1) The document discusses the Beijing Consensus model of development that has emerged based on China's economic growth strategies, which differ from the Washington Consensus promoted by the IMF and World Bank.
2) The Beijing Consensus emphasizes innovation, improving quality of life over just GDP, and national self-determination or sovereignty. It could replace the Washington Consensus as a development model for other countries.
3) However, the global financial crisis poses a major challenge to the sustainability of China's growth model and whether the Beijing Consensus will succeed as an alternative development path for other nations remains uncertain depending on how China weathers the crisis compared to other countries.
The document discusses the Beijing Consensus model of development as an alternative to the Washington Consensus model. It summarizes the key aspects of the Beijing Consensus, which include allowing developing countries self-determination without requirements for reforms or elections, providing foreign aid without strings attached, and emphasizing economic growth and social stability over democracy. The Beijing Consensus appeals to many developing nations and has influenced the strategies of multinational companies operating in China.
The Role of Decentralization in Wukan Village Protest, Mainland of ChinaFerdi Anggriawan
The document discusses decentralization in China from 1957 to the present. It analyzes political and economic reforms that devolved more power to provincial and local governments. This included granting more autonomy to Guangdong province to enact market-oriented reforms. The document also examines a 2011 land dispute protest in Wukan village that escalated into a widespread conflict before eventually being resolved.
Over the next quarter century, the international order is likely to change considerably. A new geopolitical and macroeconomic context will necessitate a flexible strategy to maximise India's national interest.
In this Discussion Document, an analytical framework is developed to visualise possible New World Orders at the intersection of two axes. The first axis represents five possible geopolitical trends, organised by the degree of global polarity. The second axis represents four geoeconomic trends, based on the degree of growth, automation, trade, and labour movements.
In each scenario, the proposed strategies to maximise India's national interest are determined. The most frequently-occurring strategies are used to develop an agenda that will hold India in good stead, regardless of how the world shapes up.
Domestic Economic Reforms
Liberalise major sectors, implement labour and factor market reforms. Be an attractive destination for FDI.
Focus on the employment elasticity of growth in addition to growth itself. Collaborate with foreign universities for skilling the workforce.
Build a social security net to deal with inequality, unemployment, skill obsolescence, and an aging population.
Reforms for India’s engagement with the world at large.
Three critical military shifts needed: from land to sea, from the physical to the virtual (cyberwarfare); and from manpower to firepower.
Champion the cause of globalisation as movement of labour, goods, and services is critical for India’s growth.
Retain flexibility in terms of alignment: be open to larger partnerships and global projects, as well as unilateral action.
Partner with other middle powers, especially those concerned by G2 dominance.
2 weeks in Beijing, China for the London School of Economics & Peking University summer school.
A description of the class, some insights, my thoughts and more...
Viewing the Chinese economy as a speeding car, there are three types of development that could crash the car: (1) a hardware failure, which is the breakdown of an economic mechanism (analogous to the collapse of the chassis of the car), e.g. a banking crisis; (2) a software failure, which is a flaw in governance that creates social disorders (analogous to a fight among the people inside the car), e.g. the state not being able to meet the rising social expectations about its performance because many of the key regulatory institutions are absent or ineffective; and (3) a power supply failure, which is the loss of economic viability (analogous to the car running out of gas or having its ignition key pulled out) e.g. an environmental collapse or an export collapse.
The fact that China has recently declared that its most important task is to build a Harmonious Society (described as a democratic society under the rule of law and living in harmony with nature) suggests that improvements in governance and protection of the environment are among the most serious challenges to achieving sustainable development. The greatest inadequacy of the Harmonious Society vision is the absence of an objective to build a harmonious world because a harmonious society cannot endure in China unless there is also a harmonious world, and vice-versa. The large amount of structural adjustments in the developed countries generated by rapid globalization and technological innovations has made the international atmosphere ripe for trade protectionism; and environmental degradation has made conflict over the global environmental commons more likely. China's quest for a harmonious society requires it to help provide global public goods, particularly the strengthening of the multilateral free trade system, and the protection of the global environmental commons. Specifically, China should work actively for the success of the Doha Round and for an international research consortium to develop clean coal technology.
Authored by: Wing Thye Woo
Published in 2007
China has emerged as a global power with the world's largest population of over 1.35 billion people. It has experienced rapid economic growth of around 9% annually in recent years due to factors like manufacturing and export industries, though issues like inflation, housing bubbles, and export markets pose risks. China also continues to be an authoritarian state that restricts many human rights and freedoms. It has a large military and places great emphasis on education to advance science and technology.
China has experienced very high economic growth over the past decade, with an average growth rate of 9.9% between 2000 and 2013. This growth is not primarily driven by capital accumulation as predicted by the Solow growth model for a developing "catch up" economy. Instead, growth has been fueled mainly by large gains in total factor productivity, resulting from reallocation of resources to more efficient firms and technological improvements. While capital investment and population growth have still contributed, they have not been the main engines of China's high growth, suggesting China's growth path over the past decades does not fit the expected pattern of a typical developing country experiencing natural catch up.
The document discusses the Beijing Consensus model of development as an alternative to the Washington Consensus model. It summarizes the key aspects of the Beijing Consensus, which include allowing developing countries self-determination without requirements for reforms or elections, providing foreign aid without strings attached, and emphasizing economic growth and social stability over democracy. The Beijing Consensus appeals to many developing nations and has influenced the strategies of multinational companies operating in China.
The Role of Decentralization in Wukan Village Protest, Mainland of ChinaFerdi Anggriawan
The document discusses decentralization in China from 1957 to the present. It analyzes political and economic reforms that devolved more power to provincial and local governments. This included granting more autonomy to Guangdong province to enact market-oriented reforms. The document also examines a 2011 land dispute protest in Wukan village that escalated into a widespread conflict before eventually being resolved.
Over the next quarter century, the international order is likely to change considerably. A new geopolitical and macroeconomic context will necessitate a flexible strategy to maximise India's national interest.
In this Discussion Document, an analytical framework is developed to visualise possible New World Orders at the intersection of two axes. The first axis represents five possible geopolitical trends, organised by the degree of global polarity. The second axis represents four geoeconomic trends, based on the degree of growth, automation, trade, and labour movements.
In each scenario, the proposed strategies to maximise India's national interest are determined. The most frequently-occurring strategies are used to develop an agenda that will hold India in good stead, regardless of how the world shapes up.
Domestic Economic Reforms
Liberalise major sectors, implement labour and factor market reforms. Be an attractive destination for FDI.
Focus on the employment elasticity of growth in addition to growth itself. Collaborate with foreign universities for skilling the workforce.
Build a social security net to deal with inequality, unemployment, skill obsolescence, and an aging population.
Reforms for India’s engagement with the world at large.
Three critical military shifts needed: from land to sea, from the physical to the virtual (cyberwarfare); and from manpower to firepower.
Champion the cause of globalisation as movement of labour, goods, and services is critical for India’s growth.
Retain flexibility in terms of alignment: be open to larger partnerships and global projects, as well as unilateral action.
Partner with other middle powers, especially those concerned by G2 dominance.
2 weeks in Beijing, China for the London School of Economics & Peking University summer school.
A description of the class, some insights, my thoughts and more...
Viewing the Chinese economy as a speeding car, there are three types of development that could crash the car: (1) a hardware failure, which is the breakdown of an economic mechanism (analogous to the collapse of the chassis of the car), e.g. a banking crisis; (2) a software failure, which is a flaw in governance that creates social disorders (analogous to a fight among the people inside the car), e.g. the state not being able to meet the rising social expectations about its performance because many of the key regulatory institutions are absent or ineffective; and (3) a power supply failure, which is the loss of economic viability (analogous to the car running out of gas or having its ignition key pulled out) e.g. an environmental collapse or an export collapse.
The fact that China has recently declared that its most important task is to build a Harmonious Society (described as a democratic society under the rule of law and living in harmony with nature) suggests that improvements in governance and protection of the environment are among the most serious challenges to achieving sustainable development. The greatest inadequacy of the Harmonious Society vision is the absence of an objective to build a harmonious world because a harmonious society cannot endure in China unless there is also a harmonious world, and vice-versa. The large amount of structural adjustments in the developed countries generated by rapid globalization and technological innovations has made the international atmosphere ripe for trade protectionism; and environmental degradation has made conflict over the global environmental commons more likely. China's quest for a harmonious society requires it to help provide global public goods, particularly the strengthening of the multilateral free trade system, and the protection of the global environmental commons. Specifically, China should work actively for the success of the Doha Round and for an international research consortium to develop clean coal technology.
Authored by: Wing Thye Woo
Published in 2007
China has emerged as a global power with the world's largest population of over 1.35 billion people. It has experienced rapid economic growth of around 9% annually in recent years due to factors like manufacturing and export industries, though issues like inflation, housing bubbles, and export markets pose risks. China also continues to be an authoritarian state that restricts many human rights and freedoms. It has a large military and places great emphasis on education to advance science and technology.
China has experienced very high economic growth over the past decade, with an average growth rate of 9.9% between 2000 and 2013. This growth is not primarily driven by capital accumulation as predicted by the Solow growth model for a developing "catch up" economy. Instead, growth has been fueled mainly by large gains in total factor productivity, resulting from reallocation of resources to more efficient firms and technological improvements. While capital investment and population growth have still contributed, they have not been the main engines of China's high growth, suggesting China's growth path over the past decades does not fit the expected pattern of a typical developing country experiencing natural catch up.
The document discusses several key concepts related to levels of development:
1. It describes common terms used to describe levels of development such as developed, developing, underdeveloped, and categories like First, Second, Third World.
