Lessons from China on building strong economy

In preparation to a tougher and more competitive economic future, China is investing heavily in science and technology education. It is sending its best students abroad to the world’s leading universities. The world leading scientific and technological conferences are crowded with very competitive Chinese scholars. Chinese universities are producing slightly more than 500,000 engineering graduates per year. The engineering human capital base is adequately ready to service future political and industrial development leadership. China for some unknown cultural reasons tends to get the best of the best through their leadership pyramid. China has faith in education and knowledge as the drivers of wealth creation. It is upgrading its economy through high investments in research and an uptake of advance technology. The Chinese believe that one cannot innovate if your understanding of social, economic and technological change is misinformed, incomplete or outdated. Success in the new global arena is highly dependent upon innovation, creativity and solving problems for which there are no precedents. While new innovations are the facilitators of social, economic and industrial change, the real opportunities are created by nations, corporations and individuals who apply scientific discoveries, inventions and technological innovations in new ways. China is comprehensively prepared to face the future with calculated hope based on education and scientific knowledge. Aristotle said, “Hope is a wakening dream”. For China the hope is real, and the dream is ‘a work in progress’. Historians will probably look back on the economic meltdown of last year and this year and check if the crisis originated from optimization of global economic success or from the madness of capitalism driven greed and business frauds in the markets. Although history has its own validity, what matters now is the roadmap into the future. Somehow somewhat recession has to be managed. Humanity is more important than recession. The governments and markets have the capacity to tame the madness of capitalism. Capitalism is the common denominator in the global economy. It’s being powered and empowered by the actions of companies, governments and individuals engaged in economic activities all over the world. In pursuit of growth and higher standard of living, countries will continue to use free markets and free trade to power their economic growth. To jumpstart growth, many governments will be forced to open their economies, rather than nationalize parts of the economy to stimulate growth. The history of the past economic crises shows that in their wake countries have conducted more-aggressive economic reforms to bring greater credibility to the economic system, attract new capital and jump-start economic growth. As the global economy stand today, it is evident that the economic forces of both governments and markets must converge to bring new economic order. The question is how to balance the two to achieve growth, innovation, stability and social equity. The critical need is that the convergence of these forces must work for the broad welfare of the global society. To those who do not understand China’s history and culture, its economic boom appears to be an overnight story. Nothing could be further from the truth. The fact is that China has a long and successful history as an economic powerhouse. It is only now, however, after spending much of the twentieth century in isolation, that China is in a position to join the ranks of the world’s pre-eminent modern economies. Many economic experts generally think that China is simply reclaiming it rightful place in the global economic landscape, but astute observers note that China’s commitment to growth makes its economic might an inevitability. China’s economic growth resides in its economic history. Industrial spirit of its citizens and influence of traditional values are held in high esteem by the Chinese people. When combined with capitalism and modern business practices these values have helped the Chinese excel in free-enterprise societies. The economic history of China is that of enterprising citizens. The golden thread in China’s economic miracle resides in Chinese traditional values. Other Chinese values, known as traditional virtues, include thriftiness, hard work, and personal honour. The Chinese government has endorsed Confucianism as a philosophical stimulus for economic development, because many aspects of Confucianism correlate to success in modern capitalist societies. A strong work ethic, acceptance of hierarchy, emphasis on education and moral integrity are all conducive to developing large-scale modern business in the knowledge economy. The Chinese people’s hope seems to be driven by unbridled optimism for the future. Nothing stops a nation with positive attitude towards the future. The Standard