Barry Naughton On China's Economic Transformation
David Cameron warns Africa of a 'Chinese invasion'
08/04/2011
Heiko Khoo,
China.org
The British Prime Minister David Cameron condemned China for its system of "authoritarian capitalism" in a speech made at Nigeria's Lagos Business School during his recent tour of Africa. He simultaneously complained that China does not protect private contracts or provide guarantees against expropriation. Cameron justified his speech by claiming that as the "shadow" of colonialism has now been lifted, he has a duty and right as an Englishman, to warn Africa that it faces a "Chinese invasion".
Let us first consider his theoretical description of the Chinese economic system and then make some comparisons between Western and Chinese relations with Africa.
From the mid 1990s, the proportion of the Chinese economy owned by foreign and domestic private companies grew. It appeared that China was moving towards capitalism. Indeed leading economists from China like Justin Yifu Lin and Wu Jinglian argued that it is the private sector that provides the dynamic motive force of growth, and it is certainly true that private sector firms grew more rapidly than state sector firms. The economist Barry Naughton characterized China's transformation as "growing out of the plan". As the dominant economic theories in the world are pro-capitalist theories, the source of the Chinese economic miracle had to be found in private sector dynamism bravely breaking down all Chinese walls, to conquer and eliminate the last vestiges of communism.
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Barry Naughton is an authority on the Chinese economy, with an emphasis on issues relating to industry, trade, finance, and China's transition to a market economy. Recent research focuses on regional economic growth in the People's Republic of China and the relationship between foreign trade and investment and regional growth.