2. It outlines some common economic, social, and demographic indicators used to measure development, like GDP, literacy rates, and life expectancy.
3. It provides an overview of characteristics of developing countries like lower living standards, poverty, population growth, and dependence on agriculture.
The document also briefly summarizes several theories of development including modernization theory, dependency theory, and world systems theory. It notes that sustainable development involves partnerships, conservation, and programs like microcredit.
Sino-Japanese Power Politics:
Might, Money and Minds
Speaker: Dr. Giulio Pugliese, Lecturer in War Studies at King’s College London
ICAS public lecture videos on Youtube: https://www.youtube.com/playlist?list=PLAA67B040B82B8AEF
World Systems Theory views the global economy as consisting of three types of countries: core countries that are dominant industrial powers; peripheral countries that are dependent and export resources and labor; and semi-peripheral countries with some industry and dependence. Core countries maintain control over peripheral countries through colonialism, neocolonialism, and multinational corporations. The dominant core power is called the hegemon, with the Netherlands, Britain and the US historically filling this role. However, hegemony declines as the costs rise, other core countries compete, and resentment grows in dependent countries unable to achieve the core's standard of living. The current model of continuous growth also faces challenges from resource depletion.
This document provides a summary of the key findings from the 2015 Global Built Asset Wealth Index report by Arcadis. Some of the main points from the summary include:
- China has overtaken the US as the country with the largest built asset wealth in the world, valued at $47.6 trillion compared to $36.8 trillion for the US. Much of China's growth can be attributed to $33 trillion in investment in built assets since 2000.
- Qatar has the highest built asset wealth per capita at $198,000, replacing Singapore which was previously highest at $192,000.
- Many developed/G7 economies like Japan, Germany, France and Russia have seen declines in their
Politics of Corporate Investment, Trade and Global GovernanceJeffrey Harrod
Forty-eight slides used in the presentation of a 16 session course of the same name. Begins with and introduction to the global political economy as the setting for corporate foreign investment and trade. The slides enable to course to be followed and provide examples, critical analysis and new information..
This document discusses drivers of economic growth. It summarizes views that institutions, openness, infrastructure, and human capital are important drivers. It also discusses a paper finding that the proportion of European settlers during colonization is positively associated with current development levels in those countries, indicating Europeans brought growth-promoting characteristics like institutions and human capital. The document concludes that debate over growth drivers will continue but getting many policies right is important for growth.
Comparing China with the Rest of the Worldguest4d585e
The document compares China's economy to other countries. It discusses similarities and differences between China and the US, the effects of demographics on China and India's growth, and how China faces similar currency pressure and risk of asset bubbles as Japan did in the 1980s. It analyzes factors like population growth, urbanization, education levels, currency appreciation, trade surpluses, and speculative investment that influence economic development and risk of financial instability in these countries.
This document summarizes a working paper that examines why Mexico's economic growth has been modest following economic reforms in the 1980s that opened the country to trade and foreign investment, while China experienced rapid growth. The paper reviews literature on the relationship between openness and growth. While some studies find a positive link, the evidence is mixed. The paper aims to identify factors that may have impeded growth in Mexico but not China in order to explain their different growth experiences after opening up.
This document provides an overview of the emergence and evolution of sustainable investing. It discusses how sustainable investing has grown out of ethical investing practices and has expanded to incorporate environmental, social, and governance factors into investment decisions. It traces the origins of sustainable investing back to the 1987 Brundtland Commission report and notes that while early sustainable investing initiatives began in the 1990s, the role of finance and investment was initially overlooked. It describes how sustainable investing has now matured into a major field, driven by growing recognition of risks like climate change and opportunities in clean technology. The document also examines how sustainable investing aims to generate long-term returns while respecting planetary boundaries and promoting social equity and intergenerational justice.
China and the 21st Century, Session One -- ESADE Business SchoolLuis Torras
- Chinese economic growth has been one of the most remarkable in history, with China emerging as the world's largest economy.
- Since implementing reforms in 1978, China has experienced over 30 years of rapid economic expansion and industrialization, lifting hundreds of millions out of poverty.
- China's emergence as a major economic power has resulted in a shift in the global balance of economic activity and will continue to have widespread impacts on business, labor markets, commodity consumption, and geopolitics for decades to come.
The document discusses the impact of the recent global financial crisis on financial institutions in developing countries. It provides context on the causes of the crisis originating from the US subprime mortgage market collapse. It then discusses how the crisis spread globally and impacted developing country financial institutions through contractions in credit lines and reduced financial flows from tightened foreign banks. The document also examines specific impacts in Pakistan, including tightened domestic money markets, a sharp decline in the Karachi stock exchange, and high inflation exacerbated by currency depreciation and central bank financing of fiscal deficits.
China’s Labour Repressive Regime and the Global Race to the BottomAEPF
Au Loong Yu, presents ‘China’s Labour Repressive Regime and the Global Race to the Bottom’. Au Loong shows the strength of the Chinese economy is based on regressive labour policies. He focuses on the Belt and Roadways Initiative, to show that it is mainly based on driving Chinese interests, goals and geo strategic ambitions. Smaller countries face risks in welcoming this project.
China is the most populous country in the world with over 1.3 billion people. It has the second largest economy and is a one party socialist state led by President Xi Jinping and Premier Li Keqiang. China has a long history dating back over 5,000 years and was the last imperial dynasty until 1911. It became the People's Republic of China after the communist victory in the civil war in 1949 led by Mao Zedong. China has experienced rapid economic growth and development and is now the world's largest exporter and importer of goods.
Unrealised ideals the other side of global governance from 1942 to 1950Democracy Club
This is an essay about a narrative not told. About great moments in history that never were. In all the revolutionary idealism of creating a new post-war order, three institutions were proposed that never came into existence.
Featuring a cast of beloved characters including John Maynard Keynes, Harry Dexter White, Cordell Hull, Franklin D. Roosevelt, and introducing a Great Scot, Sir John Boyd Orr, who was way ahead of his time.
This document provides an overview of China, including its flag, national anthem, president, premier, history, opportunities, threats, economic indicators, imports, exports, industries, and trade policies. It discusses key facts about China's government leaders, economic growth over the past decade, major trading partners, imported and exported goods, and largest industries such as automobiles, steel, textiles, electronics, and petrochemicals. The document aims to give a broad introduction to China's political and economic landscape.
Ten Year Risk from China to Your Investing - China's Goals and RisksInvestingTips
Fifty years ago China was an agrarian society and today it is the largest industrial power in the world. Fifty years ago China was preoccupied with walling itself off from the world and today it is seeking influence and power across the length and breadth of the world.
https://youtu.be/f2fGLnokRn8
Roger federer (PDF ) current global financial crisis and its implication on ...Fatfat Shiying
This document discusses a research project on the implications of the global financial crisis in the United States for international financial institutions. The crisis originated from the subprime mortgage crisis in the US in 2007. It affected the activities of international financial institutions like the IMF and World Bank. The research aims to evaluate the performance of these institutions before and after the crisis, and identify factors that caused the crisis and its implications. It provides background on the crisis and reviews literature on its causes and effects.
%22Alternatives to Debtors Prison%22 2011 Jubilee AustraliaAdele Webb
This document discusses alternatives to debtors' prison by proposing an international insolvency framework. It begins by reviewing past sovereign debt crises in developing countries in the 1980s and more recent financial crises globally. Currently, the dominant approach treats sovereign debt crises as issues of economic inefficiency and imprudent borrowing. The paper argues for a new approach, proposing an international arbitration mechanism to introduce insolvency procedures that reduce risk for creditors while protecting debtors' rights. This would help address shortcomings in how the IMF and World Bank currently handle debt crises.
This article analyzes competition between Latin America and China for US direct investment. It uses time series econometric methods to examine whether increased FDI to China has influenced traditional FDI destinations in Latin America. The results suggest that long-run US investment in Latin America depends mainly on the US economy's performance. They also suggest a substitution effect between Latin American countries and China for US investment flows.
This document summarizes China's plan to open its financial sector by gradually reforming financial policies and regulations. It discusses how China's high savings rate is due to lack of financial development that forces citizens to save in state-owned banks rather than invest. China's 12th five-year plan aims to increase currency convertibility, develop asset management, promote financial holding companies, open domestic markets, and relax regulations to transition China to a more market-based financial system and reduce savings rates over time. The gradual reforms aim to develop stable, transparent markets and maintain political and economic stability during the transition.
The document discusses the shift in global economic power from developed to emerging markets. It notes that emerging markets now make up 24% of global equity market capitalization, attracted by higher growth prospects. Developed nations face decades of low growth and high debt levels from stimulus measures. Emerging economies like China, India, Brazil are seen as the next generation of growth engines, with investors pouring money into these markets. Going forward, emerging markets will play a more prominent role in the global economy and its management.
The document discusses several key concepts related to levels of development:
1. It describes common terms used to describe levels of development such as developed, developing, underdeveloped, and categories like First, Second, Third World.
2. It outlines some common economic, social, and demographic indicators used to measure development, like GDP, literacy rates, and life expectancy.
3. It provides an overview of characteristics of developing countries like lower living standards, poverty, population growth, and dependence on agriculture.
The document also briefly summarizes several theories of development including modernization theory, dependency theory, and world systems theory. It notes that sustainable development involves partnerships, conservation, and programs like microcredit.
