Critical Studies of the Asia-Pacific

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1 Critical Studies of the Asia-Pacific Editor-in-chief Mark Beeson School of Social Sciences University of Western Australia Crawley, West Australia, Australia

2 Critical Studies of the Asia Pacific showcases new research and scholarship on what is arguably the most important region in the world in the twentyfirst century. The rise of China and the continuing strategic importance of this dynamic economic area to the United States mean that the Asia-Pacific will remain crucially important to policymakers and scholars alike. The unifying theme of the series is a desire to publish the best theoreticallyinformed, original research on the region. Titles in the series cover the politics, economics and security of the region, as well as focusing on its institutional processes, individual countries, issues and leaders. More information about this series at

3 Edson Ziso A Post State-Centric Analysis of China- Africa Relations Internationalisation of Chinese Capital and State- Society Relations in Ethiopia

4 Edson Ziso University of Adelaide Adelaide, South Australia, Australia Critical Studies of the Asia-Pacific ISBN ISBN (ebook) DOI / Library of Congress Control Number: The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: alexis84 Getty Images Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

5 To my mother Aletha and my father Shepherd

6 Acknowledgements I am extremely grateful for all the various forms of assistance that have made this book possible. The book is based on my PhD thesis, and I extend my profound gratitude to my two supervisors, Priya Chacko and Kanishka Jayasuriya, for their expert advice, encouragement, insights and patience. This book would never have been possible without them. I am also grateful to the University of Adelaide, which through the Department of Politics and International Studies, School of Social Sciences, Faculty of Arts, accorded me the honour of Visiting Research Fellow. This enabled me to access important resources as well as participate in formal and informal interactions that helped ultimately shape the book. I am very fortunate to be associated with the University of Adelaide. The external, blind reviewers provided very encouraging observations from the thesis from whence the idea of the book was mooted. I am grateful to all of them. My friend Florence helped with compiling the references as well as with peer copyediting. She deserves special mention. I also wish to express my gratitude to the Editorial Assistant Samantha Snedden for her continuous support and admirable patience when I struggled with keeping to the agreed deadlines. I am indebted to my family for giving me the leeway to work on this project for years now at the expense of family time. I thank my wife Gemmah for taking care of our two kids whilst I concentrated on this project. It is difficult to see how this book would ever have materialised without her support. vii

7 Contents 1 Introduction 1 2 Ethiopia-China Relations: An Inside-Out Perspective 29 3 Crisis and Contradiction in Ethiopia Since 1974: Setting the Stage for Chinese Investment 57 4 From Dergue Socialism to an Ethiopian Neoliberalism : Transition and Reform Under the EPRDF Since The Drivers of Chinese Investment in Ethiopia Since 1995: Institution, Economics and Politics Chinese Investment and New Modalities of State Intervention in Ethiopia The Impact of Chinese Investment in Ethiopia: Party Capitalism and the Informalisation of Institutions 171 ix

8 x Contents 8 Conclusions: Summary of Main Findings and Some Suggestions for Future Research 197 Bibliography 213 Index 237

9 List of Acronyms ADLI AU BC BPR CADFund CBE CDB CETU CPC CPOEs CPP CRBC CSCEC CSOEs DRC ECA EFFORT EIA EIZ EJA EPDM EPRDF ESAT ETA EXIM Bank Agricultural Development Led Industrialisation African Union Beijing Consensus Business-Process-Reengineering China Africa Development Fund Commercial Bank of Ethiopia China Development Bank Confederation of Ethiopian Trade Unions Communist Party of China Chinese Privately Owned Enterprises Convention People s Party China Road and Bridge Corporation China State Construction Engineering Corporation Chinese State-Owned Enterprises Democratic Republic of Congo Economic Commission for Africa Endowment Fund for the Rehabilitation of Tigray Ethiopian Investment Agency Eastern Industrial Zone Ethiopian Journalists Association Ethiopian People s Democratic Movement Ethiopia People s Revolutionary Democratic Front Ethiopian Satellite Television Service Ethiopian Teachers Association Chinese Export-Import (EXIM) Bank xi

10 xii LIST OF ACRONYMS FAO FDI FDRE FOCAC GTP IMF IR JECC KANU MIDROC MoFA MoFED NFLA NGOs NPC OPDO PMAC PPESA PRC RBC SDPRC SEPDF SEZs SNNPR SOEs TNS TPLF UN UNCTAD UNECA UNITA US WB WC ZANLA ZANU ZTE Food and Agriculture Organisation Foreign Direct Investment Federal Democratic Republic of Ethiopia Forum for China-Africa Cooperation Forum Growth and Transformation Plan International Monetary Fund International Relations Joint Ethiopia China Commission Kenya African National Union Mohammed International Development Research and Organisation Companies Ministry of Foreign Affairs Ministry of Finance and Economic Development National Front for the Liberation of Angola Non-Governmental Organisations Standing Committee of China s National People s Congress Oromo People s Democratic Organization Provisional Military Administrative Council Privatization and Public Enterprises Supervising Agency People s Republic of China Road and Bridge Construction Company Sustainable Development and Poverty Reduction Program Southern Ethiopian People s Democratic Front Special Economic Zones Southern Nations Nationalities and People s Region State-Owned Enterprises Transnational State Tigrayan People s Liberation Front United Nations United Nations Conference on Trade and Development United Nations Economic Commission for Africa National Union for the Total Independence of Angola United States World Bank Western Consensus Zimbabwe African National Liberation Army Zimbabwe African National Union Zhong Xing Telecommunications Equipment Company Limited