Description:
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.