T. DEITCH, Candidate of Historical Sciences

V. LOPATOV, Doctor of Economics

In recent years, analysts have been paying special attention to the so - called "emerging powers", including the "Asian tigers" - China and India, their place and role in the global economy, the pace of economic growth, and the scale of development of national economies. And this is not accidental. The two countries together account for 40% of the world's population. Over the past decade, China's average annual economic growth rate has exceeded 10%. India has somewhat delayed the start of economic growth, but according to some estimates, it may overtake China in this indicator over the next decade and a half.¹ China and India are among the most dynamically developing economies in the world, which may surpass the G7 countries in terms of total GDP in 2035². According to experts, by the end of the 20s of the XXI century. China can become the world's leading power in the true sense of the word, and India can match Japan's industrial output.

Today, China and India have a huge impact on the global economy. The situation on world markets is largely determined, on the one hand, by their need for energy, mineral resources and investment, on the other - by the growing export of their manufactures and business services. The two countries are competing in global markets. First of all, we are talking about the struggle for energy resources. At the same time, China regularly outstrips India in terms of access to oil and gas. For example, in August 2006, China National Petroleum Corporation (CNPC) seized shares of Petrokazakhstan, the third major producer of Kazakh oil, from India. A month later, the Chinese company outpaced India by acquiring the assets of Ecuador's En-Kana for $ 1.42 billion.

According to OPEC Director General A. Shihab-el-Din, over the next two decades, developing countries will account for 4/5 of the growth in oil demand, and China and India will play a major role in this. In 2005, Indian Prime Minister M. Singh stated that China is ahead of India in energy supply planning, and called on the country to learn from its strategic thinking, act quickly and decisively to counteract the Chinese oil giants that are actively operating abroad, such as China Petroleum and Chemical Corporation (Sinopec), CNPC, China National Petroleum Corporation (CNPC), etc. Offshore Oil Corporation (CNOOC), Petro-China ³.

Simultaneously with the competitive struggle on world markets, energy-consuming states are trying to unite. In early 2005, the oil ministers of China, Japan, South Korea, and India met to discuss the creation of an Organization of the Petroleum Importing Countries (OPEC) to jointly set prices and attract more investors to Asia. During President Hu Jintao's visit to India in November 2006, a meeting was held between Indian Minister of Petroleum Resources Murli Deor and Head of the National Development and Reform Commission Ma Kai, at which it was decided to establish a joint venture to acquire hydrocarbon assets in Africa and South America.⁴

Three conferences held by the International Monetary Fund in 2003 - 2005 on growth and reform in China and India show the importance that the Chinese and Indian "phenomena" are currently attached to in the world.⁵ In 2004, a conference was held in Nairobi, Kenya, where Africans discussed the development models of China and India and how to use their experience in Africa.

Among other factors, foreign economic relations, their scale, structure and geographical orientation have an important impact on the dynamics and sustainability of the development of the economies of China and India.

Since the 1960s, Africa has been an object of ideological, political, and economic rivalry between the Soviet Union and China. India was left out of the two giants ' battle for Africa. Over the past half-century, the situation has changed. The collapse of the Soviet Union and the subsequent collapse of the economy significantly undermined the position of its successor Russia on the African continent. At the same time, China's economic breakthrough has strengthened its position on the continent, and India's rapid economic growth has intensified and expanded India-Africa relations.

In recent years, Africa has become the focus of both emerging powers, and there has been a sharp increase in Chinese and Indian trade expansion and investment on the continent. According to a World Bank (WB) study published in 2007 - "The African Silk Road: New Economic Frontiers of China and India" - 27% of African exports go to Asia, which is 14% more than in 2000 and 3 times more than in the previous year.

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1990 Over the past 5 years, Africa's exports to Asia have tripled, making Asia the third largest trading partner of African countries (27%) after the EU (32%) and the US (29%)⁶. Europe, which has been the leading trading partner of African countries since independence, is losing ground on the continent: the share of EU member states ' exports to Africa fell by 50% between 2000 and 2005.

Approximately 47% of Africa's exports to Asia are made up of oil and natural gas - 12% of Africa's total world exports. Among the main exported minerals and metals are gold, silver, platinum, aluminum, iron ore, copper, and pearls. China and India's investments in Africa are focused on raw materials, especially in the mining and oil sectors. However, these two Asian countries are rapidly achieving diversity beyond the natural resources sector in areas such as food processing, clothing, retail, fishing, commercial real estate, light industry, and the service sector.

China and India's foreign direct investment in Africa, while more modest than trade flows, is also growing very fast. According to the authors of the WB study, both in Africa and Asia, there are close links between foreign direct investment and trade.⁷ Especially impressive are the successes on the African front of the main "Asian tiger" - China.

