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China's Foreign Aid to Africa: Opportunities, Risks and Policy Implications for Korea

China's Foreign Aid to Africa: Opportunities, Risks and Policy Implications for Korea

China's Foreign Aid to Africa: Opportunities, Risks and Policy Implications for Korea

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China’s Foreign Aid to Africa :
Opportunities, Risks, and Policy Implications for Korea
Kang Seonjou
DirectorGeneral
September 2007
For the past few years, the world has experienced a steep
rise in oil prices. Such a hike in oil prices was due to an
imbalance in demand and supply of energy as well as
instability in the Middle East. The imbalance in energy
markets was partly caused by unprecedented economic
growth in China, which needed energy for economic activities
more than ever before. Besides, China drew attention from the
world as it gave out a large amount of foreign aid to
resource-rich African countries as a means to secure energy.
Such an action by China generated a sense of insecurity in
Korea, which did not rank Africa high in her diplomatic
relations up to that point, and thus there is an urgent need for
Korea to increase foreign aid to African countries and
strengthen relations with them. President Roh Moo-hyun
made state visits to three African countries (Egypt, Nigeria and Algeria) in early
2006, and the first “Korea-Africa Forum” was held in Seoul later that year. Hence,
this paper intends to examine Chinese foreign aid for African countries and its
political and economic effects from the perspectives of opportunities and risks,
and thus derive policy implications for Korea.

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