Slow But Steady China Still a Rock for Africa |
Continent can benefit from Beijing's poverty reduction plan and innovations, says African scholar |
By Lu Anqi | ChinAfrica Web Exclusive |
As China's annual "two sessions" - the plenaries of the 12thNational People's Congress, the top legislature, and the 12th National Committee of the Chinese People's Political Consultative Conference, the top political advisory body - endorse policies and strategies in Beijing, the proceedings are also being watched keenly thousands of miles away.
In South Africa, scholars and economists are deliberating on their possible impacts on their country as well as the entire continent.
Emmanuel Igbinoba, a research fellow with the Center for Chinese Studies at Stellenbosch University, is studying the poverty reduction policies and strategies in China's newly endorsed 13th Five-YearPlan (2016-20).
"The plan intends to employ innovation in science and technology to minimize poverty and wealth imbalance," Igbinoba told ChinAfrica. "The policymakers intend to achieve this by focusing on educating people in income-generating techniques in the impoverished regions."
Igbinoba thinks the Chinese strategies can provide a reference and experience to reduce poverty on the African continent. "South Africa and Africa's policymakers can observe the strategies applied by China, particularly those that address poverty reduction, and those strategies can be applied [in Africa]," he said.
He feels China's innovation development implies cooperation in science, technology and education between China and Africa, which will spur economic development in Africa. As to the impact China's decision to adopt a minimum 6.5 percent growth rate target will have on Africa's development, he says it can be viewed both from the short and long-termperspectives.
"In the short run," he remarked, "it is hard to see the slowdown benefiting South Africa and Africa, mostly with regard to commodity exports, commodity prices and the current account balance, especially with a weak global demand. But in the long run, if [China's] growth rises, the demand for commodities will rise and prices will recover."
Igbinoba adds that Africa, however, should be encouraged to diversify from primary commodities production to accelerate its growth.
According to him, China's economic restructuring and consumption-driven model will bring opportunities to Africa.
"As business cost rises in China, firms will look for locations that offer cheaper production costs. Africa with its cheap labor cost and availability of raw materials can be a major beneficiary of China's outsourcing if African policymakers undertake reforms and invest in infrastructure," he explained. "Also, China's transition opens an avenue for it to be a major export destination for South Africa and Africa. Africa can take advantage of this transition by selling goods and services to China."
He gives the example of the Western Cape Province Government's Project Khulisa. Literally meaning Project Grow, it is a strategy to grow the economy and create jobs with the government and the private sector working together in tourism, agri-processing and oil and gas.
The project promoted exporting the province's wines and fruits to new markets like China. The result was South African wine exports to China growing by 50 percent annually and China becoming one of its top sixwine export destinations.
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