China’s
Economic Development: Competition
without Zero-sum Outcome
By
Reda’e Halefom
3rd
September 2014
Beijing,
China
Introduction
China, the most populous and the 3rd
largest country in the world, has been becoming both a vaccine and a remedy
for the global economic and political development of the 21st
century. As a vaccine, it has been becoming an open air laboratory,
especially for developing countries for the Chinese way of development signify
a new and home grown way to development. It guarantees that countries can
ensure their own development by formulating independent policies and strategies
while connecting to the global community. Thus, critically identify their
development questions, search their respective home grown solutions, and act
accordingly. Moreover, the Chinese economy insulates the global economy in many
ways. This in turn encourages countries to follow their own home grown
political directions as per their tangible realities.
And as a remedy, the Chinese economy
responsibly addresses the global economic upheavals in this century. It helps
the world to recover from the global crisis by speeding up its overseas
development in the one hand and by serving a largest market to world products.
Likewise, the Chinese economy is safeguarding developing countries through its
overseas investment schemes and facilitating development loans of reasonable
interest without questing policy freedom of recipient countries. This in turn
avoids the countless preconditions of the conventional western loan system.
Thus, the Chinese development success has been enhancing global development
efforts in general and that of the developing countries in particular. This can
be seen as real remedy in building a harmonious and prosperous world.
1.
Secrets of the
Chinese Economic Development
The international community anonymously recognizes
that the Chinese economy is continuously growing and growing even amidst the
global financial and economic crisis. Starting from the opening up in the 1978
up to 2009, the country’s economy was continuously grown by average growth rate
of nearly 10% (The State Council Leading Group
Office of Poverty Alleviation and Development, 2013). On this subtopic, I want to emphasis on the real
secrets of this remarkable achievement in brief. On the basis of my study tour
to various parts of China in 2013 and my readings on the Chinese economic
development, I concluded that China’s economic development is powered by the
following seven secrets.
1.1 Commitment
and Readiness of the People for Continuous Improvement
The success of the Chinese economic development is
mainly attributed to the commitment and Readiness of the Chinese people for
non-stopping improvements. The Chinese people had been suffered from abject
destitution which deprived them the very pride of being Chinese. They strongly
recognize that poverty and backwardness have been their arch-enemies which
enforced them even to submit their sovereignty till the establishment of the
Republic of China in 1949.
But recognizing poverty and backwardness as an arch-enemy
per se doesn’t necessarily guarantee a state or people emancipate from
destitution and/or backwardness. That is why many of the African and Asian
Sates are suffering from the vicious circles of all the evils of poverty.
What counts for the remarkable successes and
achievements of China is the commitments of the people to pay prudent sacrifice
in the struggle against poverty and backwardness thereby realize a prosperous nation.
They have been diligently working to ensure harmonious and prosperous China. These
people are highly discipline in accomplishing their historic missions. What is
even more important is that any ordinary Chinese individual and senior CPC
Cadre are almost similar in explaining their national dreams and the need for
further development efforts. Surprisingly, all Chinese communicate similar
ideas across the nation regardless of their political position, education
background, settlement patterns etc. And
all put their maximum efforts accordingly!
By and large, the glorious economic success of China
is associated to the unreserved efforts of the Chinese people. And their
achievement is indeed a lesson to every country and people to accomplish their
respective national dream-be it developed or developing. That is, the Chinese
success is a live lesson which witnesses that the success of any national
endeavor is inevitable if it is powered by active participation of the general
public. And in my view, the Confucian culture is also instrumental in inspiring
Chinese people to bring about lasting difference in their struggle against
poverty and backwardness.
1.2 The
Commitment of the Ruling Party (CPC)
True, the economic development success of China is
mainly attributed to the commitment and readiness of the Chinese people. But,
history thought us behind any successful changes in any public efforts, there
is strong leadership. Without committed leadership that organizes the public,
formulates feasible policies and directions to realize the targeted change,
clearly identify the challenges and their scientific solutions, set proper
strategies and tactics etc it is hardly possible to ensure remarkable
successes. Hence, the Chinese economic development is strongly associated to
the Leadership of the Communist Party of China (CPC).
The selfless CPC is the real engine that has been driving
all development forces, including the general public, to bring about this global
astonishing achievement. The CPC never submits the national interest of China
and the Chinese People regardless of the recurrent pressures, mainly from the
Neo-Liberal world. Similarly, it give virtually no attention to these countless
and/or fabricated allegations and accusations because CPC’s arch-enemies are
poverty and backwardness, not these ideologically motivated pressures.
