Differences between China and West

Instead , the West unleashed the World Bank and the IMF onto the developing world to implement economic and governance reforms which resulted in bitterness and confusion in the developing world .

When the Chinese appeared on the scene at the beginning of this century, they dealt with the developing countries in complete contrast to the Bretton Woods institutions.

The Chinese stated approach of mutual respect and non-interference with domestic affairs of the host countries was welcomed with open hands by the developing countries.

An imbalance in global control of natural resources, especially oil and gas, is evidently widening with China easily getting an edge over the US and Europe.

The big question is whether this imbalance is sustainable in the long term without developing into an economic “cold war”.

It is oil and gas among other natural resources that empower economic development that eventually lead to political leverage.

Across the border in Uganda the West and China are gearing for a diplomatic dance as government approval is sought to buy Heritage 50 per cent interest in Block 1 and 3B jointly owned with Tullow Oil.

China has succeeded in Africa oil and gas because it offers “sweeteners” to go with oil deals in the form of infrastructural development deals and also soft grants for social development, and these meet the immediate and urgent needs for the developing countries.

Africa has its own political risks but rewards are high for those countries and companies who can demonstrate resilience in anticipation of future economic rewards.

Mr Wachira works for Petroleum Focus Consultants. wachira@petroleumfocus.com