Ghana Resident: Why Does China Send Workers To Africa When So Many Here Are Unemployed?

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Ghana Resident: Why Does China Send Workers To Africa When So Many Here Are Unemployed?

The China Africa Project explores tough questions about the country and continent’s relationship. This week, we talk about unemployment and imported labor.

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ANTONY NJUGUNA / REUTERS

A road construction project manager with China Wuyi Company talks to a colleague at a site near Isiolo town, about 320 km north of Kenyan capital Nairobi, in this 2008 file photo.Eric Olander and Cobus van Staden are the duo behind the China Africa Project and hosts of the popular China in Africa Podcast. We’re here to answer your most pressing, puzzling, even politically incorrect questions, about all things related to the Chinese in Africa and Africans in China.

China’s engagement in Africa is a distinctly 21st century phenomenon and, as such, is still poorly understood by most people, most notably among Chinese and Africans themselves who are still getting to know one another. In that spirit, we’ve started this new column as a way to help spark dialogue and cross-cultural communication in order to explore this fascinating, complex relationship.
In many instances, people are either too shy or embarrassed to publicly ask that question that could be misconstrued as insensitive or politically incorrect. In issues like this that touch on questions of race, power and culture, things can get messy real fast. Instead, we’ll take each question seriously, and with the benefit of our backgrounds in China-Africa journalism and academic scholarship, we’ll do our best to give you a thoughtful, well-reasoned response

Every time I pass by a Chinese construction site and see Chinese people working it just pisses me off. Why do they have to bring in their own workers when so many young Ghanaians can’t find jobs? It just doesn’t make any sense!

― Sent via Facebook from Accra

I think if there was poll taken in Ghana or anywhere on the continent of what angers people most about the Chinese in Africa this issue would be #1, by far! I completely understand where you are coming from. In fact, the World Bank just came out withnew data that reportedly revealed that 48 percent of Ghanaian young people are unemployed, so you’d think it would only be natural for the government to do more to force Chinese companies to hire local workers as part of the contract for infrastructure projects, right?

Let me present a different side of the argument. First and foremost, often when officials from the two governments reach a deal to build infrastructure in Ghana, it’s not intended to be a jobs program. The objective of these contracts is to build a road, a bridge or some other piece of infrastructure that your own government has deemed essential. This isn’t an aid program, often it’s not even a traditional development program similar to those done by Western governments over the past few decades. Nope. This is pure business. The Ghanaians say they need a road, the Chinese say they can build it.

China has been especially successful in Africa and other developing markets with its infrastructure business because it undercuts both local and international competitors, sometimes by as much as 50 percent. For a country like Ghana, with its limited budgets, the so-called “China Price” is the reason why these Chinese companies often win the bids. Well, part of that is that Chinese companies have anintegrated system of financing, engineering, material sourcing, etc. that allows them to build at a lower cost. And yes, part of this is labor, but it’s important to be clear what kind of labor we’re talking about and how much of it they really do import.

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JOE PENNEY / REUTERS
Chinese and Nigerian construction workers work on a site in Niamey, Niger, on February 22, 2016.Some Chinese construction companies will argue that it would take way too long to hire local engineers and project managers which would also push up the budget. So for specialized managers, they say it’s critical to bring in their own folks to do the job. That makes sense. The far more questionable practice is when they import unskilled labor, often referred to pejorativelyby African leaders as “wheelbarrow pushers.” Here, I totally agree with you that this is inexcusable, even deplorable given the high levels of unemployment in Ghana and elsewhere in Africa.
But…

The issue of how much unskilled Chinese labor is actually employed in Africa is often way overblown. I don’t know about the construction sites that you’ve passed where you’ve seen Chinese workers, but I’m almost positive that those Chinese represent a small minority of the overall workforce on the project. There is a lot of research that’s been done to show that the vast majority of workers on Chinese construction projects in Africa are locally hired.

Nonetheless, even if the numbers are small, the optics look bad when Chinese unskilled labor work in countries where too many people are unemployed. However, I think it’s important to step back and see these projects for what they are (building critical infrastructure) and what they’re not (aid-based job programs).
― Eric



http://www.huffingtonpost.com/entry/...b071840410bb60
 

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Baha Mar, the huge Bahamian resort, files for bankruptcy protection

http://www.thecoli.com/threads/baha...r-bankruptcy-protection.332512/#post-14077595

Baha Mar, the huge Bahamian resort, files for bankruptcy protection


The Baha Mar resort was nearing completion earlier this year but the developer says that in order to complete construction of the mega project, it was necessary to file for Chapter 11 bankruptcy protection. | Baha Mar


By Mimi Whitefield


  • Troubled by construction delays, the developer of Baha Mar — the Bahamian luxury resort being built with the help of Chinese financing and labor — has filed for Chapter 11 bankruptcy protection in Delaware.

