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VIII.3.6 Velocidad de flujo

VIII.3.13. Análisis microbiológico

Introduction

Since state-to-state relations between China and Africa can be opportunistic and politicians sometimes prone to promote their personal interests over those of the nation, private links between Chinese migrants and Africans are equally as important as those between their leaders. As more Chinese SOEs are seen building roads and buildings, small-scale traders from China are also becoming a common sight throughout African cities. Most Chinese migrants reside in their host country on a temporary basis and tend to expatriate their earnings back to China, which raises doubts about the extent to which their presence exerts positive spill-overs into indigenous communities. Yet Chinese migrants generally utilise kinship and business networks established in China to identify and exploit economic opportunities in Africa. When they settle in their host countries, these networks are transported to African societies. This has important and long-term consequences for African entrepreneurs, who can subsequently exploit the Chinese networks, integrate with Chinese supply chains, and more generally take advantage of new economic opportunities presented to them by the influx of Chinese migrants in their countries. In this chapter, I show that the inward flow of entrepreneurial Chinese migrants and the proliferation of Chinese business networks and supply chains have facilitated local private sector exchanges in Madagascar.

Chinese migration to Madagascar has been conditioned by several factors. Whereas China once actively discouraged the emigration of its citizens, since the 1990s it has implemented a variety of regulatory changes to facilitate the movement of Chinese migrants abroad. 442 More specifically, the signing of a Sino-Malagasy immigration agreement in 1996 eased entry procedures for Chinese nationals wishing to live in Madagascar. Madagascar’s relative proximity to China also means that travel and transport times and costs between the two countries are relatively low compared to, for example, West African countries. The inauguration of a flight between Antananarivo and Guangzhou (via Bangkok) in 2008 then offered a fast connection between Madagascar’s capital and China’s

442 Altogether, China has formulated more than 11,000 laws and regulations dealing with its

diaspora. See Barabantseva, “Trans-nationalising Chineseness”, 7-28, for a useful account of Chinese regulatory support for its overseas diaspora.

principal manufacturing hub and traditional emigrant regions in the southern coastal areas. Additionally, since successive waves of migration often build on earlier trajectories, the fact that Madagascar has a large community of resident Chinese made the island more attractive for new Chinese migrants. The existence of the old Sino-Malagasy community also differentiates Madagascar from other case studies of Chinese migrants in African countries, influences the acuities of the Malagasy towards the new Chinese, and more broadly enriches the analysis of the new Chinese in Madagascar, since perceptions of the Chinese in Africa depend on the unique history of each country with China.443

The earliest Chinese settlers came to Madagascar in the mid-1800s, after which the community grew through the importation of contract labourers, subsequent waves of private immigration, and natural demographic growth. Throughout the early- to mid-1900s, Chinese immigration rates and economic activities were conditioned by French colonial policies. France levied entry fees on new Chinese immigrants and imposed work permits and labour quotas on existing settlers. These policies limited contact between the Chinese diaspora in Madagascar and their relations and networks in China, which led to the strengthening of local Sino-Malagasy networks. The immigrants clustered around Toamasina and along the country’s eastern coast, where they inserted themselves into the local economy as small-scale agricultural traders and shop owners. During colonisation, the Chinese settlers acted as intermediaries between Malagasy farmers and French industrialists. Since independence, the Sino- Malagasy community has diversified into more urban areas and other sectors of the economy, although it still retains a strong presence in the agricultural trade today. The contemporary old Chinese community in Madagascar is the second largest group of foreign minority residents in the country, and it is well integrated with the local population.444 However, although the Chinese diaspora in Madagascar has an extensive historical geography, significant and multiple knowledge gaps remain on the more recent wave of entrepreneurial and informal migrants, particularly on the “under the radar flows” and the expansion of new Chinese business networks in the country.445

The new Chinese migrants began arriving in Madagascar in the mid-1990s, and especially over the past decade. The majority of them settle temporarily in Antananarivo, and to a lesser extent in Toamasina, and generally trade

443 Esteban, “A Silent Invasion?”, 232-251.

444 The largest foreign minorities in Madagascar are the French (33%), followed by the Chinese

(19%) and the Indo-Pakistanis (16%). Razafindrakoto and Roubaud, La Politique

d’Immigration, p. 1.

