by yasir | Sep 24, 2022 | Uncategorised
Once Napoleon Bonaparte remarked that “When China wakes, the whole world will shake”, a dream that has turned into a reality. Undoubtedly, China has awakened with a big bang by presenting and practising the socio-economic perspective devised by Deng Xiaoping in 1978. Instead of replicating the Western economic tenets of development, China managed to devise and tailor new economic models conducive to its own socio-economic and cultural milieu.
China is celebrating its 40th birthday of the “Reform and Opening up” policy that has proven to be the key to success, glory, and dignity for the last four decades. To say it plainly, China is the only country “under the sun” which has achieved the height of progress and prosperity through aligning reform policies which span a time period of over 40 years and that too without infusing or relying on conflicts or “zero-sum” tactics. This is a miraculous achievement in the history of mankind which also extends a universal lesson that development is not stringed to loot, pillage, and plunder — tactics which have been mostly practised and executed by the hegemonies of the world. China’s “openness” can be summarized in five different eras — 1978-1992, 1992-1999, 1999-2012 and onwards. Thus, the intention behind this writing is to showcase China’s success and its uniqueness by opening-up, and how Xi Jinping has emerged as a protagonist renewing the concept of a “Community of Shared Future” for China and the world at large.
Besides carrying the enduring nature of opening-up, it also effectively ensured that the social equality and equity reach through its trickle-down effects to the masses. Resultantly, China turned around its economy by attaining unprecedented annual growth rate averaging 9-10 percent from 1978 to 2018 making it a real economic powerhouse of the world
Before 1978, China’s policy planners were busy in anchoring political stability, therefore, the socio-economic realm was relatively compromised. There was no attraction of foreign investment and its share of international trading was quite nominal as well. Moreover, the absence of market economic structure was also a significant impediment towards development. However, in 1978, the Chinese economy remarkably triggered by ridding of “backwardness” which ensued massive change across all segments of society. The methods of economic management then planned were based on the following major principles;
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(i) performance will be the main consideration in the economic and social advancement of individuals on the basis of their professional skills and achievement of the desired goals;
(ii) planning of future economic development reform will be implemented through respective sector specialists to ensure international standing of China;
(iii) economic cooperation with other countries would be expanded;
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(iv) scientific and knowledge-based economy and its implementation will be strengthened to cope with the requirements of modernization;
(v) world’s advanced theories, technologies and equipment would be applied for achieving accelerated production; and
(vi) modernization of agriculture, industry, national defence, science and technology will be given due importance.
While sifting through the years back to 1978, China was at a critical juncture of defining its destiny while confronting mammoth challenges such as the liquidity crisis, unemployment, poverty, hunger and corruption. The “opening-up” was timely formulated to put policies straight with a workable solution which proved to be the real launching pad for China’s looking ahead to deal with the odds at social and economic fronts. This also reflects that the pre-requisite of a visionary leadership is to steer the nation towards the right path to combat its challenges and conquer them while rising from the dust to attain the zenith of success and splendour.
Besides carrying the enduring nature of opening-up, it also effectively ensured the social equality and equity through its trickle-down effects to the masses. Resultantly, China turned around its economy by attaining unprecedented annual growth rate averaging 9-10 percent from 1978 to 2018 making it a real economic powerhouse of the world.
It was not just geographical location and umpteen resources of China but also the dynamic and prophetic leadership which provided the basis for a sustained development backed by social and political structures. In addition to that, the credit also goes to the unflinching determination of the Chinese nation to attain their destiny, and become the marrow of this thriving turn around in the shortest possible time.
The incredible outcome of the 1978 era can be exemplified from the fact that from 1978-1981, more than 221 million out 250 million were pulled out from the poverty bracket with an astounding rate of 88 percent. In the succeeding years, poverty line was further dropped down to 6.5 percent in 2012 which is presently less than two percent of its total population and is expected to be completely scraped out by the year 2020. Such an economic boom based on its premium objective of providing a better life to its people has never been witnessed elsewhere in the world.
In the following year, many other important decisions, including the elimination of bureaucratic and political obstructions, were made to speed up economic growth. For instance, in 1992, China came up with “social accumulation policy” which meant that the major companies and its ownership would be controlled by the state. Then in 1999, “Go Global Strategy” gave an impetus to China’s market economy.
