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| Flats, cars and oil for China: Angola's growth tempered by growing inequality | Flats, cars and oil for China: Angola's growth tempered by growing inequality |
| (about 1 month later) | |
| When the glass doors swing open at Porsche Centre Luanda, in the capital of Angola, Esmeraldo Chinguto jumps to his feet in the hope of another sale. On display in the showroom this week was a model priced at around $170,000 (£107,390). | When the glass doors swing open at Porsche Centre Luanda, in the capital of Angola, Esmeraldo Chinguto jumps to his feet in the hope of another sale. On display in the showroom this week was a model priced at around $170,000 (£107,390). |
| "The Angolan people like some luxuries and some can afford a Porsche," said Chinguto, who has sold around 50 since opening two-and-a-half years ago. "We thought we'd have problems selling but now there is demand. More and more people want sports cars." | "The Angolan people like some luxuries and some can afford a Porsche," said Chinguto, who has sold around 50 since opening two-and-a-half years ago. "We thought we'd have problems selling but now there is demand. More and more people want sports cars." |
| A decade ago this would have seemed like fantasy. Angola was shattered by five centuries of Portuguese colonialism and a 27-year civil war between the People's Movement for the Liberation of Angola (MPLA), backed by Russia and Cuba, and National Union for the Total Independence of Angola (Unita) rebels, aided by the United States and apartheid South Africa. | A decade ago this would have seemed like fantasy. Angola was shattered by five centuries of Portuguese colonialism and a 27-year civil war between the People's Movement for the Liberation of Angola (MPLA), backed by Russia and Cuba, and National Union for the Total Independence of Angola (Unita) rebels, aided by the United States and apartheid South Africa. |
| Today it is the third biggest economy in sub-Saharan Africa, having expanded by an average of 15% between 2002 and 2008. Despite a subsequent slowdown, growth is predicted to rebound to between 8% and 10% this year. On Friday Angola goes to the polls with President José Eduardo dos Santos, Africa's second longest-serving leader of 33 years, on course to secure another term. He clams credit for stabilising the country and making it a model for the continent. But Angola's story is also much of Africa's story, warts and all. | Today it is the third biggest economy in sub-Saharan Africa, having expanded by an average of 15% between 2002 and 2008. Despite a subsequent slowdown, growth is predicted to rebound to between 8% and 10% this year. On Friday Angola goes to the polls with President José Eduardo dos Santos, Africa's second longest-serving leader of 33 years, on course to secure another term. He clams credit for stabilising the country and making it a model for the continent. But Angola's story is also much of Africa's story, warts and all. |
| The spectacular growth has created few jobs and entrenched or even deepened inequality. Angola is China's biggest trading partner in Africa with some $24.8bn in 2010, an uneven oil-for-infrastructure relationship that has brought tangible benefits but underlined that natural resources can be both a blessing and a curse. None of this appears to have a causal link to reducing corruption or enhancing human rights and democracy – the elections are seen by many as a sham intended to buy superficial legitimacy. | The spectacular growth has created few jobs and entrenched or even deepened inequality. Angola is China's biggest trading partner in Africa with some $24.8bn in 2010, an uneven oil-for-infrastructure relationship that has brought tangible benefits but underlined that natural resources can be both a blessing and a curse. None of this appears to have a causal link to reducing corruption or enhancing human rights and democracy – the elections are seen by many as a sham intended to buy superficial legitimacy. |
| Similar observations have been made about Ethiopia, the Democratic Republic of the Congo, Rwanda and other fast-growing "African lions". "In most African countries, Angola is very symbolic," said Elias Isaac, country director for the Open Society Initiative of Southern Africa (Osisa). "This economic growth is not synonymous with political democratic development. We are starting to understand that economy and democracy don't have much to do with each other. | Similar observations have been made about Ethiopia, the Democratic Republic of the Congo, Rwanda and other fast-growing "African lions". "In most African countries, Angola is very symbolic," said Elias Isaac, country director for the Open Society Initiative of Southern Africa (Osisa). "This economic growth is not synonymous with political democratic development. We are starting to understand that economy and democracy don't have much to do with each other. |
| "We have double-digit growth but do we see the same in political development or in the human rights arena? Can we say there has been the same growth? You can see infrastructure and growth in the oil sector, but how much has this really bettered the lives of the people? The elections are far from being fair, transparent and just." | "We have double-digit growth but do we see the same in political development or in the human rights arena? Can we say there has been the same growth? You can see infrastructure and growth in the oil sector, but how much has this really bettered the lives of the people? The elections are far from being fair, transparent and just." |
