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At a recent meeting of 9th Forum on China-Africa Cooperation (FOCAC), China has stopped short of providing the debt relief sought by many African countries, but has pledged $50.7 billion over three years in credit lines and investments.
- This move highlights Chinese deb-trap diplomacy and the differences between India’s approaches towards engagement with Africa with that of Chinese approach.
Difference between Indian and Chinese Model of engagement with Africa
| China | India | |
|---|---|---|
Bilateral engagement | Focused on natural resource extraction. Some projects were criticized as "vanity projects". | Focused on the spirit of developing together as equals based on the Kampala Principles (10 Guiding Principles for India Africa Engagement) as highlighted by Indian PM in 2018. E.g., India's successful move of including African Union as a member of G20. |
Financial assistance | Accused of ‘Debt-trap Diplomacy’. e.g., US$ 143 billion of investment (2000 to 2017). | India provides concessional lines of credit, grants and capacity building programmes. e.g., tele-education and telemedicine programmes. |
Capacity buidling and Skill development | Accused of employing mostly Chinese workers and engaging in unfair practices. e.g., low salary for locals, etc. | Indian companies hire African talent and engage in capacity building of locals. e.g., Indian Technical and Economic Cooperation (since 1964). |
India’s interest in Africa
- Economic: India is now one of the top five investors in Africa.
- Mineral security: Africa holds ~30% of the world's mineral reserves.
- Strategic Influence: Africa’s presence in global forums is pivotal for India’s vision of rule-based global governance
