China offers ideas for rethinking the current economic model
Dear Editor,
The Executive Director of the Economic Commission for Latin America and the Caribbean (ECLAC) recently called for a “rethinking [of] the economic model and [the] implementing [of] a new paradigm for the region that contributes to putting an end economic, social and environmental inequalities and moving towards sustainable development.” This is indeed a monumental undertaking for governments of the region. The question is, are regional governments capable of “implementing a new paradigm”?
Clearly, the current economic model being slavishly implemented by governments in Latin, Central America and the Caribbean has failed and has not delivered to the expectations of the common man and woman. These countries continue to be integrated with the global economy as price takers. Soon, the conditions being laid down by the champions of the 4th industrial and technological revolution
will cause them to be marginalized even further. The region therefore faces the danger of being consigned to Jurassic Park given its resistance to radical change and inability to keep pace with rapid developments occurring at the global level.
Inequalities between the region and the rest of the have reached unprecedented proportions, notwithstanding the issuance of multilateral declaration after declaration, the latest being the UN Sustainable Development Goals.
It has become commonplace for governments to make lofty promises to uplift and improve the quality of life of their peoples. Predictably, many fail to do so because they are forever in elections mode and more so, are trapped in the boom and bust cycle of capitalism and the neo-conservative approach to economic and social development. Under such conditions, they view any other developmental model as anathema to their hidebound ideological and philosophical outlook. Alternative paths to economic and social development with socialist features, euphemistically called ‘people-centered development’ are scoffed at. And the collapse of the USSR and the Eastern European socialist states are touted as examples of failed models that should not be followed. Some even point to the Venezuelan example as the worst possible alternative.
But there is still hope for the political innovators and for those who are committed to thinking outside the box to, for example, a people-centred, national democratic path of development. Could this have been the model ECLAC’s Executive Director was hinting at, knowing the failure of other models?
China offers ideas for rethinking the current economic model and implementing the new paradigm for the region. In considering the Chinese model it is necessary to bear in mind that China has reaffirmed its commitment to building a socialist political economy with Chinese characteristics in one country with two systems. Consequently, notwithstanding the fact that the Chinese are committed to building socialism, they are neither shunned nor ostracized. On the contrary, they are embraced by the entire international community.
China’s economy is currently valued at approximately US$445 trillion yet we are told after 68 years of sustained growth that “China is still at the primary stage of socialism and will remain so for a long time to come.” This begs the question, what will China be like, come 2085, if by then it reaches the advanced stage of socialism? The development models adopted by Cuba, Vietnam and Laos are noteworthy. These countries, geographically and population wise pale into significance when compared to China, yet they have taken certain elements of the Chinese model and fashioned them to suit their own local conditions.
In this connection, Cuba has recognized its economic deficiencies and is currently taking measures to effect important reforms that closely approximate the Chinese model.
The newly-elected president of Panama took the wise strategic decision of turning his eyes to China. He broke with Taiwan and established diplomatic relations with the PRC.
The Panamanian President obviously has a vision for the future of his country and the role the Panama Canal would play in that future.
During the opening session of the last Conference of Heads Government of Caricom held here in Guyana, speaker after speaker lamented the poor economic performance of their respective economies. However, the Heads showed absolutely no predisposition to rethink the current economic model or favour implementation of a new paradigm that would take their countries out of the current economic doldrums. It is as if Caricom governments have embarked on a period of marking time until the next elections are called in their respective jurisdictions.
Caricom countries face the danger of being left behind, and while they dither and thrash around for a revolutionary approach to transform their economies, the world beyond is moving on at rapid pace. New geographic, economic and financial groupings as well as huge trading blocs are either evolving or emerging. Note, for example, the Forum of St Petersburg held under the motto ‘In search of a new balance in the global economy.’ Cuba, Haiti and the Commonwealth of Dominica were present at that Forum. It is expected that Haiti and Dominica, two Caricom member states would bring some new developmental perspectives to the Inter-sessional meeting of Heads.
The Shanghai Cooperation Organization (SCO) also known as the Shanghai Pact, a political, economic and military union was established in 1996 in Shanghai, and includes China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. India and Pakistan were admitted as full members at the June summit of the Pact. This Pact will figure prominently in the Belt and Road Project already launched and embraced by many.
The 11th annual meeting of ‘New Champions’ known as the Summer Davos called for “achieving inclusive growth in the 4th industrial revolution” and is a significant development in the international arena. More than 2000 top representatives of political, entrepreneurial, academic groupings, think tanks and media houses from 90 countries met and in their deliberations, focused on job creation and sustainable development.
Earlier in June at a BRICS Forum convened in China, the five member body met with 25 groups representing communications agencies from around the world. Around the same time, a meeting of Ministers of Finance and governors of central banks of the BRICS grouping met to hammer out financing for BRICS projects around the world. These events and political formations signal coming developments that will result in fantastic changes world-wide. The Caribbean Community will not be immune to these tsunami-like transformative changes.
In the case of Guyana, the Granger-led APNU+AFC coalition administration is banking on petroleum generated revenues to transform the economy and to provide Guyanese with the ‘good life.’ But already, legitimate concerns are emanating from several quarters including the media rubbishing the claims of government and pointing to the experiences of other oil producing countries where a corrupt minority within the ruling elite benefited from a lopsided economy while the bulk of the oil revenues were syphoned off by the Exxon/Mobils of this world.
Because of their wooden-headedness, Guyana like their Caricom partners, will have a marginal role, if any at all, to play among the key global players who are aggressively championing the 4th industrial and technological revolution.