This morning, CNN published my op-ed, "What does China's shock yuan devaluation mean for Africa?"
China's development decisions are critically important for Africa. In Lagos, Addis and Johannesburg, China's surprise yuan devaluation has African analysts scratching their heads.
China's development decisions are critically important for Africa. In Lagos, Addis and Johannesburg, China's surprise yuan devaluation has African analysts scratching their heads.
Obviously
Chinese goods will be cheaper in Africa, and African exports more expensive in
China. So far, this decision is just a tremor, not a quake. Yet why did China
devalue, and what is this likely to mean for Africa?
To
understand China's devaluation, we need to take a step back. Beijing has been
trying to manage China's enormous structural transformation ever since Chinese
leaders made their historic decision to move out of poverty by turning to the
market in the late 1970s. Their supercharged development model depended on low
wages, high levels of foreign and public investment, and rapidly expanding,
cheap exports.
Continued here.
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