Nigeria

History

• the Giant of Africa

• The British colony

• 1960 became independent

• half Christians and half Muslisms

China and Nigeria

• Similar historical encounters.• Solid political basis• Conforms to the fundamental

interest of both peoples

Political Relations

• 10 Feb, 1971 established formal diplomatic relations

• 10 April, 2002 Chinese president Jiang Zeming visited to Nigeria.

• In 2004 and again in 2006, Chinese President Hu Jintao made state visits to Nigeria

• 10 July, 2013, President Xi Jinping held talks with President Goodluck Jonathan of Nigeria at the Great Hall of the People.

Major Agreements• Agreement on Trade, Investment Promotion and Protection1 2001• Agreement for the Avoidance of Double Taxation and Prevention of Fiscal • Evasion with respect to Tax on Income 2002• Agreement on Consular Affairs 2002• Agreement on Co-operation on Strengthening Management of Narcotic Dr

ugs, • Psychotropic Substances and Diversion of Precursor Chemical 2002• Agreement on Tourism Co-operation 2002• Agreement of South-South Co-operation among China, Nigeria and FAO2

2003• Memorandum of Understanding on a Strategic Partnership 2006• Agreement against fake products exported to Nigeria from China 2009• Memorandum of Understanding on promotion bicameral economic co-ope

ration • and partnership between Ogun State of Nigeria and Zhejiang Province of

China 2009• Memorandum of Understanding on peace co-operation 2010

Social Capital

1. Definition:

“Generally defined as the information, trust, andnorms of reciprocity inhering in one's social networks“

2. The Role of Social Capital:

Social capital plays a major role in:

1. Outlining a culture

2. Reducing Poverty

3. One of the main determinates of a country’s economy

Social Capital 3. Nigeria Social Capital:

1. Lack of social capital is standing in the way of economic prosperity (-)

2. Extreme poverty situation (-)

3. Great manpower (+)

4. Physical/Material resources (+)

4.Example of social capital in creating sustainable development in the City of Ijebu-Ode, Nigeria

1. community’s ceremonies of solidarity such as:

a. Obinrin Ojowu,

b. The Ojude Oba,

c. And the Agemo

Which re-establish and improve a sense of identity and unity

Workers Condition 1. Chinese & Nigerian governments officials claim:

1. Lightning

2. Cleanliness

3. Safety equipment and protective clothing are provided

4. Health and safety

2. Nigerian Workers, Activist, NGOs complain about:

1. Treated as slaves

2. Low salaries, no incentives or wage increase

3. Lack of medical facilities

4. No job security

5. No Holidays

6. Health and safety issues

Who to believe ?

http://www.youtube.com/watch?v=yQPrbwWWUD4

Why Nigeria?

1. Strong relationship between the two countries

2. Mutual benefits

1. Where Nigeria have a great manpower but lacks jobs

2. China is looking for low cost, high productive, hard-working human capital to move its factories and move up the flying geese model

3. Improving Economy in both countries

Flying Goose ModelChina-Nigeria Relationship

Japan is leading country with closest ties to US. The were first to have Assembly and Technical Improvement

Japan SouthKorea

China ???

South Korea provided Manufacturing for Japan, Now they are innovating more on their own

China provides Manufacturing for Korean and Japanese Companies

As China Develops, who will take over for the last goose?

What is the Flying Goose Model?

Plausibility of African Countries

A key feature of the flying geese model is the as you move down the chain, the

labour becomes cheaper and the work becomes more dangerous. This can be

seen in middle class lifestyles in Japan versus China. This means that for

China to add another geese to the chain, the labour must be cheaper, which

makes African countries a great candidate.

By this graph you can see how heavily China is investing, but the question remains, does it fit the model, and if so, does Nigeria suit best?

Labour Costs•Phenomena of Pro-Trade FDI (1)•Rapid Urbanization (1)•China in a Turning Period to increase industrial production (1)

Exchange Rates•Developing countries currencies tend to be undervalued (1)•China’s currency has pressure to appreciate (1)

Institutions•China’s “Go Global” Policy (1)•Overseas Processing Trade (1)•Investment Potential (1)

1- (Ozawa & Bellak 2011)

What’s in Africa

1 - http://www.eia.gov/countries/cab.cfm?fips=ni2- http://theafricaneconomist.com/ranking-of-african-countries-by-literacy-rate-zimbabwe-no-1/#.Uxfw_9y-3LQ3- https://www.cia.gov/library/publications/the-world-factbook/geos/ni.html4- (Brautigam 2007)

Why Nigeria?

1 Raw Resources•Nigeria has - 37.2 Billion Barrels of Oil (1)

-182 Trillion cubic ft of Natural Gas (1)

2 Labour Supply•A Population of 174, 507, 539 (3)•Literacy Rate of 61.3%, ranked 21 out of 52 African Countries (2)

3 Institutions•Nigerians travelled to China, saw how easy it was to assemble many products and imported the technology (4)•Received over 33 investment projects from China (4)•China imports technology, Nigeria assembles cars (4)

SouthAfrica

Mauritius

Pros•South Africa Received 83 investment projects (1)•Increase demand for linens in China and India, South Africa gains competitive advantage (leading goose) (2)•86.4% Literacy Rate (3)

Cons•Already developed to a similar level to China, less liked to adopt Neo-Confucianism

Pros:•Popular tourist Destination (1)•Many Chinese entrepreneurs (1)•84.4% Literacy Rate (3)•Largest Exporter of Wool Linens (1) •Lots of cultural ties (1)

Cons•Loss of domestic jobs (1)•Not as much raw resources (1)•Smaller population •Tourist Destination = lack of industry (1)

1- (Brautigam 2007)2- (Geda & Mesjel 2008)3- http://theafricaneconomist.com/ranking-of-african-countries-by-literacy-rate-zimbabwe-no-1/#.Uxfw_9y-3LQ

Nigeria vs. South Africa and Mauritius

Future for Nigeria

Many of my sources doubt the legitimacy of Nigeria joining the Flying Goose

Model before other African Countries such as South Africa, Kenya, and

Mauritius, but I believe through evidence found in this study that Nigeria is well

on its way to being a strong contender. The people of Nigeria have a drive to

improve their country that isn’t found in other countries, to the point where they

are going out, learning, then returning to better their country. Nigeria has a long

hard path to travel, but the prize at the end is worth the struggle.

Works Cited

Brautigam, Deborah. (2007). Flying geese or hidden dragon? Chinese

business and African industrian development. The politics of

contemporary China-Africa Relations.

Geda, Alemayehu & Meskel Atnafu G. (2008). China and India’s growth surge:

is it a curse or a blessing for Africa? The case of manufactured exports.

African Development Band 2008.

Ozawa, Teruotomo & Bellak, Christian. (2011). Will the World Bank’s vision

materialize? Relocating China’s factories to Sub-Saharan Africa, flying

geese style. Global Economy Journal.