CHINA'S ECONOMIC EXPANSION IN AFRICA

China's rapid economic growth, the rise to power of the new leadership, which aimed to ensure China's leading position in the world in the era of globalization, and its proper assessment of Africa as a continent of great opportunities contributed to Beijing's active involvement in world affairs, which was particularly evident in its African policy. Africa has taken a central place in Beijing's foreign economic strategy for the 21st century.

In January 2006, the Chinese Government published the document "China's Policy towards Africa". In the White Paper, as Western journalists dubbed it, China made clear for the first time that it puts Africa at the top of its foreign policy priorities. The principles set out in it demonstrate China's willingness, unlike the West, which is guided in its foreign policy by the demand for respect for democratic norms and human rights, to develop relations with African countries without criticizing their political systems. Its only precondition is to support the "one China" policy⁸. Beijing's pragmatic approach to cooperation with African countries is an important factor contributing to the realization of its political and economic goals on the continent.

The Beijing Action Plan (2007-2009), adopted in November 2006 after intensive negotiations with representatives of African States, emphasized "strategic partnership", political equality, and mutual trust as the advantages of China's cooperation with African countries. ⁹

The last decade was marked by a rapid development of Sino-African economic relations. China-Africa trade exceeded $ 40 billion in 2005 and $ 55 billion in 2006, which is more than Africa's trade with the European Union. The growth rate of trade during this period exceeded 20%, and by 2010 the trade turnover will reach $ 100 billion. This was stated by Premier Wen Jiabao at the 3rd China-Africa Cooperation Summit in ^November 200610.

Trade turnover with individual African partners in 2005 amounted to: $ 7.3 billion - with South Africa, $ 6.9 billion. - with Angola, $ 3.9 billion. - with Sudan, 2.8 billion rubles. - with Nigeria, $ 2.4 billion. - with the Republic of the Congo, $ 2.1 billion. - with Egypt, $ 1.8 billion. - with Algeria, 1.5 billion rubles. USD - from Morocco. The largest importers of Chinese goods are Angola ($6.6 billion), South Africa ($3.4 billion), Sudan ($2.6 billion), the Republic of Congo ($2.3 billion), and Equatorial Guinea ($1.4 billion). USD)¹¹.

The main part of Chinese exports is made up of clothing, footwear, and textiles. In addition, China supplies Africa with automatic and telecommunication equipment, electronics, electrical goods, plastics, rolled steel, rice, tea, tableware, canned goods, medicines and technologies. The growth of Chinese exports to Africa is supported by commodity loans provided to African partners for the purchase of equipment in China. This is especially true for military-technical products, which still occupy a significant place in Chinese exports to Africa. China has established close ties in this area with Zimbabwe, Sudan, and Ethiopia - three of its strategically important partners on the continent.

Before 2000, Chinese exports to Africa significantly exceeded imports, but in the new millennium, the picture changed: in 2000, China's imports from the continent exceeded exports for the first time (exports amounted to $ 4.071 billion, and imports from Africa - $ 4.631 billion). USD)¹². At the same time, according to Chinese customs statistics, China's exports to Africa increased by 22.5% compared to 1999, while imports from Africa increased by 133.9% ^.13 In 2006, China's trade deficit with Africa was already $ 2.1 billion. USD ¹⁴

The lion's share of Chinese imports from Africa is made up of raw materials - primarily oil, iron ore, as well as copper, cobalt, phosphates, platinum, coal, and asbestos. Along with this, China buys tobacco, coke, pulp, tropical wood, and paper waste.

Africa is an important part of Beijing's oil strategy. African oil accounts for 30% of all Chinese oil imports. China's oil consumption is growing at 7.5% a year, in

Dynamics of China's trade turnover with Africa

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7 times faster than in the US. Experts believe that in the next decade, the country will surpass the United States as the world's largest oil importer. China receives oil from Angola, Sudan, Nigeria, Chad, Algeria, Gabon, Equatorial Guinea and other countries on the continent.

Currently, the main supplier of oil to China is Angola (14% of Chinese oil imports from Africa). China is projected to replace the United States as the largest buyer of Angolan oil in 2007. Sudan is the second most important African oil supplier to China; 50 to 60% of Sudan's oil is sent to Chinese consumers (7% of Beijing's oil imports from Africa).¹⁵.

In order to provide the country with hydrocarbon fuel, Chinese oil companies are pursuing an active investment policy in Africa. In particular, Sinopec signed contracts for the development of an oil field in Algeria ($525 million), for the production, refining and export of Gabonese oil products to China with Total Gabon, for oil production in Ivory Coast, where it acquired a 27% stake in the oil block, for construction in Angola new oil refining plant ¹⁶.

In 2004, Sinopec received a license for oil production and field development in Angola, previously owned by France's Total. The company also has a license to operate another Angolan field where oil is found at great depth. It is expected that production may start in 2008 and the field will produce up to 250 thousand barrels. per day ¹⁷.

