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Lessons from China's Deng (2)

Published by Nigerian Compass on Wed, 26 Oct 2011


A sky-rocketing economic boom now lifting 600 million Chinese out of poverty making 300 million (double Nigeria's population) enjoy middle-class lifestyle (all thanks to innovative small businesses), now leads to an unstoppable rise in per capita income and bulging wallets.Hundreds of millions of Chinese now not only take expensive gadgetry of advanced industrialism such as appliances, computers, completely for granted, but with this newfound opulence, luxuries like BMW and expansive homes too are taken for granted. Not only that, private wealth in stocks, bonds, and bank deposits is a commonplace.Leaving nothing to chance in its mercantilist policy, draconian import substitution and export promotion industrialisation policies ' high tariffs and multiple nontariff walls with listless administrative discretions ' are promulgated to reinforce the shielding of China's strategic industries from foreign intruders. To continue unhindered China's export-boosting growth, and also to ensure industry-by-industry and sector-by-sector economies of scale, key game-changer industries and sectors ' including automotive, construction, electronic information, equipment manufacturing, iron and steel, non-ferrous metals, and science and technology, as well as aviation, defence, power, oil and petrochemicals, shipping, and telecommunications ' have to remain iron-cast in state's hand.Now that the goal is not joining the exclusive club of industrial nations as a mere member but as its omnipotent leader, the architects of this ambition are fast discovering how taking power from the West is as difficult as trying forcing a hungry crocodile to vomit what's already inside its belly. But is China frightened' Just take a look at China's aggressive pursuit of high-tech catch up with the west, its mandating corporate China to begin replacing critical foreign technology (chips, software, and communications hardware) with Chinese technology, and you know how a face-to-face battle with the west is beginning. In this economic power rivalry, pushing extensive list of discriminatory policies, including foreign-focused anti-monopoly law, mandatory technology transfers, compulsory technology licensing, local content requirements, and mandatory revelation of encryption codes, as well as full disclosure of scientific and technology contents of patents, and above all, the non-domestication of the Paris Convention on international intellectual property rights is showing that the Chinese are fully determined. Pushing such technology leapfrogging recently by handing mind-boggling $2.3 trillion to Assets Supervision and Administration Commission (ASAC), China's sovereign wealth fund, and mandating it to use it to create about 45 mega multinational corporations that'd go out there to prey on western rivals, is only indicating how messier this emerging economic cold is going to be. It's already messy given the ravaging financial and social graveyard the 'China effect' (like 'America effect' of early 20th century) is fast turning the west into. It seems China is now increasingly succeeding in using the same western cunnings against the west. Let's end here by asking: Had China's economic revolution followed traditional western development route, the usual 'big bang' neoclassical path; had it accepted the usual, ''Don't do as we in the west do, but do as we in the west say you'd do,' would China have ever risen to these economic heights today' In other words, the how come such startling economic miracle has successfully taken place (and still taking place) in Communist China and under a single party rule seems to be eliciting more questions than answers.While analysts go on disagreeing, one thing everyone agrees is that there isn't any way it'd have taken place and survived under western democratic setting. In short, the consensus is that western democracy rather than helping China grow, should have severally obstructed it. Exploring Nigeria's own version of economic revolution based on some set of unconventional development routes that mirror Nigeria's realities ' the same way China
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