The U.S. tops list of FDI projects in Africa

This is from EY’s 2018 Africa Attractiveness report:

Screen Shot 2018-10-30 at 5.27.43 PMMature market investors continue building on their deep-seated ties to Africa. In 2017, the US remained the largest investor in the continent, with a noticeable 43% growth in FDI projects. Western Europe, another well-established investor, also built on its already strong investments into Africa, up by 17%. However, emerging-market investments fell, with both intra-regional and Asia-Pacific investment declining by 12% and 13%, respectively. This is, in part, attributable to slower emerging markets growth and weak commodity prices.

It is odd that this report does not give the dollar values of FDI projects. But it has a summary of the distribution of projects and the number of jobs created. This is an important indicator because it reveals projects’ real impact on the real economy — as opposed to projects designed to create enclave economies. Notice that China is far and away the leader on this metric — with Chinese projects resulting in nearly three times as many jobs as American projects (FDI from Italy appears to be particularly good at producing actual jobs).

Screen Shot 2018-10-30 at 5.40.30 PM

Here’s another interesting observation on the sectoral focus on FDI projects from the report:

Over the past decade, we have discussed a shift from extractive to “consumer-facing” sectors, thanks to Africa’s growing consumer market. Mining and metals, along with coal, oil and gas, previously the major beneficiaries of FDI flows, have slowed, while consumer products and retail (CPR), financial services, and technology, media and telecommunications (TMT) have risen.

In 2017, FDI shifted somewhat, with consumer-facing sector investments slowing, in line with challenging operating conditions. The focus changed instead to manufacturing, infrastructure and power generation.

And finally, here are of “FDI-to-jobs” conversation rates. On this measure South Africa and Kenya stand out for their apparent inefficiency in converting FDI projects into jobs.

Screen Shot 2018-10-30 at 5.54.29 PM.pngMore on this here.

 

 

The Long Peace Since WWII, Visualized

Fewer people are dying in violent conflict (both in absolute figures and as a proportion of the total population of humans) than at any time since World War II. It is hard to believe this amid the flood of images and stories of violent death (state-sanctioned or otherwise) in countries like Mexico, the United States, Burundi, or Syria.

How is the world reacting to China’s rise?

China has experienced a spectacular economic growth in recent decades. Its economy grew more than 48 times from 1980 to 2013. How are the other countries reacting to China’s rise? Do they see it as an economic opportunity or a security threat? In this paper, we answer this question by analyzing online news reports about China published in Australia, France, Germany, Japan, Russia, South Korea, the UK and the US. More specifically, we first analyze the frequency with which China has appeared in news headlines, which is a measure of China’s influence in the world. Second, we build a Naive Bayes classifier to study the evolving nature of the news reports, i.e., whether they are economic or political. We then evaluate the friendliness of the news coverage based on sentiment analysis. Empirical results indicate that there has been increasing news coverage of China in all the countries under study. We also find that the emphasis of the reports is generally shifting towards China’s economy. Here Japan and South Korea are exceptions: they are reporting more on Chinese politics. In terms of global sentiment, the picture is quite gloomy. With the exception of Australia and, to some extent, France, all the other countries under examination are becoming less positive towards China.

That’s Yuan, Wang and Luo writing in a neat paper that analyzes news coverage of China in different countries.

More on this here (HT Jay Ulfelder).

On the Continent opinion survey data from a select set of countries show high favorability ratings for China — by about two thirds or more of survey respondents. The same countries have seen some decline in US favorability ratings over the last few years. As you’d expect, people’s reaction to China’s rise is based on perceptions of the potential material impact it will have on their lives. On average, the survey evidence suggests that most Africans view China’s rise as a good thing.

It is interesting that across the globe young people, on average, have a more positive view of China’s rise than older people. Younger people probably associate China more with glitzy gadgets in their pockets; and less with cultural revolutions and famine-inducing autocracy.

The Material Value of the Kenyan Presidency

The following campaign message by Martha Karua, a presidential candidate in Kenya’s election in March of 2013, highlights the material value of the Kenyan presidency.

“Tufanye hesabu tena…Let’s count the cost and keep all of us accountable. A recent research suggested that some presidential candidates will spend as much as Ksh. 11 billion shillings ($130 million) each to try and capture the presidency. Now, at around Ksh. 3.2 million a month including allowances, the President of Kenya earns Ksh 38.4 million ($452,000) a year, much more than what President Obama, the German Chancellor and the PM of England earn, and which translates to Ksh. 192 million in a five year term. So in one five year term, the most a president can hope to earn is around Ksh. 192 million, quite a substantial sum by world standards.

My question; why would anyone spend Ksh. 11 billion to only earn Ksh. 192 million? Does this math add up to you dear Kenyans? How would that individual be hoping to recover the remaining Ksh. 10.78 billion to cover their campaign expenses including buying of votes and bribery? The answer is simple! Corruption and impunity! Inflated government tenders to well connected family and friends. These inflated tenders drive the cost of living for all Kenyans sky high, the very reason ordinary Kenyans can barely make ends meet last 49 years!
Do the Math!”

14th of February Edition

Click to enlarge.

Source: http://benkling.tumblr.com/

H/T Paul G.