As luck would have it, I did meet a Marathon oilman -- Frank, I'll call him -- seated next to me at the Paris Inn, a popular hangout for foreigners. Without a real press, these rendezvous bars (as the euphemism goes) are the only means of communicating in E.G. But "every bar has someone watching and reporting to the government," explains Frank, an American manager who has lived and worked in E.G. for years. "In this bar, that girl over there is the spy," he adds, pointing with his eyes to a bartender in a skimpy skirt. "She doesn't speak English, but this one over here does. That's why I sometimes cover my mouth when I'm talking."
I was constantly reminded while moving around Malabo that saying anything critical about the government can land a person in jail. Every oil worker here has a tale about colleagues whisked away in the night. "A few weeks ago, some expats mouthed off in a bar about corruption and the conditions of the locals," says a young man named Patrick, who works for Sealion Shipping. "They were put in the cooler [jail] ... to cool off their ideas."
Frank and I carefully swap business cards below the bar, and are soon whispering about the Chinese. "I see the State Department's briefings on E.G.," he says. "We've been warning [the U.S.] about the Chinese for years. But America is asleep. There are at least 5,000 Chinese here, and they are bribing their way to the oil. The locals joke that there will be more Chinese here than Equatoguineans soon."
China provided E.G. with a $2 billion credit line a year ago. But the barrier to entry here appears much lower than in the Congo, where Victor Kasongo and others seem to have driven a much harder bargain. True, an army of blue-uniformed Chinese laborers in E.G. is building what is known locally as Malabo II, a futuristic new capital that is rising from the jungle, stretching for miles. Obiang's pet project, it includes a louvered-glass headquarters for the state-owned radio and TV station, a gleaming oval home for the state-owned oil company, and an ostentatious blue-topped building set to house the prime minister's office. But there are no signs yet of hospitals, schools, and other services likely to help the average Equatoguinean. The project does call for 10,000 moderate-income housing units, but critics still insist that the whole thing is a misguided use of megafunds in a country that desperately needs a health-care system, housing, education, rural roads, and a reliable power supply -- not to mention an oil refinery that could keep the price of gas low for the locals.
Frank told me that local officials have admitted to him that China sends convicts to E.G. to work as construction laborers -- a charge I heard in several African countries. (In Zambia, an immigration consultant told me she has processed paperwork for hundreds of Chinese prisoners.) True or not, and China's government denies it, the construction workers in E.G. have recently been rioting like a chain gang. In April, a clash involving E.G.'s military left two striking Chinese contract laborers dead; 400 workers were sent home to China on two chartered flights. E.G. imposed a news blackout on its already-censored local media. "We don't want this kind of revolt in the country," an anonymous E.G. official told Reuters. "We do not want strikes in our country. We asked the Chinese ambassador ... to find other workers."
In 1995, the Clinton Administration shuttered the U.S. Embassy in Malabo partly out of concern about E.G.'s record of corruption and human-rights violations. But China's growing influence in E.G. prompted U.S. oil companies to persuade the Bush administration to reopen the embassy part-time in 2003, setting the stage for a Sino-American clash for African oil that could well become a hallmark of the 21st century. Two other events would then unfold that infuriated Obiang -- and drove E.G. even closer to China.
The first was a bizarre coup attempt in early 2004 by British and South African mercenaries (and involving Margaret Thatcher's son, for whom E.G. officials issued an arrest warrant only in March). At the time of the plot, Obiang lashed out at the United States, the U.K., and Spain, and hinted at their involvement. The second offense to Obiang was a U.S. Senate report, released early the next year, accusing the now-defunct Riggs National Bank of Washington of turning a blind eye to corruption in its handling of 60 bank accounts -- and hundreds of millions of dollars -- for the Obiang administration, the bank's biggest customer.
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Recent Comments | Total
May 22, 2008 at 2:33am by j luther
A great case for the need of a transforming mode Western Capitalism
June 5, 2008 at 10:31pm by Yele Odofin
I would like to commend the journalistic efforts of this writer, whom I first saw on Lou Dobbs show. Most of Richard Behar's arguments were spot-on; however, these positions were understandably based on North American perception of Africa, as a homogeneous continent of beggars and "Have Nots". Having worked on development policy issues in Nigeria, as well as reviewed a significant number of other African nations’ foreign policies. I would like to stress some points Richard omitted in his piece.