Sino-Japanese Power Politics:
Might, Money and Minds
Speaker: Dr. Giulio Pugliese, Lecturer in War Studies at King’s College London
ICAS public lecture videos on Youtube: https://www.youtube.com/playlist?list=PLAA67B040B82B8AEF
World Systems Theory views the global economy as consisting of three types of countries: core countries that are dominant industrial powers; peripheral countries that are dependent and export resources and labor; and semi-peripheral countries with some industry and dependence. Core countries maintain control over peripheral countries through colonialism, neocolonialism, and multinational corporations. The dominant core power is called the hegemon, with the Netherlands, Britain and the US historically filling this role. However, hegemony declines as the costs rise, other core countries compete, and resentment grows in dependent countries unable to achieve the core's standard of living. The current model of continuous growth also faces challenges from resource depletion.
This document provides a summary of the key findings from the 2015 Global Built Asset Wealth Index report by Arcadis. Some of the main points from the summary include:
- China has overtaken the US as the country with the largest built asset wealth in the world, valued at $47.6 trillion compared to $36.8 trillion for the US. Much of China's growth can be attributed to $33 trillion in investment in built assets since 2000.
- Qatar has the highest built asset wealth per capita at $198,000, replacing Singapore which was previously highest at $192,000.
- Many developed/G7 economies like Japan, Germany, France and Russia have seen declines in their
Politics of Corporate Investment, Trade and Global GovernanceJeffrey Harrod
Forty-eight slides used in the presentation of a 16 session course of the same name. Begins with and introduction to the global political economy as the setting for corporate foreign investment and trade. The slides enable to course to be followed and provide examples, critical analysis and new information..
This document discusses drivers of economic growth. It summarizes views that institutions, openness, infrastructure, and human capital are important drivers. It also discusses a paper finding that the proportion of European settlers during colonization is positively associated with current development levels in those countries, indicating Europeans brought growth-promoting characteristics like institutions and human capital. The document concludes that debate over growth drivers will continue but getting many policies right is important for growth.
Comparing China with the Rest of the Worldguest4d585e
The document compares China's economy to other countries. It discusses similarities and differences between China and the US, the effects of demographics on China and India's growth, and how China faces similar currency pressure and risk of asset bubbles as Japan did in the 1980s. It analyzes factors like population growth, urbanization, education levels, currency appreciation, trade surpluses, and speculative investment that influence economic development and risk of financial instability in these countries.
This document summarizes a working paper that examines why Mexico's economic growth has been modest following economic reforms in the 1980s that opened the country to trade and foreign investment, while China experienced rapid growth. The paper reviews literature on the relationship between openness and growth. While some studies find a positive link, the evidence is mixed. The paper aims to identify factors that may have impeded growth in Mexico but not China in order to explain their different growth experiences after opening up.
This document provides an overview of the emergence and evolution of sustainable investing. It discusses how sustainable investing has grown out of ethical investing practices and has expanded to incorporate environmental, social, and governance factors into investment decisions. It traces the origins of sustainable investing back to the 1987 Brundtland Commission report and notes that while early sustainable investing initiatives began in the 1990s, the role of finance and investment was initially overlooked. It describes how sustainable investing has now matured into a major field, driven by growing recognition of risks like climate change and opportunities in clean technology. The document also examines how sustainable investing aims to generate long-term returns while respecting planetary boundaries and promoting social equity and intergenerational justice.
China and the 21st Century, Session One -- ESADE Business SchoolLuis Torras
- Chinese economic growth has been one of the most remarkable in history, with China emerging as the world's largest economy.
- Since implementing reforms in 1978, China has experienced over 30 years of rapid economic expansion and industrialization, lifting hundreds of millions out of poverty.
- China's emergence as a major economic power has resulted in a shift in the global balance of economic activity and will continue to have widespread impacts on business, labor markets, commodity consumption, and geopolitics for decades to come.
The document discusses the impact of the recent global financial crisis on financial institutions in developing countries. It provides context on the causes of the crisis originating from the US subprime mortgage market collapse. It then discusses how the crisis spread globally and impacted developing country financial institutions through contractions in credit lines and reduced financial flows from tightened foreign banks. The document also examines specific impacts in Pakistan, including tightened domestic money markets, a sharp decline in the Karachi stock exchange, and high inflation exacerbated by currency depreciation and central bank financing of fiscal deficits.
China’s Labour Repressive Regime and the Global Race to the BottomAEPF
Au Loong Yu, presents ‘China’s Labour Repressive Regime and the Global Race to the Bottom’. Au Loong shows the strength of the Chinese economy is based on regressive labour policies. He focuses on the Belt and Roadways Initiative, to show that it is mainly based on driving Chinese interests, goals and geo strategic ambitions. Smaller countries face risks in welcoming this project.
China is the most populous country in the world with over 1.3 billion people. It has the second largest economy and is a one party socialist state led by President Xi Jinping and Premier Li Keqiang. China has a long history dating back over 5,000 years and was the last imperial dynasty until 1911. It became the People's Republic of China after the communist victory in the civil war in 1949 led by Mao Zedong. China has experienced rapid economic growth and development and is now the world's largest exporter and importer of goods.
Unrealised ideals the other side of global governance from 1942 to 1950Democracy Club
This is an essay about a narrative not told. About great moments in history that never were. In all the revolutionary idealism of creating a new post-war order, three institutions were proposed that never came into existence.
Featuring a cast of beloved characters including John Maynard Keynes, Harry Dexter White, Cordell Hull, Franklin D. Roosevelt, and introducing a Great Scot, Sir John Boyd Orr, who was way ahead of his time.
This document provides an overview of China, including its flag, national anthem, president, premier, history, opportunities, threats, economic indicators, imports, exports, industries, and trade policies. It discusses key facts about China's government leaders, economic growth over the past decade, major trading partners, imported and exported goods, and largest industries such as automobiles, steel, textiles, electronics, and petrochemicals. The document aims to give a broad introduction to China's political and economic landscape.
Ten Year Risk from China to Your Investing - China's Goals and RisksInvestingTips
Fifty years ago China was an agrarian society and today it is the largest industrial power in the world. Fifty years ago China was preoccupied with walling itself off from the world and today it is seeking influence and power across the length and breadth of the world.
https://youtu.be/f2fGLnokRn8
Roger federer (PDF ) current global financial crisis and its implication on ...Fatfat Shiying
This document discusses a research project on the implications of the global financial crisis in the United States for international financial institutions. The crisis originated from the subprime mortgage crisis in the US in 2007. It affected the activities of international financial institutions like the IMF and World Bank. The research aims to evaluate the performance of these institutions before and after the crisis, and identify factors that caused the crisis and its implications. It provides background on the crisis and reviews literature on its causes and effects.
%22Alternatives to Debtors Prison%22 2011 Jubilee AustraliaAdele Webb
This document discusses alternatives to debtors' prison by proposing an international insolvency framework. It begins by reviewing past sovereign debt crises in developing countries in the 1980s and more recent financial crises globally. Currently, the dominant approach treats sovereign debt crises as issues of economic inefficiency and imprudent borrowing. The paper argues for a new approach, proposing an international arbitration mechanism to introduce insolvency procedures that reduce risk for creditors while protecting debtors' rights. This would help address shortcomings in how the IMF and World Bank currently handle debt crises.
This article analyzes competition between Latin America and China for US direct investment. It uses time series econometric methods to examine whether increased FDI to China has influenced traditional FDI destinations in Latin America. The results suggest that long-run US investment in Latin America depends mainly on the US economy's performance. They also suggest a substitution effect between Latin American countries and China for US investment flows.
This document summarizes China's plan to open its financial sector by gradually reforming financial policies and regulations. It discusses how China's high savings rate is due to lack of financial development that forces citizens to save in state-owned banks rather than invest. China's 12th five-year plan aims to increase currency convertibility, develop asset management, promote financial holding companies, open domestic markets, and relax regulations to transition China to a more market-based financial system and reduce savings rates over time. The gradual reforms aim to develop stable, transparent markets and maintain political and economic stability during the transition.
The document discusses the shift in global economic power from developed to emerging markets. It notes that emerging markets now make up 24% of global equity market capitalization, attracted by higher growth prospects. Developed nations face decades of low growth and high debt levels from stimulus measures. Emerging economies like China, India, Brazil are seen as the next generation of growth engines, with investors pouring money into these markets. Going forward, emerging markets will play a more prominent role in the global economy and its management.
This document analyzes the impact of globalization on China's economy. It discusses how China historically engaged in international trade along the Silk Road but closed its doors at times. Globalization greatly increased in China after economic reforms in the 1970s opened the country up. It has since benefited tremendously from international trade and foreign investment, experiencing rapid economic growth of 8-10% annually. While globalization has boosted China's economy, it also leaves China's growth dependent on the global business cycle and vulnerable to downturns like in the Global Financial Crisis.
ISS Risk Special Report Chinas challenge to the world economic order - Dece...Robbie Van Kampen
Now well into the second decade of the 21st century the world is witnessing the true extent of
China‟s economic, political, and growing military reach. This reach and integration into the
globalized world has been gradual, incremental, and quiet over the past three decades. In
the shadows, China has accelerated significantly in the past 10 years. What does this mean
for the established global order? This paper is a roadmap looking to join the dots on that
journey.
ISS Risk Special Report: China's Challenge to the World Economic Order, by Er...Hrishiraj Bhattacharjee
Now well into the second decade of the 21st century, the world is witnessing the true extent of China’s economic, political, and growing military reach. This reach and integration into the globalized world has been gradual, incremental, and quiet over the past three decades. In the shadows, China has accelerated significantly in the past 10 years. What does this mean for the established global order? This paper is a roadmap looking to join the dots on that journey.