In 2005, Sinopec signed two oil production cooperation agreements with the Republic of the Congo.¹⁸

CNPC is the largest investor in Sudan's oil industry. It holds a significant 40% stake in Sudan's largest oil mixed enterprise, Great Nile

Petroleum Operating Company. The company has invested $ 4 billion in a number of projects, including a tanker terminal near the port of Sudan and a 1,500-kilometer pipeline to transport oil from the field to the terminal, and has built an oil refinery. With China's help, Sudan has evolved from an oil importer to an oil exporter, with its own oil industry, including exploration, field exploitation,and oil sales. ¹⁹ In 2003, CNPC acquired a number of Algerian refineries for $ 350 million and signed an agreement with Algeria giving it the right to operate two oil blocks. Nigeria also said it would grant CNPC the right to operate four oil blocks in exchange for a $ 4 billion investment. investment in infrastructure.

In January 2006, CNOOC announced that it would acquire a 45% stake in an offshore oil field in Nigeria for $ 2.27 billion. United States dollars.²⁰ An offshore exploration agreement was signed by CNOOC with Kenya. It allows the Chinese company to operate 6 blocks with an area of 44.5 thousand square miles in the south of ^the country21.

PetroChina is also actively developing African oil resources. In 2003. It signed a contract with an Algerian company to jointly operate an oil field and build an oil refinery in Algeria; in 2005, it signed an agreement with the National Petroleum Corporation of Nigeria, which pledged to supply 30 thousand barrels of oil per day to China. ²²

Chinese oil companies have signed contracts for offshore development and oil production with the Republic of Congo, started oil production in northern Namibia, where they intend to build an oil refinery, and started developing oil wells in western Ethiopia.²³

China is also investing in other minerals in Africa: copper in Zambia, cobalt and copper in the Democratic Republic of the Congo, magnesia and gold in Ivory Coast. And in 2006, a Chinese consortium signed a $ 3 billion agreement with Gabon to mine iron ore. Investment in Zimbabwe's tobacco industry is growing.

Data on the volume of Chinese investment in the African economy are contradictory. According to some sources, they amounted to $ ⁸ billion by the end of 2006,24 According to others - $ 11.7 billion. At the same time, investments, especially in the oil and gas sector, are growing rapidly.

According to the President of the African Development Bank (ADB), Donald Kaberuka, China is already ahead of all former colonial powers in terms of foreign direct investment, and Chinese investments are mainly supported by the state, and not by private companies, as in the case of France or the United Kingdom.²⁶ According to the Import-Export Bank of China, more than 800 Chinese companies (including 100 state-owned ones)have invested in the African economy²⁷. In addition to the oil and mining industries, Chinese investors invest in light and textile industries, telecommunications and water supply. Agreements on mutual protection of investments have been signed with 28 African countries, and on the abolition of double taxation with 8.

As China expands its presence on the continent, however, so does criticism of Chinese companies. They are accused of violations of working conditions, lack of concern for environmental protection, etc. Low wages and poor working conditions have caused unrest in Chinese-funded copper mining operations in Zambia, where in 2007 alone there were 18 strikes and demonstrations by workers and employees protesting against what they saw as an unfair wage system practiced by Chinese companies, as well as the influx of Chinese workers who were taking workers away. places for the local population ²⁸.

Mining incidents are not the only aspect of dissatisfaction with Chinese economic policies. Zambians are opposed to the influx of Chinese goods flooding local markets and disrupting local industries. South Africa expressed similar dissatisfaction. However, taking this into account, China reduced textile exports to South Africa by 1/3 in 200629.

At the most representative China-Africa forum, held in Beijing in November 2006, China announced further ways and methods of its economic policy in Africa. In particular, Beijing promised to double the amount of free software-

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provide $ 5 billion ($3 billion) in aid to African countries. as concessional loans and $ 2 billion in concessional trade loans), create a $ 5 billion fund to encourage Chinese investors investing in Africa, eliminate tariffs on 440 African exports (currently 190), train 15,000 African professionals, set up 10 agricultural technology demonstration centers, and build 100 rural development centers. schools, 30 hospitals, provide $ 37.5 million free of charge to fight malaria, send 100 agricultural experts to Africa, increase the number of scholarships for African students studying in China from 2 to 4 thousand, open ³⁰ centers for learning Chinese language and culture.

