KEY LESSONS TO LEARN FROM THE MODEL OF GROWTH AND DEVELOPMENT IN CHINA OVER THE PRECEDING FOUR DECADES.
“Looking Ahead, I believe that the underlying importance of higher education, of science and technology, research and scholarship to quality of life to the strength of our economies and security in many dimensions will continue to be the most important message to young people.” Late Charles M. Vest, Former MIT President.
On Tuesday 18th December, I had a chance to watch a live broadcast on CCTV of his Excellency Xi Jinping the President Of the People’s Republic Of China on the anniversary of China’s 40 years transformative “Reform of Opening Up”, a policy that has led China towards development and now the second world Economy. What lessons do we learn from China’s Development journey over the past four decades? Well, why not have a look at my article both in English and Swahili (United Republic Of Tanzania’s Official Language).
In 1978 China marked a History in the Communist Party of China and the founding of the People’s Republic of China marking significance in rejuvenation of the New China and Opening up to Socialist Modernisation policy.
The Goal of the Chinese dream of rejuvenation focusing on World Economy, Science and Technology as key to rapid progress to meet basic needs by focusing on in depth keen insights on trends, people’s aspirations and the need to eradicate poverty. Keeping abreast to the purpose of the reform with an understanding of the history that people would see historical opportunities for change to pioneer progress. Upholding Marxism as the guiding ideology by exploring theoretical innovations based on practice and strengthening its capacity to innovate, power to unite, and energy to fight.
- Progress and stability China has established 1600 development Initiatives, Central Economic Development from a GDP of 367.9 Billion to 82.7 Trillion Yuan, Wages in China increased to 74318 CNY/Year in 2017 from 68993 CNY/Year in 2016 and Global GDP per capita reaching an all time high of 7329.09 USD in 2017.
- China has lifted 740 million people out of poverty in the 40 years, reducing the poverty headcount ratio by 94.4 percentage.
- The nation has built the world’s largest social security system, with the basic old-age pension covering more than 900 million people and medical insurance covering over 1.3 billion people. The ratio of permanent urban residents in total population rose 40.6 percentage points to 58.52% during the period.
- Social stability over a long period, making it one of the countries that provide the greatest sense of safety in the world. Effectively served the cause of world peace and development. Farewell to the problems of the past for its people including; hunger, shortage and poverty.
- Leadership of the Communist Party of China is the most essential attribute of socialism with Chinese characteristics, and continued efforts should be made to improve the system.
- The people-oriented approach adhered to and efforts made to keep delivering on the people’s aspirations for a better life leading to Accessible social amenities; Good health policies, housing, education, infrastructure and increased employment rate and Life Expectancy from 67.8 to 76.7 in 2017.
China’s development has provided successful experience and offered a bright prospect for other countries as they strive for modernization, representing a great contribution of the Chinese nation to the progress of human civilization. The country’s leadership is relying on Research & Development to play an important part in helping China to transition to a service based economy, placing innovation at the centre of its plan for Chinese development over the next years. China is the Second world Economy after US and the R & D total amount of USA $476.5 Billion followed by China at $370.6 Billion and Japan is third at $170.5 Billion. Chinese Research & Development is based on Basic Research 5.5%, applied research 10.9% and Experimental research at 84%.
HUMAN AND PHYSICAL CAPITAL
China has demonstrated for four decades a commitment to broadening access to health, beginning with the Cooperative Medical System. It is clear that without a healthy population, there can be no hope for sustained economic growth. African countries such as Tanzania have recently adopted creative solutions to increase access to and quality of health care, including “results-based financing”, whereby health facilities receive resources per service rendered rather than a flat budget and the Big Result Now Initiative that has proven improvement of quality of services.
China’s rapid advancement in physical capital is not surprising given the levels of investment. One of the crucial constraints to growth in Africa is lack of physical capital; it’s very difficult to develop higher value, higher return or even agricultural goods without access of good infrastructure.
China’s exceptional growth has been facilitated by strikingly high savings rate from the corporate sector: Enterprises have risen in profitability, and limited access to bank financing has motivated enterprises to save in order to finance their own investments. Higher levels of savings are needed in Africa at both the public and household levels to sustain the needed level of investment and a smooth long-term economic growth.
China has enjoyed extremely high increases in productivity over the last four decades, driven by the agricultural sector, followed by productivity growth in township and village enterprises and then by privately owned firms and a restructured state owned sector.
Africa’s recent growth has been highly dependent on exports of raw materials and commodities. Much of the population remains working in agriculture, while many have shifted to working in services, much of that growth in services is restricted to low productivity. There is a possibility of producing higher value agricultural products and diversifying exports and even blending in other sectors to help Africa’s economies increase productivity to global trends.
Economic Growth in Africa has been accompanied by much slower poverty reduction. A significant amount of China’s productivity growth has been driven by market reforms.
Economic transformation characterized by a reallocation of resources from low productivity activities into modern, high productivity sectors such as manufacturing has been lacking from Africa.
Africa needs more skilled labour force in order to experience growth like China’s, the quality of education and an emphasis on STEM (Science, Technology, Engineering and Mathematics) will be essential to African productivity and income growth.
China is undoubtedly a world leader in poverty reduction and improving outcomes and there is a lot the rest of the world can learn from its experience. As China continues to take a more active role on the global stage, it is in an ideal position to partner more closely with other developing countries and share the lessons it has learned from its own experience and work together with China to tap into its innovation power.
African countries (Tanzania) should not copy China’s path to prosperity but rather Africa (Tanzania) must create the conditions to define it’s own growth path, based on it’s history, African (Tanzanian) culture and it’s institutions. No single approach is perfect or suitable for the entire continent. All countries should put efforts on creative powers of it’s own people, incorporate principles behind China’s impressive growth into the strategies of African nations (Tanzania) as they seek to build on their improved growth.
VOLUNTEER|LEADER|RESEARCHER|FREELANCE WRITER|MBA|HEALTH |#Unitedfor2030|Pride Of Africa Asia Young Achiever Nominee & Volunteer Award Winner Beijing