At the heart of this strategy, the epic project of Belt and Road Initiative (BRI), further stimulated China’s openness by sculpting and resurrecting the concept of Globalization and Modernisation through positive, proactive, respectful, diplomatic, agile and inclusive modes of Chinese characteristics of serving developing states all over the world. President Xi Jinping without a shadow of a doubt, is the reincarnation of the great Mao Zedong, the former has emerged as an illuminating symbol for the world to uphold as to how to shed the wicked practices of “protectionism” and embrace the values of growing together.
To say the least, today China has become the hub of FDI while its entrepreneurs are making huge investments across continents that speak volume of the enormous economic outlook at the global level. In summation, the idiomatic words from President Xi Jinping’s speech — delivered at the occasion of celebrating China’s Opening-up on 18 December — shows firm commitment on part of China to the entire world that “development does not pose a threat to any country… no matter how far China develops, it will never seek hegemony.”
Published in Daily Times, December 30th 2018.
by yasir | Sep 24, 2022 | Uncategorised
With the advent of multipolarity, states relations are perpetually evolving, and hence adding new connotations to its theories and application.
The contemporary world order, though, renews our shades of analysis, especially when the states sharply shuffle priorities pertaining to their actions and aims.
In the emerging multipolar milieu, China has long been embarking on “peaceful co-existence” and “community of shared future for all,” which are not only the prime principles of its foreign policy but these traits are now squarely contributing to anchoring the multipolar world order.
Realising the worth of these trends, the global populace calls for peace and stability to be championed and not the trite ‘zero-sum’ tactics which have been posing perennial inflictions upon global harmony.
Feeling the ‘headwinds’ and ‘tailwinds’ of the dominating powers, a war-ravaged Afghanistan has also been striving for peace and stability for the last 40 years or so.
Sweeping aside the other factors, two reasons can be zoomed in on which turned out to be the major irritants in achieving promising peace in Afghanistan.
The ‘unilateral’ interests of the regional states not only (a) exploited but kept lingering on the internal discord among Afghans and (b) the so-called ‘competing rationale’ of extra-regional players also kept the country in its downward spiral on external fronts.
Moreover, the post-9/11 era further dragged the country into tumult through the US and its allies over the uncalled for and unjustified objectives like; 1) liberating the people of Afghanistan from the chains of terrorism and extremism; 2) bringing ‘true’ democracy and; 3) developing Afghanistan and the region as a whole.
However, the last 17 years-plus presence of the American, Nato forces, contractors and mercenaries completely failed to achieve any of the mentioned objectives, instead, the country and the region have witnessed the opposite of the so-called rationale of the US’ war and stay in Afghanistan.
Positively, a ray of hope has finally peeped out from the tunnel of conflict and chaos in Afghanistan with the eventual acceptance of the Taliban by the Trump administration as a political, social and religious entity.
After marathon discussions in Qatar on January 26, 2019, the US-Taliban talks appeared closer to a pact setting out the possible withdrawal of foreign troops from Afghanistan.
The Taliban has also consented that they will not allow terrorist groups to use Afghan territory to stage attacks against the US and its allies and that they will keep the Daesh and al Qaeda off its soil with further assurance that no attacks will be orchestrated against Pakistan and the region at large.
On February 2nd, Donald Trump reaffirmed on Twitter the pulling out of all the US troops from Afghanistan and also admitted in his State of the Union speech on February 5th to pursue a political solution to the Afghan bloodshed. This clearly reflects the haste on the part of the Trump administration to exit from the troubled land.
However, the daunting task of how the Ghani-led administration and the Taliban could converge for lasting peace is yet to be worked out especially when the Kabul government has shown serious reservations on being left out from the peace talks.
The recent Moscow summit between the Taliban and top Afghan powerbrokers is a step in the right direction. Albeit, the major responsibility to bring an all-inclusive peace headway must be responsibly shouldered by the US along with the regional stakeholders.
From Pakistan’s perspective, it is indeed a monumental diplomatic victory while playing a leading role in this peace prospects along with the backing of China, Saudi Arabia, Qatar and the UAE.
Pakistan’s efforts of promoting peace must be lauded internationally, especially when of late, it didn’t succumb to the immense pressures exerted by the US in the form of threats over Twitter and even of military action, cutting off military and economic aid if it didn’t comply, scapegoating the former for its own fiascos in Afghanistan and so on.
Pakistan heroically resisted these American hostile moves while holding to its principal stance of a political resolution to the Afghan conundrum. History is witness to the fact that China has always helped Pakistan in the times of test and tribulations.