| Angola is following the Chinese development model, Isaac argues, and the authoritarian Dos Santos's embrace of Beijing is visible everywhere. Chinese-built towers are rising in Luanda – numerous cranes dotting the skyline promise more to come. Roads and railways have been laid across the country. Isaac estimates that more than 300,000 Chinese people have moved here in the past decade, although the MPLA says the official figure is 40,000 to 43,000. | Angola is following the Chinese development model, Isaac argues, and the authoritarian Dos Santos's embrace of Beijing is visible everywhere. Chinese-built towers are rising in Luanda – numerous cranes dotting the skyline promise more to come. Roads and railways have been laid across the country. Isaac estimates that more than 300,000 Chinese people have moved here in the past decade, although the MPLA says the official figure is 40,000 to 43,000. |
| Nowhere has China changed the landscape more emphatically than Kilamba, a city 18 miles outside Luanda built from scratch in three years for a reported $3.5bn. It contains 10,000 apartments so far, in blocks that might appear Soviet but for shades of blue, green and yellow. There are smooth roads and pavements, working traffic lights and basketball courts, and plans for schools, medical centres, a shopping mall with cinema and a five-star hotel. | Nowhere has China changed the landscape more emphatically than Kilamba, a city 18 miles outside Luanda built from scratch in three years for a reported $3.5bn. It contains 10,000 apartments so far, in blocks that might appear Soviet but for shades of blue, green and yellow. There are smooth roads and pavements, working traffic lights and basketball courts, and plans for schools, medical centres, a shopping mall with cinema and a five-star hotel. |
| Romulo Bedago, commercial manager for the onsite estate agent Delta Imobiliária said: "I think it's a beautiful city. The apartments are good. We are giving an example to Africa and the world that it's possible." | Romulo Bedago, commercial manager for the onsite estate agent Delta Imobiliária said: "I think it's a beautiful city. The apartments are good. We are giving an example to Africa and the world that it's possible." |
| Asked if Kilamba was somewhat soulless, he insisted: "It has character. The soul is coming." | Asked if Kilamba was somewhat soulless, he insisted: "It has character. The soul is coming." |
| Despite the promise of reliable electricity and water and respite from Luanda's traffic jams, take-up was slow when the apartments went on sale last October. "It was a ghost town," Bedago admitted. "But now people are moving. We want people to move in because the city needs to be alive." | Despite the promise of reliable electricity and water and respite from Luanda's traffic jams, take-up was slow when the apartments went on sale last October. "It was a ghost town," Bedago admitted. "But now people are moving. We want people to move in because the city needs to be alive." |
| A three-bedroom apartment costs $125,000; a five-bedroom costs $200,000 – cheaper than in Luanda, but beyond the means of the majority of Angolans living on less than $2 a day. Stung by criticism, the authorities subsequently created a rental option for civil servants – a three-bedroom flat costs $603 per month – and intend extending this to the public. | A three-bedroom apartment costs $125,000; a five-bedroom costs $200,000 – cheaper than in Luanda, but beyond the means of the majority of Angolans living on less than $2 a day. Stung by criticism, the authorities subsequently created a rental option for civil servants – a three-bedroom flat costs $603 per month – and intend extending this to the public. |
| Bedago says 2,200 apartments have now been allocated, although only 500 people are living on site. Among them is Antonio Santos, 43, a government public relations officer who rented five bedrooms two weeks ago. "The Chinese are building for my country," he said. "They are having a positive impact on Angola." | Bedago says 2,200 apartments have now been allocated, although only 500 people are living on site. Among them is Antonio Santos, 43, a government public relations officer who rented five bedrooms two weeks ago. "The Chinese are building for my country," he said. "They are having a positive impact on Angola." |
| Not everyone agrees. Critics say Africa's second-biggest oil producer got a raw deal and is selling to China at around $60 a barrel, well below global prices, with infrastructure alone an insufficient return. They question why unskilled Chinese labourers have taken jobs that could have gone to Angolans, sowing resentment. | Not everyone agrees. Critics say Africa's second-biggest oil producer got a raw deal and is selling to China at around $60 a barrel, well below global prices, with infrastructure alone an insufficient return. They question why unskilled Chinese labourers have taken jobs that could have gone to Angolans, sowing resentment. |
| Angola's boom has also driven a dangerous wedge between the haves and the have-nots. BMWs, Porsches and Land Cruisers meander through Luanda past beggars missing limbs due to the civil war or polio. Designer shops and luxury beachside restaurants sit cheek-by-jowl with crammed, tin-roof shantytowns strewn with rubbish and resembling Brazilian favelas. | Angola's boom has also driven a dangerous wedge between the haves and the have-nots. BMWs, Porsches and Land Cruisers meander through Luanda past beggars missing limbs due to the civil war or polio. Designer shops and luxury beachside restaurants sit cheek-by-jowl with crammed, tin-roof shantytowns strewn with rubbish and resembling Brazilian favelas. |
| Luanda has been dubbed the most overpriced city in the world. "If this city is expensive for expats, can you imagine for Angolans?" said Isaac of Osisa. "It's hell. | Luanda has been dubbed the most overpriced city in the world. "If this city is expensive for expats, can you imagine for Angolans?" said Isaac of Osisa. "It's hell. |
