CHINA — THE DRAGON DANCES (Part 1)

I have written about the considerable strides India has made in the economic development of the country since the 1980’s. Most people in the business world should be aware of the part India is playing in the development of information technology internationally and in the application of the knowledge economy. China is now seeking to tap into the same area of development and this dragon has begun to dance. Douglas Zhihua Zeng of the World Bank Institute pointed out that China has no model to follow, given its size and its unique position of being both a developing country and the second largest economy in the world (in purchasing power parity terms).

However, it can leapfrog to a knowledge economy, and its success could chart a new path for other developing countries. He argues that the implementation of a knowledge strategy requires full commitment from the highest levels of government and strong coordination across functional sectors and between the central and local governments, a prescription very relevant to Trinidad and Tobago in its pursuit of developed nation status. The knowledge revolution will provide opportunities but China faces similar challenges to other countries in search of development. These challenges itemised by Zeng include: Providing employment. Estimate of jobs needed range from 90 to 300 million to provide employment for the projected 40 to 50 million people no longer required in the agriculture sector, state-owned enterprises, and town and village enterprises, as well as the new entrants to the labour force. Effective unemployment is already about ten per cent, and regardless of which figures are correct, job creation is at the top of policy-makers’ list of priorities.

Maintaining growth and international competitiveness. China’s rapid growth has been possible because of the shifting of workers’ and resources from low-productivity agriculture to industry and because of high rates of both domestic and foreign investment. However, given the huge burden posed by state-owned enterprises and non-performing loans, maintaining economic growth will be difficult. Reducing income and regional inequalities. China’s rapid growth has been concentrated in the coastal regions, while the central and western provinces are falling behind. As a result, inequality is growing. Some people have access to capital, education, and other assets, but others still rely primarily on their own labour in subsistence or in low-productivity enterprises.

Sustaining the environment.
Degraded water quality has damaged agriculture, ecosystems, and fisheries, with air pollution becoming a serious threat to the economy and the population. Each year more than two million people die from air and water pollution, the result of rapid industrialisation and urbanisation. China therefore needs o move away from resource-intensive development and move into services and knowledge-based development.

In order to confront these challenges and take full advantage of   the opportunity to leapfrog provided by the knowledge revolution and knowledge economy, China decided to undertake the transformation towards a knowledge and service based economy. In 1998 the government officially adopted the concept of a knowledge economy and The World Bank in its report  China and the Knowledge Economy: Seizing the 21st Century, provided  the following policy recommendations:
(1) Redefine the role of the state by having the state back off its role as controller and producer and turning to becoming the architect of a new market economy and knowledge-based system. (2) Revamp education by placing more emphasis on higher education and lifelong learning. (3) Develop the information infrastructure by developing foreign resources and expanding Internet access and domestic content. (4) Diffuse technology throughout the economy by strengthening technology diffusion programs. (5) Strengthen research and development by increasing funding and paying more attention to strategic areas such as agriculture and the environment. (6) Exploit global knowledge by acquiring foreign knowledge through direct foreign investment and technology licensing.

To implement these strategies, the government established in 2002 the China Lifelong Learning Project, a learning system based on distance learning on line. This project addresses issues such as, government’s new role, the expansion of distance education, the demand for and supply of labour, the required training and retraining, and the accreditation of learning programmes. In addition, training courses for Chinese policymakers and other stakeholders are conducted. This initiative includes the elderly population encompassing a million elderly at 15,000 campuses at government-funded universities.

Mature students have access to programmes on practical, aesthetic, and intellectual pursuits, including how to care for the sick, follow a proper diet, practice good hygiene, exercise, and use herbal medicines. They also receive training in painting and calligraphy, flower growing and  traditional Chinese art forms. In rethinking the relevance of our education system in Trinidad and Tobago, we need to note the initiatives being undertaken in other countries such as China with its emphasis on training, retraining and opportunities for mature individuals.
   
The views expressed in this column are not necessarily those of Guardian Life. You are invited to send your comments to Gardianlife@ghl.co.tt