Goodbye IMF Conditions,

Hello Chinese Capital:

Zambia’s Copper Industry
and Africa’s Break with Its
Colonial Past
 Our Teams

Muhammad Rafie Syskia Anelis Rohmaniyanti Natasha Felita G

Pradana 1806234464 Tandiyani 1806213743
1806134461 1806212841
1 Overview

Earth
Overview - Bentuk Bantuan IMF and World Bank
Structural Adjustment Programs
Paket bantuan untuk membantu negara yang kesulitan keuangan dengan
01 harus dipenuhinya syarat tertentu oleh negara penerima donor. Syarat
tersebut dikenal dengan Washington Consensus.

HIPC
Sebagai respon atas debt cancellations, yang diharapkan Mengurangi
beban utang luar negeri negara miskin yang tingkat hutang luar
negerinya tinggi ke level yang dapat diterima. Untuk mendapatkan
bantuan ini, negara penerima donor seperti Zambia harus memenuhi
02 syarat liberalisasi perdagangan, deregulasi investasi, hingga penurunan
upah untuk sektor publik serta mengurangi intervensi pemerintah di
sektor agrikultur.

Official Development Assistance (ODA) as Grants

and Concessional Loans
Berupa pinjaman bersyarat untuk pembangunan. Pada skema Grants, dana
03 yang diberikan tidak perlu dikembalikan, sedangkan pada skema loan
harus dikembalikan dalam jangka waktu yang panjang serta bunga yang
rendah
 Overview - Bentuk Investasi China di Afrika

Pada 2015, China

mengeluarkan $21 milyar Infrastructure
untuk infrastructure financing loan
financing China memberikan aid
sebesar $6 milyar yang
Sumber: hal. 11 Aid terfokus untuk
memperbaiki sektor
transportasi, energi,
dan pertambangan

Sumber: hal. 12
 Overview - Bentuk Investasi China di Afrika

Pada 2015, perdagangan

China dengan Afrika Trade
mencapai angka $188 FDI China di Afrika naik
billion dari $1 billion di 2004
menjadi $35 illion di
Sumber: hal. 12 Investment tahun 2015 dan
diproyeksikan naik
menjadi $49 billion di
tahun 2016
Sumber: hal. 12
 Persyaratan Pinjaman
2 IMF - World Bank
Earth
 Syarat Paket Bantuan Keuangan IMF dan World Bank
(Washington Consensus)
Menghindari defisit fiskal yang Mengurangi belanja publik
Reformasi pajak
lebar terhadap GDP berupa subsidi

Nilai tukar kompetitif Liberalisasi perdagangan dan Liberalisasi FDI ke Dalam

(Mengambang) impor Negeri

Tingkat bunga berdasarkan Privatisasi BUMN Deregulasi

pasar

Kepastian Hukum atas

Kepemilikan Properti

Ditujukan untuk meraih keseimbangan internal dan eksternal terhadap Neraca Pembayaran,
kenyataanya negara penerima donor justru dilanda krisis ekonomi yang semakin parah
 Investasi China ke
3 Negara-negara Afrika
Earth
Mengapa IMF dan World Bank memberikan Syarat dalam
Pinjaman Mereka?
Memperkuat
Kepentingan Sebagai Pendonor, Barang
Geopolitik AS dan Jasa yang Diproduksi
60% 30%
Wajib dibeli Negara
Penerima Bantuan
Dengan syarat yang diwajibkan
oleh IMF dalam pinjaman, Syarat ini menimbulkan
negara-negara yang mendapat kerugian bagi negara yang
suntikan dana tersebut secara mendapat paket bantuan
tidak langsung dipaksa untuk pinjaman untuk
menjadi liberal melalui memaksimalkan peluang
syarat-syarat yang wajib mendapatkan barang dengan
dipenuhi seperti privatisasi 75%
kualitas terbaik, namun
dan liberalisasi perdagangan. harganya terendah
Hal ini memperkuat posisi AS
beserta sekutunya dalam
melawan ideologi sosialis Uni
Sovyet.
Referensi: Case Goodbye IMF Conditions, Hello Chinese
Capital Hal. 4
Alasan China Memberikan Pinjaman kepada Afrika
“During the postwar decades under Mao Zedong, China’s policy support for African issues had
two primary sources: in ideological solidarity with African communist and socialist movements,
Solidaritas Ideologis ranging from South Africa’s African National Congress to Tanzanian socialism under Julius
Nyerere, …”

“.....China of taking Africa’s raw materials and natural resources while flooding local markets with
Banyaknya SDA cheaper Chinese consumer goods that harmed local producers.”

“...China and African states developed on the basis of shared solidarity as nations freed from
western colonialism (and Japanese occupation, in China’s case).”
Kesamaan Historis
‘—emerging growth in African countries and China’s historical ties to the continent made it a
logical place to invest.

“Over 30% of the companies reported profit margins greater than 20%..”
Adanya kesempatan keuntungan “Where Tony Blair, Bono and relief organizations see Africa as a moral cause, something to be
saved, the Chinese see a business opportunity. They have come to make money…”

…. Chinese banks offered African governments export buyers’ credits to buy goods and services
Pasar Bagi Produk China from Chinese suppliers or contractors,
“The McKinsey report found that most Chinese
companies in Africa had created jobs, improved
workers’ skills, transferred technology, and made
capital-intensive investments that indicated
long-term engagement with the host country.”
(hal 12)
Apakah Zambia memperoleh manfaat atas investasi dari Cina?

