China is the largest financier of Africa’s infrastructure, accounting for over 34% of infrastructure projects being implemented in Africa, higher than other donors
China has focused on “bottleneck-releasing” infrastructure by meeting the “unmet” demand from African governments.
The developing has an unmet need for at least $500 billion in infrastructure.
The wages of China’s workers will probably go up to four times over the next ten years.
85 million jobs will likely migrate from China.
A massive infrastructure buildout will lay a foundation and the new work will provide the demand to bootstrap a few hundred million people to global middle class.
Justin Lin advises China’s leaders and has convinced them to integrate Africa into their supply chain
Justin Lin, former chief economist of the World Bank and professor at Peking University, has recently been proffering ideas based on his extensive experience regarding Africa and research on China’s development model.
“China should shift part of its labor-intensive industries to Africa to upgrade the country’s economy to an advanced level and help trigger the continent’s economic growth,” says Lin, who was elected last month as a member of the Standing Committee of the Chinese People’s Political Consultative Conference, China’s political advisory body.
Following many visits to Africa since he began at the World Bank in 2008, Lin has urged the Chinese government to recognize the continent’s advantage of abundant cheap labor and market potential as the cost of labor in China’s manufacturing bases increases.
Lin says he has sent a team of researchers from Peking University on field trips to some African countries, and they had concluded that Beijing should consider integrating China and Africa in a business and supply chain.
Japan moved 8.7 million jobs abroad, while the Asian tigers transferred about 7 million. For China, the figure could be 80 million, he says, and Africa’s transition to becoming an industrialized continent could be completed within 20 to 30 years.
Too much labor in Africa revolves around agriculture, Lin says. The transfer of Chinese manufacturing to Africa would increase efficiency and enable the local people to earn more and turn their earnings into capital for further growth, and it would be a sustainable model.