And of course, CPC has been working with all
ideologies though it never bargains over its core values and socio-political
doctrines. To effectively discharge its historical mission, the CPC always
oversees its organizational structures, mainly the grassroots. It supervises
the efficiency and effectiveness of its member and every organizational unit,
including the community level committees. Most importantly, CPC created proper
alignment of the public to government development plans which in turn inspires
the public towards the shared goals and objectives.
Furthermore, the CPC has been applying various
support mechanisms to continuously increase agricultural products and
productivities thereby emancipate the rural community from destitution and
backwardness. Likewise, it has been strongly striving to boost quality
industrial products and services as well. Thus, the CPC has been struggling to
ensure prosperous China in all respects. As a result, it builds the second largest
economy in the world.
The Commitment of CPC is also manifested in its
unreserved and responsible efforts to address public needs which can never be solved
through conventional market mechanisms-Demand and Supply. In addition to the
direct economic supports the CPC provided to its citizens, the party is also
responsible in building and expanding social service sectors and infrastructure
development as well. Hence, it is proper to refer CPC as the core engine that
shoulders the development initiatives of the Republic of China. And hence, CPC
always rectifies the inevitable market failures through. As a result, China has been registering new
development history even at the time of global financial and economic crises
because of the great role of CPC/Chinese Government in the economy.
1.3 Readiness
to Learn Continuously (CPC)
The CPC always searches new ways to solve new
Challenges. So far as my experience is concerned, the CPC draws lessons from
two perspectives, from its own experiences and from the best experience of
others. During my study tour to various parts of China last year, I realized
that every CPC Cadre, be it senior or lower level one, is very keen to
understand development efforts of other countries. While openly and genuinely
sharing their experiences, all CPC Cadres are also eager to know the
experiences of others.
They always search better opportunities that enhance
their development efforts. Likewise, they always draw important lessons both
from their own past or live experiences and from the experience of others. They
never hesitate to take lessons regardless of the development level of their
friends. These all efforts enabled CPC to change China and improve the life
standards of the Chinese People continuously.
In my view, CPC always searches new mechanisms that
speed up development endeavors which in turn shortened the life span of poverty
and backwardness in the land of China. It always draws experiences to attain
higher goals with better performances. CPC leaves no room for thinking little
and performing less. That is why China keeps growing even at times of global
crises, and this successive growth is attributed to CPC and its leadership.
1.4 Continuous
Identification of Challenges and their root Causes
One of the fundamental secrets of the Chinese
economic development success is highly associated to the continuous
identification of challenges and their root causes. The CPC has been serious
scrutinizing its challenges and develop the capability that change challenges
in to opportunities and strength. “One
country two systems, Reform and Opening Up, Scientific Outlook on Development
and agro-ecological specialization” are some of the key feature at hand.
Most importantly, CPC identifies challenges on a
pilot bases so as to minimize risks and further enhance positive effects. This
also helps the nation draw lessons from a relatively small scale projects which
is instrumental in minimizing both the intended and unintended negative
consequences. By and large, CPC has been attaching great importance to
scrutinize would-be downsides and scale up positive outcomes depending on its practical
studies.
1.5
Revolutionary Nature of the CPC
Thanks
to the unreserved commitments of the CPC, China has been witnessing a number of
reforms which enabled the nation ensure rapid and sustainable development for
the last 30 years or so. Unwavering to its fundamental principles and
doctrines, the CPC has been formulating various reforms to turn the Chinese
dream in to reality. The most vital period for these reforms is strongly
associated to the year 1978 where the historic Third Plenary Session of the Eleventh
Central Committee disclosed its keen ambition to Reform and Opening Up. “Since then
[1978], the Chinese Communists and the Chinese People have, in an indomitable
enterprising spirit and with their spectacular practice of innovation, composed
a new epic recounting the Chinese nation’s ceaseless efforts to make
[sustainable and dependable] progress and become stronger, and historic changes
have been taken place in the visage of the Chinese People, Socialist China and
the CPC” (Documents
of the 17th National Congress of the CPC,2007:p8)
.
I
can say that the year 1978 is the turning point in Chinese development History
for it sparked a new development approach for the nation. This in turn enabled
the CPC to further enhance and consolidate its revolutionary nature. Of course,
the Reform and Opening Up is the very outcome of the CPC’s revolutionary and
progressive nature. The Revolutionary nature of the CPC has been continuously
manifesting through dynamic development approaches of the reform programs and
ceaseless improvements in the opening up approaches.
It
is because of the continuous reforms and opening up that the CPC keeps on registering
a new history at the time where some market extremist scholars declare the ‘END of history’. CPC developed the
science and art of critical evaluation of its domestic and international
environment which in turn is very vital to undertake proper and practical reforms.
