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CHINA’S ECONOMIC PROGRESS |
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CHINA’S ECONOMIC PROGRESS |
Great When countries on the south
of the Himalayas have been passing through phases of violence, political instability,
hostility and chaos, China, Nepal’s neighbor across the mountains has, however,
marched ahead in the process of social and economic transformation. With an average annual
growth rate of over 10 percent in the last two decades, China has turned itself from an
agrarian society to a global economic engine for growth. Despite the outbreak of SARS six
months ago, China has recovered from the trauma and is now back to the phenomenal pace of
progress. At a time when the economic opportunities are looming at the north of Himalayas,
how south Asian countries like Nepal be able to exploit it to the benefit of their people
remains to be seen By KESHAB POUDEL in Beijing, Shanghai
and Lhasa China? There lies a sleeping giant. Let him
sleep. For when he wakes he will move the world. Napoleon The observation made by Napoleon, a French
dictator and warrior, two centuries ago is still as much reality as anytime in history.
After the initiation of economic reforms in 1979 under the leadership of Deng Xiaopeng,
China has transformed itself into a country of rapid economic growth. For the Chinese society, which was rocked
by a decade long Cultural Revolution, Deng’s call for the economic prosperity
injected new hopes. In around last two decades, the China has been transformed into a
country of skyscrapers, expressways, cars, mobile phones and all other items of modern
consumerism. While hosting the Olympics in 2008, China will further show to the world what
it has achieved.
Whether in the streets of Beijing,
Shanghai or Lhasa, one can see social and economic transformation with landscapes
sprouting with the westernized and americanized models of infrastructures. Though China is
still regarded as a communist society, its social and economic transformations are clearly
heading towards liberalism. One can test a sample of liberalism while
visiting Beijing opera, Shanghai and Lhasa -the liberalism not peppered with bouts of
anarchy and chaos as we know it, but the liberalism that of disciplined and orderly. Compared to any South Asian countries,
Beijing seems to be more tolerant to western countries and values. Despite differences in
many political issues, Chinese society seems to have embraced liberal social values of
west. In the course of two weeks visit, one could
hardly see any hostile comment against the western countries. Whether local television
stations or newspapers or official level of meeting, one hardly noticed any kind of harsh
comments against western countries including the United States. In almost all South Asian
capitals, the situation is exactly the opposite. Since China’s quest to achieve
economic prosperity continues to shift from its early model of concentrating economic
development in the coastal cities to taking it to the rural hinterlands, new economic
opportunities are coming up in China’s hinterland where the government has invested
in infrastructures in a big way. China’s huge investment in infrastructures is one
reason for the accelerated growth it is experiencing, say economists.
Go West China’s recent policy to
‘develop-the-west campaign’ has already started bearing fruits in many western
regions including the Tibet Autonomous Region. Under this program, the Chinese are pushing
a broad based economic package to cater to its billion-plus population. The western region includes nine provinces
and autonomous regions, i.e., Gansu, Guizhou, Ningxia, Quinghai, Shaanxi, Sichuan, Tibet,
Xingjian and Yunnan, in addition to Chongquing Municipality. The area covers two thirds of
the China’s territory. The populations in these regions make up about 22.8 percent of
the total population of China. “The emergence of the People’s
Republic should spell opportunity – not doom – for Asian economies,” writes
Jagdish Bhagawati, a world-renowned university professor at Colombia in New York City in
the February issue of Newsweek in 2002. Under the projects, the central government
is spending billions of US dollars in the areas of infrastructures and other major
projects in western China. The mobile phones and highway links have already helped to
integrate the rural and urban economy. One of the major components of the go west is the
Railway linking Qinghai to Lhasa. The one thousand plus kilometer long railway line would
boost the economy of the region. “We want to share our development
experiences with other Asian and developing countries. Since the gap is widening between
the urban and rural areas, our ongoing tenth plan is focusing to reduce such gap,”
said spokesman of National Bureau of Statistics. The per-capita income in the rural areas
is about 2000 Yuan (RMB) (US$ 225) whereas the average per capita in urban areas is about
7700 RMB (US$ 650). In 22 years period, China has doubled its average per-capita income. Following economic reforms in China in
1979, it has sent a new wave of economic opportunities around the world including Nepal.
The economic progress in China has shown limited implication in Nepalese economy but it
will have definite impacts within a decade.
In the last two years, Nepal’s
export from China and Tibetan Autonomous Region increased by many folds and it seems that
Nepal too has opportunity across the Himalayas for export of its products. “The key clue for the success was that
we had managed to establish a good balance between stability, reforms and development.
Development is our goal, reform is the means and stability the basis,” said Zhou
Wenzhong, vice minister of Ministry of Foreign Affairs, People’s Republic of China.
“Though you will find the progress relatively more than there is in other countries,
we have different targets for more growth in the next 20 years.” From new cars and mobile phones, apartments
and shopping malls and changing lifestyles, there is a boom in every aspect of Chinese
economy. From most updated city of Shanghai to the interior parts of Tibet Autonomous
Region, Chinese are basking in the glory of newfound prosperity. “China is not only what you see in
Shanghai, Beijing or other big cities but it also consists of many interior and remote
parts which are different in terms of development. We are trying to bridge the gap between
these various regions,” said Kong Quan, spokesman and director general, Information
Department. “China has friendly and good relations with all south Asian Countries and
all of us are struggling to uplift the lives of our citizens. We are in the process of
development.”
