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Construction and Engineering Services and Foreign Workers
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Morley, David - The Cambridge introduction to creative writing (2011) - libgen.li
| Construction and Engineering Services and Foreign Workers: China in Africa The construction industry comprises design services (architects and engineers, construction services (general and subcontractors, skilled and unskilled labor, and consulting services related to the others (including management and training personnel. One factor that makes firms competitive in the industry is related to the availability of low-cost professional staff rather than unskilled manual labor. In addition, government support is an important factor in cost competitiveness abroad. It seems that this is the strategy of China in exporting construction services to Africa. Foreign companies offering services in construction and engineering may face some nontrade barriers. Restrictions on Mode IV are one of the barriers in the construction sector in Africa. In China, state-owned enterprises (SOEs) and construction collectives (run by local governments or communities in urban and rural areas) are the main providers of construction work. Prior to 1984, most SOEs were general construction companies, carrying out all of the trades needed for construction work. These were huge organizations with a permanent workforce with fixed-worker status. Several of these SOEs are now exporting construction services to other parts of the world, including Africa. Chinese firms are operating mainly in the physical construction services sector in Africa. They participate inroad construction, water and sewerage, and construction of government buildings and bridges. In the WAATI business case studies, the majority of the professional staff of Chinese construction firms were from China. Companies explained that managers 05-Chap5:05-Chap5 10/10/06 11:14 AM Page 280 “ BETWEEN - THE - BORDER ” FACTORS IN AFRICAN - ASIAN TRADE AND INVESTMENT 281 Indian Technical and Economic Cooperation Program. India spent more than $1 billion on such assistance, including training, deputation of experts, and implementation of projects. Over 15,000 African students study in India. Seminars and training classes are given to senior African diplomats and economic and financial officials. needed to communicate effectively with workers about complex tasks in Chinese. However, the vast majority of nonskilled labor is Africans. Chinese firms subcontract services to local firms. This provides opportunities for acquisition of experience and access to technology for developing country firms. However, African firms are not equally benefiting from acquisition of experience and access to technology through subcontracting. In the case of Angola, Chinese firms import all materials, technology, and staff from China, partly due to the high cost of local materials and lack of skilled labor. This results in little skill being transferred. A Chinese firm in Senegal only uses nominal local content in subcontracting services. For example, they subcontract drawings but not engineering services such as structural engineering, which provides opportunities for acquisition of experience and technology. In Tanzania, construction methods employed by Chinese firms are becoming more sophisticated. There are 14 Chinese firms registered in the country. The majority of the materials are procured locally and suppliers across the construction industry are increasingly using Chinese fittings and materials. The transfer of skills, technology, and work practices to Tanzanians and subcontractors is increasing as Chinese firms use new construction methods in the country. Greater regional and global integration could also alleviate some of the constraints of the small African countries services sector due to its limited endowments of capital and skills. In addition, weaknesses in the business environment are hampering the development of services in Africa. Several of these countries can export more services if they improve their business climate, infrastructure, and complementary services. Source: World Bank staff. 05-Chap5:05-Chap5 10/10/06 11:14 AM Page 281 282 AFRICA ’ S SILK ROAD : CHINA AND INDIA ’ S NEW ECONOMIC FRONTIER Download 5.17 Mb. Share with your friends:
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