Surprisingly,
the Chinese reform has been registering commendable successes for it is
preceded by a number pilot tests. CPC expands its reform agenda after rigorous
feasibility studies. The opening up program which witnessed CPC’s decision to
abandon the obsolete closed door policy and replace by interconnections with
the Western World, is among the prominent factors of the Chinese development
success.
By
and large, the secret of the Chinese development success lies behind the Revolutionary
nature of the CPC which in turn is the corner stone of all Chinese reform
programs and opening up approaches as well.
1.6
Proper
Utilization of Resources (Ecological Specialization)
“One size fits for all” never works in
China! And no Chinese resource is allowed to be idle here! All parts of China
are giving equal opportunity to grow as much as they can on the basis of their actual
and/or potential resources. One of the best experiences and successful
achievements of this marvelous economic development is its resource specific
development orientation.
China
follows different development approaches to various ecological zones. For
instance, the Eastern coast of China focuses on trade and industry while the
Western and South Western China emphasize on agriculture and agriculture
related development options. For your wonder, sub specialization areas even
under the general specialization zones. In Yunnan Province (Tengchong) for
instance, there are Coffee and floriculture sub specialization units. Moreover,
there are specializations units in animal husbandry and other sectors as well.
Likewise,
there are areas that mainly focused on manufacturing industries. Manufacturing
industries are properly guided through Industry Zones which are very crucial in
boosting the nation’s industrialization process at all levels. And most
importantly, China’s industry zones are instrumental in creating production chains
which in turn alleviates wastages and environmental pollution. By and large,
China has been creating and consolidating various specialized zones such as Special
Economic Zone (SCZ), Economic and Technological Development Zone (ETDZ), Free
Trade Zone (FTZ), Export Processing Zone (EPZ) and Bonded Logistics Zone (BLZ)
(http://www.business-in-asia.com).
These all efforts enabled China maintain its rapid and sustainable development
for more than three decades.
China’s
economic development has been powered by proper and wise utilization of its
actual and/or potential resources. Effective utilization of resources speed up
the nation development efforts. This in turn mitigates unnecessary wastage of
means of production and expands development options. All areas have also been
giving equal opportunity to grow on the basis of their endowments. And for
sure, this approach enable China ensure rapid and sustainable development for
the last successive 30 years or so. Of course, all these marvelous efforts are
attributed to the revolutionary leadership of the Communist Party of China.
1.7
Pursuing
Chinese Solutions for Chinese problems
The
Revolutionary CPC always explores Chinese approach and innovate Chinese characteristics
in addressing its challenges. And one of CPC’s best qualities is its ability to
adapt and domesticate Chinese versions of issues. For China has different
historical, cultural and social background, CPC always digs Chinese approaches
both in solving challenges and in formulating new ways. This is quite
instrumental in mobilizing the general public and benefitting it as well.
From
the very cradle of the CPC’s ideology (Socialism) to the current global
economic rule (Market economy), China has been adapting its own home grown and
contextual approaches and characteristics. CPC is diligently working to establish Strong and
Prosperous Socialist China, but the “Socialism” which CPC is struggling for is “Socialism with Chinese characteristics”
for China has its own peculiar historical and cultural backgrounds. Likewise, China
devised its own market rule that governs its economic principles-“Socialist market economy”.
In
every development endeavor and in every effort to address local or national challenge,
CPC attaches great importance to home grown solution mechanisms. And CPC never
administer arbitrary remedy. These home grown ways of addressing Chinese
Challenges are employed after series of feasibility studies.
In
a nutshell, CPC’s capability and strength to properly identify development
hurdles and its devotion in bringing about home grown solutions is among the key
factors that enhance and consolidate China’s magnificent successes.
2.
Competition
without Zero-sum Outcome
Our
planet has been hosting countless competitions over ‘scarce’ resource in many ways such as military, economic, cultural
etc contests where the existence of one state has been treated as a curse to
the other. This competition was changed in to complete rivalry, especially with
emergence of Capitalism and Imperialism. As a result, mother Earth was forced
to entertain three major catastrophic/destructive World Wars (World War I,
World War II and the Cold War) that entailed untold devastations-the worst of
its nature in Human History. And badly, the very driving force for this fatal
completion which was actually held among those who haves was the quest for
power.
So
far, the fairness of the world always goes with the mighty, economically
advanced countries and their ‘locomotives’ (the so called International Organizations
and NGOs). The global rule further empowers the powerful while continuously
weakened the weak. Likewise, the conventional global order enriches the
economically advanced countries while leaving no room for the developing or the
so called ‘Third World’ states. Advanced countries directly or indirectly
exploited the less developed countries and the consequence of industrialization
negatively affected them.
