Zafar, Ali2012-03-192012-03-192010-02-01https://hdl.handle.net/10986/3702A notable contrast in modern economic history has been the rapid economic growth of China and the slower and volatile economic growth in Sub-Saharan Africa. As the engagement between the two continues to grows, there will be a greater cross-fertilization of experiences. Total factor productivity comparisons suggest that capital accumulation in China coupled with more efficient factor usage explains the differential with Africa. Although the two have similar populations and patterns of inequality, their growth trajectories have been divergent. What can Africa learn from China? Although the lessons vary depending on country location and resource endowment, seven basic lessons are visible. First, the political economy of Chinese reforms and the shared gains between political elites and the private sector can be partially transplanted to the African context. Second, the Chinese used diaspora capital and knowledge in the early reform years. Third, rural reforms in China helped accelerate economic takeoff through a restructuring of property rights and a boost to both savings rates and output. Fourth, Chinese growth has taken place in the context of a competitive exchange rate. Five, port governance in China has been exemplary, and African landlocked economies can benefit significantly from port reform in the coastal countries. Six, China has experimented with a degree of decentralization that could yield benefits for many Sub-Saharan African countries. Seventh, Africa can learn from China s policies toward autonomous areas and ethnic minorities to stave off conflict. Africa can learn from China s experiences and conduct developmental experiments for poverty alleviation goals.CC BY 3.0 IGOACCOUNTINGADMINISTRATIVE BARRIERSADVERSE IMPACTAGRICULTURAL INCOMESAGRICULTURAL OUTPUTAGRICULTURAL SECTORAGRICULTURAL SECTORSAGRICULTUREBANK POLICYBENEFICIARIESBIDBINDING CONSTRAINTSBUSINESS NETWORKSCAPACITY CONSTRAINTSCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL FORMATIONCAPITAL INFLOWSCAPITAL MARKETSCAPITAL RATIOCASH BALANCESCENTRAL BANKCENTRAL BANKSCENTRALLY PLANNED ECONOMYCIVIL WARCOLLATERALCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPETITIVE MARKETCOMPETITIVENESSCORRUPTIONCREDIT ALLOCATIONCREDITSCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCESCURRENT ACCOUNT DEFICITCURRENT ACCOUNT SURPLUSCURRENT ACCOUNT SURPLUSESDEBTDEBT OVERHANGDEBT SERVICEDEBT SERVICE PAYMENTSDECENTRALIZATIONDECLINE IN INVESTMENTDEFICITSDEMOGRAPHICDEPOSITSDEVALUATIONDEVELOPING COUNTRYDEVELOPING ECONOMIESDEVELOPMENT ASSISTANCEDEVELOPMENT CENTERDEVELOPMENT ECONOMICSDEVELOPMENT PROJECTSDEVELOPMENT STRATEGYDIASPORA INVESTMENTDISPOSABLE INCOMEDIVERSIFICATIONDOMESTIC CAPITALECONOMIC AGENTSECONOMIC DEVELOPMENTECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC HISTORYECONOMIC PERFORMANCEECONOMIC POLICYECONOMIC REFORMECONOMIC REFORMSECONOMIC RELATIONSECONOMIC SUCCESSECONOMIC TAKEOFFENDOWMENTSENTREPRENEURSEQUIPMENTETHNIC MINORITIESETHNIC MINORITYEXCHANGE RATEEXCHANGE RATESEXPENDITUREEXPORT GROWTHEXPORT PERFORMANCEEXPORTEREXPORTERSEXPORTSEXTERNAL SHOCKSFACILITATIONFARMERSFINANCIAL CRISISFINANCIAL FLOWSFINANCIAL LIBERALIZATIONFINANCIAL SECTORFISCAL AUTONOMYFISCAL DECENTRALIZATIONFISCAL POLICYFOOD SHORTAGESFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTMENTFOREIGN INVESTMENT FLOWSGDPGDP PER CAPITAGENDERGENDER INEQUALITYGINI COEFFICIENTGLOBAL ECONOMYGLOBAL MARKETSGLOBALIZATIONGOVERNMENT GRANTSGOVERNMENT SUPPORTGROWTH RATEGROWTH RATESHOLDINGHOLDINGSHOUSEHOLD INCOMEHOUSEHOLD SAVINGHOUSEHOLD SAVINGSHOUSEHOLDSHUMAN CAPITALILLITERACYINDEBTEDNESSINEFFICIENCYINEQUALITIESINEQUALITYINFLATIONINFLATION RATESINFLATIONARY PRESSUREINPUT PRICEINSTITUTIONAL REFORMSINTEREST RATEINTEREST RATE POLICYINTEREST RATESINTERNATIONAL BANKINTERNATIONAL DEBTINTERNATIONAL ECONOMICSINTERNATIONAL ECONOMYINTERNATIONAL MARKETSINTERNATIONAL TRADEINVESTINGINVESTMENT RATESLEGAL SYSTEMSLIFE EXPECTANCYLIVING STANDARDSLOCAL GOVERNMENTLOCAL GOVERNMENTSLOCAL INFRASTRUCTUREMACROECONOMIC BALANCEMACROECONOMIC ENVIRONMENTMACROECONOMIC GROWTHMACROECONOMIC PERFORMANCEMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMACROECONOMICSMARKET ECONOMYMARKET SIZEMINORITY GROUPSMONETARY FUNDMONEY SUPPLYMULTIPLIER EFFECTSNATIONAL ECONOMYNATIONAL SAVINGSNATURAL RESOURCESOVERVALUATIONPER CAPITA INCOMEPOLITICAL ECONOMIESPOLITICAL ECONOMYPOLITICAL ECONOMY OF REFORMPOVERTY ALLEVIATIONPRIVATE CAPITALPRIVATE ENTERPRISESPRIVATE INVESTMENTPRIVATE INVESTORSPRIVATIZATIONPRODUCTION FUNCTIONSPRODUCTIVITY GROWTHPROFESSIONAL NETWORKSPROPERTY RIGHTSPUBLIC FINANCERAPID ECONOMIC GROWTHRATES OF INFLATIONREAL EXCHANGE RATEREAL GDPREAL INTERESTREFORM PROGRAMSREGULATORY FRAMEWORKREGULATORY STRUCTURESREMITTANCEREMITTANCESRESERVERESERVE FUNDRESERVESRETURNSSAVINGSSAVINGS RATESSMALL BUSINESSESSOCIAL NETWORKSSOCIAL WELFARESPECIAL FUNDSSTARTUPSTARTUP CAPITALTARIFF BARRIERSTAXTAX INCENTIVESTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRADE LIBERALIZATIONTRADE REFORMSTRADE UNIONTRADINGTRANSFER PAYMENTSTURNOVERUNDERVALUATIONUNEMPLOYMENTUNIONVENTURE CAPITALVILLAGEVOLATILITYWORLD ECONOMYWORLD TRADEWorld Bank10.1596/1813-9450-5216