Firstly, African countries have strategic needs and these needs vary quite significantly. There is a growing fear among most African political and academic elites that a strong economic ties with the West would come with a lot of unrealistic strings such as the imposition of liberal social issues all in the name of 'Human Rights', there is also a need to diversify economic, diplomatic and military interests. It’s a no brainier that make these countries less vulnerable to external influence and western sanctions most of these countries have learned from the Zimbabwe experience. Most African countries have actively pursued the so called "South- South" development partnership. Nigeria and other African states, in the last decade have seen a huge bi lateral trade boost with countries like Brazil, Russia, India, and countries in the Middle East.
The reason for the Chinese acceptance by African leaders has little to do with corruption as there are many havens in the Caribbean, some European Territories, South America and Middle East to launder such funds.
Finally, contrary to North American media and Hollywood’s exaggerated depiction of desperate living conditions in places like Western Sudan, Somalia, Liberia, Sierra Leone and some parts of Congo. I wish to state that as a result of institutional reforms in financial sector, communication and industries, Nigeria, Ghana, Botswana, Ethiopia and many more African countries have witnessed unprecedented increase of their respective middle class populations.
The Chinese are not exploiting Africans; they are simply filling a vacuum.
June 6, 2008 at 1:44pm by Afam Edozie
The United States and the West are no more special to Africa than any other country or group of countries that can provide markets for their goods, capital for their industry and expertise for their development. During the cold war the US understood this. For sure before the emergence of Asia the United States and the West had much more of these things than others and was therefore perceived as more important.
The great mistakes of US foreign policy (if I can call them mistakes) are that the US does not to have a strategy nor to have any 'real' values that they adhere to.
So they foreigners neither look up to them as a moral beacon, nor have they built in strategic advantages that will give them an edge in the future.
As a result the US lost the Shah's Iran and is loosing a host of other countries. And will likely loose much of Africa to China.
The Chinese also have no values worthy of emulation, but they do have an effective strategy.
Their strategy is to
i) use loss leaders (and leverage their low cost base) to get a foot hold into a country (foreigners bearing gifts policy),
ii) Ignore national politics (I see no evil policy),
iii) corrupt the locals (despite Nigeria's reputation as a den of corruption I know many people who don't take bribes, regardless the Chinese still try to bribe them and when they don't accept they try even harder, like they were told to do this in head office, and
iv) invade the country
I live in Nigeria and the Chinese are moving in here at an alarming rate, there are more Chinese living here than any other minority group and they are coming in at every level. Large, Medium and Small sized Chinese companies. As well as sole Chinese traders. They have factories in almost every corner of the country.
They go to the middle of no where, ask the locals for land to build a $10 million processing plant (or something) (why should anyone say no, no one else - not even our own govn - has come to do anything to provide us with jobs) and in any locality outside of the major cities even $1 million investment is a big deal. They then import hundreds of Chinese workers for every job except the most menial and go ahead to treat all their workers (Chinese and Nigerians) like slaves.
They do not transferring skills, they do not train, they do no even die (I kid you not, Chinese do not die in Nigeria), when one dies his death is kept secret, his body is shipped back to China in bulk using refrigerated containers and another Chinese comes to take his job.
The only part of their colonialisation strategy that is failing is that they are not allowed to marry local girls. But I think they have a shortage of girls of their own, so we see an increase in the number of 'secret' wives. How this one will pan out is anyone's guess. But I guess they will get shipped out and we will be left with lots of half Chinese babies.
Few policy makers in Africa understand the Chinese strategy and even fewer of them have the capability of doing anything about it. In 20 years, the Chinese will be a big minority in Africa, with significant participation in industry and economic life.
The west has not had a coherent strategy since neo-colonialism failed in the 70s. The US attempt to establish an African command is laughable and is seen across the whole of Africa as a desperate attempt to introduce a military strategy.
No doubt a charm offensive with promises of dollops of aid will eventually get them the base, and no doubt they will be able to establish a military presence through their planned deep water port in Sao Tome. But as you can see it does not stand up to the Chinese strategy which involves feet on the ground and involvement in the community.
June 9, 2008 at 10:19pm by Aliou Sylla
The US bet on Iraq has yet to bear real fruits whereare China's has paid off many folds. Go figure!