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Abstract
This article process-traces Ethiopia’s adoption and implementation of the industrial park development strategy from the mid 2000s to the late 2010s. How does policy transfer unfold, and what characterizes China’s influence on Ethiopia’s Special Economic Zone (SEZ) strategy? Drawing on extensive interviews conducted during multiple field trips to Ethiopia and China between 2017 and 2023, complemented by secondary sources, we argue that policy transfer involves navigating both structural opportunities—providing incentives and resources for individuals—and individual agency to surmount structural constraints. Contributing to the growing body of literature on South-South policy transfer, our study underscores the pivotal role of individual agency in overcoming prevalent structural constraints within South-South contexts, characterized by fluid power relations and less defined policy transfer networks. Additionally, we emphasize the importance of scrutinizing the agency of host-country actors in their engagements with a rising China, rather than assuming China’s impacts in a deterministic manner. Our detailed documentation offers a nuanced perspective on China’s influence in Ethiopia’s industrialization. We show that primary agency in the policy transfer process should be attributed to Ethiopian actors, whereas the roles of Chinese actors range from initiation, facilitation, and occasionally, reluctant responses in this intricate process.
Acknowledgement
The authors wish to thank Charlotte Goodburn and Selina Ho for their comments at the 2022 Development Studies Association and 2023 International Studies Association conferences. Gratitude is extended to anonymous interviewees for sharing information and three anonymous reviewers for valuable suggestions in enhancing the paper.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 Based on Ethiopian convention, we refer to him by first name hereafter.
2 Online interview with Arkebe, April 2023.
3 ibid.
4 Interview with EIC Deputy Commissioner, 2019.
5 IPDC, n.d., ‘About us’. https://www.ipdc.gov.et/about/.
6 ‘Summary of Licensed Foreign Direct Investment Projects By Origin and Status, 1992 – 2023’. Data obtained from EIC in August 2023.
7 Interview with Eastern Industry Zone and MOFCOM, June 2017. See also Yuan et al. (Citation2020).
8 Interview with Eastern Industry Zone and MOFCOM, June 2017.
9 Interview with EIZ managers, September 2018 & January 2023. The current prime minister Abiy Ahmed Ali also participated in one of the visits.
10 This source refers to the quarterly ‘Industry Steering Committee and Technical Steering Committee’ meetings.
11 Interview with EIZ managers, September 2018.
12 Interview with Zhao, 2023.
13 Interviews with members from CADZ, Kunshan Economic & Technical Development Zone, and a private company involved in designing the Kunshan zone (PL, XBL, Q), January to February 2023.
14 CADZ. ‘The China Association of Development Zones and the Ethiopian Government Signed a Memorandum of Understanding on the Cooperation for China-Ethiopia Special Economic Zones.’ China Association of Development Zones, April 10, 2013. https://www.cadz.org.cn/index.php/news/info/id/3654.html.
15 Interview with private company involved in designing the Kunshan Zone (Q), February 2023.
16 Online interview with Arkebe, April 2023.
17 See The Proclamation on Industrial Parks (FDRE Number 886/2015).
18 Online interview with senior executive of PVH, May 2023.
19 ibid.
20 Interview with private company involved in designing the Kunshan Zone (Q), February 2023; online interview with Arkebe, April 2023.
21 Online interview with Arkebe, April 2023.
22 Online interview with Arkebe, April 2023.
23 ibid.
24 The White Paper is in Amharic and not publicly available, the discussion was also a closed-door session. FDRE (2014) ‘Development of Industrial Parks and Industrialization in Ethiopia’. White Paper. Office of the Prime Minister. Federal Democratic Republic of Ethiopia. September. In Amharic Unpublished. Addis Ababa. የእንዱስትሪ ፓርኮች ልማት እና እንዱስትሪያላይዘሽን በኢትዮጵያ” መስከረም 2007 ዓ.ም አዲስ አበባ.
25 ibid. Confirmed in Arkebe & Taffere (Citation2019).
26 ibid.
27 Pan is a vice president of China Bonded Export Processing Zone Association and visiting professor at the International Business Official Training Institute of MOFCOM.
28 Interview with member of the CADZ delegation to Ethiopia (PL), January 2023.
29 Online interview with Arkebe, April 7 2023.
30 Interview with member of KETD, February 2023.
31 Online interview with Arkebe, April 7 2023.
32 Yinlibo. ‘昆山创新’一带一路’人才培养 资助埃塞青年来华深造 Kunshan Innovates “Belt and Road” Talent Training and Sponsors Ethiopian Youths to Study in China.’ 我苏网 Ourjiangsu.com, August 29, 2019. http://www.ourjiangsu.com/a/20190829/1567066244296.shtml.
33 Internal document, KETD.
34 ibid.
35 Interview with senior member of KETD, February 2023.
36 Ibid.
37 Kunshan mayor’s and Communist Party Secretary’s remarks on KETD’s and Hongxin’s reports submitted to the government, dated Nov 15, 2018, seen by the authors.
38 Internal document, KETD. See also: Hongxin Construction Group. ‘江苏昆山(埃塞)产业园 Jiangsu Kunshan (Ethiopia) Industrial Park.’ Hongxin Construction Group, March 20, 2022. http://www.jshxlq.com/groupmemorabilia/info.aspx?itemid=646.
39 Interview with member of CCECC (Z), 2019, Beijing. Also see Yuan et al. (Citation2020).
40 In addition to Eurobond, the World Bank offered concessional loans to build Bole Lemi and Kilinto, two IPs near Addis Ababa; the Treasury provided funds for Jimma IP; in cooperation with Hunan province, Ethiopian government built the Adama Hunan heavy machinery industrial park; and private sector were also invited to build and manage IPs. (Online interview with Arkebe, April 2023).
41 The US government terminated AGOA trade preference program for Ethiopia in January 2022 due to the Ethiopian government’s violation of human rights in the Tigray War.
42 Online interview, May 2023, corroborated by Mihretu and Llobet (Citation2017).
43 ibid.
44 Online interview with Arkebe, April 2023.
45 ibid.
46 CGCOC, China Communications Construction Company, China Railway Construction Corporation, and Sinohydro.
47 Interview with former senior manager of CCECC (L), Beijing, October 18, 2018.
Additional information
Notes on contributors
Yuan Wang
Yuan Wang is Assistant Professor of International Relations at Duke Kunshan University.
Hong Zhang
Hong Zhang is China Public Policy Postdoctoral Fellow at the Ash Center for Democratic Governance and Innovation, Harvard University.