Addis Ababa — Most African countries are benefiting more from the relationships with China and India than with Western donors and multilateral financial institutions, the findings of a research conducted under the title "Impact of Globalization on Foreign Policy and National Sovereignty" pointed out.

According to the research, African countries are content with the unconditional assistance and trade relationship with the two countries. The principle of non-interference in domestic policies, and mutual respect which characterizes the policies of China and India has given confidence in the relationship to many African countries.

They provide loans and assistance with no strings attached in contrast to western bilateral donors and multilateral financial institutions which stringently go into specific country profiles in areas of governance, human rights records and policy reforms.

Similarly, as China's and India's economic growth continue their demand for natural resources rose, and Africa is well suited to fulfill that demand. In addition to their interest in natural resources, China and India see Africa as a potentially big market for their products, the research indicates.

"With caution and balanced deals, these relationships could develop into sustainable south-south cooperation on the basis of mutual advantage. Consequently in the long run this could either force international institutions to change positively the way they interact with African countries or their involvement in Africa's social and economic development will significantly diminish," said Million Habte, the Researcher from Trade and Development Law Office, on Thursday at the Forum for the Study of Foreign Policy program held at Hilton Hotel here.

According to him, China now ranks second-highest trading partner in the continent. From 2002 to 2003, trade between China and Africa doubled to $18.5 billion; by 2007, it had reached $73 billion. Much of the growth was due to increased Chinese imports of oil from Sudan and other African nations. But Chinese firms also import a significant amount of non-oil commodities. Africa scored an average of 5 percent economic growth due in part to trade ties with China.

Such economic growth of Africa is unprecedented. China too has fared well by providing aid packages, delivering construction of infrastructure which many African countries lack.

"Although not yet as significant, India's trade and investment is also growing very rapidly. As things stand, China and India are expected to continue to strengthen their involvement in Africa's social and economic activities," he added.

Some countries in East Asia did not seriously follow the Washington Consensus recommendations and have succeeded in bringing better life to their citizens through close supervision and intervention in their respective economies while allowing market forces to develop, the research indicates. Africa can learn from this Asian countries' experience which have successfully harnessed globalization to their benefits.

The explanations for the economic success of East Asian countries differ among economists and political economists. A mix of several factors have contributed to the economic growth of these countries. They followed a path that did not succumb to the recommendations of the Washington Consensus, he said.

Many developing and Least Developed Countries (LDCs) particularly those in Africa have faced multifaceted challenges. The complex global system of WTO, IMF and WB, coupled with internal governance problems in these countries had led to negative growth in Africa.