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

2. 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’

3. 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

4. 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)

5. 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.

6. 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, 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)