China’s Rise and Opportunity for Structural Transformation in Africa

Abstract

China’s economic development has been miraculous since the transition from a planned economy to a market economy in 1979. This article provides answers to five related questions: Why was it possible for China to achieve such extraordinary performance during its transition? Why was China unable to attain similar success before its transition started? Why did most other transition economies, including those in Africa, fail to achieve a similar performance? Can African countries have a similar performance as China had in the past three decades and how to do that? What are the opportunities for African countries from China’s rise? The paper concludes with a positive note: If the country in Africa adopt a pragmatic approach to develop its economy along its comparative advantages in a market economy and tap into the potential of latecomer’s advantages with a facilitating state, the African country can benefit from the pending relocation of China’s light manufacturing and grow dynamically like China.