An employee of Logistique Petroliere in Madagascar. Photo: Flickr user DavidDarricau

Ayo Johnson, a Worldfocus contributing blogger, writes about extraction of natural resources in Africa. The piece is excerpted from his blog, Africa Speak International.

The truth is that Africa is the next new frontier of mineral exploration. With major stakeholders battling, wilding and conniving their charm against a complex network of shady deals to outwit the cool, smart and calculative moves of the Chinese.

Africa’s strategic importance cannot be underplayed nor its value cheapened. Its geographical positioning and untapped mineral wealth make it a unique selling proposition to any investor. The trading ability of any multinational company is dependent on contracts signed and memorandum of understandings reached between hosts and investing governments.

African countries, dissatisfied by unequal trading relationships with the rest of the world, have hardened their political stance. China’s current interest in Africa is only a convenient opportunity for African governments to support another would-be investor.

China’s relationship building with Africa over the past 10 years has left the continent in relatively decent shape. African governments have realized that they need trade far more than aid. They need fair term without carrot and stick approach linked to investment. Africans clearly understand that they can choose between China from the East versus the rest of the world.

China has stolen the lead in Africa with over $60 billion worth of investment and untold influence.

Virtually in slow motion, overnight the Chinese had taken a grip of mineral extraction with Europe and the U.S. a distant fourth. Behind Russia and Brazil — both major players in their own right.

Industrialized nations’ appetite for oil goes unabated despite calls from pressure groups. Governments need to diversify into large scale production of new greener cleaner technologies of wind, solar and hydro. Wars in the Middle East, combined with strained relationships with many other oil-producing countries, have forced the West to look for new suppliers of oil.

China is also desperate; its rapid growth and technological advancement have increased its appetite for energy to fuel its enormous economy. This is the central driving force that justifies it presence in Africa. China’s dominance across the continent has come at a price. The Chinese have built bridges, road and general infrastructure all for free — in a bid to guarantee access to Africa’s precious minerals.

China has also provided soft loans to African governments, namely Angola, Sudan, Zambia, Congo and Rwanda as a means of raising much needed private capital outside of the framework of the IMF and the World Bank.

The Chinese have not imposed conditionality packages as part of their loan agreements, unlike the stringent and detrimental conditionality packages imposed by industrialized nations. Instead China has requested that African governments in receipt of Chinese money do business with Chinese companies and buy goods from Chinese firms.

Guaranteeing that the circulation of money is kept strictly with the China-Africa trade zone squeezes Western products and firms out of the picture. There are now little Chinatown enclaves popping up all over Africa with cheap Chinese goods replacing Western brand names.

It is therefore not surprising that President Obama visited Africa, flagged by an extended trip to various mineral hot spots by Hillary Clinton. The U.S. is eager to show support to Africa and to rekindle influence in a bid to up root and dislodge the Chinese iron grip on the continent.

African leaders and their advisers have finally awakened, realizing what the new type of global politics is all about. Who are the new major players, and what choices have to be made?

Africa finds itself in a very unique position to be able to choose among multiple investors all bidding for the same job. This increases the value of Africa’s currency, ensuring that the best deals are signed.

Africa’s choice will be at the expense of Western governments and their respective multinational companies. A liberalized continent is voting with its feet and changing suppliers, manufacturers and investors all at the same time. This is ground-breaking and truly unprecedented.

Marcus Mabry, international business editor of The New York Times, joins Daljit Dhaliwal to discuss these rare materials and the implications of China restricting their export.

Peru has seen clashes between indigenous protesters and police.

Alan Garcia, the president of Peru, appears to be a prizewinner for spouting some of the most inopportune, politically incorrect statements we’ve seen this month.

Garcia faces a revolt by an indigenous group in the Peruvian Amazon, where protesters have clashed with police over mineral rights issues. About two-dozen police and 30 civilians have been killed, and hundreds of people have been wounded.

There’s no question that the leader of the protest, Alberto Pizango, is out to capitalize on government mistakes. He called a government attack on protesters last weekend “genocide” and is rallying discontent among impoverished Peruvians.