In these difficult times too, China has outrightly supported Pakistan and with the China-Pakistan Economic Corridor (CPEC) up and running along with the continued diplomatic, military, strategic and financial support from its ‘Iron Brothers’ has further vindicated Pakistan’s stance for a negotiated settlement to the Afghan conflict.
For regional growth, security and economy complement each other. A precursor to a thriving economy is a harmonious and secure region. Likewise, foreign policy necessitates timely and prudent decision- making at critical junctures which bear fruits in the long run.
The true objectives of the Belt and Road Initiative (BRI) translate into the promotion of peace and prosperity. And with the CPEC execution, it is an opportune time for both China and Pakistan to continue collaborating to help the Afghans.
Naturally, a stable Afghanistan is indeed central to the expansion of the BRI as the former is ideally located at the node of Central and South Asia. Additionally, the BRI carries the essential concept of its ‘cross-continental-connectivity’ which ideally is not only aimed to uproot the existential threats of insecurities but also to strengthen the socioeconomic fabric of the societies.
Afghanistan is considered a natural partner to the CPEC’s connectivity, often termed ‘CPEC-plus’ and China too fully endorses this proposition. In a trilateral dialogue between China, Pakistan and Afghanistan held at Islamabad in November last year, Chinese Ambassador to Pakistan Yao Jing remarked:
“Afghanistan can also act as a bridge to help expand connectivity between East, South and Central Asian regions. It [Afghanistan] would benefit from joining CPEC and BRI as the projects aim at social and economic development in Pakistan and would provide more trade opportunities.”
In the event of Taliban probably becoming a major power sharer in the next government, this would be an ideal time to persuade them along with the other expected shareholders about the socioeconomic benefits of the BRI and CPEC.
For China to successfully implement the BRI sans security threats and with the possible CPEC extension to Afghanistan would further open the doors of prosperity to the region and beyond.
by yasir | Sep 24, 2022 | Uncategorised
The China-Pakistan Economic Corridor has emerged as a boon both for Pakistan and China. And not surprisingly, the peoples of the two countries have great expectations from the CPEC in terms of economic growth and regional development.
True, the provincial government of Balochistan in Pakistan has voiced concerns over the CPEC, saying its share of CPEC investment is very low. But the Pakistani planning, development and reform minister’s recent allocation of $1 billion for social development in Balochistan has assuaged those concerns.
To further redress Balochistan’s grievances, the Pakistani finance minister said industrialization would be expedited in Balochistan, in order to alleviate poverty and improve the living standards of the local people.
Gwadar can help boost Balochistan economy
Balochistan, which has a population of more than 12 million, is a crucial factor for the CPEC because the Gwadar port is situated there. The province covers 347,190 square kilometers, comprising about 44 percent of the total area of Pakistan. It may be a dry and arid region, but in terms of natural resources, it is Pakistan’s richest province. Still, more than 53 percent of the people in Balochistan live below the poverty line, and the province has a poor literacy rate of about 29 percent, and an unemployment rate of almost 33 percent.
Despite being rich in natural resources, Balochistan lacks both skilled and unskilled workers, as well as the necessary capital to build an industrial base to achieve the much-wanted economic breakthrough to lift the poor out of poverty and improve their living standards.
So what measures should be taken to turn around the fortunes of Balochistan?
To begin with, the CPEC has the potential to change the situation thanks to the eagerness of the Chinese government and enterprises to invest in Balochistan, especially in Gwadar port, road connectivity projects and industrial zones. Within a few years, the CPEC’s projects would facilitate massive economic activities, which would create jobs and help proliferate businesses that in turn would improve the living standards to the local people.
Gateway to Central Asia and the Persian Gulf
Gwadar is situated on an isthmus in the Arabian Sea on the southwestern coast of Pakistan. As such, it is a gateway to both the Persian Gulf and Central Asian countries, which would eventually connect 64 countries in Asia and Europe. No wonder it has been called the “standalone pillar” of the CPEC－and the China-proposed Belt and Road Initiative.
With its perfect geographical location, economic and geostrategic importance, Gwadar has all the features to transform into a regional hub of trade and transport, and an international seaport. The proposed planning and development term for Gwadar is from 2017 to 2050, with the short-term plan being between 2017 and 2025, the medium-term between 2026 and 2035, and the long-term between 2036 and 2050.
According to the Pakistani government’s plans, Gwadar port will further flourish with the “blue economy” through committed spending of more than $824 million on 12 projects. And Saudi Arabia has promised to spend another $6-10 billion in the proposed Gwadar Oil City project and petrochemical chain to be developed under the CPEC.
