Elements in the Economics of Emerging Markets

This Element provides a detailed analysis of official finances from China to Africa with special attention to the question of Africa''s foreign finances policy. The findings reveal that Africa has an infrastructure gap and Chinese finances are largely used to fund infrastructure projects. However, the majority of the funds are loans, which are mortgaged on Africa''s natural resources. In addition, Chinese firms are the ones implementing the projects, and much of the raw material and labor is imported from China. All these calls for Africa to institute a coherent foreign finances policy that ensures African countries fully benefit from these finances.