Your subscription will end shortly. Please update your billing details here to continue enjoying your access to the most informative and considered journalism in the UK. Click here to see more Tap here to see more Tap here to see more. Accessibility Links Skip to content. Subscribe Log in. Read the full article. Start your free trial. Oliver Kamm. Want to read more? Subscribe now and get unlimited digital access on web and our smartphone and tablet apps, free for your first month. Read the full text. Tools Request permission Export citation Add to favorites Track citation. Share Give access Share full text access.
Share full text access. Please review our Terms and Conditions of Use and check box below to share full-text version of article. Volume 25 , Issue 4 May Pages Related Information. Close Figure Viewer. Why is a country so full of coal hoarding? The same goes for its zink imports. The answer could be simple extraction difficulties and process or complex calculations of future demand, taking advantage of lowering global transportation. Other countries need the cash; China needs their resources to keep generating its cash.
All through the book, she does not for once mention that another temptation could be to maintain current regimes of power in those regions. Her analysis is purely economical, assuming that governments, as functioned by checks and balances, work for the people. This unfortunately is a one sided analysis especially her position on African leaders and government. One thing she said is that African leaders used the excuse of Aid and charity to get rich and violent, and she herself through Goldman Sachs got Africans to invest in the capital bonds market privately. That leaves us with an indecisive place for whether the government is needed or not.
It looks like she supports the Chinese government involvement because its attitude towards aid in Africa unlike western countries it that of business, incentives and returns. Yet, it's a little book with a strength load of economic basics, and telling details from various sources. It is only fitting therefore that a chapter wise critical summary is in order.
Independent culture newsletter
She divides the book into two parts. The first three chapters entirely deal with the state of resource depletion today. The next seven chapters will talk about how China is coping with those challenges. This means what such acts will mean in the geo-political scale and what kinds of global conflicts it can create. She notes that China is a strong phase in history: It can lend money to poor countries that need capital for developmental countries.
It can lend to industrialized, but indebted formally rich countries, which need the borrowings for their economic recovery. This is both a strength and weakness of her thesis because it does give us a look into how the state actors collaborate with the banks, companies, private firms etc. Consider the following. The average American consumes 25 barrels of oil per year while the average Chinese consumes 2.
Unfortunately, they are all from secondary sources. The important point is by bringing water and land in the picture, and comparing it with the state goals she portrays how gigantic a task this is for the Chinese state. Two very interesting observations about resources: Land in China comparatively to others, is not only less, but competes with the urbanization drive. Second, water must not be taken fro granted because every other resource takes water as an Input. Uses this from Aqua stats. Page Gives a very brief paragraph about technology induced growth by using the cloud creation example.
There might have been a lot more to say about this. She could have raised questions about how much the state spends on energy. Chapter 3: The resource state of Play: Oil, Gas and Minerals She uses various Peak oil models to show how the oil is going to have increased Oil prices in the coming years, along with super demands. Oil extraction and production already operates near capacity.
One interesting point form this chapter is that the major discoveries of large oilfields have already been made some 70 years back and we are still feeding on those. Oil production without the discoveries of oilfields will deplete steadily and surely. Sadly, the source for this forecast is not mentioned. Gives examples of some major oil fields like Prudhoe in Alaska and Samotlor and Romashkino in Russia, Slaughter in Texas , all of which have depleted oil productions by now by great margins. All this, Moyo concludes such costs will bring down investments in Oil hugely, thus affecting supply because of the major expenses of operational and risk costs with the energy business.
Government involvement means corruption, which is why most oil rich countries are also some of the most corrupt. It also means that post FC budget tight scenes, govt. This is also related to the way in which oil can be found. Profit margins for investment. This is where the cash-rich government in China comes in.
David Blair demolishes Dambisa Moyo's Winner Take All, a sloppy study of the Chinese economy
She says a bit too superficially that all govts. Moyo, says the truth is somewhere in between. Oil exporting countries, whose populations are mostly below 25, need the revenues for public welfare, sate modernization and to fight unemployment, but still many countries have had their oil based sovereign wealth funds depleted by corruption. And china is obviously not the only Oil buyer. Under all assertions, Moyo is intently concerned that Oil process are getting higher, Supply letting lower.
In any peak oil situation, that might discourage investors from investing in the Oil sector. It is vital that demand be created. China is creating the much-needed demand, which concurrently means that oil- producing countries is securing a guarantor of a potential buyer, despite rising costs in investment. So whom should they be selling it to?
Winner Take All: China’s Race for Resources and What It Means for US by Dambisa Moyo
She adds that the Chinese government, in its 12th year plan has been aggressively trying to increase consumption that should ideally make up a big portion of the GDP. One way of tackling this is by urbanization to create demand for construction and whole goods, which requires minerals.
So this impetus of urbanization and the availability of metals and minerals in the PRC will drive its acquiring of strategic metals. As such, only a bunch of these are relevant to china, the most important of these being copper. Once aging, China is willing to pay the highest price for it.
Chapter 4: Hocking the family Jewels.
Review of Dambisa Moyo, Winner Take All - Edinburgh Research Explorer
So it secures assets, gains ownership. China does this.
In this chapter, Moyo explains how. Three approaches, she says. Financial transfers, trade and finally investments. It provides direct financial transfers, forgives interests and aid rates, writes off debts for African countries, gives other services and infrastructural needs, training while doing so gains favors from developing countries all over the world. Becoming the largest trading partner adds to the largesse. The trade approach have left many countries including the US into spiraling deficits leading the controversies related to China; exchanges market that makes its exports competitive globally.
Post , China has made the largest trading partners for both Africa, and the two resource important countries in Latin America: Brazil and Chile rich for copper reserves. Moreover china today has massive export credit agencies and funds supported by the government that give credit lines to exporters. It has improved shipping, developed ports, and doubled its bulk carrier fleet, built pipelines and ports in southeast and south Asia. Acquiring full ownership through direct purchases.
Partial asset production through SWAP transactions. Oil fields in Russia 3.