The Impact of Bilateral Economic Relations on Economic Development: the Case of China and Zimbabwe 2000-2018

Abstract

Despite the vast scholarly literature on China-Africa and China-Zimbabwe relations in the context of official development assistance, little is established about the impact of China-Zimbabwe bilateral economic relations on Zimbabwe’s economic development in the post-2000 Robert Mugabe Zimbabwe. The broad conclusions emerging from China-Zimbabwe relations cite mutually beneficial outcomes encompassing opportunities for Africa’s development and a financial-aid alternative on the one hand and resource-driven neo-colonialism, debt distress, and opportunistic political and strategic aims on the other. This study surveyed the Zimbabwean citizenry and interviewed key stakeholders overseeing the newly expanded and commissioned Victoria Falls Airport and Kariba South Hydropower Station. An analysis of the responses yielded impact themes detailing the specifics of a case study research that sought to: 1) To determine the positive impacts of Chinese government funding on the modernisation of Victoria Falls Airport and the extension of Kariba South Hydropower Station on Zimbabwe's economic development; 2) To determine the negative impacts of the Chinese-funded modernisation of Victoria Falls Airport and the extension of Kariba South Hydropower Station on Zimbabwe's economic development, and 3) To identify negotiation-level and implementation-level challenges that influenced the impact of Chinese funding, specifically focusing on the modernisation of Victoria Falls Airport and the extension of Kariba South Hydropower Station, on Zimbabwe's economic development. The emerging themes were mapped onto two primary economic development indicators: Gross Domestic Product and Human Development Index. To the best of the researcher’s knowledge, this study is a pioneer study, and it contributes to prospective China-Africa relations studies by employing a mostly underutilised source of data: surveying the citizenry and interviewing key stakeholders. The study’s policy-inclined recommendations propose that: 1) the Chinese government increase transparency in its dealings with Zimbabwe; 2) the Zimbabwean government utilise foreign loans to finance infrastructure projects with immediate returns; and 3) multilateral partners and debt relief programmes offer the country debt-burden reduction incentives. Zimbabwe's policymakers can maximise gains and minimise liabilities in China-Zimbabwe relations through the accountable use of foreign aid.