Economic Disparities Along with economic development and
prosperity, one can see the level of economic disparities. Whether in Beijing, Shanghai or
Lhasa, two classes of people and two classes of market are apparent. Chinese are aware
about this new disparity. From high-level policy makers to other officials, they
don’t mind speaking about increasing number of population with low income. “Our aim is to end the disparities
existing in society and increase annual income of rural people,” said a Chinese
official. “We don’t have to hide anything to you as you can observe what the
Chinese society really looks like.” “Chinese hold the highest number of
color television sets, washing machines and other household appliances. Before 1978,
people were struggling for food and cloth but China now has surplus of foods and other
household appliances,” said a senior official at National Bureau of Statistic.
“We will increase average per-capita income to US$ 3000 by 2020. This change will
have significant impact in the world economy.” China’s per capita average income in
the urban areas is estimated to be Yuan (RMB) 7,700 as against average Yuan 2000 in rural
areas. As income disparities between rural and urban areas continue to widen, Chinese
government is now launching new plans to narrow down the gap. Although the per-capita income in China
doubled in the last two decades, Chinese policymakers seem to be unsatisfied over the
achievement. “Of course, we are confounded with a lot of challenges; one of them is
our population. China is a country with 1.3 billion people. Population management is a big
challenge. Job creation for the citizens is number one priority of our leaders,” said
vice minister Zhou.
China’s cities are flooded with
large number of rural migrant. Beijing is undergoing a major construction boom to prepare
for Beijing Olympics 2008. Under several mega construction projects, many new expressways
and other side roads, stadiums and other infrastructures are sprouting in the cities. Reconciliation not Confrontation As China’s economic progress has
already generated enormous opportunities in Asian region, Southeast Asian countries are
benefiting from expansion of trade and business opportunities in the main land China. Although the South Asian countries are also
closer in terms of geography, they are yet to increase trade volumes with China. The
smaller South Asian countries will benefit once the two Asian giants India and China
compete for reconciliation not confrontation. China seems to be stressing on construction
and cooperation with its neighbors. Although China shares its border with 15 countries
including Russia, it cannot overlook its centuries old connections with South Asia. “Our policy is a clear one - we want
to cultivate good neighborly relations with all our neighbors. As a matter of fact, our
relations with our neighbors are best ever. China’s relations with ASEAN countries
are fine. We are developing programs, negotiations are being carried out. Our relations
with India have improved considerably,” said vice minister Zhou.
Once the China and India opts for the
reconciliation, smaller countries like Nepal in South Asia will immensely benefit. At a
time when western countries including the United States are encouraging harmonious policy
towards China, there seems to be a very little room for confrontation. Creating Opportunities There are special projects underway for the
large-scale development of western China. The country has been investing more than US$ 10
billion in building infrastructures and other developmental activities creating
opportunities for business. Present Chinese leaders seem to worry about
their country’s rapidly widening gap between rich and poor, between urban and rural
areas and the between booming coast and backward hinterland. Although China is regarded as
a closed system, its society is open at par with other countries in the world. The numbers
of entertainment based Television stations continue to grow and so does the number of
private-owned newspapers. Between 1966 to 1976, the Cultural
Revolution began the destruction, razing centuries-old temples and condemning China’s
imperial past as feudal and superstitious. Chinese leaders even regretted over the
mistakes committed in the past. The new generations of Chinese are now leading as
successful entrepreneurs.
From multi-national departmental
stores to expressways, highways and high-rise buildings, television, mobile phones and
million dollar mansions, the modern China is joining with the world community evolving
step by step. Having started from virtually a medieval society in 1978, Chinese have shown
effective ways on how social stability as well as economic prosperity can be achieved. Market Reforms In Socialist Country Although the country is known as a land of
Mao’s revolution, there is hardly any sign of communist rhetoric. Despite being close
in its nature, Chinese society enjoys enormous freedom within them. Mao Zedong’s
picture hangs at the front gate of Tianmen Square but Mao is respected in China as a
founder of new China but not as an ideologue. It seems that Chinese remembered the
contribution of Mao for his role in making new China but not for his ideology. At a time
when the Maoist ideology seems to be redundant in his original homeland, south Asian
countries are witnessing its strange flourishing. China is giving up the old Marxist and
Maoist model of state control and adhering to the policy of market economy. “Market
forces can play very important role to push the economic reforms,” said a spokesman
of National Bureau of Statistic. “We are successfully transforming the planning
economy to market economy.” Chinese are allowing the market forces in the economic
development.