manufactured goods imported from China. This has occurred to such an extent that the district of Behoririka in downtown Antananarivo has become known as the capital’s Chinatown.446 All of the new Chinese migrants arrived in Madagascar after hearing about economic opportunities from friends, family members, or business contacts, and retain strong links to their homeland through kinship and business networks. Increasing numbers of Malagasy find employment in Chinese shops, and small-scale local entrepreneurs are beginning to purchase goods imported from China by the new Chinese in order to launch their own retail operations. As members of the new Chinese community become more successful and begin diversifying their activities in Madagascar, they also foster contact with the bigger Malagasy businesses, who can in turn benefit from new supply links introduced by the Chinese and procure machinery and technical equipment directly from China.

I proceed by providing a typology of Chinese migrants in Africa and discussing the expansion of Chinese business networks on the continent. Since the historical relevance of Chinese migration to Madagascar has helped spur the recent surge of new Chinese immigrants, I explore the evolution and economic roles of the old Chinese community in Madagascar. Next, I examine the growth of new Chinese entrepreneurial migrants and small-scale traders on the island. By discussing their levels of integration with the old Chinese community and Malagasy society, I show that while the new Chinese remain a relatively socially insulated group, their principal contact with Malagasy is through their business networks. I then provide evidence that this has enhanced economic opportunities for the Malagasy private sector.

Contextualising Chinese migrants and business networks

Three principal types of new Chinese migrants to Africa have been identified in the literature: labour migrants, small-scale entrepreneurs, and agricultural workers.447 Labour migrants generally work for Chinese SOEs or private Chinese companies involved in infrastructure and other construction projects across Africa.448 Labour migrants may evolve into entrepreneurial migrants, meaning that these two categories are sometimes interchangeable. Independent migrants arrive in Africa seeking their own economic opportunities.

446 For the purpose of this thesis, Chinatown is utilised as a loose label for the focal point of small-

scale Chinese commercial enterprise in the capital.

447 Mung, “Chinese Migration”, 91-109. 448 Park, Chinese Migration in Africa.

They generally launch their own import-export businesses, commonly in retail or in the wholesale trade of goods manufactured in China, especially textiles, clothing, shoes, household items, electronics, and manufactured trinkets.449 A small amount of Chinese migrants are also agricultural workers seeking to become landholders in Africa.450 The majority of these migrants are temporary migrants, which are defined as those migrants whose duration in their host country is limited by pre-determined work contracts, legal opportunities and host country restrictions, or by their own choice. Temporary migrants may include transit and circular migrants. The term “transit migrants” was originally coined in the 1990s to denote Africans migrating to North African countries temporarily in order to reach their ultimate destinations in Western Europe.451 The expression is now being applied to describe Chinese migrants who use sub-Saharan countries as a temporary stop in their journeys to Europe or North America because of hardening immigration policies in these countries.452 Circular migrants usually return to China. In general, Chinese migrant patterns are based on and create further transnational economic networks.453

Temporary Chinese entrepreneurial migrants use existing kinship or business networks developed in China when they expand into Africa. Business networks function as a vehicle for kinship or personal relationships to influence the success of economic negotiations and transactions. The medium responsible for this confluence is called guanxi in Chinese, which translates as connections or

the process of social interaction.454 The notion of guanxi, and the ways in which it has influenced the success of Chinese capitalist networks, alludes to a cultural exceptionalism based on the vague notion of “Asian values”, in which personal ties play a large role in determining economic outcomes.455 These links exist in at least three separate forms: kinship ties that link together components of extended family enterprises, social ties formed through shared social histories, and professional ties based on connections formed throughout the course of repeated business transactions. These three categories span the range from informal to formal, and often overlap. The networks themselves are woven together with strands of information, shared contacts, sometimes finance, and a degree of trust.456 The ambiguous concepts of guanxi and Asian values can invoke a commonplace but misconceived assumption that the use of personal ties in

449 Mung, “Chinese Migration”, 91-109. 450 ACP Observatory on Migration, 2012.

451 See Collyer and de Haas, “Developing Dynamic Categorisations”, 468-481. 452 Park, Chinese Migration in Africa.

453 Vertovec, Circular Migration. 454 Ying, “Questioning Guanxi”, 543-561. 455 So and Walker, Explaining Guanxi, p. 2. 456 Brautigam, “Close Encounters”, 447-467.

business is based on historically rooted and culturally conditioned processes, and that it is therefore a uniquely Chinese phenomenon.

