ABSTRACT
Migration is one of the most topical issues in the last decades due to its complex nature and both the benefits and challenges that come with it. The growing Chinese presence in Africa has led to several agitations and strong public opinions. In recent times, this new trend of migration by Chinese has led to the influx of Chinese products and the rapid growth of small Chines shops. This has been viewed as posing as an obstacle to the indigenes who are managing the informal sector thereby hindering the progress of local factories. Thus, in Ghana the influx of Chines and importation of cheap Chinese products has been one of the most talked about issues.
In the wake of various pockets of agitations that continuously arise from Ghanaian traders with respect to the presence of Chinese traders in the trading sector, this study consequently, sought to examine the risks involved for Ghana due to the Chinese traders‘ presence in the country. The study specifically examined the risks, threats and potential health challenges Chinese trade pose to Ghana. The study used a systematic review method to assess Chinese trading activities in Ghana; threats to local businesses. Studies which used qualitative, quantitative and mixed designs are included in this study. Reports on Chinese in migration into Ghana, their contribution to the economy of Ghana as well as the threats they pose to local businesses in Ghana were included. Methodical electronic searches of databases such as ProQuest Pubmed, ScienceDirect, Google Scholar, JSTOR were undertaken.
In Ghana, one of the main threats facing the trading industry is the smuggling of Chinese prints through the borders. Smuggling de-regulates the Ghanaian market; that is, it undermines the protective element of the import tariff (and fees and taxes) as it significantly reduces the price at which the Chinese African print may be sold. This makes Ghana‗s textile companies unable to compete on their main market, and even the domestic market which may lead to all those local
companies producing these fabrics collapsing. The influx of these cheap Chinese goods in the Ghanaian markets compromise on health and safety standards in the manufacturing process. The illegal mining activities by the Chinese have increased pregnancy, high prevalence of HIV as well as increase in respiratory conditions.
CHAPTER ONE
Introduction
Migration is one of the most topical issues in the last decades due to its complex nature and both the benefits and challenges that come with it. It is a global phenomenon that is increasingly shaping developmental processes in our ever globalising world and touches on a range of socio- economic issues as well as security which impacts our lives everyday (Blinder and McNeil, 2017). The contribution of immigrants to the economies around the world cannot be overemphasized. Over a decade now, immigrants have constituted 47% of the increase in the workforce in the United States, and 70% in Europe (OECD, 2012). Likewise, in most low rated occupations in Europe, immigrants were the majority occupying those positions making up (24%) and the United States (28%). Thus, occupations such as craft, servicing, domestic work as well as machine operators were all part of declining jobs in Europe; whereas in the United States, jobs such as production, maintenance and installation were part of the jobs occupied by immigrants. All these jobs have been filled by immigrants because of its unattractiveness to the citizens (OECD 2014).
Since 1999, the Chinese government has adopted the ―going out‖ strategy which aimed at helping Chinese firms with sole purpose of exploring opportunities available in foreign countries to invest and establish subsidiaries in those foreign countries. The Chinese government provided support to these Chinese subsidiaries to establish themselves; thus sometimes making them joint owners of the various subsidiaries they establish (Terence et al, 2012). The growing Chinese presence in Africa has led to several agitations and strong public opinions. In recent times, this new trend of migration by Chinese has led to the influx of Chinese products and the rapid growth
of small Chines shops. This has been viewed as posing as an obstacle to the indigenes who are managing the informal sector thereby hindering the progress of local factories. Thus, in Ghana the influx of Chines and importation of cheap Chinese products has been one of the most talked about issues. (Dittgen 2010; Dobbler 2008; McNamee et al 2012; Scheld 2010).
In Ghana these agitation have been led by the Ghana Union of Traders Association. Since the year 2000, many Chinese have set up shops in the central part of Accra particularly around the Rawlings Park, which led to that area being formally renamed the Ghana – Chinese Commodities Wholesale Town around the year 2004 and known as ―China Town‖ even though a few Chinese shops in the complex.
Some of these issues led to GUTA remonstrating its dissatisfaction with how uncontrolled foreigners are in their trading. This led to the Union body agitating and threatening the government with a demonstration if the 1994 GIPC ACT is not enforced duly on the foreigners. (Takyi-Boadu, 2005). This study focused on the Chinese traders in Ghana and how their business activities pose a threat or benefits Ghanaian businesses.
Problem Statement
The reception and integration of immigrants is a significant economic and social phenomenon in many previous emigration countries (Kerr and Kerr, 2011). More so, any possible link between immigration and development largely hinges on the structure of the host country‘s economy and the characteristics of the immigrants there (Altonji et al, 1991). Immigrants can have good and bad effect on the economy of receiving countries. Positively, immigrants apart from securing employment at their host countries also create jobs as investors. This leads to the increase in employment opportunities citizens could have (Wadhwa et al., 2008). However, the presence of
migrants could have an adverse effect on host nations if they are competing with nationals for jobs without being entrepreneurial. Their influence on economies transcends beyond the labour market, human capital production and economic growth (ILO et al., 2015). This is evident in recent rhetoric in immigration policies in Europe and USA where even candidates have won elections pushing the agenda of anti-immigration. One of the arguments being made in favour of anti-immigration is the belief that most citizens are deprived or denied of their jobs due to the presence of labour migrants in their country of origin.
Until recently, little there has been little empirical work done on the impact of immigrants especially Chinese immigrants on the host country‘s economy. Even that, most of the research on the impact of immigration has been on the developed countries. (Friedberg and Hunt, 1995). Adamson (2006) assessed the socio-political and economic effect of immigrants on host countries. Friedberg and Hunt (1995) studied the impact of immigrants on host country‘s wages, employment and growth; Kerr and Kerr (2011) studied the economic impacts of immigration by examining the magnitude of immigration as an economic phenomenon in various host countries where they also dealt with the assimilation of immigrant workers into host-country labour markets and the knockdown effects for natives.
However, despite the impact of immigrants on destination countries, there is a general dearth of research on an economic south country like Ghana as a migrant destination. More attention has been paid to south-north migration and associated remittance flow to countries of origin. Ajavon (2014) studied Chinese trading activities in the Central Business District of Accra and its effect on the local economy while Asante (2017) studied the contribution and integration of Nigerian traders to Ghana. While a lot of emphases have been placed on the positive contribution of
immigrants to receiving countries, not much comprehensive work has been done focusing specifically on the risks involved in the presence of immigrants in the area of trade, health and security. In the wake of various pockets of agitations that continuously arise from Ghanaian traders with respect to the presence of Chinese traders in the trading sector, this study consequently, seeks to examine the risks involved for Ghana due to the Chinese traders presence in the country. The study specifically explores the risks threats and potential challenges Chinese trade pose to Ghana.