Developed
nations exploited human and natural resources of African, Asian and Latin
American states. That is, the advancement of these developed countries was at
the expense of destitution of the less developed countries of the world. Thus, African,
Asian and Latin American peoples have been suffering a lot with virtually none
of their own faults. This is the direct result of the unfair completion of
advanced states.
Advanced
nation negatively affected the less developed ones in many ways. In my opinion,
the most devastating impact goes to policy independence issues. As we all know
the less developed nations need loans to speed up their development needs. And
to get the loans they go either to the international financial institutions
such as World Bank and/or IMF or to western advanced countries. Unfortunately,
the west set countless preconditions before it permit the loans. Though these myriads
of preconditions are always at odds with policy independence of the recipients,
they have been forced to accept them for they don’t have option. Otherwise the
less developed countries are supposed to commit a suicide. Even the very plans
and strategies of poor countries are under direct influence of rich.
Consequently, the poor remain poorer. Thanks to the rise of the newly
industrialized countries, however, this catastrophic order has been
continuously challenged. The rise of China is among the prime options,
especially for the developing countries.
China
believes that every country is equal whether it is rich or poor, strong or
weak, big or small, etc. This is fundamentally new and progressive approach
which in turn helps developing nation speed up their development efforts
without questioning their policy independence. This foundational pillar is
quite instrumental in boosting peaceful and harmonious developments across the
globe. Likewise, China condemns interference in countries’ internal affairs
which in turn is quit instrumental to enhance policy independence of sovereign nations.
The
emergence of China has been speeding up development efforts of developing
countries in many ways such as through China’s trade cooperation, loan and aid,
through overseas investment etc. China’s development has positive spillover
effects for the rest of the world, especially for developing countries.
The
most important thing that developing countries learn from the marvelous
economic success of China is the fact that China searches Chinese version of
solutions for Chinese Challenges and problems. The Chinese way signifies that
countries can address their challenges through their own home grown policies
and strategies. Unlike the conventional Western remedies that prepared a single
solution to every problem, the Chinese way underscores that every nation must
critically analyze its problems and find out its own remedies. The Chinese
Socialist market economy underlines that countries still have a number of
options to ensure their own sustainable development endeavors.
Likewise,
China has been granting “condition-proof”
loans and aids. Unlike the conventional western dominated loan and aid
rules which is preceded by countless preconditions, China’s loan and aid attaches
no precondition. The administration and priority identification and
implementation of the Chinese loan and aid is up to the receivers. This enables
countries to formulate their own home grown policies, strategies and
implementation tactics to fight against their bottlenecks. That is to mean,
countries have been finding new options to formulate and implement their own
home grown policies and strategies in order to ensure their long term dreams
without the external pressures from donors. Thus, “China has provided as much as it could, aids to over 100 countries
and regions in Africa, Asia, East Europe, Latin America and South Pacific
region, in the forms of free economic aid, interest free loans and loans of
preferential interest rate. These aids help the recipient countries to build
2,000 projects bearing close relations to the production and life of the
locals, including hospitals, schools, gymnasiums, theaters, agriculture
demonstration centers, housing, roads, and bridges, covering a wide range of
industry, agriculture, transportation, communication, culture and education,
and health among other social and public facilities” (General Over View of China: China Intercontinental Press, P:
73-74). With the emergence of
China and its new approach to Development, the globe is entering to a promising development age where
countries can pursue their own home grown policies to effectively address their
peculiar challenges.
China
strongly advocates the importance of multi-polar
world. That is, China never supports political or economic or social hegemony
in this diversified world. On the contrary, it is striving to bring about diversified
options on alternative basis. This new approach enables countries to emancipate
themselves from the so-called hegemonic world order where the powerful
continuously consolidates its power while the poor and the weak is continuously
impoverished and weakened. As a result, the power gap, and economic and
political inequality persist. Consequently, poor countries have been enforced
their political sovereignty. The Emergence of China, fortunately, has been
almost changing this unfair world.
The
emergence of China has also become a “market
paradise” for both developed and developing countries. China with a
population of more than 1.3 billion is the widest market in the world. Having
in mind the growing nature of its economy and improving situation of Chinese
consumption, China inevitably is becoming open
paradise of the world market economy. So, every country can buy and sell
from the Chinese market. For example, in 2011 the total volume of imports and
exports reached 3.6421 trillion US Dollars. Of this total, the export volume and
import volume was 1.8986 and 1.7435 trillion US Dollars respectively (China Facts and
Figures 2012: China Intercontinental Press, 2012 p: 77).