As for road connectivity, some roads have already been built while others are in the pipeline. China has also vowed to build a 1,320-megawatt coal power plant in Gwadar by 2020 at a cost of $1.9 billion, and proposed to build a 300-megawatt coal-fired plant.
Potential of becoming a world tourist site
Balochistan has an unexplored seacoast with the potential of emerging as a global tourist attraction, which would attract bulk foreign direct investment. Balochistan’s mineral resources are lying untapped for want of capital while some exposed mineral deposits are wasted because of “rat-hole” mining.
According to primary geological surveys, the region could have deposits of rare earth, precious and semi-precious metals, industrial minerals and a variety of stones including onyx, which can provide a huge base for setting up processing and manufacturing plants to produce export-quality value-added products.
Despite some grievances of the people of Balochistan, the construction of Gwadar port and infrastructure facilities such as road networks would boost the local economy and thus improve the living standards of the people not only in the province but also elsewhere in Pakistan. It is important here to emphasize that there is a consensus among all the stakeholders of the CPEC on the construction of the Gwadar port.
However, it is not unnatural that some people－either because of their naivety or due to their lack of understanding about the results－would raise questions on the need for a colossal economic project such as the CPEC.
CPEC and BRI face external opposition
The CPEC and the Belt and Road Initiative face opposition also because some external forces are misleading some people into believing the projects won’t do them any good, because they don’t want to see the Gwadar project completed. But the governments of Pakistan and China, media outlets, civil society, think tanks and academics have been quashing such misleading narratives.
The Pakistani government is also keen to provide a level playing field for the local business community by implementing necessary reforms in taxation to develop the region. Still, immediate interventions by the government would help a great deal to dispel the fears of local businesses. Also, timely reforms in different sectors coupled with the acceleration in CPEC projects would assuage the fears of local businesses and attract more international investment.
After the meeting of the 8th Joint Cooperation Committee of the CPEC in Beijing on Dec 20, when the Pakistani planning, development and reform minister announced the allocation of $1 billion development fund for Balochistan, the Chinese government said it was committed to expediting work on Gwadar international airport, and establishing vocational and technical training centers for the white-and blue-collar workers in the region.
At the training centers, the local workers can hone their respective skills, acquire management skills, learn to take capacity building measures, and explore agricultural and remedial measures to overcome the local challenges so as to ensure “all-inclusive” and “all-around” economic development.
Many countries eager to invest in Gwadar
Five years on the CPEC has given Pakistan so much leverage on the economic front that countries such as Saudi Arabia and the United Arab Emirates are eager to invest in Gwadar and elsewhere in Pakistan. And countries such as Malaysia, Turkey, Russia, and Central Asian and European states are looking forward to investing in the CPEC.
But people in Balochistan should realize that economic projects take time to bear fruits, so they must be patient and stay united. They should also know that the CPEC umbrella, which covers the Gwadar project, alone has the potential to turn Balochistan into an economic success story for Pakistan.
It is also important to emphasize that the malicious propaganda of some external forces that are using Balochistan’s “depravity” to prompt some local people to question the CPEC’s positive effects must be foiled both by the Pakistani and Chinese governments. The Pakistani government must also strategize a mass media campaign to educate the people by highlighting the eventual benefits of the CPEC and emphasizing the need for a peaceful and prosperous Balochistan without which the CPEC’s “all-inclusive” slogan may lose its substance.
The author is working as a Deputy Director Media and Publications at CPEC-Centre of Excellence, Islamabad. He is also an Academician and a TV analyst of CPEC and International Relations.
by yasir | Sep 23, 2022 | Uncategorised
The Communist Party of China continually seeks to improve its governance capabilities, and this has enabled China’s rapid development in the past decades, as it has led China the path of the reform and opening-up.
For the first time, the National Bureau of Statistics has released a variety of information and data that shows China’s progress and development over the years. Even as China’s population has grown from 575 million in 1952 to nearly 1.4 billion in 2018, China’s GDP has risen from around 67.91 billion yuan ($ 9.59 billion) in 1952 to 90.03 trillion yuan ($ 12.71 trillion) at the end of last year. And from only 1.8 percent in 1952, China’s economy now accounts for 16 percent of the global GDP.