China has written off $ 1.27 billion worth of African debt. United States dollars.³¹ The summit promised to cancel the debts of 33 least developed countries by the end of 2007, as confirmed by the Ministry of Commerce of the People's Republic of China in its January 2007 statement. ³²

The results of the visit of Chinese President Hu Jintao with a delegation of 130 people to 8 countries of the continent in February 2007 are impressive. The Chinese guest generously gave out promises of loans and new investments in the African economy. Thus, he promised to provide $ 100 million in aid and loans to Cameroon, build 2 schools and a hospital. A copper mining partnership agreement was signed with Zambian President Levi Mwanawasa, which was said to provide the country with thousands of jobs, $ 800 million, and more. investment and a sharp increase in copper production; an agreement on the creation of a free trade zone between the countries, as well as assistance in the development of a number of industries. A $ 15 million debt relief agreement was signed with Liberia, which also promised to reduce tariffs on goods exported to China. 7 documents related to economic and technological cooperation and debt cancellation in the amount of $ 19 million were signed with the Sudan. A loan of $ 139 million (including an interest - free loan of $ 59 million), as well as assistance for the construction of 12 schools, was promised to Namibia. In South Africa, during a meeting with President Thabo Mbeki (by the way, the 9th in a row), Hu Jintao proposed a "strategic partnership", including opening the Chinese market for South African fruits and assistance in implementing development programs.³³

China's commitment to not only attract African resources to its economy, but also to make the continent a major consumer of Asian goods and services is evidenced by a landmark event in May 2007. The annual meeting of the Board of Directors of the African Development Bank was held in Shanghai, the largest and economically prosperous city in China. It is symptomatic that the ADB did not choose any African country as the meeting place, but China, which is one of the 24 non-African shareholders of the bank, along with India. Leading financiers and bankers in Africa were hosted by Premier Wen Jiabao, who called on the international community to do more to help Africa, naming debt relief and technology transfer from rich countries to poor countries as priorities. ³⁴ The Chinese premier also noted that so far China's trade with Africa is 3 times less than China's trade with the United States, but 3 times more than China's trade with Russia, and more than trade with France and the United Kingdom combined.³⁵

The scale of Beijing's diplomacy in Africa gives rise to different, sometimes diametrically opposed comments in the Western and African press, whose authors, on the one hand, are impressed, and on the other, are afraid of Beijing's success. When assessing China's performance in Africa, many, even critical authors, recognize that the assistance provided to African countries, its attention to the needs of the African population (building schools, hospitals, participating in education and training, working with Chinese medical specialists, etc.) contribute significantly to the positive attitude towards China in Africa and the growth of the global economy. its prestige on the continent. The ideological background of the Eastern giant's economic expansion, which includes statements about its readiness to protect the interests of the "third world", about the similarity of the destinies and tasks of China and Africa, and about China's unwillingness, unlike Western powers, to interfere in the internal affairs of its economic partners, also finds an undoubted response.

At the same time, the latter point, on the contrary, is extremely outraged by the West and some pro-Western politicians on the continent. China has been accused of turning a blind eye to violations of rights and freedoms in countries that are "undemocratic" from the Western point of view, such as Zimbabwe or Sudan, for commercial gain.

The West also complains that China is pushing it out of the African oil sector. For example, at the World Economic Forum in Davos in 2007, Western companies complained that China was undermining their position in Africa by offering Africans more favorable terms of cooperation. Commenting on this kind of speech, Neil Gardin, Executive Director of the New Africa Mining Fund, said:: "I think it's too late to complain. The game is already underway, and China and India are leading it. " ³⁶ A report published in December 2005 by the American Council on Foreign Relations accuses the Bush administration of not having a long-term strategy for relations with Africa shows that the West, especially the United States, is extremely concerned about China's activity on the African continent. The report's authors urge the United States to pay more attention to the continent, open up new missions in energy-rich countries, and take more account of its national interests, including its growing rivalry with China. ³⁷

INDIA'S AFRICAN INTERESTS

India, like China, is very interested in developing relations with Africa. Foreign trade and economic cooperation occupy a dominant position in the complex of India's African policy. This is due to the fact that India has every chance in the near future to take the third place in the world in terms of economic power after the United States and China, and it needs to have additional sustainable sources of energy and mineral resources, as well as sales markets for rapidly developing industry.

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This is most clearly seen in its foreign economic activities aimed at intensifying trade and economic relations with the countries of the continent, in an effort to strengthen ties with the Indian diasporas, which have long occupied a specific economic niche in Africa, as well as in practical actions to assist African countries in strengthening the armed forces and the rule of law.

Over the past decade and a half, India's trade relations with Africa have developed dynamically; the volume of bilateral trade has grown from $ 967 million in 1990-1991 to $ 12.04 billion in 2004-2005 (see table). India has achieved such success thanks to a whole range of measures: using loans from the Export-Import Bank of India (Exim Bank), active investment activities, as well as attracting private and public capital to start businesses in Africa. In addition, the Government has adopted the Focus Africa Program for 2002 - 2007, under which India provides financial support to trade organizations and export councils of African countries.

