Learning from the Chinese Miracle : Development Lessons for Sub-Saharan Africa

A notable contrast in modern economic history has been the rapid economic growth of China and the slower and volatile economic growth in Sub-Saharan Africa. As the engagement between the two continues to grows, there will be a greater cross-fertili...

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Bibliographic Details
Main Author:	Zafar, Ali
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCOUNTING ADMINISTRATIVE BARRIERS ADVERSE IMPACT AGRICULTURAL INCOMES AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURE BANK POLICY BENEFICIARIES BID BINDING CONSTRAINTS BUSINESS NETWORKS CAPACITY CONSTRAINTS CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL FORMATION CAPITAL INFLOWS CAPITAL MARKETS CAPITAL RATIO CASH BALANCES CENTRAL BANK CENTRAL BANKS CENTRALLY PLANNED ECONOMY CIVIL WAR COLLATERAL COMMODITY COMMODITY PRICE COMMODITY PRICES COMPETITIVE MARKET COMPETITIVENESS CORRUPTION CREDIT ALLOCATION CREDITS CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT SURPLUS CURRENT ACCOUNT SURPLUSES DEBT DEBT OVERHANG DEBT SERVICE DEBT SERVICE PAYMENTS DECENTRALIZATION DECLINE IN INVESTMENT DEFICITS DEMOGRAPHIC DEPOSITS DEVALUATION DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT ASSISTANCE DEVELOPMENT CENTER DEVELOPMENT ECONOMICS DEVELOPMENT PROJECTS DEVELOPMENT STRATEGY DIASPORA INVESTMENT DISPOSABLE INCOME DIVERSIFICATION DOMESTIC CAPITAL ECONOMIC AGENTS ECONOMIC DEVELOPMENT ECONOMIC EXPANSION ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC REFORM ECONOMIC REFORMS ECONOMIC RELATIONS ECONOMIC SUCCESS ECONOMIC TAKEOFF ENDOWMENTS ENTREPRENEURS EQUIPMENT ETHNIC MINORITIES ETHNIC MINORITY EXCHANGE RATE EXCHANGE RATES EXPENDITURE EXPORT GROWTH EXPORT PERFORMANCE EXPORTER EXPORTERS EXPORTS EXTERNAL SHOCKS FACILITATION FARMERS FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL LIBERALIZATION FINANCIAL SECTOR FISCAL AUTONOMY FISCAL DECENTRALIZATION FISCAL POLICY FOOD SHORTAGES FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN INVESTMENT FLOWS GDP GDP PER CAPITA GENDER GENDER INEQUALITY GINI COEFFICIENT GLOBAL ECONOMY GLOBAL MARKETS GLOBALIZATION GOVERNMENT GRANTS GOVERNMENT SUPPORT GROWTH RATE GROWTH RATES HOLDING HOLDINGS HOUSEHOLD INCOME HOUSEHOLD SAVING HOUSEHOLD SAVINGS HOUSEHOLDS HUMAN CAPITAL ILLITERACY INDEBTEDNESS INEFFICIENCY INEQUALITIES INEQUALITY INFLATION INFLATION RATES INFLATIONARY PRESSURE INPUT PRICE INSTITUTIONAL REFORMS INTEREST RATE INTEREST RATE POLICY INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL ECONOMY INTERNATIONAL MARKETS INTERNATIONAL TRADE INVESTING INVESTMENT RATES LEGAL SYSTEMS LIFE EXPECTANCY LIVING STANDARDS LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL INFRASTRUCTURE MACROECONOMIC BALANCE MACROECONOMIC ENVIRONMENT MACROECONOMIC GROWTH MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MACROECONOMICS MARKET ECONOMY MARKET SIZE MINORITY GROUPS MONETARY FUND MONEY SUPPLY MULTIPLIER EFFECTS NATIONAL ECONOMY NATIONAL SAVINGS NATURAL RESOURCES OVERVALUATION PER CAPITA INCOME POLITICAL ECONOMIES POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POVERTY ALLEVIATION PRIVATE CAPITAL PRIVATE ENTERPRISES PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATIZATION PRODUCTION FUNCTIONS PRODUCTIVITY GROWTH PROFESSIONAL NETWORKS PROPERTY RIGHTS PUBLIC FINANCE RAPID ECONOMIC GROWTH RATES OF INFLATION REAL EXCHANGE RATE REAL GDP REAL INTEREST REFORM PROGRAMS REGULATORY FRAMEWORK REGULATORY STRUCTURES REMITTANCE REMITTANCES RESERVE RESERVE FUND RESERVES RETURNS SAVINGS SAVINGS RATES SMALL BUSINESSES SOCIAL NETWORKS SOCIAL WELFARE SPECIAL FUNDS STARTUP STARTUP CAPITAL TARIFF BARRIERS TAX TAX INCENTIVES TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE LIBERALIZATION TRADE REFORMS TRADE UNION TRADING TRANSFER PAYMENTS TURNOVER UNDERVALUATION UNEMPLOYMENT UNION VENTURE CAPITAL VILLAGE VOLATILITY WORLD ECONOMY WORLD TRADE
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100222140638 http://hdl.handle.net/10986/3702

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Summary:	A notable contrast in modern economic history has been the rapid economic growth of China and the slower and volatile economic growth in Sub-Saharan Africa. As the engagement between the two continues to grows, there will be a greater cross-fertilization of experiences. Total factor productivity comparisons suggest that capital accumulation in China coupled with more efficient factor usage explains the differential with Africa. Although the two have similar populations and patterns of inequality, their growth trajectories have been divergent. What can Africa learn from China? Although the lessons vary depending on country location and resource endowment, seven basic lessons are visible. First, the political economy of Chinese reforms and the shared gains between political elites and the private sector can be partially transplanted to the African context. Second, the Chinese used diaspora capital and knowledge in the early reform years. Third, rural reforms in China helped accelerate economic takeoff through a restructuring of property rights and a boost to both savings rates and output. Fourth, Chinese growth has taken place in the context of a competitive exchange rate. Five, port governance in China has been exemplary, and African landlocked economies can benefit significantly from port reform in the coastal countries. Six, China has experimented with a degree of decentralization that could yield benefits for many Sub-Saharan African countries. Seventh, Africa can learn from China s policies toward autonomous areas and ethnic minorities to stave off conflict. Africa can learn from China s experiences and conduct developmental experiments for poverty alleviation goals.

Learning from the Chinese Miracle : Development Lessons for Sub-Saharan Africa

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