Sunday, May 27, 2012

China brings jobs to Ethiopia but at what cost?

(27 May 2012, BBC)--China has fast become Africa's largest trading partner - but who exactly is reaping the benefits? While Europe is struggling with recession, it is a very different story in Africa where the continent overall is expected to enjoy growth of 6% in 2012.

But there is concern that the fruits of economic expansion and foreign investment are not being evenly shared around. One example of Chinese investment is a shoe factory just south of the Ethiopian capital Addis Ababa, on a huge industrial site known by locals as China Town. Two production lines make 2,000 pairs of shoes every day for global brands, including Guess and Tommy Hilfiger.

Despite perks such as the factory having its own canteen and tennis courts, and the workers being supplied with their own uniform, the workers often receive a wage which is only a fifth of what a worker in an indigenous factory would receive.

Delivering skills
The shoe factory is run by the Huajian Group, whose vice president Helen Hai says that instead of receiving higher wages, the workers are trained in shoe-making skills. "I took 86 Ethiopian graduates to China to teach them how to make shoes," she says. "Now we have a programme working closely with the government to train another 300."

She is adamant that after their training, workers can choose to remain or to work for other shoe factories. "We offer tennis courts, uniforms, food - and in the future we will also offer free accommodation," she says. "And we are also in the process of applying for a Fairtrade certificate as we definitely treat our workers fairly."

She adds: "In the past China has given a lot of money to African countries, but now we want people here to have the capability to make goods themselves - that is why training is always the core in our strategy." Read more from BBC »

1 comment:

Anonymous said...

China has flood the Easter World with goods far cheaper even the local indigenious industry cannot compete. The common man is benefiting. The West has lost all these markets in Africa and in the East. Its not the petrol prices but the Chinese goods have brought this recession in the West, still there are more orders in the pipe. West will have to produce more cheapily otherwise accept to live in recession.It must think of Air travel prices now too. Chinas has not turned its eye towards this, if it does Western earoplanes will be grounded too. Only China has to look for moral treatment of its own common people and bring up its morality to Christian and Western standard in China as well with countries it is trading. Any other moral standard does not succeed.

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