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The Impact of Chinese Aid to Cameroon Economic Growth : The Case of Chinese Infrastructural aid

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DEDICATION
This piece of work is dedicated to my beloved family-the Ashu Abang family for their care and support throughout my studies.























ACKNOWLEDGEMENT
I wish to acknowledge the support of many people that made this thesis a success. My esteem gratitude goes to my course instructor and thesis advisor Prof Iain Watson who gave me abundant assistance and guidance throughout this research project not leaving out Professor Ricardo Wheatley that contributed so much at the level of the proposal. Special appreciation goes to the members of the supervisory committee, Professor Chin and Prof Moon. Without the Knowledge and assistance of these people, this project would not have been successful.
I also wish to express my love and gratitude to my parents, Mr Ashu Abang Augustine and Mrs Mary Tabi Ashu and my elder brother Ashu Mathias who encouraged me to pursue a master program. I’m grateful for the endless love and understanding of my brothers and sisters, Ashu Magdalene Evande, Ashu Cyprain, Ashu Lucy, Ashu Agnes, Ashu Emma and Ashu Martha.
I want to use this opportunity to sincerely thank Ashanga Roger for his assistance, encouragement, support and care throughout this thesis and my stay in Korea. You are indeed a true and special friend.
I also want to say thanks to all the contributors of this research. In particular, I would like to thank the following individuals without whose contributions, this paper would not have been perfect. Azenga Festus Atem, Hene Claude Hayompe, Fritz Fonki. Not forgetting the contributions of class mates like Enanga Rose, Ngum Hanah, Eyikeshi Damue, Ambe Cliford, Mashumel Pamela, Ivy Grace, Scholar Zee, Besong Hirwood, Etchu Besong, and Donatus to this research.
Finally, my gratitude goes to God almighty and my Christian family in Korea especially Esther and her husband Kenny, Pastor Songh, Pastor Kang and the Deacons, Yeji for their spiritual and moral supports.












ABSTRACT
This Paper examines the relationship between China and African countries with more emphasis on Cameroon, and assesses its impact on the Cameroonian economy. It examines China’s aid to Africa and Cameroon which is basically infrastructural development, accompany by Trade .Thus the Paper examines the various projects that has been carried out in Cameroon by China and the trade relationship between the two countries. The paper emphasis more on the infrastructure projects relationship between the two countries .It analysis the benefits as well as the losses of China’s ODA to Africa and Cameroon and give some suggestions on how the government of Cameroon should deal with China to ensure that its economy benefits more from this relationship. It also examines the motives behind China’s aid to Africa and Cameroon. The research also brings out the reactions of Cameroon Stake holders towards Chinese aid. Trade relations between Cameroon and China is to the effect that Cameroon will only remain as a primary producing country since it only exports primary products and deals with primary activities, while China on the other hand imports only import manufacture goods to Cameroon. This means the trade between the two countries undermines Cameroon’s industrial sector. With regards to infrastructure projects, Chinese projects are feeling the gap of lack of infrastructures in Cameroon but would do more if local business and labor were to be taken into consideration.









TABLE OF CONTENTS
DEDICATION--------------------------------------------------------------------------------------------i
ACKNOWLEDGEMENTS---------------------------------------------------------------------------ii
ABSTRACT--------------------------------------------------------------------------------------------viii
LIST OF TABLES ------------------------------------------------------------------------------------vii
ACRONYMS-------------------------------------------------------------------------------------------viii
CHAPTER ONE: GENERAL INTRODUCTION
1.1 INTRODUCTORY NOTES------------------------------------------------------------------------1
1.2 RESEARCH QUESTION---------------------------------------------------------------------------3
1.3 HYPOTHESIS----------------------------------------------------------------------------------------3
1.4 MOTIVATION---------------------------------------------------------------------------------------4
1.5 STATEMENT OF THE PROBLEM--------------------------------------------------------------4
1.6 METHODOLOGY-----------------------------------------------------------------------------------4
1.7 LIMITATIONS---------------------------------------------------------------------------------------5
1.8 ASSUMPTIOM---------------------------------------------------------------------------------------5
1.9 ORDER OF STUDY---------------------------------------------------------------------------------5
1.10 CONCLUSION--------------------------------------------------------------------------------------6

CHAPTER TWO: LITERATURE REVIEW
2.1 INTRODUCTION -----------------------------------------------------------------------------------7
2.2 FOREIGN AID HAS PROVEN TO BE EFFECTIVE IN AFRICA--------------------------7
2.3 FORIEN AID IS IMPORTANT TO AFRICA AND WILL BE MORE EFFECTIVE WITH AN INCREASE IN AID PACKAGE----------------------------------------------------------8
2.4 WESTERN AID IS NOT WORKING IN AFRICA. AFRICA SHOULD UTILIZE ADIFFERENT GROUP OF DONORS----------------------------------------------------------------9
2.5 AFRICANS APPRECIATES CHINESE AID OVER WESTERN AID--------------------9
2.6 IS CHINESE AID TO AFRICA NEW? ---------------------------------------------------------16
2.7 CONCLUSION--------------------------------------------------------------------------------------17

