The Force of Argument and not the
Argument of force. Changing the Cameroons social media debate form from force
to reason.
In an intellectual exchange that took place between young Leaders of The Cameroons, comprising of; Ateh Thompson, Mark Bareta, Atanga Marcelius, Arrey Martins, Akoson Raymond and Ashu Shamy, reacting to an article published by Ateh Thompson about the reasons and benefits for AFRICA increasing business relations with China at this time of China’s currency, the Yuan has been devalued by 4.4%.
![]() |
| ATEH THOMPSON |
![]() |
| ASHU SHAMY |
![]() |
| BARA MARK |
![]() |
| AKOSON RAYMOND |
![]() |
| ATANGA MARCELIUS |
![]() |
| ARREYMARTINS |
INTRODUCTION
This piece of compilation sets forth
a series of facts and personal view points that can educate people, students, researchers,
economists, government policies and nations on how to react to the devaluation
of the chinese yuan, vis a vis the conduct of trade deals between Africa as an
emerging economy with China. The debate does not set out to cast out any anger
or bitterness to every view advanced, but it simply an intellectual exchange. A
closer follow up of the debate will take us into a deeper understanding on how
to carry out a constructive debate in various platforms; the social media especially
Facebook, TV, radio and any other platform. This exchange shows that in a well-organized
intellectual setting, persons could drop out the force of argument and adopt
the argument of force and reason.
THE CORE
OF THE DEBATE
Ateh
Thompson observed in his article that, upon all the times Africa has been into
trade with China, this is the best moment Africa could reap huge benefits from
such business relations. He stated thus; “........doing business with China has never been
more better.Go for it now Advanced so many reasons why this assertion is true
and why African economies should go for it, more than ever before. It is
good business!". Ateh.
The
underlying reasons for this exchange were to confirm the veracity of Ateh’s
declaration that indeed, the devaluation of the Yuan provides a better
business opportunity for African countries dealing with China. Whereas,
contrast to that assertion that; such a statement is not apt, and so, it
wouldn’t be advisable for Africans to intensify business deals with China at
during this devaluation period, necessitated the debate that followed. The
point of Objection was sponsored by Ashu Shamy.
Reacting to Ateh’s post, Ashu Shamy,
made the first reaction and reacted directly to the assertion. Ashu reacted to
as such;
ASHU:
“You've put
it so well and your analyses are superb. Let me come closer to your most
authoritative assertion It is true the devaluation of the Chinese Yuan
currently has no direct impact(s) on the African economies and Cameroon in
particular. And as a true economist that you are, it is quite convincing to
state as such... This is very true sir. I couldn't have argued or agreed
further. But from a layman's point of view as mine, I do believe that….such
benefits will only sustain but in short
and not in the long run…bearing in mind that the goods are priced in USD and
not yuan, it will be expensive for China to buy our African raw materials as
rubber, platinum copper etc. The inability to purchase these raw materials will
cause a huge decrease in demand and the demand curve will be shifted to the
left. Meaning while our economies will suffer heavily from poor supplies due to
the reduction in demand from China causing a complete shift of the supply curve
to the left. We know the direct implications of that in Macro economics".
Mr Mark Bareta, came forth with his
reaction. He put this forth;
Bara Mark:
“if African goods are price in the
dollar, this means you have less dollar, you buy more yuan then that means
buying more goods…that means more goods will be exported from China, the higher
more goods are exported, its economy becomes buoyant. The problem is that, how
would these goods bought cheaper than before influence homemade products?
Therefore government which catching on this devaluation should protect local
home made products and companies".
Coming back to the point, Mr Ateh
reacts quickly. He said:
Ateh Thompson:
“Governments therefore must, in taking advantage of these
current economic realities protect their home industries with rigorous policies
save guards in the areas of exchange rates and foreign pricing. Strength in
agric business must be a necessary inclination and industrialization remaining
a clear and persistent country objective, precisely in transformation and
packaging. These will ensure sustainability and their employability, of home
based companies with an urge over the crushing imports that really appear less
costly and attractive to consumers."
It didn’t
end at that as Ashu comes back in with another submission in defense to his
opinion that the business should not be encouraged.
