China has transformed its economy to a quality growth model that revitalizes its traditional economic resources and finds out the routes to reap the best from the innovative economic infrastructure. By following the model, the country has emerged as the fiscal powerhouse of the world; its export volume has increased; its GDP has touched approximately 18.3tr in 2024; and it is likely to get unrivaled potential in bringing innovation. The new century, the Chinese century, brings many lessons that, if learned, can help Pakistan rise from the ashes of economic depths to the glory of a sustainable future.
The new growth model theory – as followed by China – establishes a sustainable equilibrium between human beings’ unlimited wants and the economy’s compulsive limitations. It summarizes the increased productivity of the nation and lasting stability for public welfare. Pakistan has a lot to learn from its all-weather friend China and can sail the ship of its economy – caught in the stormy oceans – to the shores and let it take a sigh of relief.
Firstly, China has drawn a line of demarcation between its economic interests and its security needs. Though it is grounded by issues like Taiwan and Tibet, it has not let its economic growth via regional trade and economic diplomacy be sidelined. However, Pakistan’s progress has been consistently hindered by a multitude of challenges haunting its borders. Trade with India has been hampered by the issue of Kashmir, while Central Asia has been affected due to unstable diplomatic outreach with Afghanistan.
Secondly, China is the embodiment of innovation-friendly policies for economic and social modernization. Creative destruction, as propounded by Daron Acemoglu and James A. Robinson in their book Why Nations Fail, is seen as the standard procedure in China. It has chosen the path of dealing with modern challenges with modern techniques. Green transformation in its recent history is one example. Pakistan, as Chinese growth teaches, has to come out of its traditional historicism. The country has to develop a futuristic approach to lead its people to technological empowerment and smart techniques to catalyze growth and stability.
Thirdly, China has emerged as a global thinktank with its spending on research and development making it a leading country to spend on bringing a creative minority – borrowing an expression from Arnold Toynbee. The Chinese Ambassador to Pakistan, H.E. Jiang Zaidong, in a recent talk at the Institute of Regional Studies Islamabad pointed out that in 2024, China is aiming to increase its R & D budget from incumbent 3.3 trillion Yuan. Pakistan, following the same footsteps, can rethink its education budget vis-à-vis carrying the burden of modernizing its public via research and development.
Fourthly, many of the bigwigs of electronics, automobiles, and technology find China as the most relevant due to its ease of doing business and investor-friendly outlook of policies. Over 29% of the revenues of Boeing and around 50% of the revenues of Tesla come from China. Apple garners around 85% of its revenues there. Conversely, Pakistan has a stagnant system of office-bearing which turns out as a push against FDI. The country has to introspect the methods to attract foreign investors. The one-window option is one of the early developments to come out of its rent-seeking structure.
Fifthly, a gradual but continued pace of development is the key. China is not a believer in a quick push toward development. It has gradually started from public modernization to international transformation. For, the country is wary of the fact that fast growth is just a bubble that can burst just as quickly. Pakistan should also explore ways for a sustainable economic future; gradual but promising.
To cut it short, Pakistan has a lot to learn from its neighbor and an age-old friend China. The country has to rethink its policies and produce ways to practice them. There is a lot of talk in the town on how to develop pathways to prosperity; all the country needs is to walk the talk and achieve new horizons of development and stability.