This document summarizes China's response to the global financial crisis that began in late 2008. It discusses:
1) China's assessment that the crisis revealed flaws in free market economies, globalization, and the irrational international economic order.
2) The negative impacts on China, including shrinking overseas demand, overproduction, falling sales, and slowing GDP growth.
3) China's conclusion that it still has opportunities for development and conditions for economic growth remain sound.
4) China's policies to address the crisis, including expanding domestic demand through government spending, industrial restructuring, and stimulating consumer demand.
Economic Growth and Inequality: The New Post-Washington Consensus, September ...Africa Cheetah Run
Economic growth is an increase in the amount of goods and services produced per head of the population over a period of time. The impact of government investment on growth and inequality are shown to contrast sharply in the two approaches, thus illustrating the complexity of the growth-inequality relationship.
Asian economies have played a major role in global economic growth over the past decade, accounting for 25-50% of global growth. They have sustained strong growth and weathered the global financial crisis well. However, their continued growth is contributing to high global commodity and food prices, adding inflationary pressures worldwide. Looking ahead, Asian economies are well positioned to help lead the global recovery given their large foreign reserves and ability to continue domestic growth through public spending programs.
The document discusses signs that the global economy is heading toward recession and possibly depression. It analyzes indicators like declining PMIs, slowing credit growth and industrial production. It argues the financial system could collapse due to unsustainable debt levels and the end of US dollar dominance. The author proposes solutions like establishing a new stable international financial system, adopting social democracy models, and forming a world government to regulate the global economy and address issues.
- The document discusses quantitative easing policies adopted by countries in response to the 2008 global financial crisis and debates around continuing or withdrawing stimulus.
- It notes that while stimulus can boost economies, growth rates vary globally and historically over long periods. Developed economies face structural challenges to reaching over 2% growth even with stimulus.
- Withdrawing stimulus too quickly could cause volatility, so a gradual, clearly communicated process is recommended to bring stability to global financial markets as interest rates rise in the US.
Is China A Game Changer? The Logic Behind the Ambivalence towards the AIIB Xiance Wang
The document discusses the ambivalence towards China's establishment of the Asian Infrastructure Investment Bank (AIIB). While some experts believe the AIIB will have limited influence, others argue it could reshape the global order. The AIIB allows China to lead a multilateral institution for the first time and shows its "money supported friendship" model has appeal. However, the AIIB's scale is smaller than institutions like the IMF and World Bank. It also must follow existing international rules and norms to maintain credibility. Ultimately, the AIIB reflects China's need to break out of domestic challenges rather than a plan to entirely transform the global system, which the US still significantly influences in Asia. Whether China can truly change the
Financing flaws of proposed agreement kevin p gallagherWaqas Malik
The summary discusses how Chile and Malaysia successfully regulated cross-border finance in the 1990s to prevent financial crises, as shown in a new report. Their experience proved valuable after the 2008 crisis when many countries started regulating cross-border flows. However, the US is insisting TPP countries dismantle such regulations despite evidence they protect against crises. Emerging markets should avoid new trade agreements unless they can regulate cross-border finance to prevent instability that foreign investors could cause. The US needs to work with Chile and Malaysia on a TPP approach that gives all members tools to mitigate crises.
CASE STUDY China’s Pegged CurrencyOver the first decade of the .docxwendolynhalbert
CASE STUDY: China’s Pegged Currency
Over the first decade of the 2000s, China developed a substantial overall current account surplus and a large bilateral trade surplus with the United States. In 2006, the current account surplus reached $239 billion, or 9.1 percent of China’s output, and the bilateral surplus with the United States, at $233 billion, was of similar size. A good part of China’s exports to the United States consists of reassembled components imported from elsewhere in Asia, a factor that reduces other Asian countries’ exports to the United States and increases China’s. Nonetheless, trade frictions between the United States and China have escalated, with American critics focusing on China’s intervention in currency markets to prevent an abrupt appreciation of its currency, the yuan renminbi, against the U.S. dollar.
Figure 22-2 shows how China fixed the exchange rate at 8.28 yuan per dollar between the Asian crisis period and 2005. Facing the threat of trade sanctions by the U.S. Congress, China carried out a 2.1 percent revaluation of its currency in July 2005, created a narrow currency band for the exchange rate, and allowed the currency to appreciate at a steady, slow rate. By January 2008, the cumulative appreciation from the initial 8.28 yuan-per-dollar rate was about 13 percent—well below the 20 percent or more undervaluation alleged by trade hawks in Congress. Early in the summer of 2008, in the midst of the financial crisis, China pegged its exchange rate once again, this time at roughly 6.83 yuan to the dollar. In response to renewed foreign pressure, China in June 2010 announced it was adopting a “managed float” exchange rate regime, and under this arrangement, the yuan had appreciated to about 6.12 per dollar by the fall of 2013—a further appreciation of about 10 percent.
FIGURE 22-2 Yuan/Dollar Exchange Rate, 1998–2013
China’s yuan was fixed in value against the U.S. dollar for several years before July 2005. After a 2.1 percent initial revaluation, the currency has appreciated gradually against the dollar.
China’s government has moved so slowly because of fears that it would lose export competitiveness and redistribute income domesically by allowing a large exchange rate change. Many economists outside of China believe, however, that a further appreciation of the yuan would be in China’s best interest. For one thing, the large reserve increases associated with China’s currency peg have caused inflationary pressures in the Chinese economy. Foreign exchange reserves have grown quickly not only because of China’s current account surplus, but also because of speculative inflows of money betting on a substantial currency revaluation. To avoid attracting further financial inflows through its porous capital controls, China has hesitated to raise interest rates and choke off inflation. In the past, however, high inflation in China has been associated with significant social unrest.
What policy mix makes sense for China? F ...
Bertrand Russell and the Challenges of Contemporary Chinapkconference
This document discusses Bertrand Russell's analysis of China from 1922 and how it relates to challenges facing China today. It summarizes Russell's view that China needed a stable government, industrialization under Chinese control, and education spread. Today, China is the world's second largest economy but faces issues of rebalancing demand, environmental problems, and inequality. New challenges include an aging population, pollution, financial regulation, and ensuring its rise avoids conflict with other nations. Russell recognized China's importance and many current issues facing China remain relevant today.
Economic development is influenced by both domestic and international forces. Theories of economic development point to roles for domestic policy and international influence in aiding development. This is shown in Rostow's model of stages of growth. The example of Chad demonstrates that without changes to domestic policy and leadership, increased capital from resources will not necessarily lead to more development, even with oversight from international organizations like the World Bank. Both domestic accountability and international support through projects and investment can spur economic growth, but education is also needed. There are roles for both domestic governments and international institutions in increasing development.
China has rapidly emerged as an economic powerhouse over the past few decades through economic reforms and liberalization. Its annual GDP growth averaged 9.7% from 1979 to 2006, making it the world's second largest economy. China has also greatly expanded its trade relations, becoming the 3rd largest trade partner of both the US and ASEAN countries. While China still faces challenges in per capita income and financial development compared to Western nations, its huge population and investment in infrastructure, technology and education have propelled its economic rise. Some experts predict China may surpass the US as the world's largest economy within the next couple decades.
The document discusses steps the U.S., China, and Japan should take before the next G20 meeting to address the global financial crisis. It proposes:
1) Establishing an emergency currency peg between the dollar, RMB, and yen to stop competitive currency devaluations.
2) Creating a group of allied global central banks including the Fed, PBOC, and BOJ to provide currency swaps and act as a global lender of last resort.
3) Having global sovereign funds recapitalize key global corporations through partial nationalization to restore market confidence.
The document argues this U.S.-China-Japan agreement would provide a foundation for the larger G20 nations
This report, produced by a task force under the aegis of the Chinese Academy of Social Sciences (CASS) and the Centre for International Governance Innovation (CIGI), assesses the impact of the global financial crisis on China. The report suggests that China has been perceived as relatively well insulated from the crisis, but along with other trade-dependent countries outside the Organisation of Economic Co-operation and Development (OECD) its integration into the global economy means exposure to the negative effects of the economic downturn. The task force suggests that China has an interest in the emerging global financial architecture and in maintaining openness in the trading system, and predicts that a point of contention will be deciding the purpose and objectives of those systems.
How China is influencing Africa's Developmentasafeiran
This document discusses China's increasing engagement with Africa over the past decade. It poses three questions about China's impact on Africa's development: 1) Will China help African industrialization? 2) Does China's model of concessional finance offer a new approach for Africa's extractive industries? 3) Will China's infrastructure investments help integrate Africa's economies? After decades of reduced involvement, China is now a major investor and partner in Africa as its companies look abroad and its policy banks provide loans for commodities and projects.
Similar to The "Beijing Consensus" in the shadow of the global financial crisis (20)
La equitación etológica es un método que aplica los conocimientos de la etología equina para ayudar al caballo a entender la equitación de manera que realice los movimientos de forma voluntaria y ligera. El objetivo es lograr una comunicación efectiva entre el jinete y el caballo mediante la descomposición de los movimientos en partes simples, enfocándose en las tres partes principales del caballo (cabeza, grupa y espaldas) para conseguir un binomio equilibrado y seguro. Este método
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Este documento analiza el discurso común sobre el estado de bienestar social y plantea algunas limitaciones y cuestionamientos. Argumenta que el discurso se sitúa principalmente en el ámbito político y ha sido impulsado por partidos socialdemócratas. Sin embargo, sugiere que podría enriquecerse dialogando con otras disciplinas, dado que el concepto de bienestar ha preocupado a todas las sociedades. Señala lagunas como la desconexión teórica de la práctica y la creencia en que los servicios sociales solos lograrán la
El documento trata sobre el concepto de bienestar psicológico. Explica que el bienestar se puede definir como la satisfacción con la vida y la preponderancia de afectos positivos sobre los negativos. Además, discute que el bienestar psicológico es un concepto multidimensional que incluye dimensiones como la autoestima, las relaciones sociales, un sentido de propósito en la vida y el crecimiento personal. Finalmente, analiza cómo factores como la personalidad y el contexto social pueden influir en los niveles de bienestar de
Trayectoria y modelo conceptual de Virginia Henderson (1897–1996), una enfermera teorizadora que incorporó los principios fisiológicos y psicológicos a su concepto personal de enfermería.
