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What can Developing Countries learn from India and China?

It’s hard to open a magazine these days and not be reminded of the economic evolution going on in Asia. The reminder of Banglore and Nehru India as the New Silicon Valley or China as the world’s forth-largest exporter and the third-largest importer of goods and services is just amazing.

The world biggest democracy (India) and the world biggest authoritarian government (China) have risen to become the epitome of the free market economy. They have risen from embracing different ideologies to embracing development. They have put aside their military uniform and picked up suits and ties, and now we are using them as models and practical examples to other developing countries that are striving for democratization, industrialization and globalization. I would be lying if I said I was not impressed, my next question then becomes, what lessons could other developing countries especially African countries learn from India and China?

Before we go further we need to know how similar are India and China to most African countries. What characteristic do they share? One of the biggest similarities is that they are developing countries; they share the same labor force,

So if they share some of the major similarities, then how is it that the two most populated countries in the world are miles ahead in development than most African countries combined? What can the African countries learn from them? From my analysis the answer would be to answer this is to look at some of the things that have led to India and China’s success.

Embracing Globalization
With the global integration of information technology, finance and trade the world has become everyone’s everyday market place. The biggest thing India and China did was that they realized that advancement in modern technology was the key to economic growth and social equity thus the embracing of globalization.

A consistent and thoughtful marketing effort
Chinese leaders discarded their tradition and adopted westernization, talked the language of commerce, organized thousands of delegations, hosted endless conferences and exhibitions, and labored to convince foreign investors that China was pro-business, stable, and committed to reform and an open-door policy. What China did was to say no to communism system of trading and yes to a capitalist system.

Creation of zones and infrastructure for businesses
They provided a good working environment for foreign investors. They have created many flexible investment zones, export processing zones, free trade zones, high tech zones, complete with tax incentives and good infrastructure.

Ability to respond quickly
These two countries are fast and efficient in the redirection of resources into higher education, economics, management, computer science, electronic and biotech engineering, the path to twenty-first century success.

Reduction of Poverty
Poverty is a song that these two countries had sung for a long time. From mid seventies they sought a fight against poverty and so far they are winning the war. Their poverty levels have fallen significantly; India has gone from 55 percent of the population in 1974 to an estimated 26 percent in 2000. China too has seen a drastic drop in poverty level.

Structural Reform
Structural reforms have negative impact if not implemented the right way. Here too they have taken important steps including the deregulation of some industries and various privatization commitments and big changes are happening.

Education These two countries realized universal primary education is an effective anti-poverty measure that promotes equity. They also encouraged the study of math and science in their school curriculum. They have also encouraged the use of English as primary in higher education.

The results are phenomenon thanks to digitalization and networking, companies in developed countries are outsourcing most of their departments i.e. accounting, programming, helpdesk support, secretaries and telemarketers to developing countries where the same jobs can be done at very low wages.

India and China still has room for further development, but so far they are way ahead of most developing countries. The biggest thing in their success is noticing the changing times and their willingness to change. African policy makers should learn from this two countries, they should know fully well about the important impediments to stronger growth, among them poor infrastructure, a high cost of capital, and persistent fiscal imbalances.

Yes there are problems we as African’s inherited from our own history and social makeup but it’s about time we stopped being disillusioned. Most African countries gained their independence in the sixties and early seventies but they still blame their downfall on colonization.