Wednesday, March 13, 2013

We are better off following the Chinese growth Model -The Independent model

China’s progress since reform and opening up in the late 1970s has displayed a model of independent development, especially for African countries that are pursuing their development take off. African leaders must learn from the Chinese leadership’s single-mindedness and commitment to economic reforms. The Chinese leaders have demonstrated that is possible for poor countries to transform themselves independently through concrete economic reforms supported by state institutions. The Chinese model has taught us that the market and state can coexist and complement each other for development.

The market economy was vigorously prescribed to African countries as a way of dealing with the debt crisis and other economic challenges facing the continent. African countries were coerced into undertaking economic reforms by the World Bank, IMF and European countries to revive their struggling economies. Despite massive lay off and government restructuring, these policies failed miserably.

Meanwhile, the Chinese leaders were thinking for themselves after observing what was going on in Africa and Europe. They were reading the global economy and adjusting accordingly to new trends. China started reconfiguring its economy from manufacturing to more high-end technological approaches using local resources and innovation. It relied on the export of goods to grow its economy, using affordable labor force.

Many westerners underestimated China’s capacity in the global economic playground. Many economists predicted that its agricultural, financial and automobile industries would collapse because China did not follow their development models. They emphasized that without tariff protection, China’s domestic enterprises could not challenge European and American multinationals as Japan and South Korea had done.

Nonetheless, China continued to pursue its own unique development model based on local conditions and over the last decade, its economy has steadily grown at an average rate of 10% becoming the second biggest economy in the world and then engine of global economic growth. China’s leading role in shifting global economic dynamics is an outstanding scenario not seen since the Industrial revolution. China has now gained an upper hand and is leading by example. China does not interfere, not advocate interference in the internal affairs of other Nations but rather it encourages each partner to establish its own unique development model that best suits its environment.

China’s fast growth must offer lessons to Africa on the limitations of western development prescriptions. Many African countries now look to China as a model of growth and development. Africa must avoid excessive consumption and strategically implement independent policies that work for its local conditions. We must create new patters of trade, one that features south-south cooperation. Africa must trade with itself more. Kenya and other African countries could increase regional trade and industrial production of goods by following the Chinese model, which emphasizes the harnessing of local resources and local conditions to power economic growth.  Only then can we achieve sustainable development.



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