The
emergence of western capitalism was preceded by colonialism where the west entered to tense completion over the
resources of Africa, Asia, Latin America, Oceania and Australia. As a result, the
western world grabbed both human and natural resources of these continents. And
sadly, peoples of the so-called third world countries were enslaved just for the
betterment of the west. For sure, that time was the worst period in human
history. The western development also abandoned the very sovereignty of the
so-called third world countries. The Chinese development, however, is based on mutual benefits and peaceful coexistence between China and other countries. Its
development successes have been powered by give and take engagement on the
basis of equality and noninterference in internal affairs of countries. Unlike
the western model which coerces poor countries just to be obeyed by the western
rules, Chinese development focuses on partnership relation on the basis of
equality. That is, the relationship between China and other countries is a
relationship of win-win type, which is absolutely different from the obsolete
win-lose western orientation. That is, cooperation
has become at the heart of the Chinese relationship with other countries.
By
and large, Chinese Development, in its deep rooted orientation, has been
preceded by better seeds of cooperation and mutual benefit where all state
parties in this overall endeavor are treated equally. Likewise, Chinese effort
in bringing about fair and peaceful global order has been encouraging
developing nations to speed up their efforts in ensuring rapid and sustainable
development. Thus, China has been becoming a global partner for both developed
and developing countries.
3.
Opportunities and Challenges of the
Chinese Economic Development
3.1 Opportunities
Ø Of all the opportunities and prospects of China, the
Revolutionary Nature of the CPC with its unreserved commitment and readiness to
transform the nations is the prime one. CPC with its marvelous discipline and
commitment always searches effective Home Grown ways to address Chinese
Challenges; and it always set higher goals to realize the Chinese Dream.
Ø The Seven secrets of the Chinese Economic
Development mentioned in this paper are core opportunities to continuously
transform China.
Ø China as a developing country has a long way to go
in order to achieve its Dream. This in turn is a noble opportunity for China to
plan higher and higher goals and exert its maximum devotion. Mainly, the
regional imbalance of Chinese provinces, especially East-West, Urban-Rural etc
the imbalances are opening wider doors yet. Thus, China still has widely opened
opportunity to enhance and speeds up its development efforts; narrowing the gap
by itself boosts Chinese Development Opportunities.
Ø China, the most populous nation in the world, would
also be the widest market as well. Hence, empowering Chinese to improve their
consumption means widening its domestic market. And widening domestic market is
actually to mean satisfying 1.3 billion people. Thus, fulfilling Chinese
domestic market needs by itself is not an easy task.
3.2
Challenges
Ø Maintaining
ongoing Development Pace
One of the main challenges of Chinese Development, I
think, is maintain the ongoing rapid and sustainable development. Though the
commitment and readiness of the CPC and the Chinese Government are
unquestionable, the global economic situation on the one hand and the rapid
nature of its development on the other could challenge further growth of Chinese
economy. The global economic downturn,
inevitably affects the Chinese speed and thus China may need further lever to
maintain its ongoing development efforts and thereby ensure its Dream. Likewise
it needs brand new reform agenda and implementing techniques to effectively overcome
both the global and national economic burden.
Ø Inequality/imbalance
Though China is growing rapidly and sustainably, there
still remains economic imbalance in various aspects such as, Urban-Rural and
West-East disparities. Hence, the
Chinese economic development might be seriously challenged by these objective
imbalances. Therefore, the government must pay significant attention to
narrowing the gap and prevailing equitable and balanced growth across the
nation.
Ø Selling
objective successes
TRUE, China is growing remarkably and its
development has been positively insulating the global economy. But, I think,
this marvelous development is less communicated. Thus, China is less understood
than its real achievements. And China has not been building globally strong
institutions and mechanisms that effectively explain China and its positive
spillover effects. In order to enhance and consolidate its international ties,
China may need effective mechanisms to express itself. Building capable
international institutions in the one hand and massively inviting international
scholars to visit China on the other hand may help the nation describe its real
image.
Ø Neo-Liberal
pressure
China has been speeding ups its development efforts
through its brand new home grown policies and strategies. The Chinese way is
different from the conventional Britton woods recommendations and Neo-liberal
directions. This in turn declares a new feasible way to development, that is
countries can ensure their own development aspirations on the basis of their
own home grown policy options. Hence, the Chinese not only deviates from the
conventional Western diction but also inspires developing countries search
their own home grown development options. As a result, Neo-Liberal pressures
have, I think, been witnessed recurrently. And this pressure for sure will
continue for long. Hence, China may need to tackle these challenges through
speeding up its development efforts continuously inspiring developing nations
follow their own development routes as well.
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