The informal and flexible nature of Chinese business networks implies that they are easily transferable to new social contexts and organisational structures, and that they function well in the type of informal economies found in many developing countries.457 Since economic transactions within Chinese networks are based on relationships, they can be concluded without resorting to law or other formal rules. Where domestic regulatory or enforcement mechanisms are weak, Chinese networks help deter opportunistic behaviour such as contract violation through the enforcement of community sanctions.458 The role of Chinese entrepreneurship and business networks in industrialisation processes has therefore been credited with significantly contributing to the growth of local entrepreneurship and global economic integration in East Asia throughout the 1980s and 1990s. “The local, regional, and global connections…of the Chinese diaspora, and their talent to spin local, regional, and global business webs, preferably based on long-term, non-contractual trust relationships with kinsmen are almost legendary”.459 Yet, as observed by Meagher, “too few questions are asked about what happens when Asian business networks are extended into new regions, with different states, different institutional histories, and different social and economic realities”.460

Since networks are by definition informal, they are assuming complex forms of interactions with local entrepreneurs in Africa. Chinese migrants are not a homogeneous group of actors, and the manners in which migrant communities use their networks in African countries vary. African societies can connect to the global economy through “human capital that will have to come mainly from the developing world, particularly from China”, but this connection must be constructive in order to be developmental.461 On the one hand, Chinese traders can use their networks to exploit increasingly fluid comparative advantages in their particular host countries without many positive spill-overs to indigenous entrepreneurs.462 In general, the Chinese entrepreneurs who use business networks can depend on financial, technical, and informational support from their wide- ranging connections within these linkages. Improved access to informational and financial networks provides a faster approach to credit, information, and

457 So and Walker, Explaining Guanxi.

458 Song, “Chinese Private Direct Investment”, 109-126. 459 Menkhoof and Gerke, Chinese Entrepreneurship, p. 13. 460 Meagher, “Weber Meets Godzilla”, 261-278, p. 265.

461 Teunissen, “Clichés, Realities, and Policy Challenges”, 1-17, p. 5. 462 Gadzala, “Chinese Entrepreneurs”, 5-7.

technology for the Chinese members of the networks, which is not the case for their African counterparts. On the other hand, contact with Chinese networks could help to invigorate African entrepreneurship through the inflow of models, ideas, and resources from outside the region.463 Chinese business networks “facilitate the exchange of inputs critical to global capitalism, including finance, technical knowledge, and marketing information” for African businesses. 464 Via formal and informal contact, they accelerate information sharing in their host economy. In the case of trade, information sharing helps match buyers and sellers, and in terms of investments, it helps identify new and potential opportunities.465

The Chinese community in Mauritius provides a useful example of how Chinese business networks facilitated the creation of a development-oriented regime, but the case of Mauritius differs from that of Madagascar in important respects. In the late-1970s, the old Chinese community in Mauritius played a vital role in the establishment of the EPZ on the island by harnessing their business links with Asian entrepreneurs. The idea for the EPZ originated with a local Sino- Mauritian university professor who was familiar with the experience of Taiwan and who believed that the East Asian industrialisers possessed a surplus of capital that could be invested in Mauritius.466 Influential members of the Sino-Mauritian

community subsequently convinced the Mauritian government to establish an EPZ by travelling to China and inviting co-ethnics from Taiwan, Hong Kong, and Malaysia to invest in the scheme. These investments lead to dynamic, export- oriented manufacturing growth in the EPZ, and simultaneously exposed Mauritians (both Chinese and non-Chinese) to the intricacies of global production and export processes. Eventually, local entrepreneurs used the knowledge acquired from joint ventures established with foreign investors to launch their own enterprises. In contrast to Madagascar, the old Chinese in Mauritius had helped settle the island, which was uninhabited until the 1600s. Early on, they contributed to the growth of local industry by creating tobacco processing and alcohol distillation factories, and they maintained close connections to their homeland.467 When the new Chinese migrants began investing in Mauritius, it was often through existing kinship ties with the old Chinese community.468 In Madagascar, the early Chinese settlers arrived in a country that was already populated by the Malagasy, and politically and economically under Merina and then French control.