La radio es un medio de comunicación de masas exclusivamente sonoro, así que en la percepción de los mensajes radiofónicos solamente participa un sentido: el oído.
Por otra parte, la comunicación radiofónica básicamente es unidireccional, así que el que habla no puede escuchar, y esto pasa en la radiodifusión y aún en la radioafición (en este último caso los participantes pueden ser dos, tres, o más, pero al hablar solamente puede hacerlo uno por vez).
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La "Feria del Libro 2015" en Santiago de Cuba, comenzará el jueves 23 de abril de 2015.
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L'atteinte à la concurrence n'est constituée que dans la mesure où une entreprise est en position dominante et qu'elle en abuse.
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Ancien Régime est le nom de baptême donné à posteriori par les révolutionnaires, désignant le régime de monarchie administrative dite absolutiste des XVI , XVII et XVIIIème siècles. Il s’oppose aux régimes de type modernes et fait référence aux ténèbres, en direct contraste avec l’idée de Lumière.
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Esta conocida cita de Lord Acton (“El poder tiende a corromper y el poder absoluto corrompe absolutamente") muestra la posible existencia de una estrecha relación entre poder y corrupción. En el texto adjunto, su autor (Duncan Waite) examinará las manifestaciones de corrupción existentes en la gestión y administración educativa, desde la educación infantil hasta la superior, y la interrelación dinámica entre estos dos factores: corrupción y abuso de poder. El autor examinará cada concepto, analizando los problemas que pueden presentar sus definiciones y nuestra comprensión de los mismos.
Este documento resume la evolución de la historiografía sobre la Revolución Francesa desde finales del siglo XIX hasta la actualidad. Comienza con una "edad de oro" a principios del siglo XX impulsada por figuras como Jaurès, luego pasa a dominar la escuela "jacobina" de mediados de siglo. En los años 60 surge una corriente "revisionista" que cuestiona las interpretaciones sociales clásicas, abriendo una crisis. El documento analiza estos cambios en el clima historiográfico.
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3. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
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1. Introduction
The existence of a new model of development inspired by the People’s Republic of China has
been subject to passionate debates among experts, practitioners and academics for the last few
years. Whereas some of them consider a Beijing Consensus suitable to replace the
Washington Consensus, others question the viability of the Chinese model, its likelihood to
succeed, and the very existence of such an alternative model.
This paper will try to explain the so-called Beijing Consensus. Chinese development
has been based on policies and measures different from those of the global financial
institutions and relies on principles far different than the Washington Consensus. The paper
will explain the differences between the two, the Beijing Consensus’ appeal and its
possibilities of success given the current global financial crisis
2. China´s Unprecedented Growth and Shortcomings
It is widely recognized that the People’s Republic of China has experienced unprecedented
levels of economic growth over the last few decades. It has maintained rates of economic
growth close to 10% for more than twenty years, even in the wake of the financial crisis
which affected East Asia in the late nineties2
. Such economic success has fed into the Chinese
expectations of becoming a great power3
.
High growth rates have allowed China to achieve a GDP which amounted to $2.234
billion in 20074
. It overtook the United Kingdom in 2005 and Germany in 2008. 5
It managed
to overtake Japan in 2010; however, China’s GDP is still far from the figures of the United
States.
A different case is India, currently considered to be China’s competitor in Asia in the
medium term, though it seems to still have a long way to go before fulfilling such
expectations.
2
In fact, the People’s Republic of China, through its opposition to devaluate the Yuan, contributed decisively to
contain the effects of the crisis first, and to facilitate the recovery later.
3
Actually, even in the context of the current financial crisis, according to the Chinese National Bureau of
Statistics, the Chinese economy would have grown a 9% in 2008 even if the growth dropped to 6.8 in the last
quarter of the year.
4
The Economist (2008): Pocket World in Figures, London, The Economist.
5
Scott, David (2007): China Stands Up, London, Routledge, p. 131.
4. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
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Table 1: Economic Growth
Country /2008 GDP ($bn) Av. Ann, Growth in
real GDP
PRC 2.234 9%
United Kingdom 2.199 2.7%
Germany 2.795 1.4%
Japan 4.534 1.3%
United States 12.417 3.4%
India 806 6.3%
Source: The Economist (2008): Pocket World in Figures, London, The Economist
China’s current economic position is noteworthy considering that almost half of its population
is employed in the agricultural sector. This is possible due to the fact that China is responsible
for the production of 9% of all consumer goods produced globally as well as 4% of total
world trade.
In this sense, we must also take into account China’s trade balance which has reached
an estimated $273-billion surplus for 2009. This amount is 8.6% lower than the $298-billion
positive trade balance in 2008,6
making the United States push hard in favour of a revaluation
of the Chinese currency in 2005. The Yuan was finally revaluated by 2.1% that year7
.
Furthermore, from July 2008 until mid-June 2010, China re-pegged the Yuan to the dollar to
help fight the global financial crisis8
. China freed the Yuan in June and has let it gain about
2.8 per cent against the dollar until October 2010.
However, there are doubts regarding the sustainability of such growth rates. Those
doubts stem from the increasing income inequalities with which China seems to be plagued
and current environmental and development practices. Up to 75% of the population (mostly in
rural areas) has hardly any access to basic needs such as medical care and education.9
The
environmental consequences of China’s industrial and development practices account for
6
“China Trade Statistics 2009”, Suite 101,at http://www.suite101.com/content/china-trade-statistics-2009-
a205058.
7
Odgaard, Liselotte (2006): “The balance of power in Asia-Pacific security : US-China policies on regional
order”, London, Routledge, p 51.
8
“Yuan hits post-revaluation high against dollar”, Business Recorder, 14 September 2010, at
http://www.brecorder.com/single/58/1/1102146:yuan-hits-post-revaluation-high-against-dollar.html.
9
Dirlik, Arif: “Beijing Consensus: Beijing “Gongshi”. Who Recognizes Whom and to What End?, University of
Oregon, Position paper (2006), at
http://anscombe.mcmaster.ca/global1/servlet/Position2pdf?fn=PP_Dirlik_BeijingConsensus.
5. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
4848
China having 16 out of the 20 most polluted cities in the world10
. A good indicator of this is
the Green GDP, which results from calculating GDP and considers the economic loss caused
by the eventual environmental degradation associated with growth. In the case of the PRC, its
GDP would amount to 0%.
For some time now a good number of scholars – those supporting the so-called
“external contradictions” hypothesis- have tried to draw attention to the imbalance of the
Chinese economy towards its external side. They state that the excessive weight of the
external side of the Chinese economy risks provoking a global recession which would, in turn,
harm the PRC. Moreover, according to the Keynesian theory, the export-led development
model would end up provoking a global deflationary crisis11
.
They consider it necessary for China to develop a stronger internal market which
would sustain growth and correct the external vulnerabilities inherent to the current model. In
the context of the global economic turmoil, many policy-makers around the world have
considered increased Chinese consumer spending as a key way out of the crisis and a return to
pre-crisis levels of global growth.
3. The Emergence of the Beijing Consensus and the Reaffirmation of
Sovereignty
Some other developing states have been encouraged by these impressive growth rates
experienced by the People’s Republic of China and have tried to follow a similar pattern of
development.
The Chinese pattern of development, seen as a suitable model to be followed by other
developing countries, has been named the Beijing Consensus. Andrew Leonard coined the
term in the early 90s; however, the concept was first formulated by Joshua Cooper Ramo
years prior.
What is interesting about the Beijing Consensus as a pattern of development is the fact
that it represents a clear departure from the classical mechanisms promoted by the global
financial institutions, i.e. the World Bank or the International Monetary Fund, and could
possibly replace the Washington Consensus.12
The Washington Consensus was a set of development principles established in 1989 by
John Williamson, an economist of the World Bank. It relied on elements such as privatization
of production, free markets, strong fiscal discipline, and globalized economies. The concept
would be expanded by another economist of the World Bank, Daniel Rodrik, later on in the
early nineties. The concepts were in principle designed to respond to the deteriorated
economic situation in Latin America.
10
Esteban, Mario (2008): “Energía y medio ambiente en las relaciones hispano-chinas” in Esteban, Mario:
Medio Ambiente y energía en Asia-Pacífico, Madrid, Exlibris.
11
Palley, Thomas: “External Contradictions of the Chinese Development Model: export-led growth and the
dangers of global economic contraction”, Journal of Contemporary China vol. 15, no. 46 (February 2006), pp.
69-88, p. 70 and ss.
12
Esteban, Mario: “Why is the “Beijing Consensus” moving forward”, Safe Democracy Foundation (13 June
2006), at
http://english.safe-democracy.org/2006/06/13/why-is-the-beijing-consensus-moving-forw/#more-124.
6. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
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The main features of the Beijing Consensus on the other hand were outlined in a paper
written by Joshua Cooper Ramo in 2004. He explains the concept based on three essential
theorems13
:
1. The importance of innovation as a means for accelerated change. It is thought that
innovation is the only means through which changes may be fast enough to be even faster
than the inconveniences caused by change itself.
