Ethio – China Cooperation for Shared Prosperity

By Tiruwork Ayalew 
From the end of July to November 2023, 80 journalists from 70 countries gathered in Beijing, the capital and diplomatic center of China, to explore and experience Chinese culture, history, socio-economic development, politics and diplomacy under the framework of the China International Press Communication Center (CIPCC). 

I was among these journalists joining from Ethiopia. The program gave me the chance to become acquainted with the culture of other journalists and their experiences in the media. We were given different lectures on China’s socio-economic development, diplomacy, culture, science and technology, as well as journalism training and internships with China’s media organizations like CGTN. 

We visited different cities, provinces, infrastructure projects, manufacturing facilities, cultural sites, and historical places, which helped me gain a comprehensive and in-depth understanding of China. Moreover, I had the opportunity to cover major international events like the Belt and Road Initiative (BRI) and China International Import Expo (CIIE). All of these activities and experiences are invaluable for covering the real story about China.

During my stay in China, I realized the country has many different narratives from which journalists can draw lessons for developing countries like Ethiopia. As a journalist, I witnessed China’s past achievements and ongoing efforts to create a better future and promote shared growth through initiatives like the BRI and CIIE. China’s history, economic development, culture, poverty reduction, inclusive policies, peace and security efforts, hospitality, diplomacy, work ethics, time management, and public spirit amazed me. 

Especially notable is what China achieved over the past three decades in poverty reduction, setting an example for developing countries like Ethiopia. To lift people out of poverty, China implemented various policies that helped millions of citizens escape destitution and become the world’s second largest economy. 

According to Professor Wang Sangui, a Chinese anti-poverty researcher, China achieved remarkable poverty alleviation through economic development policies and targeted interventions. Sustained rapid economic growth was a key driver, fueling rural reform, agricultural development, job-creating manufacturing, and urbanization. Since the mid-1980s, China also implemented direct regional and household poverty targeting. Regional targeting drove faster development in poor counties and villages, while recent precision targeting of households helped lift the remaining poor above the poverty line of $2.30 per day. Together, these strategies enabled China to eliminate absolute poverty and build a moderately prosperous society, meeting its first centenary goal. Professor Wang has witnessed the fruits of development even in remote villages, now connected through high-speed rail and other infrastructure.

Since 2013, China pursued a targeted poverty alleviation strategy as the core of its anti-poverty drive. All identified poor households gained access to specialized programs while those near the poverty line were closely monitored. Additional strategies included relocating 10 million people from harsh environments to more hospitable areas to improve their prospects. Governments mobilized 600 billion Yuan for relocation subsidies during the 13th Five-Year Plan, facilitating job placement, transportation and integration of resettled households. 

Ecological compensation policies also aided poverty alleviation, subsidizing families who returned farmlands for reforestation and grassland conservation. Many poor people became forest rangers, earning stable salaries. The results have been remarkable. Since the late 1970s, China lifted 874 million citizens out of poverty, with the poverty rate falling from 88.3% to less than 1% in 2015. Progress accelerated after 2013 when precision targeting helped lift 100 million poorest rural residents out of poverty within just 7 years. China achieved the historical milestone of eliminating absolute poverty nationwide. 

Professor Wang stresses that as millions transitioned from poverty towards moderate prosperity, China refocused policies on growing together with developing countries.

The Belt and Road Initiative promotes collaborative prosperity through infrastructure, trade and humanitarian assistance. Over 150 countries, including my native Ethiopia, have signed on. Professor Huang Yanghua, Professor of economics and head of Department of Industrial economy at Renmin University of China, explains that over the past decade, China provided substantial investments and market access enabling shared growth.

With sustainability emerging as a global priority, China's people-centered, egalitarian development model offers solutions. Its rapid translation of policies into poverty alleviation successes provides a blueprint for developing countries like Ethiopia to adapt and achieve broad-based prosperity.

Key Lessons for Ethiopia

Structural economic transformation is critical:- China lifted over 800 million people out of poverty through rapid industrialization, infrastructure building, technological upgrading and growth in higher-productivity sectors. Ethiopia's 10-year plan similarly targets GDP growth averaging 10% annually, shifting the economy from agriculture towards export-oriented manufacturing and value-added services. Success requires attracting private investment into supportive policies and public goods.

Trade, FDI and global value chains are accelerators:- Export-led growth played a major role in China's poverty alleviation, accessing foreign markets and technologies. Ethiopia aims to grow exports from 32.6% to 42.1% of GDP through greater competitiveness and participation in value chains. Priorities like industrial parks, skill development and trade logistics can boost manufacturing and enable firms to integrate into global production networks. 

Innovation and technology raise productivity:- From rail and digital networks connecting China's countryside to e-commerce and agricultural tech, technology sharply cut poverty by raising productivity, connectivity and capabilities. Ethiopia's digital and innovation pushes can likewise prepare farmers and informal workers for higher-income work while improving delivery of health, education and other services.

Partnership and collaboration share success:- South-South cooperation has been integral to China's development assistance philosophy. Joint projects like skills centers and industrial zone development can directly transfer experience while aligning with Ethiopian priorities. A collaborative mentality and two-way exchange will produce shared gains.

Professor Wang stresses taking China's successes as a reference but adjusting policies based on local realities. Sustained economic growth enabled China's poverty alleviation by generating opportunities for the poor. Relevant strategies for Ethiopia include boosting productivity through training and prioritizing export-oriented sectors. 

Professor Huang also advises developing labor-intensive light manufacturing initially, as it absorbs surplus low-skilled labor, provides on-the-job training, and builds modern production capabilities. With abundant labor, industries like leather and garments can drive Ethiopia's early industrialization while meeting rising consumer demand.

Professor Keyong a professor of foreign studies at Minzu University of China highlights China's ethnic harmony policies, caring for all groups' rights and interests within a strong legal framework. As in Ethiopia's constitution, laws safeguarding minorities must be strictly implemented. Mutual respect and understanding enable unity and synergy across diversity. Ethiopia's rich history shows past success uniting a multi-ethnic state towards national development.

In summary, pillars for adapting China's experience include sustained and equitable growth, export orientation, pragmatic industrial policies, quality infrastructure, and cultural unity with diversity, technological leapfrogging, and global collaboration. Via people-centered development cooperation with partners like China, Ethiopia can progress towards its goal of becoming Africa's icon of prosperity. China has always been expressing readiness to strengthen its bilateral cooperation with Ethiopia in all aspects of development. This cooperation is being demonstrated in various development activities in Ethiopia including mega infrastructure projects such as railways, roads among other.