China celebrates 30 years of market reforms

December 18th, 2008 marks the 30th anniversary of Deng Xiaoping’s pragmatic for the first time in seven years amidst the spiraling effects of the global financial crisis. Reuters news agency reports that the drivers of the economic model have been China’s economic fundamentals are sound, President Hu’s administration is concerned about the economy’s ability to absorb the million new graduates due to enter the economy in 2009. To address the situation the CCP has proposed a rural graduate work programme.

In spite of the economic challenges that face the Chinese leadership and people, the last 30 years have yielded some positive outcomes. Apart from the spectacular growth rates, rising incomes, and an impressive trade surplus and foreign reserve, the reforms also created an avenue for philanthropic activities. In a special interview with Douwei News, renowned scholar and head of the NPO Research Center at Renmin University, Kang Xiaoguang, highlights that China’s non-profit sector has been a beneficiary of the reform years.

According to Kang China’s NGO sector has undergone two significant developments: first there is more acceptance of and engagement by China’s middle class and younger population in the non-profit sector and second as Chinese companies prosper, ‘wealthy Chinese flock to talk about charity and corporate responsibility, donations to Chinese NGOs from domestic sources have been constantly increasing and that has driven up the salary levels of NGO employees, attracting even more elites to join the cause’.

Kang points out that this shift in the view of the NGO sector is important in that it can assist the central government in the provision of ‘badly needed social services’. While Kang is optimistic about the future of China’s non-profit sector, he also advises that this does not mean that the CCP has completely recognized the independence of NGOs. Those with a more politically influenced mandate are viewed with caution.

While China continues to debate the impact of the financial crisis on its growth trajectory and the other structural imperatives of its economy, the African engagement still remains on the radar.

On the 14th December 2008 Kenya marked the 45th anniversary of diplomatic ties with China. The occasion was celebrated with an exchange of congratulatory messages between Presidents Kibaki and Hu Jintao. Both sides agree to continue to collaborate on issues of mutual interest.

At the same time Uganda has attracted to seek further financial assistance. On the back of falling oil prices and overall commodity prices [President Dos Santos is hoping to secure China will respond to Angola’s financial dilemma.

Yet, critics will be sceptical about the wisdom of Angola borrowing more money in the current climate of tumbling oil prices, thus increasing the country’s volatile credit exposure.

This brings us back to the debate of whether China poses a threat or opportunity to Africa’s development, which becomes more relevant in the current architecture of the global credit crunch. In response Dr. Henning Melber China’s role in Africa could stimulate the continent’s economies to grow like the ‘flying geese model’.

IN OTHER NEWS…..

Illegal Chinese clothing and textiles continue to penetrate the South African market. The latest raid occurred in the China Town label for its memorabilia was actually ‘made in China’. This does not bode well for the newly formed Party’s hopes of capturing significant portions of the working class vote.

CNPC is hoping to bid for a Canadian energy company to broaden its African assets. If the deal goes through, CNPC will have acquire a 50% stake in Libya’s Ghadames Basin. This is a sought-after investment for the Chinese as they feel that Libya has immense geology potential.

Finally China has confirmed that it will deploy its naval ships in the Gulf of Aden to fight against piracy. The first deployment will be in two weeks.

* Sanusha Naidu is research director of the China in Africa Programme in Fahamu based in Cape Town.

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