11 - The Impact of Globalization on Emerging Markets: The Case of Côte d’Ivoire

Summary

Introduction

Globalization is changing the African political and economic landscape. The global resource and energy challenge for emerging economic powers has turned many African countries into desirable partners for investment in exchange for development cooperation and political partnerships. Not only governments but also private equity funds explore new opportunities in Africa. As former colonial powers gradually leave the field, space is opening up for new players in the global arena. New global rivalries, in particular between China and the United States, have not left Africans untouched. Conferences such as the China-Africa Business Summit in 2009 underscore the new importance that is given to the African countries and their resource riches. Specifically, India and China have strongly increased their efforts to develop ties with Côte d’Ivoire, and such emerging relationships are the focus of this chapter.

These recent developments have raised substantial concerns over which model for development and industrialization policies will determine the future of Africa. The academic business literature, beyond the development field, that accounts for changes in Africa is limited, and relevant literature on Côte d’Ivoire is virtually nonexistent. Since the outbreak of the country’s political crisis in 2002, few researchers have found their way into Côte d’Ivoire. The country went through a time of civil conflict from 2002 to 2004 and since then has been split in two. The first postconflict democratic elections in November 2010 did not solve the conflict but created a political stalemate between the major opponents, Alassane Ouattara and Laurent Gbagbo.

In this chapter, I provide a detailed outlook at the investment patterns in Côte d’Ivoire in order to contribute to the wider analysis of changes in emerging countries in Africa. I collected data for this chapter during my work at the International University of Grand Bassam in Côte d’Ivoire in 2009. I concentrated on archival data and interviewed crucial people from government, academia, and the private sector. Herein, I focus primarily on the status quo in Côte d’Ivoire, outlining the shifts that have occurred with regard to investment and business in general. I place particular emphasis on the arrival of Indian and Chinese companies. I first discuss the current setting, explaining some of the predominant social and environmental challenges, then turn to recent developments and the evidence of investment patterns and business practices.