China and Jamaica together
Published:Sunday | September 4, 2011 | 12:00 AM
Delano Seiveright, Contributor
An invitation was sent in July from the Communist Party of China (CPC) that led to last month's visit to China by Member of Parliament Othneil Lawrence, the newly appointed minister of state for transport and works, and three executive members of Generation 2000 (G2K), including me. The 10-day political visit sought to strengthen relations between the Communist Party of China and us here in Jamaica.
We, in part, briefed the CPC on political, social and economic developments in Jamaica, while they gave us a packed schedule of lectures and tours across three major Chinese cities, including its capital Beijing, on their political and economic developments.
CHINA A GIANT
China is the world's biggest country by population at 1.34 billion; has the second-largest economy; is the biggest manufacturer; and has among the fastest economic growth rates in the world, amounting to roughly 10 per cent per annum for the last 30 years. It is also the biggest creditor for the United States (US), holding officially US$1.1 trillion in US government debt instruments and up to US$2 trillion, if you include intermediaries and non-governmental securities held in China's foreign reserves.
In part, because of its massive international reserves, China has sought to invest heavily throughout the globe. Jamaica, though, garnering substantial investment, has to date not been able to fully benefit from Chinese investment because of our unfortunate and inherited fiscal realities. Despite that, for Jamaica alone, China's effect is significant, as is the case throughout developed and developing economies across the world. Among the major projects being carried out in Jamaica are:
The US$400-million Jamaica Development Infrastructure Programme which will lead to improved roads, bridges and other road-related infrastructure throughout the island.
The development of the Montego Bay Convention Centre.
The Hope Gardens/Nature Preservation Foundation Project, which will result in the establishment of a Chinese Garden at Hope Botanic Gardens.
The Palisadoes Shoreline Protection and Rehabilitation Works Project, and;
Housing Solutions (Economical Housing Project)
JAMAICA INTEREST
Reinforced by the many high-profile visits to the island, little Jamaica is viewed with much interest by the Chinese. Vice-President Xi Jinping, often said to be China's next president, made an official visit to Jamaica in February 2009. Other notable visits include Vice-Minister Chen Fengxiang of the International Department of the Communist Party of China, in January 2009, and Ma Wenpu, vice-chairman of the National People's Congress, China's highest state body and legislature, in December 2009. Not to be left out, Prime Minister Bruce Golding, Finance Minister Audley Shaw, Transport and Works Minister Mike Henry and other government officials have visited China officially.
With China playing a rapidly increasing role economically, politically and culturally, smart foreign-policy dictates that we should actively seek to deepen cooperation that is after all mutually beneficial. Thankfully, the superstar status of Usain Bolt has propelled Jamaica beyond the Beijing foreign-policy apparatchik into the minds of ordinary Chinese citizens. This gives the country an incredible edge, resulting in greater recognition. A strong relationship with China will help us to break free of the draining paralysis we have lived through as a nation for decades.
This is, in part, why we need to propel our country forward with lightning speed, and G2K has sought to enter into a memorandum of understanding (MOU) with the Youth League of the CPC. Looking 10 to 20 years ahead in a gradually multipolar world where countries once in shambles are now becoming gleaming giants economically, socially and culturally.
Jamaica's young must see to it that we are not left in the dust like so many other countries. China's pragmatism has seen its CPC enter into MOUs with political parties of varying ideological leanings throughout the globe. Interestingly, the size of the Youth League membership numbers around 100 million, just short of Japan's population.
CHALLENGES
China, particularly because of its large population, must be difficult to manage. Fortunately, the current political system appears to be working, as it has brought much social stability alongside rapid growth and development rates. While Jamaica will, with all probability, adhere to Western liberal traditions, it won't hurt studying, extracting and tweaking aspects of the China model to suit our challenging circumstances.
All is not perfect. China has great challenges that it will have to address as it continues to grow rapidly. The Future China Global Forum, held in Singapore last month, pointed to several challenges, including: "... problems of low productivity in innovation, lack of widespread success in closing the rural-urban divide, the difficult trade-offs to be made between increasing wages and the standard of living on the one hand, and keeping inflation low and maintaining competitiveness on the other." Forum panellists also point to China's major environmental problems, which its central government is addressing, but with much difficulty from local governments.
OVERPLAYED CONCERNS
As it relates to China's growing debt that some have expressed alarm about, it does seem way overplayed. A June 28 article in The Economist titled 'How manageable is China's red ink' noted that: "There is not a China debt problem in the way that there's a Greek debt problem. Tot up all the obligations, and they still don't amount to the sort of burden that's likely to trigger crisis, or even much of a near-term slowdown ... . Yes, local government borrowing soared behind efforts to keep the economy humming through the global crisis. But that rise has been offset by falling national and bank-restructuring bills ... . China's debt load is also less problematic than rich-world burdens because its trend growth rate is so high ... . And then, of course, China has those US$3 trillion in reserves. So any way you slice it, debt payments are unlikely to place much stress on the Chinese economy."
And as it concerns US-China relations, it will no doubt continue to face its challenges, particularly as China maintains its rapid rise. Fact is, the US will, for many years to come, retain its position as the dominant power economically, socially and culturally. Albeit with China growing rapidly, the US will have to contend with its increasing strength, while both countries fully understand that they are interconnected in a global village.
Zhu Zhiqun, a professor of political science and international relations at Bucknell University in the US, said in the August 16 publication of the China Daily that: "They (USA and China) need each other - the US remains China's largest export market and strong growth in China helps the US recovery. So in the months and years ahead, the two countries will have no other choice but to continue to cooperate on trade and economic issues, even if they may continue to disagree on China's currency, trade imbalance, protectionism and others."
As the big powers go back and forth with their relations, Jamaica should focus on ensuring that the best interests of its citizens are served at all times.
Delano Seiveright is president of G2K, the young-professional affiliate of the Jamaica Labour Party. Email feedback to columns@gleanerjm.com and delanoseiveright@yahoo.com.