Can borrowing from China include ideas and not money? The Vice Presidential candidate of Nigeria’s Peoples Democratic Party (PDD) during the 2019 elections, Mr. Peter Obi, has said that Nigeria should borrow progressive ideas from China, not money. He said this at the 60th Founder’s Day lecture of the University of Nigeria, Nsukka, Vanguard reported.
According to Vanguard, Obi stated that China had gone through different stages of national development to arrive at their present level hence it would be better for Nigeria to copy China’s economic development template rather than running to them for loans.
Obi also revealed that China, who could only boast of a GDP per capita of $960 in 2000, had a GDP per capita of $10,275 in 2019, with an accompanying high human development index of 0.789 as against 0.594 in the year 2000. China’s huge economic development to Obi has been a result of huge investment in the MSME sector, which drastically reduced unemployment and increased government revenue.
The high-profile politician submitted that “MSMEs in China, which constitute about 95% of Chinese firms, account for 60% of China’s GDP and contributes more than 65% of the import and export business in China….they also contributed about 50% of the overall tax revenue of the government. MSMEs constitute about 95% of all enterprises in China.”
“China’s GDP is today about $14 trillion, which means that 60% translates to about $8.4 trillion— about 21 times the GDP of Nigeria…MSMEs account for over 60% of industrial output and provide over 60% of the overall employment and 80% of urban employment in China.”
“Talking about the growth of the MSMEs, 10 years down the line, 60% of these MSMEs have shown to become largely corporate when compared with Nigeria that 96% are still at the micro stage…China has about 840 million people employed (which is 60% of the population), and MSMEs provide 60% of these, which is 500 million people” the former Presidential candidate mentioned.
Obi in his submission also stated that “in urban employment, the contribution of MSMEs is even greater; 80% of urban employment is attributed to MSME; of about 500 million people employed in urban areas, MSMEs employ 400 million…China had planned to create 50 million jobs from 2015-2020, which is 10 million annually and is religiously following the plan year-on-year…In fact, China has consistently surpassed its annual target. China has an unemployment rate of only 3.7%.”
Do you think it is better to borrow ideas not money from China?
Have you subscribed to our newsletter yet? Sign up for updates on content and opportunities.