Lessons From China’s Growth

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  China is no longer just focusing on GDP growth alone. This remark by Chinese Premier Li Keqiang at his press conference on March 13 signals the Chinese Government’s determination to make the country’s economy healthier. However, with slower pace of economic expansion, a certain level of growth has to be retained in order “to keep stability in the labor market, to benefit people’s livelihoods and to increase the income of urban and rural residents,” the premier pledged. But how to strike a balance? “Reform” is the answer given in Premier Li’s Government Work Report delivered at the Second Session of the 12th National People’s Congress, China’s top legislature, held March 5 to 13.
  The word “reform” was mentioned 77 times in Li’s report, according to some observant local media. But actually it has been a buzzword used frequently over the past year, especially since November 2013 when the Third Plenum of the 18th Central Committee of the ruling Communist Party of China rolled out ambitious plans for deepening reforms in China.
  For this year’s agenda, which set improving people’s well-being as the fundamental goal, structural adjustments have been made a reform priority, placing pollution, inefficiency and corruption among the most serious problems to address. Although pollution, air pollution in particular, is not a new problem, government efforts in
  resolving it over the past years achieved unsatisfactory results, leading to increasing smog-affected areas and mounting public complaints. This year’s growth target may be flexible, but government’s “war on smog” will be anything but. Tough measures and regulations will be adopted and enforced. Polluters, who harm both the environment and people’s health, will be severely punished, and watchdogs, who turn a blind eye to polluting activities and fail to perform their duties, will be held accountable, Premier Li pledged.
  A healthier Chinese economy means more opportunities for the outside world, Africa included. In an effort to optimize its market-driven economy, China is striving to upgrade its position in the global supply chain from being the “world’s factory”to a “technological innovator and leader.” During this transition, African countries could likely see relocation of more existing Chinese manufacturing centers. However Premier Li warned Chinese enterprises that high quality products and services were of the utmost importance when going global.
  China’s development has been seen by many African countries as a good example to learn from. However, while learning from China’s success, they should make a genuine effort to avoid emulating the inefficient and unsustainable growth model which has made negative impacts on China’s economy and the life of its people.
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