Welcome to the Presentation On Chinese Model of Development: Learn and Unlearn from China & Bangladesh-China Economic Relationship Presented by Muhammad Khademul Basher Date : 17 May 2017

Overview of the Presentation Chinese Model of Development Strength and Limitation of Chinese Model of Development Learn and Unlearn from China Bangladesh-China Economic Relationship

Preface “Look at the sky. We are not alone. The whole universe is friendly to us and conspires only to give the best to those who dream and work.” - A.P.J. Abdul Kalam

Background From the 1980s onwards, developing countries gradually succumbed to the forces of the market and the influences of globalization. Structural Adjustment Program was similar to a bitter pill that had to be swallowed by the poor countries. It could provide access to the external resources needed to restore growth. A failure to adopt such policies would cut off access to foreign capital and led to negative growth. The “Washington Consensus” and its sequels were thrust upon the Developing Countries as the preferred way out of economic stagnations toward prosperity.

The Chinese Model of Development China adopted its own strategy of development. China model consists of four sub-systems, a unique way of social organization, a unique way of developing its economy, a unique way of government and a unique outlook on the world. China’s new development approach is driven by a desire to have equitable, peaceful high quality growth.

Contd… By following its own strategy, China achieved staggering growth rates even during times of economic recession. But to what extent democratic values and ideals will need to compromised to achieve economic prosperity in a globalized world is the moot question.

Strength and Limitation of Chinese Model of Development State-Led Development Model The Chinese model looks good on paper but an alternative source of universal norms Development as the Top Priority China model promote authoritarianism Focus on Good Governance China model means in practice is unclear Gradual and Pragmatic Reform Leads to self-dealing of the ruling class, and rampant corruption

Learn from China Central Lesson China’s focus on boosting productivity Pro-Poor Growth Human Capital:  Education Human Capital:  Health Emphasis on Agriculture Physical Capital Savings Set goals and stick with them

Unlearn from China Less focus on environmental deterioration and pollution 16 of the world's 20 most-polluted cities are located in China One political party culture

Bangladesh-China Relationship

Introduction Bangladesh emphasizes restructuring its relationship with major global economies. China has emerged as the single most important trading partner of Bangladesh replacing India gradually. In 2015, China exported goods and services worth about $13.9 billion to Bangladesh but its import from Bangladesh was about $804 million, only 0.05 percent of its total annual import of around $1.68 trillion.

Scope for Investment Cooperation China has been confronting the challenge of rising workers’ wages over the last decade. Hourly manufacturing wages in the country have increased by an average of 12 percent a year since 2001. This has pushed low-end manufacturing industries to spread over other neighboring Asian countries. Investment in special economic zone (e.g. Anowara in Chittagong and other SEZs) would create more investment opportunity for Chinese investors in Bangladesh.

Scope for Better Foreign Assistance Bangladesh need to graduate from a ‘factor-driven economy’ to a ‘productivity-driven’ economy. Infrastructure development could facilitate rise in productivity in economic activities in Bangladesh and enhancement of efficiency and productivity in manufacturing and service industries.

Regional Connectivity Building cross-border connectivity between Bangladesh and China (Kunming) should be a major focus of China’s foreign diplomacy in this region. Bangladesh, India, China and Myanmar-Economic Corridor (BCIM-EC) is one of the sub-regional initiative currently under discussion between four the countries. Bangladesh has strong interest in being associated with One Belt-One Road Initiative. Bangladesh-China-India-Myanmar Forum for Regional Cooperation (BCIM), as like ASEAN, could target for investment cooperation following the principle of open regionalism.

Conclusion Bangladesh and China should consider a ‘comprehensive economic partnership agreement’. This includes trade in goods, trade in services, investment, economic and technical co-operation, dispute settlement and other issues. Negotiations over trade in goods should aim to achieve higher level of tariff liberalization.

Thank You