Moreover, China has gone from being an overwhelmingly rural economy to being the world’s largest manufacturing hub with 27 percent of worldwide manufacturing value added. In 1952, a large part of China’s population battled to nourish themselves, and starvation was common. At that point, the rural economy accounted for 50.5 percent of the country’s GDP, with farmers making up 83.5 percent of the work force.
by yasir | Sep 23, 2022 | Uncategorised
A general view of the port before the inauguration of the China Pakistan Economic Corridor port in Gwadar. CAREN FIROUZ/REUTERS
The China-Pakistan Economic Corridor, as part of the Belt and Road Initiative, has been making remarkable progress, yet some countries and observers are trying to belittle its enormous potential benefits by labeling it a “debt trap”.
Since the CPEC is entering the next phase of its development, those opposed to it are trying to impede its progress using a two-pronged strategy-first, deceiving the public by misquoting the CPEC’s financial figures and achievements in the media, and second, raising the specter of past militancy in Pakistan to mislead investors into believing the country is still a volatile investment destination.
Despite Pakistani government departments issuing innumerable clarifications, along with the real facts and figures about the CPEC, the international CPEC cynics are bent upon calling it a “debt trap”. Let us solve this puzzle by analyzing the CPEC’s financial figures shared by the Chinese embassy in Islamabad. For instance, only $5.9 billion of the $18.9 billion funding provided by the Chinese companies so far for infrastructure projects constitute loans with a 2 percent interest payable from 2021. The rest of the sum is meant for energy projects funded by Chinese companies and other partners.
Also, $143 million has been provided as interest-free loan for the construction of Gwadar East Bay Expressway in Pakistan’s Balochistan province and $29 million as a grant to fund welfare projects. This means loans are being used to fund less than 20 percent of all CPEC projects-and more than 80 percent of the projects are funded via different financial modalities according to international rules.
Since the CPEC loan of $5.9 billion is hardly 6 percent of Pakistan’s total external debt and liabilities of $99.1 billion, how can it be called a “debt trap”? As part of a “hybrid war”, it is obvious that some global observers along with a few Pakistanis are calling the CPEC a “debt trap” to fulfill their ulterior motives. The loans from the International Monetary Fund, World Bank, Asian Development Bank and other international lending institutions form a major part of Pakistan’s total external debt and liabilities. Yet no one calls them a “debt trap”?
Thanks to the CPEC, China has been the largest investor in Pakistan for the last five years. The CPEC has not only attracted more Chinese investment in Pakistan but also transformed the country from an investment-dry to an investment-friendly destination. For instance, in February, Saudi Arabia signed memorandums of understanding worth $10 billion to invest in Gwadar oil refinery apart from an additional $10 billion worth of other deals. Other countries, too, are looking forward to investing in Pakistan, especially in the CPEC projects, to reap rich benefits.
The CPEC energy projects have already helped Pakistan overcome its energy shortfall-and by 2021 Pakistan will no longer be an energy-deficient country. Which will allow Pakistani entrepreneurs to produce more exportable goods and increase their export earnings.
The CPEC has already created about 70,000 direct jobs since 2015, and about 60,000 of those jobs have gone to the local people. And by 2030, up to 800,000 people are likely to be employed in various CPEC projects.
The other major benefit of the CPEC, especially the Gwadar port, is likely to be a huge influx of foreign investments.
Pakistan’s transportation network is in a bad shape, causing an annual loss of about 3.5 percent of GDP-due mainly to excessive consumption of gas and lubricants, and frequent change of spare parts and breakdown of vehicles. According to the IMF, Pakistan’s GDP was about $304.95 billion in 2017, which means it loses about $10.67 billion because of its poor transportation network.
The CPEC will help reduce this loss because it is expected to help improve Pakistan’s transportation network. And by building the Gwadar port and road network, the CPEC will help Pakistan earn $6 billion to $8 billion a year from road and bridge tolls.
Pakistan is on way to establishing three Special Economic Zones (SEZs) by the end of June. Also, it has plans to establish an information technology SEZ in Islamabad. Such projects will promote upstream and downstream industries, as well as create more employment opportunities for the local people.
Along with the CPEC, Pakistan’s tourism industry, too, is developing at a rapid pace with the country attracting a record number of tourists. Agriculture is another sector that Chinese investors have targeted, and the innovative and modern technology they will introduce to farming will greatly benefit Pakistani farmers, by increasing their yields manyfold.
Compared with the increased earnings and benefits of Pakistanis, a $5.9 billion debt payable over a long period of time would be of little consequence to Pakistan’s economy.
The author is working as a deputy director of media and publications at CPEC Centre of Excellence, Islamabad. The views do not necessarily reflect those of China Daily.