He put this
forth;
Ashu:
“let us
turn the table around changing the trend of supply and demand. It is widely
accepted that Africa is the highest receiver nowadays of Chinese made products,
which makes Chinese the major supplier and Africa the main Buyer. Taking it as common
place knowledge, now considering the reduction in demand due to the inability
to purchase the USD to buy the African raw materials like rubber per se, which
constitute one of the major consumption products from China so far, don't u
think it will affect its production? Chinese manufacturers off course will have
little available rubber to supply the vast and hungry African markets. To me, i
do believe that in the long run, most of these Manufacturers will have to run
out of materials, there will be an increase in the cost of production
especially the variable costs, which will imply that most of the companies will
even have to go out of the market, lay off workers. It might even cause a
collapse of the Sino African trade route. The vast and hungry African Market
will have to stay hungry and in the event to rush out of the fixed, they will
sought other markets elsewhere, probably going back to Europe and USA. It will
not be a very good deal therefore if we will have to consider varied options.”
As a continuous intellectual process,
Akoson Raymond make a sharp input; He view it as such.
Akoson Raymond:
“I tackle the debate from a very lay
man bird view;.. the issue with a 'not a long term win for Africa' is
commendable. However, I believe that any economic opportunities for Africa
should be, at this time -- sought as 'the fastest bird picking the fattest
worm' than the 'patient dog eating the fattest bone' sort of comparison. I
strongly believe that the negativities registered by Africa as a result of this
devaluation of the Yuan very much pales in comparison to the positivities.”
Arrey Martins came up with a view as
such:
Arrey:
“One thing we should learn is that
once a country has good economic footing, it can devalue or determine the
strength of its currency at any time. China deliberately devalue it currency to
make its good cheaper in the US market. Thou it had a consequence (good or bad)
to Africa; their prime motive is an economic war with the US. By so doing, the
will increase export to the US and reduce import to China. This will be very
favorable to their balance of payment…they remain victor to this scheme. What
can African learn from this? We devalue our currency but remain poorer. China
devalues her currency but get richer".
Quite
enriching indeed, Ashu Comes back with further arguments in his defense. He
posited thus.
Ashu:
The USA
shall be greatly touched with the depreciation of the yuan. This currency
devaluation will make US Exports to be very expensive in China and the rest of
the world and thereby, reduce US Exports and Foreign earnings, a drop in trade,
the BOP, and off course a great harm to the US economy in the short run. But
with China her goods will be less expensive and in high demand in the US and
foreign markets, meaning a booster to China's economy. China is out to measure
its level of competitiveness in the World market with its cheap products
getting a higher purchase value than US products, in way that completely
damages the US exports out of the world market. At a time when the US Dollar
tries to regain its command and strength in the world, in a way that will
completely dominate every other currency, China quickly reacts to cause a huge
blow to the currency. The Yuan devaluation within these few days running has
caused major collapse in currencies … in Asia especially in the south east.
Malaysia, Thailand, Singapore, Indonesia, etc. It seems to me that, a currency
war is at the verge of emerging, and this will not be very good for struggling
economies around the world. Africa, being one of the main struggling economies,
will not find this exchange rate issue a favorable platform for trade with
China at least after now despite the huge financial gains that are available at
the moment. Cameroonians in the Diaspora contribute enormously to the Cameroon
economy through Foreign exchange and trade between different areas of the
world. Ask a person in Malaysia who used to send down few thousand Ringgit down
to Cameroon for the family to receive a huge western union package, will tell
you that between 2 days ago and today, he sent that same few Ringgit he used to
send, just for the family to receive a lesser amount, just within hours,
telling us how it might be in the nearest future. The write up by Mr Ateh is
well put and I tally with it albeit for the lone fact that, it might not be
beneficial to Africa in the long run. But concerning trade between China and
the US and other European countries, I must say, it is the best thing China has
done to safe its economy and to make its position in the world more exposed to
respect and trust that the US counterparts. Currency depreciation is an area of
Monetary policy which is often times ignored by most governments, because of
the adverse effects it might bring within the period of devaluation or whatever
the case may be. As you Mr Arrey rightly put it; "What can African leaders
learn from this?".
