the speedy help of some friends  in the gymnastics world from Cologne she moved to Germany, learned German, and eventually became a German citizen in 2006.

“There was no child oncology in Uzbekistan and in Russia you don’t have a chance because there are already so many on the waiting lists,” Chusovitina said in an interview after a high-energy training session in Cologne under the watchful eye of her coach, Shanna Polyakova. “I’d known Shanna and Peter Brueggemann at Team Toyota Cologne for a long time and they organised everything. They found a spot in hospital for me and fortunately we came here.”

Thanks to the treatment over the last six years, Alisher is now essentially cured and only needs to undergo periodic analysis of his blood. You can see a smile explode on the face of Chusovitina when she reports that.

She says he speaks more German than Russian and is even among the dozens of children who take part in training sessions in the same crowded gymnastics hall at the Cologne sports university with Chusovitina.

“He can do everything the other kids do,” Chusovitina said. “Sometimes he comes in here and does gymnastics with the other kids too.  My heart doesn’t ache any more as it did because I can see he’s healthy.”

Chusovitina says she thrives off the energy in the small, crowded and noisy gymnastics hall housing the Cologne team’s young gymnasts - scores of mostly grade school children scurrying around and running through their impressive if unpolished routines.

“The kids are so much fun,” she said. “I’m always taking a look over at what they’re doing because it reminds me of when I was so small before. They have so much fun working out. I’ll take a look and get a second wind because so many little children are running around at my side. Sometimes if I’m feeling tired and don’t feel like training any more, I’ll see them and think to myself ‘You can’t let them see you’re tired’.”

She said the children sometimes ask for advice - especially about blisters. “They’ve all helped me to learn German. I’ll ask them ‘How do you say this or that?’ and they’re always ready to help. Sometimes they’ll correct me, which is a good thing. They’re all learning a little bit of Russian too.”

Spending a few hours with Chusovitina, her coach and about two dozen  enthusiastic young gymnasts in Cologne was the perfect antidote for months of reading worrying headlines about the Olympics in Beijing. On the train on the way home to Berlin, I kept thinking: “Isn’t this what the Olympics is supposed to be all about?” 

Picture: Oxana Chusovitina competes for Uzbekistan during the World Cup competition in Artistic Gymnastics in Moscow in this May 26, 2006 file photo. Photo by Thomas Peter.