UK’s Northern Powerhouse can learn from the Chinese
China’s success in promoting growth in selected regions is something the British government can emulate in order to drive development of its Northern Powerhouse proposal, according to the architect of the policy, Jim O’Neill.
The vice-chairman of the Northern Powerhouse Partnership, said: “China’s deliberate attempt to shift growth north and especially westward in the last decade, illustrated by the rise of the likes of Chengdu and Chongqing, is an experience that the United Kingdom can think about in terms of achieving the goals of the Northern Powerhouse.”
The initiative was introduced to boost economic growth in the north of England, including Manchester, Liverpool, Birmingham, Sheffield and Leeds, as a way of diversifying growth away from the dominance of Greater London.
“When I started this task, I had no preconceived notions,” O’Neill said. “I only knew that the United States, or China, or the emerging world, had dominated global GDP growth over the previous 20 years.
“London is the only city in the UK that registers in the world’s top 50, with only Greater Manchester and Birmingham just about creeping into the top 100.”
After floating, then turning down, names for the agglomeration such as “ManPool”, “ManShefLeedsPool”, O’Neill turned the area within 64 kilometers of central Manchester into the Northern Powerhouse with a combined population of some 8 million people.
“If you can create essentially a single market, you’ve got a gamechanger, because you’ve got something, along with London, that registers on the global stage,” he said. “It is extremely important for the UK’s future, as it is a structural difference but very achievable with determination, focus and ambition.”
O’Neill said China’s experience in developing a high-speed rail network can be of great use in strengthening connections between cities in the north of England.
“China has been spectacularly successful at developing rapid train systems, and to link up northern cities — especially between Hull and Liverpool, as well as Leeds and Manchester — is particularly crucial,” he said. “And China has massive experience to share.
“The distance between Leeds and Manchester is less than the central line underground system in London, and I am sure China could help in many ways in turning this into a reality.”
School education is another area in which the UK can learn from China, O’Neill said.
Despite the UK’s long-standing history of success in university education, O’Neill conceded that some British schools, especially in the North and Midlands, have poor records in school achievement.
“While I am cautious about believing it is easy to copy another’s country’s success in something as unique as education, some parts of China — notably Shanghai — have been staggeringly successful in their achievements in improving school outcomes,” he said.
The former Goldman Sachs chief economist said Chinese policymakers are sometimes more enthusiastic about the Northern Powerhouse than the British government.
“Every time I meet a Chinese leader, I am always so impressed about how easily they understand the concept and want to have some involvement,” he said.
While working as commercial secretary to the UK Treasury, O’Neill was approached many times by Chinese mayors, academics and others about the idea of applying lessons learned building advanced manufacturing zones around China to designated cities within the Northern Powerhouse.
He said the continuing rise of the Chinese middle class brings about a growing need to address environmental issues, develop a much better healthcare regime, and improve the overall financial system — with the UK well-placed to help in those areas.
“I think many of the industries, which happen to be stronger within the Northern Powerhouse, are stronger areas for deeper cooperation,” O’Neill said, “This will allow the famous Chinese phrase ‘winwin’ to be true. I am very passionate about the China-UK relationship and it needs to start becoming one of substance.”