Since there are systemic problems with corruption and deficits in the rule of law in some African countries, it is therefore only logical to be extremely cautious when doing business in these states. However, European companies are currently doing this in a way that leads to many African actors being unilaterally cut off from the Western financial system. Consequently, these countries are blocked from economic development − or driven into the arms of China.
The US currently
dominates global politics and the world economy
a net capital provider to a net capital taker. In recent years, individual countries there have issued government bonds for the first time − mainly due to the comparatively low oil price. The trend is likely to continue in this decade.
Regional partners The new constellations formed after the Arab Spring in the Middle East also offer opportunities for European industrial companies and banks. However, this presupposes that Europe does not remain in the previous role of a largely passive poker player, but plays the game more proactively and courageously. The withdrawal of the US has created considerable space, offering opportunities for strategic partnerships.
The same is increasingly true for Africa. China has systematically and adeptly established itself as a strategic partner there over the past decade. In addition, it has secured raw materials from the continent for the long term with many generously financed infrastructure projects, from dams to roads and from railways to ports. One of the reasons seems to be the extremely favourable conditions for project financing. Through various Chinese development banks, heavily subsidised loans are given to African state clients, with the side condition that a Chinese company with Chinese labour carries out the project.
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European companies could have implemented these infrastructure projects at least as well in terms of quality and price. However, the financing conditions and the complex requirements to even do business with Europeans are clearly less attractive than the Chinese overall package. Europe has behaved in Africa in a similar way to that described in the poker game I began this article with. Compliance with the rules was the top priority, for business as well as for politics.
Just to avoid misunderstandings: rules in business must be followed. Contracts that come about through corruption, to name just one example, are and remain taboo.
So shouldn’t we look for a more constructive approach? A set of rules that will enable Europe to cooperate with those forces ready to act in accordance with the rules in Africa, and thus ultimately advance a free society? Of course, this is more difficult than categorically insulating oneself against potential financial crime risks. However, it would be in the interest of sustainable, democratic African economic development – and of Europe’s strategic weight in the world. A clear Europe-wide commitment to investment in this growth continent, combined with a dialogue at eye level between politics and business on both continents, is called for.
Beyond Africa and the Middle East, a third group of countries offers growth potential for Europe. These are those states that, like Europe, maintain close economic ties with both the US and China. They are thus equally non-aligned in the middle of a bipolar world. Even though countries such as Australia and Japan have joined the Asian free trade agreement (RCEP), they might have a natural interest in developing common rules of the game together with Europe. A third example would be India, which withdrew early from the RCEP negotiations. Elements for cooperation could be common trade corridors or a neutral common payment infrastructure to support each other.
The new
constellations formed after the Arab Spring in the Middle East also offer opportunities for European industrial companies and banks
For such regions, Europe’s economy offers a wealth of interesting trade and cooperation opportunities against the backdrop of the global trends outlined – especially since ‘Made in Europe’ has a comparatively strong position worldwide, notably in important categories such as high-quality and sustainability-conscious production.
Future-proof Europe Compared to China and the US, Europe also offers its economic partners unbiased equal opportunities. The reason: in the
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