Economic growth of China and India "helps Africa"
According to the OECD, "the economic boom of the Asian giants has limited global inflation, lowered global interest rates, and hiked raw material prices. All factors which serve the black continent well".
Paris (AsiaNews/Agencies) The Organisation for Economic Cooperation and Development (OECD) says galloping economic growth in India and China "can be of benefit to economies in Africa". In a policy document, the Paris-based think-tank said there are a number of "new ways" in which the continent can gain, thanks to the economical development of the Asian giants.
The OECD says Indian and Chinese growth has reined in the pressure of world inflation pressures, lowered global interest rates, and hiked raw material prices. This chain of events has helped to improve Africa's terms of trade.
The OECD also said China and India are great markets for African goods, especially in the export-oriented clothing and textile markets, in which quotas to protect African exporters were removed in January 2005.
"On the other hand, African consumers gain from cheap consumer goods from Asia and African investors from cheap and appropriate capital goods" the report says.
The research paper also points out that China and Indian firms are increasingly oriented towards external markers and ever more hungry for energy resources. This factor "opens up many opportunities to African governments as Asian corporate presence in India increases. This can in turn be used by African nations as a source of technology, skill formation and world market access."