Monday, December 10, 2012

Presentation Video for GPPN Conference




Our presentation at the Global Public Policy Conference at Lee Kuan Yew School of Public Policy at the National University of Singapore!

These results are preliminary findings and more extensive analysis is currently being undertaken for our dissertations. Additionally, please keep in mind that the conference theme specified implications for Asian nations, so our policy implications followed that theme

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Sunday, December 9, 2012

Pictures from GPPN :)

Enjoy some pictures from our presentation :)

Kyla introducing the project and methodology

Mollie explaining some of our results

Mollie and Kyla during Q&A session

The LSE GPPN Participants 2012

GPPN Presentation Slides

We presented a few of our findings at the Global Public Policy Network Conference December 1 & 2, 2012 at the Lee Kuan Yew School of Public Policy in Singapore. Following are our slides. Keep checking for a video of the presentation (currently being edited).




Saturday, October 27, 2012

GPPN Conference Proposal

Below find our abstract for the Global Public Policy Network Conference, held December 1st-4th in Singapore. More information about the conference can be found here.

Question: What role can Asian nations play in the changing global order?


It’s Not Aid, It’s Business! A case study of Chinese businesses in Kenya

China does not give aid to Africa; at least not more than other countries and a lot less than most. Between 1950 and 2009, China spent only $38.54 billion on all foreign assistance, 40% of which were interest-free and concessional loans. This amounts to almost the same as the United States provided in 2010 alone (i). Chinese firms in Africa are there to do business, yet the rhetoric surrounding these actions claim China is providing a new type of aid, and not one that promotes development. We interviewed 43 Chinese corporations in Kenya over two months and found this misconception to be particularly salient in the infrastructure and telecommunications sectors. The majority of Chinese-African relationships are business ventures, not aid-related missions, and should be viewed through a purely professional and corporate lens. To conceptualize them as aid and criticize them through that lens is inaccurate and distorts both China and Africa’s objectives. Though many of these Chinese firms incite initial monopolies, they also create markets in sectors previously unable to sustain growth. We posit that as these markets become more developed through Chinese corporate pioneering, the potential for foreign direct investment by other Asian nations will expand exponentially and rapidly increase development and growth throughout Africa. Because of their recent development narratives, Asian firms are uniquely positioned to take advantage of this opportunity. We encourage them to do so, and recommend best practices from our research on effective implementation techniques.

In conjunction with the Institute of Public Affairs at the London School of Economics, we spent two months in Kenya collecting data on Chinese industrial firms in Kenya. After implementing standardized interviewing procedures, we consulted Chinese and Kenyan staff at 43 different companies, the Chinese Embassy in Kenya, as well as numerous Kenyan ministries. Firms varied in their willingness and ability to disclose financial statements, though basic economic and personnel information was obtained from all firms. We are currently compiling this information into a full investment map and profile of 160+ Chinese companies operating in Kenya in conjunction with the Kenyan Ministry of Immigration. This paper is a synthesis of the information we collected.

Infrastructure insufficiencies impede most foreign companies to invest in manufacturing in Kenya—power and water shortages, backlogged ports, poor roads, etc. However, Chinese companies take on these challenges by beginning with the infrastructure issues themselves. In our extensive interviews with CEOs of large Chinese firms, such as Sinohydro, ZTE, Hydrochina Huidong, and China International Trust and Investment Corporation (CITIC), we found many are constructing power stations, telecommunications, roads, ports, and rail lines, hoping to jump-start the economy and increase margins for investments in their initial product lines. By developing infrastructure, these Chinese firms not only grow their own business, but create opportunities for expansion into other businesses as commerce becomes easier. In Kenya, we witnessed firms expanding both regionally—into Sudan, Ethiopia, Uganda, Tanzania—and diversifying—the same construction company opening subsidiaries in real estate, import/export, wine products, restaurants, and safari trips. These new markets are particularly important for Chinese businesses as domestic manufacturing opportunities are beginning to disappear and companies increasingly look outside mainland China to expand and retain high profit margins. This combination of investment and expansion, if done with sensitivity and local cooperation, could offer a new standard for development in Africa, one driven by Asian commercial investment.

