By: Prakash Regmi 17th May, 2017

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Presentation transcript:

By: Prakash Regmi 17th May, 2017 CHINESE MODEL OF DEVELOPMENT; WHAT CAN WE LEARN AND UNLEARN By: Prakash Regmi 17th May, 2017

Chinese Model of Development Political and Economic Miracle State/province-led Developmental Model Emphasis on Good Governance Development as the First Priority Gradual and Pragmatic Reform 1970s-80s communist parties collapsed remaining China Before 1978, 88% poverty, now 6.5% Socialism to capitalism with unitary govt Beijing used state-initiated programs (2000s) , financial crisis 08/09 Industrialization, urbanization, marketization and globalization all occurring at a same time in China Good governance, buzz word after 1980s especially in western and European countries. China promoted democracy through good governance not through national election. 70s to 80s – world swept by democratization. Democracy has become perpetual cycle for elect and regrect Post Mao China (80-90s), priority was changed from political campaigns to economic development China’s reformed more slowly and cautiously unlike Soviet Union After the era of post-Deng (after 97), CCP leaders believed, party should be flexible and adaptable to the changing environment. China’s reform is known as ‘Crossing the river by feeling the stone’

Challenges for China Highly economic inequality: (594 billionaires, 2016) no millionaire few years ago. Toxic water and pesticides: infertile soil, less agriculture production in future. Resettlement of poor resident: comes with problems not only solution for poverty reduction. Dependency on Export Market: (29.51% of GDP, 2015); US import 21.8% GDP goods from China. Environment degradation: carbon emission and pollutions. Scarcity of resources for next generation: overuse for higher production. CCP: Economy development should keep going (No election/religion) Rise of criminal activity Corruption: one party and is ruling party

Learn from China Decentralization- state authority Reduced government procedure and barriers- attract FDI Political stability- vision and goal Promote tourism- rural development (9% GDP) Investment of human resource development- nation’s wealth Mandatory retirement: (68-70) from politics High level saving: (Economic crisis- infrastructure development)

Unlearn from China Higher dependency on Export economy: (29.51% GDP) Ignorance of environmental degradation Economic inequality (Rich and Poor) Investment nearly 50% of its GDP: South Korea, Japan, US, UK invest 28 %, 22%, 20% and 15% respectively. Slows in economic growth in future.

Nepal-China Relation 60 years diplomatic relation Different political system and regime took place, monarchy, unitary ruling, democracy, panchyat, constitutional monarchy, multiparty democracy to federal democratic republic. Respect the sovereignty and does not interfere in internal affairs 16th May, 2017- OBOR MoU Signed Infrastructure development Roads- 8 major highways Bridges (Concrete as well as suspension) Hospitals, Educational Institutes Defense (Army) Climate change issues Hydropower construction Every crisis (Earthquake) Aid, projects, grants (777 million aid for 3 years by Wang Yi)