The receptivity, viability, and implications of China's state capitalist development model: a Ghana case study
Date
2023
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Publisher
University of Delaware
Abstract
My dissertation evaluates the receptivity, viability, and implications of China’s state-capitalist development model. China’s current economic stature as the second-largest economy has left much to be debated as to the mechanisms, reforms, and policies that led to such a gradual but outstanding economic development. Amid this debate, developing countries that started on a similar footing, have been the subject of analysis in terms of how China’s reforms and modus operandi can be replicated in the developing countries. This study is situated in that debate and uses Ghana as a case study to not only understand how receptive and viable China’s development model is in a staunchly liberalized developing country like Ghana but also to unpack the broader domestic and international implications of a region-wide adoption of state capitalism. ☐ My first paper, “The Receptivity of Chinese-inspired State Capitalism: A Ghana Case Study” provides an original contribution to studies on the spread and replicability of the Chinese development model in Africa and other developing regions. The paper reveals the replicability of China’s state capitalist model in Ghana based on past and contemporary feasibility but finds public receptivity towards the model rooted in free market fatigue and openness to experiment with the model. Ingrained confidence in free-market capitalism and motivations to develop Ghana and Africa’s unique model of development, however, suggest that any administration’s capacity to carry out policies aimed at replicating China’s development model in Ghana is bound to face opposition. ☐ My second paper examines the viability of state capitalism in Ghana using domestic and cross-national inefficiencies of State-Owned Enterprises (SOEs) as analytical tools. It utilizes country reports authored by the staff of the International Monetary Fund (IMF) and the World Bank as well as data sourced from official government reports, newspapers, and public speeches of government officials. The paper argues that while Ghana’s SOE sector under President Nana Akufo-Addo has seen some promising unprecedented reforms that emulate China’s early SOE reforms, the long-term viability of a state capitalist approach to the economy is bleak as the country has not yet proven immune to the domestic, and cross-national failings that characterize SOEs, such as the culture of impunity, unsustainable accrual of debt and fiscal risks, subpar performance, weak incentive mechanisms, and the hesitancy of democratic administrations to carry on with initiatives and reforms began by their predecessors. Ultimately, the paper contributes to scholarly notions that seem to suggest a wave of China’s state capitalist development model gaining prominence in developing countries and superseding the neoliberal economic systems rooted in developing countries. ☐ Having looked at the receptivity and viability of China’s state capitalist development model, my third paper delves into the first-hand perspectives on Chinese-inspired state capitalism from members of international financial institutions. It veers away from the academic dialogue on the replicability of state capitalism in some African countries to then assess the positions and perspectives of officials of critical international financial institutions that have their mandates centered on global aid, development, and finance on questions bordering on the possibility for developing countries in Africa to adopt Chinese-style state capitalism and the overall domestic and international implications that such a widespread adoption could engender. The study primarily involves semi-structured interviews with current members of the chosen few international financial institutions. The paper contends that within the relatively unexplored realm of these organizations, members hold a generally positive view of China's economic and trade ties with Africa. However, their stances on the implications of widespread adoption of state capitalism are predominantly grounded in several key considerations. These include the potential for such a move to cause a shift in geopolitical and geoeconomic alliances as well as serve as a mechanism to attain economic sovereignty and growth in Africa. Additionally, there is the prospect of a reversion in international trade dynamics and principles, as well as governance standards. Lastly, there is the concern of possible sanctions from donors and international institutions.
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Keywords
China, Chinese development, Ghana, Receptivity, State capitalism, Viability, Geoeconomic alliances