Chinese companies’ continuing engagement with Kenya will stimulate Kenya’s medium term development because Chinese state-owned firms have been investing heavily in infrastructure--traditionally a major impediment to African development. A recent study by Buyes et al. found that “an investment of $32 billion (including maintenance) to improve the main intra-African road network alone could generate trade expansion of around $250 billion over a period of 15 years” (ii). This would be good both for local governments and for private enterprise as these developments will allow the Kenyan government to operate more efficiently and create a more stable business environment.

We need to change our paradigm, to stop thinking about the relationship between Africa and China in terms of aid. China is not giving Africa aid—China is giving Africa investment. The Chinese firms working in Kenya are businesses, with the same goals and priorities as market-driven companies across the globe. These Chinese companies are bringing business to Africa, and with it, economic development. Other Asian firms should join this process, for both their own and Africa’s sake. Africa has the fastest growing private sector and consumer market in the world. With Europe, America, and some Asian economies beginning to slow, Asian companies have an opportunity to play a vital role in the new global world order—spurring development not through aid, but through commerce and trade.

(i) http://www.guardian.co.uk/global-development/2011/apr/28/china-foreign-aid-policy-report
(ii) http://www.policymic.com/articles/8002/africa-s-economy-surges-as-middle-class-grows-can-free-markets-meet-demand

Writing Updates

Welcome back, fans!

Sorry we haven't updated the blog in a while, but we've been quite busy WRITING (and going to classes and running half marathons)! I suppose we should have been more keen to keep you all updated with the writing and editing process, but it is quite boring. To recap: 

1) We sent profile transcripts to each company we interviewed. Most firms did not bother to write back with any alterations, so we assume they agree with all statements. 

2) We decided to focus on five separate paper topics from the information we collected:
  • Profile and Mapping: Similar to Professor Sutton's work, we will produce a basic profile and map of Chinese companies working in Kenya. This will include little analysis but rather provide a resource for government and other companies to use. Will be completed by December, 2012.
  • GPPN Conference: A short paper and presentation for a student-led conference in Singapore in December, will answer the question: "What role can Asian nations play in the changing global order?"
  • Dissertation: Kyla will focus on Chinese government's role in aid to Africa. More details to come as topic is refined. Will be completed by April, 2013.
  • Policy Paper: Mollie will focus on the immigration policies of Kenya and provide recommendations for  future action. More details to come as topic is refined. Will be completed by April, 2013.
  • Peer-Reviewed Academic Paper: A longer (10,000 word) piece synthesizing and analyzing the information we collected. Hope to be completed by July, 2013.
We will be sure to update you with any fun tidbits of information we find or insights we have throughout the writing process. Thanks for the immense support we've received throughout this work!

Mollie and Kyla

Me, Kyla, and our trusty taxi driver Joe!

Saturday, August 25, 2012

An Ode to Bureaucracy

The tasks for my last ten Kyla-less days in Kenya are to finish all the company write-ups, dig around for more information, and seek out government data.

Yesterday I attempted to penetrate Kenyan government offices. Talk about red tape! I began the morning at the Ministry of Labour, what I thought would be a natural place to find information about work permits, labour statistics, and Kenyan policies that affect foreign workers. 

First point of intrigue is that after a check at the entrance gate, I was free to walk through the entire building. Not one person batted an eye at my clearly confused facial expressions as I attempted to figure out what floor the Permanent Secretary's office was on. Once in the correct office, the secretaries told me that I needed a written request to obtain any information. Zing! I'd prepared ahead and pulled out a letter addressed to the office complete with specific detail of the data I requested. As they read over my letter, they became concerned that it was not signed. I quickly rectified that issue as well. 

I was told that the Permanent Secretary was not in but they would give me a call. Right. I was not taking that as an answer. I inquired about a time I could return or a phone number that would lead me directly to them. I received a post-it note in return with a phone number. No names. No dates. They were not having my persistence. Again I explained the time sensitivity and they looked at me with non-amused eyes while saying "we will give you a call." 

On my way out, a man in the hall who clearly overheard the conversation caught up with me and mentioned that I should try a different office in a building downtown. I took note to try that office on Monday.

After my "luck" with the Ministry of Labour, I headed to the Ministry of Roads with high hopes. When you walk in the building, there are two elevators that go to every floor except the tenth. Conveniently, the Permanent Secretary's office is located on the tenth floor. A few minutes of wandering around led me to discover the special elevator that take people to the tenth floor, complete with a man in a chair, a telephone, and carpeting to take you up. Again, no one questioned me taking the special elevator. 

