Chinese economic expansionism in Africa: a theoretical analysis of the environmental Kuznets Curve Hypothesis in the Forest Sector in Cameroon

Abstract

This paper, which is conceptually located at the intersection of trade–economics, resource politics, and environmental assessment, is a narrative-analytic review of Chinese economic expansionism in Africa especially its quest for the continent’s natural resources in the past 10 years. We seek to examine the environmental, ecological, and sociopolitical impacts of the current China–Africa engagement within the context of the Environmental Kuznets Curve (EKC) hypothesis. The EKC hypothesis posits that an inverted U-shape relationship exists between economic growth and environmental quality. This implies that the quality of a country’s environment will initially decrease due to its economic growth, but will soon start to improve when the country attains a certain threshold level of economic development/income per capita. We argue that by virtue of its ‘omission’ and/or ‘commission’ factors, the EKC hypothesis can be misleading if not dangerous. Using the case study of China’s engagement with Cameroon in the forest sector, the paper illustrates the high threshold level of economic development/income per capita that is required before the quality of the country’s environment can begin to improve. The paper ends with the environmental, ecological, and sociopolitical impacts of Chinese involvement in the Cameroonian forest sector and concludes that this engagement and the larger Chinese economic expansionism in Africa under current trading conditions is fairly detrimental to the welfare of African peoples and their environment.

Keywords:

• China
• Africa
• economic expansionism
• Cameroon
• forest resources
• Environmental Kuznets Curve (EKC)

Notes

1. Even though the EKC hypothesis has been widely tested in different applications of environmental economics using different econometric techniques, the hypothesis still lacks substantial evidence to support its existence.

2. This also avoids problems associated with generalized cross-country relationship analysis.

3. Cameroon’s timber export has increased significantly since the late 1990s. ‘China became the dominant East Asian buyer during the late 1990s – it has been the principal importer of “Cameroonian” logs since 1997’ (Global Timber, 2010) when China first entered the Cameroon forest through its ‘Hong Kong based firm Vicwood acquiring the Cameroonian subsidiary of the French group Thanry, giving China a significant share [12%] of Cameroon’s forest concession area’ (Topa, Karsenty, Megevand, & Debroux, 2009, p. 92). RWE volume (Roundwood equivalent volume) is a measure of the volume of logs (roundwood) used in the manufacture of wood-based products (including wood pulp, paper, wooden furniture, joinery and plywood).

4. This is one reason why the validity of the EKC hypothesis has been challenged, leaving the scientific status/empirical bases of the hypothesis largely inconclusive.

5. Chinese operations in Cameroon are by far more linked with unsustainable forest management practices than those of any Western European partner. However, this does not mean that the solution to the forest problems in Cameroon lies in reducing trade with China and increasing it with its traditional European partners. Rather, we are generally concerned about the alarming rate of deforestation in Cameroon, and more specifically China’s increased involvement in Cameroon’s forest sector in light of its record of unsustainable forest management practices in Cameroon.

6. This estimate of the threshold per capita GDP is made by Lee, Chiu, and Sun (2009) in their study of how different income levels and regions influence the EKC.

7. Vicwood-Thaanry Group is the only Chinese timber company in Cameroon

8. The Independent Monitor has confirmed numerous cases of misuse of permits including: non-realization of development projects which are the reasons for granting the permit; no environmental impact assessment; no inventory of exploitation; and no auction sales (Millieudefensie, 2008, citing Independent Monitor, n^o031/0I/REM) http://milieudefensie.nl/publicaties/rapporten/logfile-legal-imports-into-europe-of-illegal-timber-from-cameroon/view.