Exim Bank of India provides loans to Indian exporters to enable them to deliver their products to Africa on an installment basis, or to direct buyers of Indian goods. Hoping to facilitate bilateral and intraregional commercial relations with COMESA member countries*, Exim Bank secured credit lines in support of African exports, providing $ 5 million to each of the following banks: the Eastern and Southern African Trade Development Bank (RTA Bank), the Kenya Industrial Development Bank (IDB) and the East African Development Bank (EADB)³⁸. In May 2006, Exim Bank signed an agreement to provide an additional US $ 250 million concessional credit facility. Bank for Investment and Development of the Economic Community of West African States (ECOWAS)³⁹. The loans were intended for railway construction, infrastructure development and other projects, as well as for stimulating the activities of Indian firms in West Africa.

Often, loans are linked to the delivery of Indian goods to certain construction sites. For example, under the Indian Development Initiative, loans to Ghana ($60 million) were allocated for the construction of the presidential residence and rural electrification, Mali ($27 million) - for the purchase of Indian tractors and other agricultural machinery, the Republic of the Congo ($33.5 million) - for the construction of a cement plant, for the purchase of Indian buses and rehabilitation works at mining enterprises to organize the extraction of manganese ore and diamonds, to Cote d'Ivoire ($26.8 million)-for the purchase of Indian buses and the implementation of agricultural programs.

In order to strengthen its position in Africa, India announced new loans in November 2006, which increased its total aid to Africa to $ 1.37 billion. ⁴⁰ India has initiated conferences in its capital with the invitation of African business representatives. In 2006, representatives of 35 African countries took part in the 2nd conference on identifying opportunities for doing joint business. The cost of the discussed joint projects that could be implemented in Africa is estimated at $ 17 billion - oil production, construction, computer software production, and healthcare. Moreover, at the first conference of this kind in 2005, the cost of the projects discussed barely approached $ 5 billion. While only a quarter of the projects under consideration are actually implemented, India's trade turnover with Africa is growing even without the additional inclusion of new facilities: it is growing by 25% annually.⁴¹

India's largest trading partners in Africa are South Africa, Nigeria, Egypt, Kenya, and Sudan.

Among the leading Indian companies that have launched unprecedented expansion in Africa, such as Tata Group (supply of cars and spare parts for them, construction of metallurgical and metalworking facilities), Ranbaxy Laboratories (production of medicines, including AIDS), Kirloskar Brothers (supply of generators and power equipment).

In March 2004 India has launched the Africa-India Technical and Economic Approach to Cooperation programme, which has provided $ 500 million in funding. for projects related to the provision of food, training of medical workers, infrastructure development, energy, information and communication technologies. The peculiarity of these projects is that Indian companies are involved in them.-

India's trade with Africa in 2005 (USD million)

Source: Direction of Trade Statistics. Yearbook 2006. Washington, p. 249 - 250.

* Common Market for Eastern and Southern Africa (COMESA).

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ryadchiki. The programme is being implemented in Burkina Faso, Chad, Ivory Coast, Equatorial Guinea, Ghana, Guinea-Bissau, Mali, Senegal and Niger. The value of already concluded deals is $ 300 million.

In addition, under similar conditions, India allocated another $ 200 million for the implementation of projects under the New Partnership for Africa's Development (NEPAD) program.

India's special focus is on East African countries. This is evidenced by the three-day business forum in Addis Ababa in April 2006, where businessmen from Ethiopia, Uganda, Tanzania, Sudan and Somalia discussed investment and joint venture issues with their Indian counterparts. In particular, Ethiopian Prime Minister Meles Zenawi said that his country wants to work closely with Indian investors in sectors such as infrastructure, agriculture, etc. ⁴²

The region is experiencing a shortage of qualified specialists in the agricultural sector. The leadership of one of the Indian states - Andhra Pradesh signed an agreement with Kenya and Uganda to send 500 farmers to work the land. The agreement provides for the transfer of 50 thousand acres (20.2 thousand hectares) of land to Indian farmers in Kenya, and 20 thousand acres (8 thousand hectares) in Uganda for a period of 99 years at a price of $ 3.75 per acre. State Agriculture Minister Radhuveera Reddy said, " Our farmers have made great strides in fighting drought and declining soil fertility. They will now be able to pass on their skills in cultivating the land to Africans. " ⁴³

India is interested in West Africa as a promising source of oil and other natural resources. India has offered West African countries up to a billion dollars for energy and infrastructure projects in exchange for developing natural resources and exporting them to India.

There are signs of India's growing presence in West Africa, particularly in Senegal, where the country's largest joint venture, Industry Chemical du Senegal, has been established to produce phosphates exported to India. However, India is primarily interested in rich oil fields in this region.

India needs oil imports more than China: it imports up to 70% of the oil it needs. This is due not only to the country's growing domestic demand for hydrocarbon fuels, but also to India's current policy of "remaining one of the most important export markets for petroleum products"^.44 Over the past 10 years, India has doubled its refining capacity and plans to increase the available capacity from 2.7 million barrels. up to more than 5 million barrels per day. on day ⁴⁵.