2. Development entails much more than simply improving GDP or GDP per capita rates.
It has to go beyond that. It has to be also directed at improving people’s quality of life so as to
reduce the possible social imbalances inherent to development. In other words, they try to
make development durable, balanced, sustainable.
3. Development also requires self-determination, in Ramo’s words, that is, to be able to
influence big powers or, at least, develop relations on an equal footing with them. The third of
these theorems gives an idea of the Beijing Consensus as a model of development based on a
strictly classic notion of sovereignty. In other words, following Chen Zhimin,14
the Beijing
Consensus would constitute a return to a Locke-based model15
of interstate relations as well
as the abandonment of the Kantian-based model16
inherent to the Washington Consensus.
The Beijing Consensus appears to be a possible alternative to development and is based on a
distinctive set of values17
, differing from those of the post-Wesphalian- Kantian model
preferred by western countries and that helped form the Washington Consensus.
The model of development described above, especially in the light of its third theorem
and its base on a strictly classical concept of sovereignty, may be of particular interest for
other developing countries. Interestingly, it does not consider any concrete degree of political
liberalisation, let alone democratisation, as a necessarily link to economic growth and
development. Furthermore, the Chinese case proves that economic reform and liberalisation
do not necessarily result in democratic reform18
. In fact, the PRC is an example of an
authoritarian political regime with a technocratic approach to governance19
which
incorporates interventionist economic policies and places strong emphasis not only on the
achievement of economic growth but also on the maintenance of social stability20
. Chinese
leaders and citizens consider that the limitation of certain civil and political rights may be
13
Cooper Ramo, Joshua (2004): The Beijing Consensus, London, The Foreign Policy Centre, pp. 11.
14
Zhimin, Chen (2007): “Soft Balancing and Reciprocal Engagement: international Structures and China’s
Foreign Policy Choices” in Zweig, David and Chen, Zhimin (2007): China’s Reforms and International Political
Economy, London, Routledge, pp. 53.
15
The Lockean model would refer to a Westphalian conception of sovereignty according to which some issues
such as the equal sovereignty of states and the non-interference in internal affairs of the other states, are
considered of paramount importance and they cannot be violated even on the basis of human rights protection.
16
The Kantian model would be characterised by the higher importance accorded to issues such as democracy or
to the protection of human rights even through humanitarian intervention, this is even at the expense of strict
state sovereign rights.
17
Breslin, Shaun (2007): China and the Global Political Economy, Basingstoke, Palgrave MacMillan, pp. 1.
18
Kleine-Ahlbrandt, Stephanie and Small, Andrew: “China’s New Dictatorship Diplomacy”, Foreign Affairs,
vol. 87, no. 1 (January/February 2008), pp. 38-56.
19
Desker, Barry: “Why War is Unlikely in Southeast Asia”, RSIS Commentaries, no. 71 (27 June 2008), at
http://www.rsis.edu.sg/publications/Perspective/RSIS0712008.pdf.
20
Esteban, “Why is the “Beijing Consensus…”, op. cit.
7. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
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necessary if economic development and stability are to be assured, something that may seem
very reasonable for leaders and citizens alike in other developing countries21
.
The Chinese model is an attractive alternative for those authoritarian leaders who may
want to improve the growth and development rates of their countries without putting their
regimes at risk, making economic development a priority over political reform22
. At the same
time, judging by the Chinese case, they will enjoy some legitimacy as long as they achieve
certain economic development and welfare for a greater number, regardless of the political
line they may follow.
The Beijing Consensus relies on the idea that “China’s path to development is
unrepeatable by any other nation,”23
requiring states to follow paths towards growth and
development. This is the opposite of the universal prescriptions provided by the Washington
Consensus, and the Chinese leaders seem reluctant to recognise the existence of any Chinese
“model” which other states might copy24
. Chinese officials (far from adopting a position of
moral authority) frequently mention that China should be considered a developing country,
stressing the importance of South-South solidarity25
. Thus, leaders of autocratic regimes
around the world can be certain that not only development and economic liberalization lead to
democracy, but also that the People’s Republic of China is not going to condition its relation
with them based on their democratic standards and will not criticise their internal affairs26
.
The People’s Republic of China is likely to be seen with much less wariness in
developing countries than in Europe or the United States, since it does not have a history as a
colonial power nor has China threatened or attacked any third world/developing country over
the last few years. This behaviour seems consistent with its claim of seeking a “harmonious
development”27
in a “harmonious international society”28
.
In this sense, China has made tireless efforts to avoid any possible concern about a
“China threat” among its potential followers and partners. Therefore, President Hu Jinta
expressed his aspiration for a “harmonious world”29
during his address at the 60th
anniversary
of the United Nations, which, as far as Chinese foreign policy is concerned, may be seen as
the logical correlate of the “harmonious development” that the PRC claims to be carrying out.
21
Peerenboom, Randall (2002): China's long march toward rule of law, Cambridge; New York, Cambridge
University Press, pp. 86.
22
Leonard, Mark (2008): What does China Think?, London, Harper Collins, pp. 96.
23
Cooper Ramo, op. cit., pp. 5.
24
“The Beijing Consensus is to keep quit”, The Economist, 08 May 2010, pp. 59.
25
Shambaugh, David: “Beijing: A Global Leader With ‘China First’ Policy”, Yale Global (29 June 2010), at
http://yaleglobal.yale.edu/print/6397.
26
Thompson, Drew: “China’s Soft Power in Africa: From the Beijing Consensus to Health Diplomacy”, ASIA
MEDIA, 13 October 2005, at www.asiamedia.ucla.edu/article.asp?parentid=32003.
27
The concept was used by Hu Jintao at the UN 60th
Anniversary Summit on September 15, 2005. It embodied
China’s aspiration to appear as responsible power on the global stage. It replaced the previous notion of
“peaceful rise”.
28
The correlate of the above mentioned Chinese “harmonious development” in its foreign policy. See Berkofsky,
Axel: “The hard facts of soft power”, Asia Times, May 25 2007, at
www.atimes.com/atimes/China/IE25Ad01.html.
29
Shambaugh, David: “Understanding the Jabberwork”, The National Interest, no 94 (Mar./Apr. 2008), pp. 55-
57.
8. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
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Finally, the PRC is also seen as an example (or perhaps an icon) as it has refused to
follow the prescriptions of the IMF or the World Bank in achieving higher rates of economic
growth and development30
.
4. The Expansion of the Model and the Chinese Position in the Global
Political Economy
All these circumstances, together with the PRC’s increasing ‘soft power,’ 31
which at least to
some extent may also be the result of its pragmatic foreign policy and its economic appeal,32
have provided China with an unparalleled opportunity to increase its influence in the global
political economy as a result of two sets of events:
• The rising number of developing states which are embarking upon a similar pattern of
development
• The increasing number of states which are establishing trade and investment relations
with the People’s Republic of China.
Nevertheless, the Chinese government might be trying to consciously foster these
developments in order to expand its participation in South-South cooperation. That would
explain the “go out” strategy already set forth in 2001, aiming to increase Chinese
investments in the Third World. 33
China did not hide the fact that it wanted to establish a new
“strategic partnership in Africa,” 34
paying visits to countries like Saudi Arabia, Morocco,
Nigeria and Kenya.
It is interesting to note that there are several cases in Asia in which countries intend to
follow the development model embedded in the Beijing Consensus, and/or intensify their
economic relations with the Middle Kingdom.
4.1. Asia
Some of the former Soviet Republics such as Kazakhstan, Uzbekistan and Turkmenistan have
seen China as a model for the management of economic issues and also an ally in their
opposition to the American policies aiming to spread democracy. That said, we must
remember that China sided with the authoritarian governments of some Central Asian
countries when they perceived a threat of Colour Revolutions spreading from the Caucasus
30
In fact, John Williamson, who - as we mentioned above - was the economist who designed the Washington
Consensus, has recognized that some of the Asian States with histories of recent economic success did not follow
some of its principles. See Springborg, Robert: “From Washington to Beijing: In Search of a Development
Model”, The Middle East in London (December 2007-January 2008), pp. 4.
31
Gill, Bates and Huang, Yanzhong: “Sources and limits of Chinese Soft Power”, Survival, vol. 48, no. 2
(Summer 2006), pp. 17-35.
32
Thomson, Drew: “China’s Soft Power in Africa…”, op. cit.
33
China may well be planning the construction of a gas pipeline from the Western Coast of Burma to Yunnan
and Sichuan in China as a way to bypass the Straits of Malacca. See Kleine-Ahlbrandt, Stephanie and Small,
Andrew, op. cit.
34
Bhattacharya, Abanti: “Hu’s Foreign Visits. Emerging Beijing Consensus”, IDSA Strategic Comments, 11 May
2006, www.idsa.in/publications/stratcomments/AbantiBhattacharya110506.htm.
9. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
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and Eastern Europe. Similarly, we should not forget how China received President Karimov
of Uzbekistan shortly after the violent repression of a demonstration in Andijan in 2005, in
sharp contrast with the sanctions applied by the United States and the European Union
regarding the occasion.
