Can China’s Growth Strategy Save Africa?

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By now, most people have heard of China’s spectacular economic growth over the past few decades. But what many people don’t know is that much of China’s growth strategy was based on the China-Africa Cooperation initiative, which has largely been carried out in collaboration with the African Union (AU). This initiative, in turn, was based on an earlier approach to development created by Chinese President Xi Jinping during his time as Governor of Fujian Province called The Five Go To’s and One Hundred Action Points.

How China’s growth strategy works for any country

Let’s go back to 1950. The world has just finished emerging from WWII, and it’s ready for some economic development. At that time, all eyes are on Japan, which has implemented a very successful growth strategy (it made its economy grow from $13.8 billion in 1950 to $228 billion in 1980). The strategy became known as the miracle of Japan: it was based on strong government support for scientific research (R&D), tax incentives for investment in new plant and equipment, and a high savings rate that funded industrial expansion.

Why did China grow so fast?

Three decades ago, China was very poor. In 1978, per capita income in China and India were roughly equal. Today, more than four decades later, things could not be more different. In 2017, per capita income in India was just over $1,700 compared to nearly $11,000 in China. A lot has been written about what made it possible for such rapid growth to occur; nearly all of that literature points to two main factors: labor-intensive manufacturing exports and government-led infrastructure investment programs. But can Africa—or any developing country—actually follow a Chinese growth strategy?

How Africa can replicate China’s growth strategy

In 1950, per capita income in China was less than $200. In 2014, it had reached more than $6,000. If Africa can replicate even a fraction of that success, it would have a dramatic impact on global poverty levels. Unfortunately, most people seem to think that’s impossible. But why is it so hard to duplicate an economic model that has proven itself effective? How are Africans different.  Perhaps you can add an answer in comments.

The Five Go To’s and One Hundred Action Points

There are five main reasons why China was able to rise as quickly as it did. These five main points will act as a canvas on which additional strategies, tactics, and action items can be applied. “What is the significance of the India-China five-point Action Plan?

It reiterates the process of dialogue, disengagement, and easing of the situation. All this was comprehensively dealt with in the previous five agreements given below:

• The 1993 ‘Maintenance of Peace and Tranquility Agreement’ forms the basis of all follow up agreements.

• 1996 ‘Confidence Building Measures’ denounced the use of force

• 2005 ‘Standard Operating Procedures’ and patrolling modalities.

• 2012 ‘Process of Consultation and Cooperation’

• 2013 ‘Border Cooperation Agreement’, signed as a sequel to Depsang intrusion by PLA”

While it would be easy to just say that they used capitalism to its fullest extent, we must understand that all their actions were heavily controlled by a single governing body. The use of communist-capitalism (something I have coined after extensive research) allowed them to apply canvases across multiple industries rapidly and effectively. The greatest difference between their strategy and others is timing: they had 70 years from when Mao took control of mainland China in 1949 until 2010.

 The first step towards success begins with self-belief; if you do not believe in yourself, others will believe even less. Confucius once said, there are three things which cannot long remain hidden: the sun, moon and truth – go out there and let your light shine! Once you take initiative for what you want life has more meaning than ever before. You begin living every day like it’s your last because you’re not worried about what might happen tomorrow or next week or next year. All you care about is enjoying today and pushing towards success while making an impact along your journey! #1: Self Belief – believe in yourself or no one else will…ever!

Explained: Understanding India-China 5 point action plan to reduce LAC tension | Explained News,The Indian Express

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Ubuntu Village will be traveling to Africa soon and we would like to document this trip and any other trips taken in a blog format.