Africa plays an extremely important role as a supplier of crude oil to India's refining industry. India is particularly interested in the Gulf of Guinea coast, where the Indian state-owned oil and natural gas company has invested $ 12 million to conduct oil exploration. India has high hopes for the discovery of large oil fields in Ivory Coast, which occupies a very modest place as an oil-producing country (60 thousand barrels per day). per day-against, for example, Nigeria - 2.5 million. bbl. per day). And yet, India is investing $ 1 billion in the next 5 years in the exploration and production of oil in this country.

Nigeria is India's main source of African oil. It guaranteed long-term supplies of hydrocarbon fuel to the Indian "Indian Oil Corporation". To consolidate its position in this country, India established a joint venture, ONGC Mittal Energy, which included the Indian state-owned Oil and Natural Gas Corp (ONGC) and the world's leading steel producer, Mittalstil, which in November 2005 decided to invest $ 6 billion in oil production and refining in the United States. Nigeria in exchange for obtaining licenses to develop Nigerian oil fields ⁴⁶.

India holds a 25% equity stake in Sudan's oil sector, obtained in exchange for a commitment to build a $ 259 million pipeline in the country.

In addition to East and West Africa, India focuses on South Africa, as well as the South African Development Community (SADC). It has a special relationship in this region with South Africa, which has been home to a multi-million-strong Indian community for more than 100 years. During the official visit of Indian Prime Minister M. Singh to South Africa in October 2006, a joint declaration on strategic partnership between the two countries was signed, as well as a program of cooperation in the field of science and technology. At the same time, such priority areas of cooperation as energy, tourism, healthcare, automotive and spare parts production, chemicals, paints, fabrics, fertilizers, information technology, infrastructure, small and medium-sized enterprises were highlighted. During the talks, progress was noted in cooperation in the defense sector, where the parties agreed to work more closely in research and development. South Africa expressed its gratitude to India for its assistance in training peacekeepers and submariners. They expressed satisfaction with the expansion of cultural cooperation and decided to extend the program of cultural and scientific exchanges that expired in 2006, especially between universities.

Indian investments in South Africa are estimated at $ 100 million. ⁴⁷ India supplies South Africa mainly with automobiles and medicines, while importing chemicals, gold, silver, coal, steel and fertilizers. In the future, it is possible that South Africa will supply uranium for Indian nuclear power plants ⁴⁸.

The Presidents of South Africa and India noted the importance of opening a South African Tourism Office in Mumbai in 2005. A representative office of the International Marketing Council of South Africa will also open in India.

India has opened a business center in Durban to promote the development of bilateral ties. The Indian company Tata Motors is successfully cooperating with the South African automobile giant Mahindra and Mahindra. Tata Africa Holdings, a subsidiary of Tata Group, is vying for a controlling stake in South Africa's second-largest telephone network operator, worth more than $ 4 billion. rands (based on the current value)-

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the exchange rate of 1 US dollar is approximately 7 rand).

India - South African Customs Union (UAC)common duty-free preferential trade zone is being prepared*. The first forum on the formation of the India - South China Sea Area was held in Namibia in April 2006.

India is an active promoter of South-South cooperation, where its partner is also South Africa. A step towards expanding this cooperation was the signing of the agreement by the leaders of three regional "giants" - India, Brazil and South Africa (IBSA) - in 2003 at the UN General Assembly. The initial goal of the agreement is to put pressure on developed countries to make the three countries ' voices heard at the Doha talks, and to help strengthen their positions in the UN Security Council.

The first forum with the participation of the Foreign Ministers of the three countries was held in New Delhi in March 2004. The issues of disarmament, infrastructure, health, sustainable development, and poverty reduction were discussed. The second forum was convened in Cape Town in March 2005. In addition to the above-mentioned issues, attention was paid to the growing influence of these leading regional Powers on the global political and economic scene. Issues of UN reform, South-South political cooperation, economic integration of developing countries, etc. were discussed. The main concern of the ministers remained the problem of poverty reduction, and therefore it was proposed to support projects aimed at improving the living standards of the population within the framework of IBSA. ^{The third forum was held in Rio de Janeiro in March 2006.49}

India hopes that by strengthening its relations with South Africa, it will gain an additional opportunity to strengthen its influence not only in Africa, but also on a global scale. This is exactly what the creation of a free trade zone with the participation of South Africa, India and Brazil is aimed at, where the Indian side, with its population of 1 billion, will be able to achieve. the person will definitely belong to a leading role.

As an additional means of strengthening its position on the continent, India is proposing to establish communication with developed African countries using satellites and fiber-optic cable. A special place in this project is occupied by Mauritius, with which there is also an agreement on the creation of a preferential exchange zone, on cooperation in the field of oil exploration in the exclusive economic zone of Mauritius and in the field of telecommunications.