Some Southeast Asian countries like Laos, Vietnam and Myanmar may also be
interested in emulating the Chinese model and/or intensifying their relations with the PRC.35
Thus Laos, following the Chinese path, has undertaken important market reforms to try to
enhance the share of the economy represented by sectors other than agriculture, and
increasing its participation in international trade despite still being a strictly socialist state in
political terms. Meanwhile, Vietnam has tried to implement the same sort of economic, legal
and political reforms which have succeeded in China. 36
Vietnam has transformed itself into a
manufacturing export oriented economy, while also trying to attract FDI. In the case of
Myanmar, the economic exchanges seem to have taken the lead, at least for the time being. A
new gas field was recently discovered off the coast of Arakan, 37
adding to the interest that the
PRC already had in this Southeast Asian country as a consequence of its access to the Indian
Ocean. In exchange, the PRC has sold $1 billion worth of military equipment to Myanmar,
despite the international sanctions which are in place against Myanmar’s military junta.
To gain greater access to the Indian Ocean, China has contributed to building and
upgrading both the roadways and rail networks which link Yunnan (South China) with a
number of points along the Myanmar coast of the Bay of Bengal. Similarly, China is involved
in the modernization of the naval facilities located at Akyab (Sittwe), Mergui, Hanggyi
Islands and Great Coco Islands. According to some reports, China and Myanmar will have an
intelligence sharing agreement regarding India’s force deployment in the North East and Bay
of Bengal.
35
Interestingly, most of the Southeast Asian countries interested in the Chinese pattern of development are those
which have not seen the People’s Republic of China as a competitor in terms of trade and foreign investment to a
greater or lower extent. See Greenaway, Daved; Mahabir, Aruneema; Milner, Chris: “Has China displaced other
Asian countries’ exports?”, China Economic Review, no. 19 (2008), pp. 152-169.
36
Peerenboom, op. cit.
37
China may well be planning the construction of a gas pipeline from the Western Coast of Burma to Yunnan
and Sichuan in China as a way to bypass the Straits of Malacca. See Kleine-Ahlbrandt and Small, op. cit.
10. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
5353
MAP 1: Arakan Projects
Source: SWET Project
Southeast Asian countries which have traditionally sided with the US, like Thailand and the
Philippines, are increasingly fond of receiving trade and cooperation from the People’s
Republic of China.
4.2. Iran
In the Middle East, Iran is trying to emulate the Chinese experience of growth. Iran has
invited Chinese experts and academics to advise it and also embarked in trade deals with
China for oil and natural gas. Thus, not surprisingly, the PRC became Iran’s largest trade
partner in 2007 and has been negotiating agreements to invest several billion dollars in Iranian
Gas Fields. Similarly, a group of Chinese companies signed a contract with Iran in order to
develop a number of projects in the oil sector. Sinopec has also committed 1500 million
dollars to upgrade the Arak refinery. The PRC will also conduct the exploration of the
Yadavaran gas field,38
and Chinese national companies such as the China National Offshore
Oil Co. are investing huge amounts of money in the Azadegan oil field, despite China’s
support for strengthened UN sanctions against Iran. This move has been seen with dislike by
the US39
.
38
Adib-Moghaddam, Arshin: “Como abordar el desafío iraní”, Foro Para un Mundo en Democracia, Sefe
Democracy Foundation (29 January 2008), at http://spanish.safe-democracy.org.
39
Pomfret, John “In China, officials in tug of war to shape foreign policy”, The Washington Post, 24 September
2010, at
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/23/AR2010092306843.html.
11. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
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MAP 2: Yadavaran Area
Source Answer.com Business and Finance
4.3. Latin America
The Chinese appeal is not only limited to the Asian continent and authoritarian governments.
On the contrary, in Latin America an increasing number of countries, some of them
democratic, are looking towards China for inspiration. Raw materials in general, 40
not just
oil and gas, call China’s attention to the region.41
There has been a massive increase of
Chinese FDI in those sectors, and the three biggest Chinese oil companies, CNPC, Sinopec,
and CNOOC have reached exploration deals with a number of countries in the region, such as
Venezuela, Peru, Ecuador, Argentina and Bolivia42
. All in all, it is clear that China has
become one of the largest trading partners for countries like Peru, Chile and Brazil, as its
40
Malamud, Carlos: “Los actores extrarregionales en América Latina (I): China”, Real Instituto Elcano,
Documento de Trabajo, no. 50 (13 November 2007) at
http://www.realinstitutoelcano.org/wps/portal/rielcano/contenido?WCM_GLOBAL_CONTEXT=/elcano/elcano
_es/zonas_es/america+latina/dt50-2007.
41
Sánchez Ancochea, Diego: “El impacto de China en América Latina: ¿Oportunidad o amenaza?”, Real
Instituto Elcano, ARI, no. 119 (21 November 2006), at
http://www.realinstitutoelcano.org/wps/portal/rielcano/contenido?WCM_GLOBAL_CONTEXT=/elcano/elcano
_es/zonas_es/cooperacion+y+desarrollo/ari+119-2006.
42
Schiller, Ben: “The China Model”, Open Democracy (20 December 2005), at
http://www.opendemocracy.net/globalization-corporations/china_development_3136.jsp.
12. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
5555
trade with the region has multiplied by ten in the last decade.43
China is in the process of
trying to establish strategic partnerships with several countries in the region44
.
In the case of Brazil, President Lula da Silva sent a team to China to study the Chinese
economic model. Chinese oil companies have been working with Petrobras to try to increase
the oil production and Baoostel, the main Chinese steelmaker, invested up to 1.4 billion
dollars in a Joint Venture with Brazil45
. Furthermore, President Lula wants to create a
partnership between China and Brazil, acting as an example of South-South co-operation46
.
This is consistent with Jos Dyrceu’s (former Brazilian Prime Minister) view that “China will
be the determining factor for the development of Latin America47
.
Apart from Brazil, other Latin America countries with clear populist inspiration, like
Venezuela, are both interested in the Chinese model of development and enhancing their
economic relations with the Middle Kingdom. China has invested 400 million dollars in
Venezuela to foster gas production and to upgrade oil fields in order to ensure the long-term
supply of petroleum. 48
Furthermore, plans are underway for Venezuela to provide Iran with
assistance in channelling its oil to China49
. Finally, in Bolivia, President Evo Morales has also
sought to develop a closer and broader relation with China to increase Chinese investment in
the Bolivian hydrocarbons sector.
4.4. Africa
Chinese involvement in Africa over the last few years has received great attention. Its anti-
colonial credentials may play a role of special importance. 50
Although it is true that China has
been present in the African continent since the withdrawal of the colonial powers (supporting
the independence movements in the 50s and 60s), it has massively increased its relations in
the form of trade, investment and aid throughout the last years. The expansion of trade, the
increase of investments and the enhancement of cooperation in the field of human resources
have been substantially incremented since 2005. 51
The interest between China and Africa is clearly mutual as China badly needs raw
materials and energy to sustain its industry. A growing African population makes the continent
a very appealing market. Thus, Chinese business and economic activity in Africa have
counted on the support of the Export-Import Bank of China and the China Development
Bank. These banks have helped Chinese investors and companies with loans and investment
guarantees. Similarly, in December 2005, the Chinese Government launched the official
“China’s African Policy” by means of an “Africa White Paper”, which explained the main
features that would define the Chinese cooperation with Africa over the next few years,
43
Carroll, Rory: “China pours its wealth into Latin America” The Guardian, 18 April 2010, at
http://www.guardian.co.uk/world/2010/apr/18/china-brazil-south-america-trade.
44
Malamud, op. cit.
45
Aiyar, Pallavi: “China muscling its way into the global brand race”, The Financial Express, 18 December
2004, available at
http://www.financialexpress.com/news/china-muscling-its-way-into-the-global-brand-race/56570/2.
46
Kurlantzick, Joshua: “How China is Changing Global Diplomacy”, The New Republic, 27 June 2005, at
www.cerium.ca/spip.php?page=impression&id_article=1267.
47
Castillo, Antonio: “China is good news for Latin America”, China Daily, 19 March 2010, at
http://www.chinadaily.com.cn/opinion/2010-03/19/content_9612186.htm.
48
Sánchez Arcochea, op. cit.
49
Kurlantzick, op. cit.
50
Kleine-Ahlbrandt and Small, op. cit.
51
Broadman, Harry: “China and India Go to Africa”, Foreign Affairs, vol. 87, no. 2 (March/April 2008), pp. 95-
109.
13. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
5656
serving as a general framework for all the economic activities52
.Furthermore, in 2007, Hu
Jintao announced the creation of a new Special Economic Zone placed in Zambia and
followed by two more in Mauritius and Tanzania. This created two more special economic
zones, totalling five in the African continent.53
In November 2009, at a meeting in Sharm el-
Sheikh, Prime Minister Wen Jiabao assured that assistance to African countries would keep
growing without any degree of political conditionality. 54
All these efforts have proven to be successful if we consider the rate at which
exchanges between China and Africa have been growing at 56% per year over the last decade.
55
As previously mentioned, Chinese interest in Africa and other regions is driven to a
large extent by its growing needs for raw materials and energy. Oil imported from Africa
amounts to a third of the total Chinese oil imports, a proportion that continues to rise. Thus,
oil extractive industries are involved in most of the economic exchanges with África56
. In fact,
as much as 50% of the FDI from China goes to countries with large oil reserves like Nigeria,
Sudan and Zambia, while also extending to countries like Angola, Congo, Chad and
Equatorial Guinea. For instance, in the case of Angola, which recently overtook Saudi Arabia
as the main supplier of oil for China, the PRC did not hesitate to offer a 2 billion dollar credit
at a very low interest and without any kind of conditionality. The deal was accepted by the
Angolan government, allowing it to escape from the good governance conditionalities set by
the IMF for a similar loan.57
Authorities of countries like Sudan or Zimbabwe have enthusiastically received the
lack of Chinese concern regarding human rights and democracy issues, as well as its role as a
sort of counterweight to the West58
. The Chinese disregard for human rights concerns has
been harshly criticised by Western governments and commentators who consider China to be
a “rogue donor”59
.
