Trump or BRICS? The quandary for Africa’s governments
(Source – The Hindu, International Edition – Page No. – 13)
| Topic: GS2 – International Relations |
| Context |
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The U.S. Trade Policies and Africa’s Dilemma
- President Donald Trump’s trade approach, including tariffs, creates a situation where countries must choose between supporting the U.S. or aligning with China and the BRICS nations.
- African countries, rich in minerals, face a dilemma.
- They want to develop their resources but also wish to stay neutral in this global divide.
Africa’s Mineral Wealth
- Africa holds significant global mineral reserves.
- This includes 20% of the world’s copper, 50% of manganese and cobalt, 90% of platinum group metals, and valuable reserves of lithium, uranium, gold, and rare earths.
- These resources will be highly important in the future, especially with the energy transition and increasing global demand for these minerals.
Challenges in Resource Development
- Despite its wealth, Africa faces many challenges in resource development.
- Issues like political instability, corruption, poor infrastructure, lack of capital, and weak legal frameworks make long-term investment difficult.
- As global demand for minerals grows, Africa will likely have more power in determining how its resources are used. However, finding the right partners remains a key challenge.
Western Investments vs. China’s Approach
- Western countries, especially the U.S., offer capital, expertise, and experience in mining.
- But Trump’s tariffs and threats to cut aid make working with the U.S. harder for African nations.
- Trump’s “winner-takes-all” approach to global relations makes it more difficult for African countries to get mutually beneficial deals with the U.S.
Africa’s Growing Independence in Resource Management
- South Africa’s Resources Minister Gwede Mantashe suggested that Africa should withhold minerals from the U.S. if aid is reduced. He argued that Africa should not be treated as a beggar.
- This reflects a desire for Africa to take control of its resources and use them to drive industrialization and development, rather than follow the dictates of external powers.
China’s Role and Its Impact on Africa
- China has been heavily investing in Africa’s mining sector.
- However, China prefers to use its own workforce and processes. It also exports raw ores to process them in China, limiting the benefits for African countries.
- There is potential for African nations to introduce laws that require foreign companies to process minerals locally. This could ensure that Africa benefits more from its resources.
Conclusion
- Africa’s mineral-rich resources position it as a key player in global trade.
- The continent must strategically choose between Western and China-led trade blocs to secure sustainable economic development.
| Practice Question: Examine the impact of global trade dynamics, particularly U.S. policies and China’s involvement, on Africa’s mineral resource development and its implications for the continent’s future. (150 Words /10 marks) |
