China has become the world’s second-largest economy surpassing Japan in 2010, and is expected to become the first largest in the near future. China has excelled in almost all walks; from human capital development to technological accomplishments. Undoubtedly, she could unleash such a success by introducing and implementing the reforms that incentivised efficiency and productivity within the country.

Primarily, China’s favourable demographics and skilled labour force have contributed remarkably in making her labour market highly appealing and efficient. It leads to increased capital accumulation and implementation of export-oriented economic strategies. Growing balance of trade and highly profitable rate of domestic trade, therefore, enable China to spend more money on education, health, and human skills. These days, China confronts some serious problems with her skilled labour. Currently, the employed population in China is 776 million, out of 165 million are skilled, and it is expected to decline at 3 million in 2020. To cover this shortfall, the Ministry of Education of China has started focusing on Vocational Education for its masses, enabling its people to become innovative and creative.

In addition,w population and institutional reforms helped China alleviate the masses of people from the poverty and underdevelopment trap. In the view of Malthusian Poverty Trap-a chronic situation where fixed scare resources would not be enough to feed the ever-increasing population create a dependency burden-, China took some pre-emptive measures introducing coercive policies on population control: the one-child policy in 1979. Applying these policies, significant impacts have been observed. Foremost, access to natural resources has increased as coverage in tap water has increased from eighty-four per cent to eighty-four per cent in the last 15 years. Also, the increase in average life expectancy has been observed from thirty-five years in 1949 to seventy years in 1970. Though these policies were globally condemned at large in the perspective of human and social rights violation, China became consistent in focusing on the long-term wellbeing of the people. She has been continuously focusing on building an inclusive institution that can preserve the rights of the people and serve them well.

Moreover, investments in IT sector play a pivot role in China’s competency. It helped her in gaining ever-consisting competitive advantage in the global IT market. In spending, China has the fourth largest IT market around the globe, having more than 104.5 billion spending in the respective industry. With her impressive IT experience over the past years, China’s current 5-year plan is to make IT as one of the strategic industries would help her become an innovative-driven and high-tech society, expecting her IT industry to grow 5% annually over the next 5 years. Today, China has increased its Internet users to over 500 million, from reported 22 million in 2000.

However, China’s rapid growth is still a mystery for many economists. They state that this extraordinary boom is a “Bubble Economy” which is abnormal, and this bubble would burst in the near future getting China’s economy down to the very devastating situation. To prevent this blast, they suggest, China must take some proactive measures by expanding its investments in innovations and technology.

Hence, very factually, development is a self-discovery phenomenon. For Pakistan, it would be effective to analyse our own dimensions, and to mobilise the resources that we have in the best capacity. Our domestic economists must not rely on policies that are implemented and became successful in some other countries, and they must propose economic strategies in the perspective of Pakistan.

FAHAD KHAN,

Naudero, May 8.