Китайская модель экономического роста: уроки для России
Kate Rodionova, Faculty of International Economic Relations,
3d-year Student, Financial University, Moscow, Russia
Key words: economic growth, China, Russia, the Chinese model of the economy, opportunities for Russia, similarities and differences of the two economies
Ключевые слова: экономический рост, Китай, Россия, Китайская модель экономики, возможности для России, сходства и различия двух экономик
Abstract: At the moment every country faces the problem of maintaining growth of the national economy, and Russia is not an exception. Some countries are able to achieve great success in the development of its economy. China is among them. The history of this country and its experience in economic reforms can be regarded as a valuable lesson for Russia, and having understood the methods of stimulating economic growth in China, we can apply these techniques in the context of the national economy.
Аннотация: На данный момент перед каждой страной стоит вопрос о поддержании роста национальной экономики, и Россия не является исключением. Некоторым странам удается достичь больших успехов в развитии своей экономики. Одна из этих стран – Китай, и из истории этой страны и ее опыта экономических реформ возможно извлечь ценные уроки для России, а также, разобравшись в методах стимулирования экономического роста в Китае, применить данные приемы в условиях национальной экономики.
An economic growth stimulation is a crucial goal of an economic policy. One of the countries, to which the world community paid attention due to its economic growth speed is China.
The relevance of this work is explained due to the fact that today China is quite a powerful country with the great economic potential and growth speed, and thus, methods of its stimulation, some aspects of the economic policy can potentially be used to stimulating the economic growth in Russia.
In order to understand what lessons exactly from the economy achievements of this country can be extracted to use under conditions of Russian reality, it is necessary to understand the origins and general issues, which characterize the economy of China at the moment.
1) Chinese national economy has a strong public sector, which currently is approximately 60% of the entire country’s economy. The state's presence is especially high in the industries of oil processing, electric power, metallurgy.
2) Simultaneously there is also the developed and highly effective private economic sector, which gives about 40% of GDP, respectively. Its rapid development started after 1978 – before at time the collective property was the basis of the economy.
3) Departing from the global export-oriented model, the accent is currently done on the expansion of the internal sales market and active development of the services market. It became possible with the purchasing power growth of the population. The main emphasis in the trade policy was earlier on increasing export volume, but now high quality products both for export and for domestic consumption are in more priority.
4) To the present moment, there is a high degree of China's economy of openness, as well as deep integration into the system of world economic connections, as evidenced by the second place in the world in terms of exports and imports. After fully foreign-owned enterprises had begun to appear in China, the country received a big incentive for improving the quality of the national workforce.
5) One of the most important tools for the development of newest technologies are free economic zones. The preferential policy works for stimulation of investment inflow on the free economic zones territory. Free economic zones help in creating of more jobs for Chinese citizens, raise the general level of products quality.
6) In China there are large reserves of coal, which are about 90% of world reserves. The country also the extract minerals, such as ore of nonferrous metals, oil. The presence of these natural resources helps develop the industry of metallurgy.
7) In the reform period, effective functioning monetary-financial system was built, and still about 90% of the financial sphere remains under government control. China encourages the conversion of the national currency to the dollar, but the reverse operation is difficult. The import of currency is not limited, but the export is connected with multi-stage approvals and permissions.
After implementation of the reforms China was and still exists as one of the big fast-developing countries that has a surplus of labor force. For compensation of the lack of funds for the economic development of the country, the course was taken to export development. Attracting the foreign investment through exports gave an opportunity to increase the amount of funds on the development of the domestic economy. Thus, stimulation of export development in the past has enabled the stable growth of China's economy in the present. But at that moment the course on the export development was rethought and subjected to correction. I think it is especially important that now the emphasis is placed on high quality of goods, instead of volume.
As essential benefit of China, I also want to note a clear understanding of development strategy and definition of the main directions. The country has an excess of cheap labor force, which was an excellent background to become the world's "factory" for the production of goods. But China has not remained a "construction factory" for a long time. After the first years from the beginning of the reforms the largest innovative production centers were organized, which later became known as the "Chinese silicon valleys". I am talking about Shenzhen in the south of China and Jhunjhunun in Beijing and around it. By investing large amount of funds for the development of science 14 world level universities have appeared in China.
Thus, we can see that the government was building an infrastructure, stimulated the creation of additional jobs in the private sector of the economy, which was the supplier of export products, and invested the currency earnings in the purchase of the latest technologies and modernization of industry. The level of consumption and domestic demand gradually increased, which stimulated additional flows of investment capital.
At first glance it may seem that it is very difficult to find contact points of models of economic growth of two countries – China and Russia. For our country it is impossible to give one universal recipe for the development, which will be borrowed from another country.
An integrated approach is very important. The factor that now we have one global market, where the sellers are whole countries and continents, will have a huge impact on the economic growth model. The economic reforms which China is carrying out at the moment, or the reforms which are planned for the nearest future – in my opinion, are not that element for economic growth stimulation, which our country could borrow at this stage of its development. But looking at the origins of China's economic growth, I find certain steps that would have helped Russia to increase its economic growth.
First of all it is necessary to decide what Russia as a country can offer on the global market. China began with the offering itself as a source of cheap labor force, because it was almost its only resource that was in excess. Russia has a completely different situation, and now we act as the seller of natural resources – oil and gas on the global market. Development model based on exports of natural resources is not the most preferred. But anyway, Russia can’t abandon it right now. Therefore, it is necessary to start with improvement of technologies in this field and to offer these technologies on the external market, as well as our country makes it in the field of nuclear energy.
Making an analogy with China, we can say that our country is now at the level of China in 80s. And now Russia needs new industrialization.
After the offer of cheap labor sources, China began the huge infrastructure project. The first thing was the construction of roads. The second step was the establishment of air links with remote areas. These measures helped to fight unemployment, increase population employment. At the same time there was the training of labor sources for that industry that will be leading in the economy – for the engineering one. Economic growth model of China, in fact several steps and elements of this model are not a Chinese invention and innovation. In the period of the beginning of the rapid economic growth China carefully studied the development experience of the main consumer of its products – the USA. A clear parallel can be made with the historical fact that in the era of the Great Depression the United States conducted a global programme for the construction of a large number of roads, and the fact how China is increasing its road transport system from the beginning of its growth until today. The third and more advanced stage was the development of high-speed railways. At the moment this type of railways is also offered as a commodity on the global market.
For our country, I see a great potential in infrastructure development. A good road-transport system will allow to be an indispensable transit point on the communication routes of many countries, the flow of goods passing through the territory of Russia will increase significantly. Large infrastructure projects will give a powerful impulse to the growth of our economy. As in China, it will also help to increase employment. This fact is associated with the accumulation of capital in the hands of private individuals, which in its turn will stimulate the demand for various categories of goods, and hence the development of various types of industries.
In addition to the activities mentioned above, China also conducted the training of its workforce. For long-term development the country needed to move from quantity to quality, in fact, to combine these directions. Russia does not have such amount of labor resources as China in the beginning of economic growth, but qualified workforce is one of the foundations of economic growth. The development of technologies and productions will require not only competent managerial personnel, but specialists of technical direction. By today, this area is not so appealing, to ensure the productions with a constant influx of new personnel.
Despite the differences in models of economic growth of Russia and China, such techniques were described above, which I consider applicable and possible to borrow to economic growth speed acceleration in our country. I want to add one clarification concerning the model, oriented to export. If China for a long time successfully used this model, having got due to it a high economic growth and only in relatively recent times has officially announced its intentions to change a focus on the development of domestic demand, Russia firstly should develop a national demand, combining it with offering its products on the global market.
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