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Development models in Muslim contexts : Chinese, 'Islamic' by Robert Springborg

By Robert Springborg

This quantity examines the features of the chinese language monetary improvement version and its reception in Africa and Latin the United States. It additionally investigates the present pageant over governance types within the Muslim global and asks which version or versions will consultant improvement in Muslim international locations. pt. 1. The chinese language version and its international reception -- pt. 2. The chinese language version and its opponents within the Muslim global -- pt. three. The function of governance in improvement types

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It might not be too far-fetched to think about some kind of convergence in economic policy. In social policy, both face similar problems of inequality and unemployment. The big difference, however, concerns the political characteristics of the Chinese model. In general, Latin American populations and their political representatives have opted for democratic political systems after a couple of decades of military rule in much of the region. They do not find the political — 43 — Development Models in Muslim Contexts characteristics of the Chinese model to be attractive, and economic reforms and even successes that were carried out under the auspices of authoritarianism are therefore suspect.

On the Chinese side, various factors stand in the way of such an approach. Most important, China has innumerable problems at home, especially in the social and political spheres. These include rapid urbanisation, growing unemployment and inequality, and increasing social protest. The Chinese Communist Party seems determined to maintain power, at least in the medium term, and so must focus on these domestic issues. Environmental problems also weigh heavily on the Chinese government. It might be said that it is precisely because of these domestic problems that China must take risks in Latin America, but this argument does not hold up.

Japan, South Korea and Taiwan, for example, have shifted important parts of their industrial capacity to China because costs are much lower than at home. This is especially the case for labour-intensive products because Chinese wages – although rising, particularly in coastal provinces – are still only a fraction of those in Northeast Asia. Many of the more complex inputs for the firms relocated in China are imported from the headquarters firms or their suppliers. 9 This combination of large-scale imports from Northeast (and even Southeast) Asia, without compensating exports, leads to substantial trade deficits for China with these countries.

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