Chinese Investment in Africa and Latin America - Essay Example

A New Financial Power: Analysis of Chinese Investment in Africa and Latin America Effects of interaction of the system according to Robert Jervis According to Jervis, system effects can make the environment to change as an outcome of actions. Political, social, economic and environmental worlds that we reside are systems, and the only way that these worlds can be improved is by understanding comprehensively system effects. It is worth noting that the world are inter-connected and affects each other. In the past few years China has enhanced its diplomatic presence around the globe by generating goodwill through direct financing in Latin-America and Africa. The financing has been in areas such as infrastructure, assistance in exploitation of natural resources, financial aid to curb natural calamities, and other vast economic activities in these regions. The aspect of china’s system to offer direct financial investment to these regions has an effect to Africa and Latin-America as well as to china itself. China’s financial investment in Africa and Latin America has seen China grow to a “financial power” in issues such as economic and diplomatic influence. And these has seen more developed countries that are viewed as “super power” worry about this trend, this countries include America and other countries in Western Europe. China is gaining these power from financing Africa and Latin American nation by offering them loans that are supposed to be used for infrastructure development. It has also financed major economic investments into these nations as well as sign major trade agreement, this ties makes china to acquire political power in global politics and economics. This has brought criticism where such questions such as china’s strategy of financial investment without considering issues such as environmental preservation and sustainable development are asked. Social life and politics comprise of systems and many of the result are unplanned consequence of complex interaction, which implies that systems are displayed by the power of dynamic that they possess. Systems are interrelated and a change in one system will result to a change to other system. It can hence be said that Chinese investment in Africa and Latin America will result to a change in the two regions as well as china. The inter-connection of these systems it is very difficult to understand them by adding the features of the segments or the bilateral relations between their pairs. This though does not imply that there is no legitimacy, but when they occur a system is not dealt with. Linear models are can’t comprehend results that are produced as a result actions interaction. According to Jervis, linearity has two preposition, the first been that output caused by changes in systems are proportional to changes caused by inputs, and that outputs of systems conforming to the sum of two inputs are equivalent to the sum of the outputs resulting from inputs of individuals. Interactions should be explored to understand the Chinese investment in Africa and Latin America, and take into consideration the outcomes that can’t be examined from the individual inputs separately. A particular actor’s plan has an effect to the strategies of other actors, and the relationship between the actors and the environment shape one another. The following is an analysis of interactions as discussed by Jarvis and how they are related by the implication of Chinese investment in Africa and Latin America. The first interaction suggest that interaction can’t be projected from separate actions, an action in our case, Chinese investment in Africa and Latin America. The outcome of one variable greatly depend on the state of another outcome. Political and social results are not just simple combinations of the actor’s favorite as challenging outcomes can arise depending on how actors move strategically. The outcomes that are going to be experienced as a result of interaction will make sure that benefits are conferred to all interacting sides. There are some benefits that will incur Africa and Latin America as result of their interaction through financial aid will benefit both sides. Before the Chinese invest in these regions factors such as resources, goals, and policies are considered to guarantee that they concur from a perspective of both sides The second part of interaction suggests that strategies are influenced by strategies of others. The strategies of Africa and Latin America had to influence the strategies of China, which in turn influences china to finance these two regions. As Africa and Latin America get some financial assistance from china, the financial power of china is also enhanced. Direct financial investment (DFI) from china to Africa and Latin America will make china acquire financial power only if the planned finances are used properly in those regions, which means that the success of a strategy will determine the success of the other actor’s strategy. Behavior changes the environment is the third view of interaction according to Jervis. According to Jervis an initial behavior will determine the outcome of the preceding behaviors. It is for this reason that dynamics of change can be explained, and can’t be explained by some elements. The same way species compete for survival in the environment, so is the case with political figure. China is not the only country that wish to carry out financial investment in America, other countries like America are also interested and have been carrying out financial investments in these regions. Chinese investment in Africa and Latin America will transform China’s politics globally, which will impede some behavior as well as enable others. Chinese investment in Africa and Latin America will have an influence in politics of the globe in matters such as social, economic and environment. This means that the finance investments have in these two regions have the same influence in those regions as well as china itself, as indicated by Jervis “everything else will not remain constant” (Jervis 1997:7). The Chinese investment in Africa and Latin America today has a great impact on the state of china today as well as tomorrow. China’s political and economic growth is therefore expected to grow internationally, which can be characterized by China’s investment in African countries that are rich in resources. It is through this resources that china will be able to influence the world politics because of the economic power that it would have possessed. In respect to networks, where actors interact to cause influence to flow between them in a particular network, economic, social and political interactions are enhanced. As Africa and Latin America nations tries to develop their nations from these fund, which is enhanced by construction of infrastructure, China’s Strategy is to gain diplomatic relations and political power in institutions such as United Nation. Each actor is looking to gain some benefit, in exchange of the financial investments China will gain trade relations. Such trade relations ca be export of oil to china from Oil Producing nation, and other countries will start to view this as china’s political strategy. Question that will arise in other developed countries as a result of these trade relation can be, is China trying to make supply of Oil unavailable to our countries? System effect and interaction is a concept that can be used to explain whether china is gaining financial power. Bibliography Jervis, Robert, (1997). System Effects: Complexity in Political and Social Life Princeton University Press, Princeton, NJ. Read More