The secretaries for the Ministry of Roads sat at desks behind a wall of windows. I will note now that these women never moved from their chairs during our entire exchange. I began my spiel and pulled out my letter in preparation that they would want to see it. They told me they didn't accept letters in person, only though fax. I again explained that I was a student and did not have a fax machine and they repeated that they only communicate through fax. I explained the time sensitivity and they repeated, I would need to fax them a letter.  I got it: fax. As I began to ask them if there was a fax machine in their office I could use, one of the secretaries told me I'd have better luck at the Kenya National Highway Authority (KeNHA), because they deal with more Chinese clients. Seeing that I would get almost nowhere with this office, I asked for a phone number (no, they don't have one), thanked them and headed to the KeNHA down the road. 

Though at this point I do not have a letter specifically for the KeNHA, I try anyway as I've retained my letter from the Ministry of Roads. The Highway Authority is located in a beautiful Blue Shield Insurance building (talk about irony) and the reception staff was extremely helpful. They walked me to several offices to figure out the best place for the information. Finally, I was sent to the highest boss they could find and told a third time, that I would need to leave the letter and they would call me. The secretary was extremely nice and apologized numerous times that the boss was in a meeting, but ensured me that she would call or I could call back this afternoon to check on it. Ok, I can accept that. 

My last visit of the day was to the National Bureau of Statistics and that as really the icing on the cake. To gain access to any statistical data, everyone has to fill out a clearance form and submit it for approval. Ok, that seems easy enough. I was told I could do it online, but when I asked for the website, they clarified that I could not actually do it online because the submit button is no longer connected to their database and doesn't work. So I'd have to download a form and mail it back to them. After my confusion at the Ministry of Roads, I asked if I could possibly bring the form in person, email it, or fax it in. No, it had to be mailed through the post. Ok. I asked if they had any pre-printed copies and I was again told I needed to go to the website and print the form. 

So, I headed back home for the day and stopped in the internet cafe to print the form. Lo and behold, the link to the form is broken. There is no form. Hahaha. Of course there isn't. On the plus side, the National Bureau of Statistics website has a large disclaimer that states since the year 2000, the quality of their data has deteriorated due to lack of professionalism, poor management, and corruption. At least they're honest! 

Thursday, August 23, 2012

39 and Counting

Tuesday came with a record of six interviews in one day! Here's a snapshot of our day:

8:30am: picked up by Joe, our faithful driver
9:10am: drop in on Golden Lion International--find out they are three companies in one: Golden Lion Battery Manufacturers, Phoeni Paper (toilet paper manufacturers), and Gold Rock (Management Firm)
10:12am: Wait for Joe who went to fix a flat tire. Wander to front of compound and see showroom for Shantui. Drop in to explore.
10:17am: impromptu interview with Shantui-CATIC, a heavy construction quipment company. They even provided us with a CDRom of information!
10:40am: on our way to the airport for meeting with CATIC, the Chinese state-owned firm that is constructing the airport expansion, among a myriad of other activities
11:00am: shown to Mr. Yellow's office
12:00pm: still waiting for Mr. Yellow
12:15pm: Mr. Yellow arrives and we conduct interview. Discover CATIC is engaged in almost every sector of the economy. Interesting.
12:50pm: bathroom break
12:57pm: snack on coco-puffs on our drive to Athi River
1:15pm: ask nice Maasai men on the side of the road for directions to the EPZ
1:26pm: arrive in Athi River Export Processing Zone (EPZ). wind around to find Royal Garments Factory, where we are meeting a friend of a friend who will introduce us to the Chinese firms
1:40pm: Interview with New Wide Garments/Protex, high end garment manufacturers with 100% export to the US Market.
2:05pm: Tour of the garment factory. Super interesting to see all the different parts of the process. We watched an Izod polo shirt from start (bolt of fabric) to finish (price tags on). They even let us take pictures!
2:30pm: Interview with Hui Commercial, a plastic flake manufacturing firm. They take millions of plastic bottles, cut them, and make them into fibers and filaments for polyester clothing.
2:55pm: Future Garments EPZ: another garment factory. no tour :(
3:15pm: trek back 40 minutes to Nairobi from Athi River
4:00pm: back in Nairobi
4:05pm: rice and beans for lunch/dinner!

Six interviews in one day. total count: 39. Good stuff.