* * *

In the light of the relations of China and India with Africa at the present stage, we can draw some fundamental conclusions about the place of each of these countries on the African continent.

Due to the rapid pace of economic growth, China and India have become a kind of beacon for African states, many of which actively proclaim policies of "orientating to the East" or "looking to the East".

At the World Economic Forum, held in Cape Town in June 2006, "orientating towards the East" was the main topic of discussion. The leaders of many African countries even said that a serious study of the Chinese experience helps to find their own path of development, since for them the Chinese " today "is an African"tomorrow".

India is particularly popular. Not only does India have every chance of becoming the world's third-largest economy in terms of economic power in the near future, after the United States and China, but also the desire of Africans to understand why and how India, also a former colony in the past, managed to make such progress in economic development.

In turn, China and India, which are emerging as global powers, are strengthening their positions in Africa through the intensive expansion of trade, investment and other forms of international economic relations, which ultimately determines the depth and scale of their integration into the world economy.

If we talk about the volume of trade turnover with African partners and its growth rates, then China is the undisputed leader here. India is noticeably inferior to its neighbor. The export structure is particularly important. While Russia mainly exports its traditional exports to Africa (rolled ferrous metals, fertilizers, wood, paper), China and India have made a huge leap in one of the most capacious and competitive branches of modern business - in information technology and rely primarily on the export of software, in the development of which a large number of companies are involved. India has the advantage.

WHAT SHOULD RUSSIA DO?

Russian entrepreneurs have repeatedly noted the presence of fierce competition in Africa from China and India, and at the same time-the lack of protectionism and diplomatic lobbying of their proposals by the Russian state. ⁵⁰

The entry of China and India into the African market creates difficulties not only for Russian businesses: at the same time, it deprives the dominant position of traditional partners of African countries from Europe and North America. Now, for China and India, Africa has become an important area for the development of mineral resources, especially oil and gas.

As for Russia, the emergence of such new centers of economic life as China and India, leading to the creation of a more competitive environment in the global economy, " complicates the process of integrating Russia into world economic relations on conditions that meet the country's national interests, "the Russian Foreign Ministry said in its March 2007 Foreign Policy Review."⁵¹. At the same time, as the document notes, with the growth of the Russian economy and the diversification of the structure of Russian exports, opposition to Russia's full participation in the benefits of the international division of labor will increase.

What should Russia do in these circumstances? On the one hand, it should not in any way give up its goals.-

* Southern African Customs Union (SACU). It was founded in 1969 as a part of: Botswana, Lesotho, Namibia, South Africa and Swaziland.

page 26

or act to the detriment of their national interests in their relations with African countries.

Like both Asian powers, Russia was not a mother country and can, like them, offer Africa cooperation that does not lead to political or economic dependence. Russian business still has indisputable advantages in the areas of cooperation with African countries in space exploration, spacecraft launch, nuclear power, geological exploration, as well as in military-technical cooperation and the supply of weapons.

Russia also has the advantage that, unlike China and India, it is not interested in importing mineral raw materials and energy carriers, but may be interested in their extraction. This compares favorably with its competitors, who are often represented in the fields of exploration, production and export of raw materials, especially oil, by the same companies, which creates a difficult strategic situation for African countries. Russia is also not interested in exporting its labor force, nor in migration as such, which also distinguishes it favorably, in particular, from China.

On the other hand, Russia should look for ways and means of interaction with the new Asian "tigers" in which these competitive advantages would be reflected in joint foreign economic activities on the African continent.

Although China and India compete with Russia in the economic sphere, a mutually beneficial system of division of labor may gradually develop between our countries, within which Russian companies will retain a number of high-tech export industries. Russian companies, such as Gazprom or Rosneft, can enter into alliances - with India's ONGC, China's CNPC - to jointly participate in tenders in African countries.

It seems that it would be advisable for Russia to join the trilateral initiative of Brazil, India and South Africa. It is undoubtedly interested in the intention to create a free trade zone within the framework of IBSA, as well as a system of division of labor in high-tech industries, which implies joint development, production and promotion of high-tech products. Experts believe that although IBSA's goals are similar to those of organizations such as G-20 and G-77, its activities may be more effective, since it is easier for participants, who are only three in number, to reach agreement in decision-making.⁵²

For a number of African countries, an important advantage of partnership with China and India is the willingness of the latter, unlike the West, not to criticize their political systems, not to interfere in their internal affairs. In addition, unlike European countries and the United States, which are often guided by the principle of "one country - one export product", China and India do not seek to artificially slow down the development of national industry in African countries, to prevent the diversification of African exports.

In this respect, Russia's policy has much in common with the policy of the countries of the South, which also creates a basis for joint activities.

