Geo 5.4

Angola’s history

Former portuguese colony; portugal brought weapons and technology in exchange for gold,diamonds, slaves, etc. (exploitation colony). After independence, it struggled to settle because of civil wars caused by self-enrichment of the elite and unequal distribution of money earned from export of resources; slowed down economic development

Faults

a crack or fracture in the Earth's crust where rocks have moved past each other

Horsts

lifted areas along a fault

grabens

subsided areas along a fault

How are the resources like diamonds/gold formed in Angola?

The breakup of gondwana caused a complex rifting system that created horsts and grabens, which led to a difference in altitude. After, a period of erosion and sedimentation occured. The horsts containing intrusions and kimberlite pipes were eroded by rivers that flow from horsts to grabens. Therefore the grabens were filled with sediments like diamonds and gold

Oil in Angola

About 90% of its exports, formed directly after breakup of gondwana; the remains of animals/plants at bottom of sea were buried, heat and pressure led to formation of oil

Civil war in Angola

MPLA (supported by soviets) and UNITA (supported by usa); MPLA was more advanced with weapons and oppressed the UNITA. It owned oil fields and urban areas and ruled the country. UNITA conquered the diamond and gold rich areas to finance their weapons and illegally exported diamonds to western countries; how they financed their struggle

Blood diamonds

diamonds that are sourced from a conflict area and sold to foreign companies

Why does China need Angola?

China is a semi-periphery country but growing faster than traditional core countries. In order to continue growing it needs access to resources

Angola model

Angola gives China concessions to build construction projects, China pretends to develop the economy of Angola, but majority of profits go back to China. Workers and money come from China so few Angolans are employed. The Chinese construction company extracts the resources and takes them back to China.

Outcome for China in the Angola model

Cheap access to resources (railways and harbours built to make resources effective), cheap cost of living in Angola while workers are on site and families move there, profits go to China (Chinese construction company), cheap access into Angolan market via concessions

Outcome for Angola in Angola model

Infrastructure built (roads, rail, hospitals), little opportunity for employment; most jobs go to Chinese workers, small amount of profits come to Angola, not all infrastructure built is useful to local Angolans: unable to afford things like hotels, malls, etc.

Roles of core and peripheral countries in foreign investment

Periphery countries need investment capital, provide natural resources and labor and receive foreign investment. Core countries have more money and technology, own large MNC’s and invest abroad; core countries invest in peripheral countries by funding construction projects, energy infrastructure, workers and training, etc

Impact of Angola model in political stability

Can increase stability because people gain jobs, infrastructure improves, government has more resources. Can decrease stability if debt becomes too high, wealth is distributed unfairly, corruption increases, different groups compete over resource revenues

3-step impact of Angola model

Foreign investors provide money for infrastructure, leading to economic growth and improving infrastructure; the peripheral country repays loans using income from natural resources (such as oil). The foreign country builds infrastructure quickly and improves trade, transport, etc. Angola repays; when oil prices are high, repayment is easier