| "Angola doesn't have a middle class. If I earn $4,000 to 5,000, I'm not middle class. My rent would be $2,000 to 3,000, I'd need to budget $500 for water and $400 to 500 for two electricity generators in my house. Doctors, lawyers and economists can't afford to save. You ask an Angolan doctor or lawyer how often he can afford to take his family to a restaurant: it's two or three times a month." | "Angola doesn't have a middle class. If I earn $4,000 to 5,000, I'm not middle class. My rent would be $2,000 to 3,000, I'd need to budget $500 for water and $400 to 500 for two electricity generators in my house. Doctors, lawyers and economists can't afford to save. You ask an Angolan doctor or lawyer how often he can afford to take his family to a restaurant: it's two or three times a month." |
| Dos Santos stands accused of abusing the oil wealth to enrich himself, his family and a narrow elite while failing to deliver housing, education and jobs to the majority. Vanity projects include an ocean bay promenade with manicured lawns and imported palm trees that he officially opened this week. | Dos Santos stands accused of abusing the oil wealth to enrich himself, his family and a narrow elite while failing to deliver housing, education and jobs to the majority. Vanity projects include an ocean bay promenade with manicured lawns and imported palm trees that he officially opened this week. |
| But the politically astute Dos Santos has begun to address the social frustrations ahead of the election, where his MPLA faces Unita at the ballot box. "I am the first to admit the difficult reality that many families face," he told supporters in a campaign speech last weekend. "We will not stand and watch while there are situations of huge inequality in our land." | But the politically astute Dos Santos has begun to address the social frustrations ahead of the election, where his MPLA faces Unita at the ballot box. "I am the first to admit the difficult reality that many families face," he told supporters in a campaign speech last weekend. "We will not stand and watch while there are situations of huge inequality in our land." |
| Campaigning under the slogan "Grow More, Distribute Better", the MPLA has pledged to introduce a minimum wage and subsidies for the elderly. The party airs video adverts listing its achievements: 2,700 km of railways, 148 railway stations, 10 renovated airports, 400 bridges, 6,500 km of roads. | Campaigning under the slogan "Grow More, Distribute Better", the MPLA has pledged to introduce a minimum wage and subsidies for the elderly. The party airs video adverts listing its achievements: 2,700 km of railways, 148 railway stations, 10 renovated airports, 400 bridges, 6,500 km of roads. |
| The MPLA also claims it has cut poverty from 68% of the population in 2002 to around 39% in 2009, and raised average life expectency from 42 to 52. "We have to be serious and sincere," said Rui Pinto de Andrade, a party spokesman, speaking at its headquarters on Ho Chi Minh Street. "In your country, is there still hunger or not? Did you know Angola when it was a destroyed place? It was difficult to go 2km from here because of the state of the roads. In that scenario, what would you do first, helping the people or building infrastructure? If you don't first have a water supply and rebuilt roads and power plants, how do you help people?" | The MPLA also claims it has cut poverty from 68% of the population in 2002 to around 39% in 2009, and raised average life expectency from 42 to 52. "We have to be serious and sincere," said Rui Pinto de Andrade, a party spokesman, speaking at its headquarters on Ho Chi Minh Street. "In your country, is there still hunger or not? Did you know Angola when it was a destroyed place? It was difficult to go 2km from here because of the state of the roads. In that scenario, what would you do first, helping the people or building infrastructure? If you don't first have a water supply and rebuilt roads and power plants, how do you help people?" |
| Describing China's help as "wonderful", he continued: "We are working hard to minimise poverty. Nowhere in the world is everyone rich. Everywhere in the world has people who are well educated and who are not. The other kind of society doesn't exist. If it does, give us the formula and make us a paradise country." | Describing China's help as "wonderful", he continued: "We are working hard to minimise poverty. Nowhere in the world is everyone rich. Everywhere in the world has people who are well educated and who are not. The other kind of society doesn't exist. If it does, give us the formula and make us a paradise country." |
| Back at the gleaming Porsche Centre Luanda, Esmeraldo Chinguto is among those reaping the rewards of Africa's new economic dynamo. "We have to follow the constitution and we have to remember one thing: in Africa we look at our head of state as our father and it is very difficult to change," mused the former army lieutenant colonel. "The Angolan people look at our head of state as a father. | Back at the gleaming Porsche Centre Luanda, Esmeraldo Chinguto is among those reaping the rewards of Africa's new economic dynamo. "We have to follow the constitution and we have to remember one thing: in Africa we look at our head of state as our father and it is very difficult to change," mused the former army lieutenant colonel. "The Angolan people look at our head of state as a father. |
| "He gives confidence to all Angolans and makes them happy. This shouldn't be changed or it will stop all development programmes and plans for three or four years. The machine is running at such speed that if we broke it – oh, my goodness." | "He gives confidence to all Angolans and makes them happy. This shouldn't be changed or it will stop all development programmes and plans for three or four years. The machine is running at such speed that if we broke it – oh, my goodness." |
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