Prosperity In China From infrastructures to economic
prosperity, what China has gained in the last 25 years with annual Gross Domestic Product
(GDP) growth of 12 percent on average. The sleeping giant has witnessed so many phases
including chaos and uncertainty to revolution of 1949 under the leadership of Mao and then
the infamous period of Cultural Revolution. Today’s People’s Republic of
China is moving from an agrarian to industrialized and consumer-based society with high
economic prosperity. However, China has seen the disparities in the distribution of
income. From high annual GDP in urban areas to relatively low in the rural areas, there
are certain disparities. The economic progress has also brought with
it the social anomalies including the mushrooming of beggars and other population affected
by the economic disparities. Since the economic opportunities are more confined to urban
areas, migration of rural population seems to be putting pressures on urban
infrastructures. Development In Tibet Along with the coastal cities like
Shanghai, capital city Beijing and Guandong, China is also pushing economic development in
the interior parts of China. Under its Go West Policy, China is implementing special
economic packages in the development regions including in the Tibetan Autonomous Region
(TAR), Nepal’s northern neighbor. With Hindi songs and films common in
Lhasa’s street, Nepal’s princess Bhrikuti still shines as a white star. Tibetan
still remembers her contribution worshiping her idols in main monastery in Tibet and
Xigatze. Bhrikuti is a forgotten princess in Nepal but she is still highly known in Tibet
reminding Nepal’s past.
Not only the capital city of TAR
Lhasa, other major cities like Xigatze is also going through the transformation. Four
hundreds kilometers northeast of Kathmandu, Xigatze is developing as another major city of
Tibet. “Xigatze has historical relations with
Nepal and our city is a sister city of Banepa Municipality. We are happy to say that trade
between Tibetan Autonomous Region and Nepal is increasing,” said vice commissioner of
Xigatze Prefecture. “After the completion of Syaphrubeshi Rashuwa road within few
years, the trade between the two countries will increase further. After the construction
of Zelong port, the trade between Xigazte and Nepal will increase.” Xigatze Prefecture, shares its entire
border with Nepal, lies in the middle of Lhasa and Kathmandu. Since the Arniko highway
passes through the Xigatze before reaching to Lhasa, the new infrastructures improvement
in the area could benefit Nepal in future. “Our experiences have shown that
domestic peace is very important to overall development of the country. Social unrest
during the period of cultural revolution has hurt our development efforts,” said a
senior Chinese official. Unnoticed Development Although more than three hundred Nepalese
traders are still living in Lhasa, some new Nepalese entrepreneurs are also grabbing
opportunities in the Tibetan Plateau. Dozens of Nepalese have been working in different
hotel industries in Lhasa and Tibetan authorities are eyeing other Nepalese experts in
specialized tourism sectors. “Since Nepal has developed expertise
in the tourism sector including in trekking, rafting and hotel management, Tibet wants to
share the knowledge,” said Canmugun vice commissioner of Xigatze. “We have five
peaks that are over 8,000 meter high, trails for trekking and rivers for rafting.” As the development in the north of
Himalayas is taking fast pace, only a few Nepalese have noticed the economic progress made
by Tibet. For the large number of common Nepalese it is very difficult to take a peep at
the development and progress being mad in the north of Nepal’s neighborhood since it
is virtually impossible to see beyond high mountains. Known for its hostile terrain and
mountains, majority of Nepalese do not know that the prosperity and progress have made
their way into Tibet in the form of construction of highways, railways and airports. Although the countries in the South of
Himalayas have many commonalities and the geography and nature is favorable to accelerate
the development activities that could turn them prosperous, it seems a far away dream. The
fate of Nepal, a small Himalayan country nestled between China and India, seems to have
lost amid violence, destruction and devastation. “We want to see prosperous,
independent and sovereign Nepal. As a close neighbor and friend of Nepal, China always
supports Nepal’s effort to achieve economic prosperity,” said a senior Chinese
official. “ We hope that Nepal will overcome its present crisis.” With the overthrow of Rana regime and the
introduction of new political system, Nepal has spent almost all five decades
experimenting with various types of political systems. Interestingly, no political system
ever produced the much-needed political stability in the country. Nepal’s northern neighbor began its
development after a long civil war and it has spent most of its time to achieve the
economic and social prosperity. Whether under the direct rule of King or democratic
political system, Nepal didn’t witness any difference. “Nepal has a long historical trade
relations with Tibetan Autonomous Regions. Lhasa remains a major trading center for
Nepalese business community. Nepal must tap the opportunities provided by the development
in Tibet,” said Shanker Prasad Pandey, Nepalese Consulate General to Tibetan
Autonomous Region of China. “ Since Arniko high way is the only road linking Tibet
and Nepal, our business communities must identify areas to increase Nepal’s trade
with Tibet.” “There is immense goodwill among
Chinese people regarding Nepal and its citizens. We should tap the goodwill for our own
benefit,” said Narendra Raj Pandey, Royal Nepalese Ambassador to China. The economic development and progress made
in north of the Himalayas will bring tremendous benefits for the nations on the south of
Himalayas. It requires reconciliation and cooperation between two Asian powers to
economically benefit the people of two sides. It is not in the confrontation but in the
reconciliation between two major powers that the smaller countries in South Asia would be
able to exploit the economic benefit. From streets of Beijing to Shanghai and
Lhasa, one can see how a sleeping giant has woken up and has moved phenomenally towards
the path of progress and prosperity. |
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editor: spotligh@mos.com.np |