Bara, came
again with his views:
Bara:
“China is at it best . Let us see how it turns out. The
truth is that USA will feel it but the foundation of USA economy is so strong
that it will not totally be an issue
What does this mean to Africa now and in the long run. Already, you have remittances received in Africa as being dropped from Asia etc”
What does this mean to Africa now and in the long run. Already, you have remittances received in Africa as being dropped from Asia etc”
It didn’t
just end with Bara Mark, as Mr Ateh came on again:
Ateh:
“…Truth is our continent must lead their own economic
revolution. China's control over her currency remains a great strength they
have, even made stronger by the very fact that they are the world’s economic
power. Devaluing their currency is just the right thing to do so because, as a
trade centre in this era, need exist to concentrate demand towards decongesting
their ever increasing supplies amidst other competitors. …China has leaved in
industrialization and mass production for several years now and it is the
demand side they sick controlling, no longer so much the supply side of it. Our
continent-- which is the next stop after Asia in development--to survive should
China continue its currency deviance, must lead their own economic revolution.
we produce raw materials but don't have control over the prices in the
international, we export raw and import finished at double and even triple
their prices, we value international and forget the eminence of originality
vested in the typicality of our Africanness. Well structured markets,
encouraging industrial policies, and conducive taxing in a corruption free
environment could be that trick. …if Agriculture becomes prioritized and
mechanization, a must with the tertiary at fore, higher tendencies exist for
requisite product transformation and supply towards serving not only the
national but also the international. In its most basic sense say; cutting back
on the importation of say; rice, or flour and biscuits because cassava and
potatoes is being manufactured at home for the national and international
markets, already offsets the BOP to some extent and even greater, should more
of such actions in other sectors be prior .Trade blocks within Africa, in
reinforcing trade policies with China at higher guarantees that they are
advantaged is important. A current debate exist on the acquisition of an
African currency so as to affix their parities directly with any currency in
the world without necessarily standing on the others and yet not being
vulnerable. that too, though almost impossible could be the start of a
solution. In a nutshell, Three aspects are important. Mechanization and heavy
industrialization, product transformation with an eye on international
competitiveness, Packaging and marketing; if African's can focus on these trio,
the'll not survive but avail any such tendencies from what ever source… if the
United States retaliates to this offensive by China, the entire world could be
affected. the question then is, to what direction could she possibly retaliate
; But how much shocks to the world lamely could be explained to you by the
number of deals world wide, literally transacted in dollars".
So great an intellectual exchange, Akoson
Raymond comes forth again.
Akoson:
" We understand how catastrophic such a devaluation
would be for the US economy. Much as all these markets are inextricably bound,
we should look at the implication of this move on our own economy -- the
African economy. And I add that the underlined trajectory for Africa to take
must be to seek ways to finish their products and sell at very competitive
rates. African politicians must also work towards concluding on a unique
currency."
Ashu comes
with a quick reaction to Mr Raymond:
Ashu:
“a unique currency is a giant but far
fetch dream to attain in Africa even in the years to come Mr Akoson. A unique
currency will change a lot of things in fact the entire social, economic and
geopolitical status quo of the entire Continent. It is a fine move but
unattainable one considering the huge considerations to be taken in place. I do
believe that Individual economies can work out good economic plans that can
take them forward and in extension, the whole continent. But the real set back
today to such economic breakthrough to me is the adoption and concentration in
politics and Western democracy rather than adopting the direction of trade,
commerce and entrepreneurship. Instead of building industries, markets and.
Companies in the 21st century, Africans are busy building up political parties,
civil Society organizations and pressure groups. it is quite sad. we prefer to
have one man one vote fully observed than one man one cassava. It’s quite a
pity my people".
Mr Atanga Marcelius comes finally to
sum it up.
Atanga:
“Interesting discussion from all angles, but the most
important factor remains: Only a nation that has control over it political
system can intend control it national institutions ( economy, health,
education,,,) Unfortunately most African leaders are seated by the west under
the new international model, thus they have control over all variables. There
is no national economy policy that is not nested in the IMF model, Most newly
Elected African presidents will have to go pay homage to their (king maker) in
the name of official visits, Ebola breaks out in Africa, research for vaccines
is done in the USA and Europe,,,,who are they fooling?????
"You can fool some people sometime, but you cannot fool all the people all the time" BOB
"You can fool some people sometime, but you cannot fool all the people all the time" BOB
CONCLUSION:
Knowledge is a continual process and
to get it, means bringing forth new ideas to better understand the ways things
happen and how we must respond to how things happen when they happen.
Everybody must try to contribute to
knowledge in his/her own personal and unique way so that the scope of knowledge
can be widened and extended further from where we stand today. Instead of
recycling knowledge, we should extend knowledge.
The different viewpoints so advanced
by various contributors in this whole process are a clear indication that
indeed, we can build forth new knowledge. In a typical intellectual exchange,
there are no winners and losers. Everybody is a learner.
Compiled by: Ashu Shamy. LL.B
Published:
Cameroonvision.blogspot.com
August 15th 2015.