Even in translation, and even allowing for connotations and social context, Garcia’s response is wooden. He rejected the indigenous protest as subversion in terms tinged with ethnic intolerance:

Estas personas no tienen corona, no son ciudadanos de primera clase que puedan decirnos 400 mil nativos a 28 millones de peruanos tu no tienes derecho de venir por aquí, de ninguna manera, eso es un error gravísimo y quien piense de esa manera quiere llevarnos a la irracionalidad y al retroceso primitivo.

These people don’t wear a crown, they are not first class citizens who can tell us, 400,000 natives to 28 million Peruvians, ‘you don’t have the right to come here at all’; this is a very grave error and anyone who thinks that wants to lead us into irrationality and a primitive retreat.

The larger context is the kind of racial intolerance that is too often evident in Peru and its neighboring countries. Garcia’s predecessor was the country’s first indigenous president, Alejandro Toledo, who rose from poverty to attend Stanford University and work at the World Bank. That didn’t stop the Peruvian elite from sneeringly referring to him as “El Cholo” — not necessarily a positive term.

Peruvian violence often has undertones of class warfare: The advance of the Shining Path in the 1980s was a blend of Marxist theoreticians reaching out and cultivating recruits among the dispossessed poor.

Peruvians hear Garcia and many don’t like it. One response on a Web site:

Que son ciudadanos de primera? que yo sepa,no hay nadie superior a nadie por que todos nacemos y morimos igual,la clasificacion y division de personas en rangos sociales(nobleza,burguesia y plebeyos)son cosas que ya no exipten eso quedo atras hace ya mucho tiempo.

Who are first class citizens? As far as I know, no one is superior to anyone else because we all are born and die the same way; the classification and division of people by social rank (nobility, bourgeois and plebians) are things that no longer exist…that was left behind a long time ago.

No surprise that Garcia has a sinking popularity rating — down to around 33 percent, according to recent polling.

- Peter Eisner

Photo courtesy of Flickr user Jake G under a Creative Commons license.

Competition for natural resources often lies at the heart of human conflict, from oil and water in the Middle East to contested coltan in the Democratic Republic of Congo.

In today’s economic environment, the demand for some resources may be declining, but the importance of who controls natural resources like oil and water — and how they control — is of pressing importance as supplies of these resources dwindle.

This proves particularly true for developing countries, where the right decisions can lead to a strong infrastructure and international influence, and the wrong decisions can lead to social strife, war or environmental destruction.

Worldfocus.org’s weekly radio show explored the state of natural resource use, opportunities and dangers for resource-rich developing countries and the role played by the U.S. in this global issue. Worldfocus anchor Martin Savidge hosted a panel of guests.

Dave Burdick is the green editor of The Huffington Post. He follows energy, environment and green lifestyle stories. He has also been a reporter, a stand-up comedian and a copywriter for the United States’ only accredited, Buddhist-inspired university.

Michael Cohen is a professor of international affairs and director of the graduate program in international affairs at the New School University. From 1972 to 1999, he worked at the World Bank and was responsible for much of its urban policy development. He has worked in over 55 countries, published several books on urban development and has advised governments, U.N. Habitat, non-governmental organizations and academic institutions around the world.

Alf Hornborg is an anthropologist and professor of human ecology at the University of Lund, Sweden. His research has largely focused on cultural and political dimensions of human-environmental relations in past and present societies. He is the author of “The Power of the Machine” (2001) and lead editor of “Rethinking Environmental History” (2007) and “The World System and the Earth System” (2007).

See some related Worldfocus signature stories:

• Haitians destroy environment in struggle to survive
• Controversy surrounds water forum in Turkey
• Brazil emerges as an oil giant
• Brazil pioneers energy independence with ethanol

See our interactive map: The world according to energy.

Associated photo courtesy of Flickr user AdamCohn under a Creative Commons license.

Credits:
Host: Martin Savidge
Producers: Lisa Biagiotti, Bijan Rezvani and Katie Combs