Infrastructure Development and economic growth – how China did it
The impressive infrastructure improvements we see appearing all over China over the past two decades have been nothing short of being a miracle. Put simply, no other country has ever been able to achieve so much so rapidly, in building up the infrastructure of a nation that has led to the rise of a modern and advanced China of today.
The Chinese government has wisely recognised the value of pouring resources and giving priority to infrastructure development from the start. The ensuing positive economic returns have since led to vast improvements in the well-being and financial position of the whole Chinese population.
China has this popular phrase regarding the fervour it has shown embracing infrastructural development for all its towns and cities in China – 想致富 先修路. Loosely translated it means : “ First build roads, then wealth will inevitably follows “. This simplified catch-phrase captures the essence and importance of infrastructure improvement for every city, town or village and testifies to its value for bringing wealth and economic benefits to all Chinese.
THE CHINESE JUGGERNAUT
The Mainland China currently is divided into 23 provinces, 5 autonomous regions and 4 municipalities. At the provincial level, each of the provincial governors in-charge will single-mindedly push for greater infrastructure spendings whenever they can, in a race to create an outstanding province under their watch. The rich provinces will lead the way in having the best and the most admired facilities. They will have the tallest skyscrapers, the best airport, industrial parks for building factories and manufacturing. plants, conference centre, performing art concert-hall, sports stadium, roads network, high speed rail lines, high technology show pieces and so on.
A kind of silent inter-provincial rivalry exists that will drive greater innovations and spur higher spendings to achieve a leading position for the governor in developing their respective province. So in the process, you can sense the ensuing drive of all the combined provinces propelling the whole of China forward. More and better infrastructure will help generate wealth, early wealth will then create further wealth down the line. The growth momentum is sustained and build upon, the end result is making China the fastest growing economic powerhouse in the world.
The Central government long has embarked on a national infrastructure development strategy that is aimed providing physical links to the poorest parts of the population, to help bring these places out of extreme poverty. The Chinese authorities encourage the poor to move out from their impoverished villages into new townships that are well-equipped with modern housing and infrastructure facilities, built specially for them. In addition, the authorities will in many cases, also built connecting roads to link the poor remote villages to nearby economic centres. In the process we see life-changing benefits brought to the poor at their previously inaccessible homes. These road links create greater economic opportunities for the villagers which will then allow them to go into small businesses, such as driving delivery trucks or to plant more agricultural products and selling these to improve their family incomes.
Since 2013, the country has invested $246 billion in poverty eradication. According to the official statistics, over the past eight years, 99 million people living in rural areas have successfully crossed over the poverty line and 832 counties and 128 villages have been lifted out of poverty. As President Xi Jinping noted, starting from the late 70s, 770 million Chinese have been lifted out of poverty thanks to the investment.
In reality, Infrastructure development that has taken place encompasses more than merely building roads and rails. There are also other equally important physical development such as airports, sea ports, hydro-electric dams, irrigation systems, green energy power plants, social amenities, utilities and other supporting facilities, etc.
CHINA AS A ROLE MODEL FOR THE WORLD FOR POVERTY ALLEVIATION
As China has convincingly shown, a key fundamental step to achieve economic development for a city is the building of roads and connection links. Roads provide valuable connectivity linkages which serves as a catalyst to spur greater economic activities and exchanges. This fundamental principle for economic development planning can quite easily be adapted in most countries. The country needs to have the will and commitment to make a solid plan for itself and then see through the plans’ implementation. Infrastructure Development followed by enhanced economic activities spurred on by local authorities and government will play a big part in taking the poor out of poverty.
What China has achieved will serve as a useful case study that will provide valuable lessons for the world for poverty alleviation and which the world should learn to emulate. International bodies such the U.N. and World Bank etc, would do well to initiate programmes that can emulate and channel China’s expertise and experience in poverty alleviation to other 3rd world countries.
To further extend the benefits beyond its own physical boundaries, China has created partnerships with regional countries to embark upon the massive Belt and Road Initiative (BRI). The BRI was launched back in 2013 by the Chinese President Xi Jinping. Since that year, China has signed up more than 100 countries as participants in 2600 projects spanning east Asia to Europe. to all parts of the globe. The total value of all the BRI projects amount to US$3.7 trillion. It is indeed an ambitious trans-national infrastructure development masterplan that has long-term strategic implications to benefit all its partner-countries.
Lifting any nation’s poor population out of extreme poverty is a lofty and noble goal that all governments seek to aspire. As China has admirably demonstrated, this is also a not-insurmountable goal when a government has the will and determination, as well as having the real interest of the nation at heart.
THE CPC AND THE CHINESE PSYCHE
This year marks the 100th anniversary of the founding of country’s Communist Party(CPC) this year and is an important milestone for the entire Chinese society. The current Communist Party of China has 98 million members, while at its time of formation, it had only 50 members back in Shanghai in 1921. The struggles of the CPC in its early years and the wars it fought, are on record for all who are interested to read and research. But what the CPC has achieved since it won the civil war against the Nationalist army and declared the formation of the People’s Republic of China PRC in 1949, can rightly be termed as the China Miracle. Despite hiccups such the Great Leap Forward and the Cultural Revolution in the 60s and 70s, the Chinese has persevered through the tumultuous era under the Mao leadership, up till a new leader Deng Xiaoping appeared on the scene. He opened up China and brought in capitalistic styles of economic development into China, with the setting up of four Special Economic Zones. The fuse has been lit and there is no stopping the Chinese rocket ever since. Subsequent leaders have taken the torch and pushed China onwards relentlessly into the coming space age and beyond.
Under the right conditions and freedom for growth, the Chinese ingenuity and drive to make money and excel will take firm rein. The transformation of many of China’s cities into bustling modern, technologically advanced, futuristic metropolis are open to all the world to see and envy. The wealth that they bring to the Chinese living and working there can be clearly seen and felt in the activities and consumption of goods and services there.
The mentality and drive of ever-improving the well-being for oneself firstly, then the race and nation eventually, lies latent in all Chinese minds and psyche. Even a simple villager will grab at the chance to improve his lot to be better off financially, if the chance is given to him. China’s current policy has given the Chinese of all levels the opportunities and the paths to do that.
In tandem with economic growth, the Chinese has developed a strong military capability, as well as. advanced technology prowess. Other countries now gawk and marvel at many of the achievements China has made …. its impressive high-speed rail networks, its massive 5G telecommunications roll-out, the cashless, digital-payment society, autonomous transport/electric car proliferation, the Beidou positional navigation satellite system, recent space conquests to Mars, the moon …. and of course, the many infrastructural marvels all over China today. The list is endless and growing longer, there is no stopping the Chinese juggernaut.
The large majority of the Chinese, importantly are in favour of the Chinese government and its plans for China today and for their foreseeable future. The 13th 5-year National Strategic Plan (2021 to 2025) has been adopted and passed by the National People’s Congress in March this year. it provides a vision of a technological advanced and self-reliant China. With such consistent long-term strategic planning, China is well on its way to become a respected world superpower.
The Chinese has a phrase for describing the world’s reaction to what’s happening in China : 《羡慕嫉妒恨》*
The US and the western economies, are obviously envious, even apprehensive of what all this might eventually portend for them. Their reaction and response to these ‘threatening’ development in ‘Communist China’ will be major, impactful and events-changing, with serious geopolitical implications to China and the Asia-pacific regions.
TRANSLATION
. *《羡慕嫉妒恨》 ……. possessing feelings of admiration, envy and hate, all mixed together
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