Chinese FDI and Zambian Development:A Critical Evaluation of the its Relevance through key Socio-Economic and Political Indicators

[摘要] ENGLISH ABSTRACT:Since 2000, Chinese FDI in Zambia has steadily increased. Focused predominantly onresource extraction, China is now the third largest investor in Zambia, after only theUnited States and South Africa. As the title suggests, this FDI is recognized asrelevant to Zambia's developmental discourse. However, with general developmentindicators, there is challenge in establishing immediate causality between (Chinese)FDI and development. To address this, this study employs Capability Approachdevelopment theory, which utilizes a framework to evaluate social and politicalrealities. Utilizing this framework, key indicators are used to look more deeply intothe discussion around China's FDI for Zambia's development. There has been a greatdeal of speculation as to potential costs and/or benefits Chinese FDI may offerZambia. As China offers Zambia a partnership of non-domestic interference, uniquefrom Zambia's traditional western syndicates, debate is raised as to what influence itwill have on Zambia's developmental progress.With challenges including limited information, numerous potential indicators toutilize, and a large number of contributing voices, the debate thus far lacks a meansfor evaluating the substance of claims made within the context of national trends. Thisstudy reviews and evaluates the debate within the framework of seven key socioeconomicand political indicators. While within economic growth and infrastructureexpansion Chinese FDI are shown to indicate a conduciveness to development, FDI isnot shown to be conducive for market diversification, challenging corruption, orstrengthening institutions. The study therefore shows that trends of Chinese FDI'srelevance to Zambian employment and state dependency to be mixed and thatassessments will need to disentangle various Chinese activities and will also need toconsider contradictory effects.

[发布机构] Stellenbosch University