    The $3.6 billion resort, which was supposed to revitalize Nassau’s Cable Beach area, was initially scheduled to open in December 2014. Since then, the opening has been pushed back several times, sparking the ire of customers who had made reservations.

    Sarkis Izmirlian, chairman and chief executive of developer Baha Mar Ltd., said Monday that the board had determined that because of the financial consequences of repeated delays “by the general contractor” and the resulting loss of revenue, voluntary bankruptcy was the best course to finish construction and get Baha Mar open as soon as possible.

    “The Chapter 11 process provides the appropriate venue to create a viable financial structure that places Baha Mar’s interests foremost,” he said. The firm also plans to file an application in the Supreme Court of The Commonwealth of the Bahamas seeking approval of orders by the U.S. court.

    Izmirlian has agreed to arrange funding for a debtor-in-possession financing facility of up to $80 million to allow Baha Mar to operate and meet its financial obligations. The company said in a press statement that $30 million will be used by Baha Mar over the next 30 days.

    The 1,000-acre resort, which plans to include a casino, 18-hotel golf course, multiple pools and four new hotels, was built with the help of 4,100 Chinese laborers and $2.4 billion in financing from the Export-Import Bank of China. China State Construction Engineering Corp, the lead contractor on the project, also had taken a $150 million equity stake.

  • IMG_IMG_Baha_Mar_Chinese_2_1_F53SUOSF_L100342492


    Although China has done construction projects around the globe with Chinese labor, analysts said China State Construction’s foray into a hospitality project was intended to be a résumé builder.

    Izmirlian blamed the general contractor for repeatedly missing construction deadlines. “This has caused both sizable delay costs and forced the resort to postpone its opening. Unable to open, the resort has been left without a sufficient source of revenue to continue our existing business.”

    This year, after Baha Mar opened bookings, the first wave of visitors was supposed to hit the beach for the weekend of March 27-29. But just a few days before that date, Baha Mar announced on its Facebook page that it wouldn’t be opening as scheduled.

    Baha Mar Ltd. gave no indication Monday when the grand opening might be, but said it planned to open the resort “as soon as practicable.”

    Because the developer took the contractor at its word that the resort would open as planned on March 27, it hired and trained nearly 2,000 employees and bought goods and services needed to operate the resort, said Izmirlian. After the missed opening, Izmirlian said Baha Mar continued to pay its employees in anticipation of a revised opening date.

    In March, China Construction America, a subsidiary of China State Construction, took issue with Baha Mar’s description of the delay, saying the developer’s statements were “wholly inappropriate and inconsistent with the history of this project.” China Construction America did not return phone calls from the Miami Herald on Monday.


    As recently as Sunday, Bahamian Foreign Affairs Minister Fred Mitchell told The Nassau Guardian that a deal was “on the table” but said it depended on Izmirlian. Prime Minister Perry Christie was on the phone every day last week with the Export-Import Bank of China, trying to hammer out a deal, he said, without elaborating on the details.

    Christie said with the employment of so many Bahamians on the line, “there is a national urgency about this.”
 

loyola llothta

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In 2012 the documentary It's a Girl: The Three Deadliest Words in the World was released. It focused on female infanticide in India and China. As a result of female infanticide and sex-selective abortion combined, there are an estimated 30–40 million more men than women in China today.


Female infanticide in China - Wikipedia, the free encyclopedia
Wikipedia, the free encyclopediaFemale_infanticide_in_China
right on chief. Asians the number one finessers...land and they offspring will become a dominant class bet that
 

loyola llothta

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Ain't it cheaper?:patrice:
Not enough skilled Ghana people to build the roads and bridges themselves? That's the most pressing issue.
just know this

In China for example, in order for foreign companies to do business there they have to partner with a native Chinese company in order to do business. This helps to prevent the foreign companies from dominating their economy because the profits are being shared between the companies and the local workers are being utilized.
 
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