5. The Chinese Model and the Financial Crisis
At this point it seems clear that the first casualty of the global financial crisis has been the
already weakened Washington Consensus and the economic principles which have guided the
global economy throughout the last decades. It has meant, Alain Grash explains, “the
52
Ibid.
53
Leonard, op. cit., pp. 119.
54
Brautigam, Deborah: “Africa’s Eastern Promise” Foreign Affairs, 05 January 2010, at
http://www.foreignaffairs.com/articles/65916/deborah-brautigam/africa%E2%80%99s-eastern-promise.
55
Lammers, Ellen: “How will the Beijing Consensus Benefit Africa?”, The Broker, 01 April 2007, at
http://www.thebrokeronline.eu/en/Magazine/articles/How-will-the-Beijing-Consensus-benefit-Africa.
56
Broadman, Harry: “China and India Go to Africa”, Foreign Affairs, vol. 87, no. 2 (March/April 2008), pp. 95-
109.
57
Schiller, op. cit.
58
Sautman, Barry V.: “Friends and Interests: China’s Distinctive links with Africa”, The Hong Kong University
of Science and Technology, Center on China’s Transnational Relations, Working paper no. 12 (2006).
59
Freschi, Laura: “China in Africa: myths and realities” Aidwatch, 09 February 2010, at
http://aidwatchers.com/2010/02/china-in-africa-myths-and-realities/.
14. UNISCI Discussion Papers, Nº 24 (October / Octubre 2010) ISSN 1696-2206
5757
marginalisation of the international organisations such as the International Monetary Fund
(IMF) and the World Bank”60
.
The chances for the Beijing Consensus to emerge as a possible response or, on the
contrary, follow the same fate of the Washington consensus depend very much on the ability
of the People’s Republic of China to deal with the effects of the crisis. Nevertheless, we could
say that there are already some reasons to be optimistic.
To begin with, Asian countries were initially less affected by the financial crisis61
than
Europe and the US, due to being less exposed to mortgage problems. Furthermore, later
growth has slowed down in Asia, and particularly Northeast Asia, leaving China less affected
than Japan, South Korea, Russia and other developed countries in the region. 62
In 2008 the PRC experienced the lowest growth rate in five years at 9%, dropping to
8.7% in 2009 according to the National Bureau of Statistics. However, China’s economy
seems relatively healthy if compared to some others worldwide.
Clearly, China has not been completely isolated from the OECD recession. Decreasing
exports resulted in a drop in GDP and a downturn in China’s property market. Recently, China
has registered a slowing demand for commodities, and unemployment rates have risen.
However, we can also say that the Chinese economy is healthier and better able to
resist financial contagion. In fact, according to the China Daily, the Chinese banks increased
their profits by a 30.6% in 2008 and the three biggest Chinese banks –China Construction
Bank, Industrial and Commercial Bank of China and Bank of China- are expected to suffer
less from the economic downturn.
While the collapse of Lehman Brothers provoked three days of losses in the Shanghai
Index, it only needed one day to recuperate its original level after the adoption of a number of
measures taken by the Chinese Government. At the same time, when compared to the
reactions of the European and American markets, the Chinese government’s reactions reflect
the higher degree of confidence of the Chinese economic operators and the effectiveness of
the measures set in place, resulting in the increased likelihood for said measures to be
successful.
According to Fernández-Stembridge, there are two elements which help explain the
lesser impact of the crisis on the Chinese economy compared with those of other countries63
:
1. The stringent regulations and controls on capital outflows as well as its small external
debt (just 11.4% of its GDP).
60
Gresh, Alain: “Understanding the Beijing Consensus”, Le Monde Diplomatique (November 2008), at
http://mondediplo.com/2008/11/03beijingconsensus.
61
Abad Quintanal, : “Asia salva al capitalismo”, Foro para una democracia segura, Safe Democracy
Foundation, 03 November 2008, at
http://spanish.safe-democracy.org/2008/11/03/asia-salva-al-capitalismo.
62
Marquina, Antonio (2010): “De la globalización económica a la crisis financiera y económica. Su impacto en
el sistema internacional” in Pérez de Nanclares, Juan (ed.): Estados y Organizaciones Internacionales ante las
nuevas crisis globales AEPDIRI, pp. 434 and ss.
63
Fernández-Stembridge, Leila: Crisis Financiera: ¿Es China Endeble?, Observatorio de Política Exterior
Española, Memorando OPEX, no. 101 (15 October 2008), pp. 2.
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2. The massive capital inflows provoked by the revaluation of the Yuan since 2005 and
the fact that China has become a major destination of investments in the context of the current
crisis.
Both elements would give reasons for investors to consider China a safe place for their funds
in the current situation.
In fact, China’s sound economic situation allowed the PRC to offer a $500 billion loan
to the United States in order to rescue its economy.
The global crisis has been a crucial test for China, forcing the country to adjust to the
slowdown in Chinese exports and industrial production, including the car industry which adds
a lower investment in the property sector. Similarly worrisome is the decrease in business
activity and confidence of the economic operators.
Chinese leadership seems to have chosen a new path. Economists who have warned
about the external contradictions of the Chinese Development Model may have been right.
Chinese leaders, while making calls to avoid protectionism,64
are also adopting measures to
enable a solid increase in domestic demand and private consumption as well as public
spending (especially in infrastructures). Thus, money is being devoted in particular to rural
areas, transportation infrastructures, public housing, environmental projects, health and social
services.
The rise in public spending has meant an injection of up to four trillion RMB ($ 586
billion), funded partially through funds from the local government and the private sector. An
increase of the deficit through an increase in debt sales and the issue of treasury bonds will
also be among the measures undertaken65
.
In order to strengthen the economy, these funds have been invested in the development
of rural areas, the construction of transportation infrastructures, public housing, environmental
projects, health and social services. In sum, an increase in domestic consumption and
investment will compensate for the slow down of the external side of the economy.
Furthermore, the government will seek to increase currency flow throughout the country to
alleviate the loss of confidence and business activity.
Since the second half of 2008, there has been a change in the discourse of the Chinese
leadership. Previously, the government was concerned with the “two contentions” of
economic growth and inflation, however, it is now clearly oriented to sustain economic
growth and monitor inflation.66
Maintenance of economic growth appears to now be of top
priority, while the control of inflation is no longer such an important concern. (According to
the World Bank, inflation in 2008 was only 4.6 % lower than the previous year).
64
Marquina, op. cit., p. 441.
65
Batson, Andrew: “Beijing Reveals Small Parts of Big Stimulus”, The Wall Stree Journal, 15 November 2008,
at http://online.wsj.com/article/SB122670803014529937.html.
66
Fernández-Stembridge, op. cit., p. 3.
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In other words, as the aforementioned economists of the “external contradictions”
hypothesis predicted, the current crisis seems to be one of deflation and not one of inflation.
This could be beneficial for a country like China which has had inflation difficulties over the
last few years.
Current measures are aimed at maintaining the growth rate at levels of 8%, the rate
considered necessary to contain unemployment. In any case, when compared to some western
countries like the UK, the measures have steadily increased retail sales and appear to be
successful.
The loan offered to the US is also in China’s best interest as it would help restore one
of its most important markets and would allow the PRC to gain greater influence on the
western financial system.
It seems clear that if the PRC had failed to make the necessary adjustments to maintain
its growth and development at reasonable levels amid the crisis, the model would have never
emerged in the first place. On the contrary, should China finally manage to handle the
consequences of the Global Economic Turmoil (as it seems to be doing), the Beijing
Consensus would only be reinforced as an alternative pattern of development.
6. Conclusion
These developments, which contribute to explain the increasing importance of the People’s
Republic of China within the functioning of the global economy, may have the potential to
prompt a reconfiguration of the global economy, giving rise to an order articulated on the
basis of Chinese interests67
and practices.
This could end up altering the balance of world economic and presumably military
power, causing reason for concern in different circles in the United States68
.
Many countries could escape from the isolation of the West and find a comfortable
partner in China, resulting in a complex network of relations of countries which the West (and
especially the US) has alienated itself from. It seems clear that this growing web of foreign
relations and increased leverage is not only beneficial for China in economic terms but also in
political terms, which could be eventually useful as a balancing tool versus the West.
If the PRC emerges victorious from the crisis, the Beijing Consensus as a model of
development (and state capitalism as a new model of managing globalisation) will have
triumphed. In other words, as its critics repeatedly mention, the Beijing Consensus is not an
alternative to capitalism and globalisation, it is another way to understand and manage them.
Many Chinese leaders, probably conscious of the implications of such a decision,
insist on considering their country as a developing one and not as a Great Power.69
This self-
image may also be cultivated to avoid any reference to the so-called China’s rise, one of the
terms which may have helped to feed the China threat theory mentioned above.
67
Breslin, op. cit., p. 2.
68
Nolan, Peter (2007): Integrating China, London, Anthem Press, p. 152.
69
Shambaugh, op. cit.
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China is increasingly aware of the meaning of this enhanced economic and, in turn,
political position, especially in terms of its Comprehensive National Power. This issue
appears to be of paramount concern for the Chinese leadership nowadays.
Even when given the scenario of an asymmetric superpower70
, what seems certain is
that China is steadily gaining influence and power at the global level and is mainly achieving
it via economic instruments and strategies as opposed to military assets – irrespective of what
the Chinese Revolution in Military Affairs or the Chinese Spatial Programme may state.
70
Leonard, op. cit., p. 106.