CHAPTER THREE: HISTORICAL RELATION BETWEEN CHINA AND CAMEROON
3.1 INTRODUCTION----------------------------------------------------------------------------------19
3.2 HISTORY OF CHINA’S FORIGN AID TO AFRICA----------------------------------------19
3.2.1 HOW MUCH AID IS CHINA GIVING TO AFRICA? ------------------------------------20
3.2.2 REASONS FOR CHINA’S ODA TO AFRICA---------------------------------------------22
3.2.3 ADVANTAGE AND DISADVANTAGE OF CHINESE ODA TO AFRICA----------23
3.2.3.1 ADVANTAGE OF CHINESE ODA TO AFRICA--------------------------------------23
3.2.3.2 DISADVANTAGE OF CHINESE AID TO AFRICA-----------------------------------24
3.3 HISTORY OF CHINA IN CAMEROON-------------------------------------------------------24
3.3.1 REASONS FOR CHINA’S ODA TO CAMEROON---------------------------------------26
3.3.2 ADVANTAGES AND DISADVANTAGES OF CHINESE ODA TO CAMEROON-27
3.3.2.1 TRADE BETWEEN CAMEROON AND CHINA--------------------------------------27
3.3.2.2 CAMEROON’S EXPORT TO CHINA----------------------------------------------------28
3.3.2.3 CAMEROON’S IMPORT FROM CHINA-----------------------------------------------30
3.3.2.4 TRADE BALANCE BETWEEN CHINA AND CAMEROON-----------------------32
3.3.2.5 CHINESE INVESTMENT IN CAMEROON--------------------------------------------32
3.4 CONCLUSION--------------------------------------------------------------------------------------33

CHAPTER FOUR: CHINESE INFRASTRUCTURES TO CAMEROON
4.1 DEFINATION OF INFRASTRUCTURES-----------------------------------------------------34
4.2 HOW CAN A COUNTRY ACHIEVE DEVELOPMENT? ----------------------------------34
4.3 WHY DOES THE GOPVERNMENT OF CAMEROON AWARD CONSTRUCTION PROJECTS TO CHINA THAN TO FRANCE AND THE E.U? --------------------------------37
4.4 MAJOR CHINESE INFRASTRUCTURE TO CAMEROON-------------------------------38
4.4.1 THE KRIBI DEEP SEAPORT PROJECT AS AN EXAMPLE OF CHINESE INFRASTRUCTURAL DEVELOPMENT TO CAMEROON-----------------------------------42
4.4.2 CAMEROONIANS VIEW ABOUT THE KRIBI DEEP SEAPORT PROJECT-------43
4.5 THE IMPACT OF CHINESE INFRASTRUCTURES TO CAMEROON-----------------46
4.6 CONCLUSION--------------------------------------------------------------------------------------50
CHAPTER FIVE: CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION--------------------------------------------------------------------------------------51
5.2 RECOMMENDATION----------------------------------------------------------------------------52

























LIST OF TABLES
Table 1: Announcements of aid by Chinese leaders----------------------------------------------------------21
Table 2: Exports to China, Share and Rent among Major Export Destinations (million US$) --------28
Table 3: China’s share of Cameroon’s Exports by commodity groups (million US$) ------------------28
Table 4: Share of Imports from China, and Rank among Major Import Sources (million US$) -------30
Table 5: China’s Share of Imports by Commodity Groups (million US$) --------------------------------30
Table 6: Completed Projects Financed with Chinese Aid ---------------------------------------------------39
Table 7: Ongoing Projects Financed with Chinese Aid ------------------------------------------------------39
Table 8: Forthcoming Projects Financed with Chinese Aid--------------------------------------------------40

















ACRONYMS
AFRODAD- Africa Forum and Network on Debt and Development
CDI-China Development Bank
CEMAC – Economic and Monetary Community of Central African States
EIB-European Investment Bank
EXIM Bank- Export and Import Bank
EU – European Union
FCFA- Francs CFA (Communite Financiere Africaine)
FDI – Foreign Direct Investment
G8 – Group of Eight
GDP – Gross Domestic Product
GESP-Growth and Employment Strategy Paper
IMF – International Monetary Fund
IPS-Inter Press Service
MDGs – Millennium Development Goals
MOFCOM-Ministry of Commerce
MOST-Ministry of Science and Technology
ODA – Official Development Assistance
OECD – Organization for Economic Cooperation and Development
WTO-World Trade Organization























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