Bantuan untuk perbaikan infrastruktur

China so far has focused on investment in
infrastructure, which is in demand by African
01 countries.
(Sumber hal. 13)

Sebelum China berinvestasi di Zambia,

infrastruktur yang ada sangat tidak memadai
Infrastructure was poor and often antiquated. For example, the TAZARA
02 railway connecting Zambia and Tanzania, built in the 1970s with
Chinese funds, was still heavily used in 2016.
(Sumber hal. 7)
 Dampak Positif Investasi China di Zambia
Memaksimalkan Sumber Daya
Zambia
● Membuka kembali
tambang tembaga
Chambishi Zambia
● Membangun Pabrik
Bahan Peledak Bgrimm.
Pendirian Infrastruktur
China membiayai pendirian
TAZARA Railway yang
menghubungkan Zambia
dengan pelabuhan melalui
pinjaman tanpa bunga senilai
$3 billion pada 2016
Menciptakan Lapangan Kerja
Dengan adanya berbagai
perusahaan China yang
beroperasi di Afrika
mengurangi pengangguran
dan menciptakan lapangan
kerja.
Transfer Ilmu & Teknologi
Dipekerjakannya pekerja
Zambian dalam perusahaan
China menyebabkan adanya
transfer ilmu & teknologi,
meningkatkan keterampilan &
efektivitas di Zambian
Meningkatkan Nilai Export
China menjadi tujuan utama
ekspor beberapa negara
Afrika , termasuk Zambia,
terutama dengan
beroperasinya kembali
tambang tembaga Chambishi
Mengurangi Ketergantungan
Pada Bantuan Western
Dengan Investasi yang
diberikan China,
negara-negara di Afrika,
termasuk Zambia dapat
mengurangi ketergantungan
pada bantuan negara barat
 What option would
4 benefit Zambia the most?

Earth
 Criteria Selected
The political, social, economic, and infrastructure state of Zambia
would best determine the option
Related to the differences of
domestic affairs of Zambia during
Political the two aids

Related to the differences of people

welfare of Zambia during the two
Social aids

Related to the differences of

economic condition of Zambia
Economic during the two aids

Related to the differences of

Zambia’s infrastructure condition
Infrastructure during the two aids
A. Political
China US, IMF, World Bank (OECD)
Non-Interference in domestic affairs had long US, IMF, World Bank’s apply conditions for
been a stated principle of chinese foreign policy beneficiary countries

Pros: Pros:

● No intervention on a country's policy ● Human rights recognized and investment openness

Cons: Cons:

● Condition tied to the aid zambia received included laying-off

● Two sides in government, one supports investment from
civil service staff’ public sector wage cuts or freeze and
China and the other does not so it is a big political risk
reduce state intervention in the agricultural sector
B. Social
China US, IMF, World Bank (OECD)
China’s aid come in the form of “other official flows” (OOF) funds US, IMF, World Bank’s aid through OECD come in the form of
to finance commercial transaction grants and concessional loans made for development purpose

Pros: Pros:

● Job creation, NFCA employed an estimated 2000 Zambian

● Copper mine privatization aid creates more jobs
miners

Cons: Cons:

● Low salaries and poor security standards lead to protests,

poverty and social inequality
C. Economic
China US, IMF, World Bank (OECD)
China’s aid come in the form of “other official flows” (OOF) funds US, IMF, World Bank’s aid through OECD come in the form of
to finance commercial transaction grants and concessional loans made for development purpose

Pros: Pros:
1. Waived out 50% of Zambia’s debt from the construction of 1. When Zambia’s economy slumped in 1990, $4 billion Zambia’s
TAZARA Railway debt was written off through HIPC initiative.
2. Reactivate major driver of Zambia’s economy through 2. Privatization of Zambia’s copper mines which began in 1997
Chambishi Mines Plc, a copper company, with a bid of $20 contributed to the rise of copper price → encouraged mining
million through CNMC and its subsidiary NFCA companies to collectively invest in Zambia’s mining industry →
3. Zambia deserve 15% of $40 million Chambishi Mines Plc profit Zambia become 7th largest copper producer in the world
per year between 2003-2007 3. Aids didn’t make Zambia totally dependent on them.

Cons: Cons:
1. NFCA set miners wages lower than national minimum wage. In
2005, A formal negotiation with National Union of Miners and
Allied Workers was failed to materialize. In 2006, NFCA done
another tactics by prolong the wage negotiations with the
union as if NFCA didn’t want to increase the miners wages
2. High dependency with China. When China’s economy was
slowing down in 2015, Zambia, who sent >40% exports to
China, experienced the lowest GDP growth.
D. Infrastructure

China US, IMF, World Bank (OECD)

China’s aid come in the form of “other official flows” (OOF) funds US, IMF, World Bank’s aid through OECD come in the form of
to finance commercial transaction grants and concessional loans made for development purpose

Pros: Pros:

● Reopen the Chambishi copper mine site in 2003

● Build Bgrimm Explosives Plant that would manufacture mining
● US business leaders pledged $14 billion in infrastructure and
explosives and sell them to mining companies
energy investment in Africa
● Build a copper smelter at Chambishi which was set to open in
2009

Cons: Cons:

● Didn’t have any concrete evidence of Zambia’s infrastructure

development
 Kesimpulan &
5 Rekomendasi
Earth
 Conclusion Recommended Actions:
Zambia should reduce its dependency on Short term:
China, moreover with other countries as
well in the long term

1. Finding another copper’s export destination

US, IMF, World Bank Chinese’s Aid 2. Develop Zambia’s human resources in terms of
skill, education, and technology usage
Aid through OECD

Political Infrastructure
Long term:

Social 1.
2.
Reduce Zambia’s dependency on China
Reduce Zambia’s dependency on another
source of debt
3. Utilize Zambia’s developed human resources to

Economic manage debt, natural wealth, and prevent

corruption