463 Meagher, “Weber Meets Godzilla”, 261-278. 464 Brautigam, “Close Encounters”, 447-467, p. 447. 465 Song, “Chinese Private Direct Investment”, 109-126. 466 Meisenhelder, “Developmental State in Mauritius”, 279-297. 467 Brautigam, “Flying Geese or Hidden Dragon”, 51-69. 468 Brautigam, “Close Encounters”, 447-467.

Early Chinese migration to Madagascar

It is generally thought that Chinese navigators had first sighted but not visited Madagascar during one of Chinese explorer Admiral Zheng He’s expeditions along the coasts of East Africa as early as the 1400s. The display of Chinese pottery from this era at the archaeology museum of Antananarivo suggests that there might have existed Sino-Malagasy contact and perhaps trade during this time. However, Zheng He’s pioneering explorations around the world did not result in any Chinese settlement. It would be another 400 years before the first waves of Chinese immigrants and labourers ventured to Madagascar, and another 500 years until the Chinese state and its people would actively pursue global aspirations and migrate to Africa in more substantial numbers. According to the earliest available records, independent Chinese migrants began arriving in Madagascar in the mid-1800s.469 An English missionary observed the first Chinese-run shop in Toamasina in 1862, and Bardonnet noted that there were 40 Chinese living in Toamasina in 1893.470 By 1904, 452 Chinese were believed to be residing in Madagascar as private entrepreneurs.471

The growth of Chinese immigrants during this time is due to the defection of Chinese migrants from the neighbouring Mascarene Islands such as Reunion and Mauritius. Mauritius has been cited as the original starting point of the Chinese diaspora in the Indian Ocean.472 British colonial authorities had originally transported 40 Chinese contract labourers to Mauritius in 1828, and subsequent British and French colonial governments continued importing workers from China until the late-19th century.473 Many of the Chinese who had worked in Mauritius as contract labourers fled to Madagascar voluntarily after a drop in global sugar prices in the mid-1800s had resulted in an economic recession in Mauritius.474 In addition, after 1890 a wave of new Hakka Chinese immigration to Reunion and Mauritius prompted the movement of the first wave of Cantonese Chinese to points farther west, such as Madagascar.475 Consequentially, the majority of the old Chinese community in Mauritius today is Hakka Chinese,

469 Madagascar’s Indian-Pakistani diaspora also began arriving during this time, but they settled

along the country’s western coast.

470 Ellis, Madagascar Revisited, and Bardonnet, “Les Minorités Asiatiques”, 127-224. 471 Slawecki, “L’Origine et la Croissance de la Communauté Chinoise”, 484-494. 472 Pineo, Chinese Diaspora.

473 Slawecki, “L’Origine et la Croissance de la Communauté Chinoise”, 484-494. 474 Pineo, Chinese Diaspora.

whereas the majority of the resident Chinese in Madagascar are Cantonese. Rivalries between groups of Hakka and Cantonese remain a common feature among overseas Chinese communities.476

In 1896, France had also begun to import Chinese contract labourers to Madagascar after discovering that the Merina’s federal system of socio-political organisation and animosity towards Madagascar’s other ethnic groups had resulted in the relative isolation of the capital from other main towns. Out of strategic calculation, the Merina had chosen not to build roads or significant transport routes in the country. France’s first governor general in Madagascar, Joseph Gallieni, identified the construction of vital infrastructures as a prerequisite of French economic success in Madagascar.477 However, the Malagasy population was hostile to any system of centralised rule and small in size and density, which meant that Gallieni’s ambitions to improve the country’s infrastructures were initially thwarted by a shortage of local labour.478 The movement of Chinese contract labourers to Madagascar coincided with the abolition of slavery by the European powers, economic expansion and labour shortages in Asia, and an official authorisation by the Chinese emperor in 1860 (following defeat in the Second Opium War) to legitimise the previously clandestine activity of hiring Chinese contract labour for large European colonial construction projects.

Six contingents of Chinese contract labourers arrived in Madagascar between 1896 and 1901.479 The original four convoys were hired to assemble a railway connecting Toamasina to Antananarivo, which is still in operation today and remains one of the country’s two functioning train tracks. The first group of 499 Chinese workers docked in Toamasina in August 1896, followed by the disembarkation of 614 workers a few days later. Two further contingents totalling

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