¹ See: 2006: The World Today and Tomorrow (Review of the report of the Institute for Global Studies "State of the Planet-2006") - Economic Issues. 2006, N 4.

² Ministry OF Foreign Affairs OF THE Russian Federation. Review of the Foreign Policy of the Russian Federation. 27.03.2007 - http://www.In.mid.ru/brp

³ Corinthians 18 (810). May 2005. pp. 2-3.

⁴ Business Day. Johannesburg, January 12, 2007 - http://www.businessday.coza/articles/article.aspx.

⁵ Transcript of an IMF Book Forum. China and India: Expanding Roles in the World Economy. Wash., D.C. December 14, 2006 -http://www.inf.org/external/np/tr/2006/tr061214b.htm

^{Broadman Harry.} 6 Africa's Silk Road. China and India's New Economic Frontier. The World Bank Group. 2007.

⁷ Ibidem.

⁸ People's Daily online. 13.01.2006 - http//mssian.people.com.cn/31521/4024108

⁹ Africa Confidential. L., November 3, 2006. V. 47, N 22, p. 7.

¹⁰ Jeune Afrique. 2006. N 2392. S. 47.

¹¹ Africa Confidential. L., November 3, 2006...

¹² Direction of Trade Statistics. Quaterly. 2000. Wash., IMF, 2001.

¹³ Enter the Dragon? - http://www.businessinafrica.co.za/January2003/Dragon.htm

¹⁴ Hu to Visit Africa on 8-nation Tour. World. January 29, 2007 -http://edition.com/2007/WORLD/asiapcf/01/29/china.africa.reut/index.html

¹⁵ Africa Confidential. L, November 3, 2006...

¹⁶ International Affairs. 2006, N 5, p. 82.

¹⁷ Compass. ITAR-TASS, 18.08.2005.

¹⁸ Marches tropicaux et mideterraneens. 1 mars 2005. S. 11. ¹⁹ International Affairs.., p. 84.

^{Pan E., Writer S.} 20 China, Africa and Oil. Council on Foreign Relations. January 12, 2006 - http://www.cfr.org/publication/9557/

²¹ East African Standard. April 18, 2006.

²² Vanguard. Lagos. July 12, 2005.

²³ Reporter. Addis-Ababa. March 4, 2006.

²⁴ http://www.commersant.com/p738309/Chinese/Africa, 27.02.2007

²⁵ Business Report. May 15, 2007.

²⁶ War and peace. African map of China. 02.06.2007 -http://www/warandpeace.m/m/hots/view/11830

²⁷ Chinese Companies Urged to Show Sensitivity in Africa - Mail and Guardian Online. May 14, 2007 - http://www.mg.co.za/articlePage.aspx

²⁸ War and peace. African map of China...

²⁹ Cristian Science Monitor. February 9, 2007 - http://www.CSmonitor.com/2007/0209/p01so4-woaf.html

³⁰ Business Day. Johannesburg. January 29, 2007.

³¹ Sino-Africa Agreement will Boost Continent - Business Day. Johannesburg. December 19, 2003.

³² China Daily. January 29, 2007.

³³ Cristian Science Monitor. February 9, 2007.

^{Morgan B.} 34 China: World Must do More for Africa. May 16, 2007 -http://www.mg.co.za/articlePage.aspx

³⁵ War and peace. African map of China...

³⁶ Mail and Guardian Online. May 23, 2007 - http://www.mg.co.za/articlePage.aspx

³⁷ More than Humanitarism. The Strategic United States Approach to Africa. Council on Foreign Relations. Wash., December 2005.

³⁸ India - Boosting Trade with Africa. Africa Business Pages. 14.03.2007 - http://www.africa-business.com/features/India.africa.html

³⁹ www.itar-tass.com, 08.09.2006.

⁴⁰ www.itar-tass.com, 22.11.2006.

⁴¹ www.itar-tass.com, 17.10.2006.

⁴² Good Prospects in Africa-India Relations - Somaliland Times. 26.04.2006.

⁴³ India - Boosting Trade with Africa...

⁴⁴ Bulletin of the oil and gas complex. 2007, No. 1 (special issue), p. 53.

⁴⁵ Ibid.

⁴⁶ www.itar-tass.com, 08.09.2006.

⁴⁷ India - Boosting Trade with Africa...

⁴⁸ www.itar-tass.com, 12.10.2006.

⁴⁹ India-Brazil-South Africa: The Southern Trade Powerhouse Makes its Debut - Council on Hemispheric Affairs. March 15, 2006 -http://www.coha.org/NewPress Releases/06.18IBSA.htm

⁵⁰ See: Bulletin of the Oil and gas Complex. 2005, N 4, p. 82.

⁵¹ Ministry OF Foreign Affairs OF THE Russian Federation. Review of the Foreign policy of the Russian Federation...

⁵² India-Brazil-South Africa...

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