This paper discusses all about the growth and development experience of two different countries such as China and sub-Saharan Africa. In simple words, this study will help in understanding the past, present and future of the economy from crisis to the achievement of sustainable growth. The growth and development has become an important element or essential for industrialization (Akinlo and Egbetunde, 2010). In addition, this paper will highlight the growth and development of both the countries (China and sub-Saharan Africa) since 1980. This growth and development of countries will be analyzed by using the perspective of institutional theory so that actual economic condition gets understandable. But at the same time, growth and development experience both the countries will also be compared in order to determine the level of changes and growth both the economy. However, this essay will develop understanding the experience of both countries which they passed for achieving growth and development.


Growth and development experience of China since 1980

The economy growth of China is developing rapidly with the change in the innovation system i.e., government of China has developed a new industrial reform for an economy. In addition, China has achieved economic extraordinary performance by developing market orientation reforms and opening up new opportunities in different sectors. While analyzing the growth and development of china since 1980, it is found that economy performance has increased continuously and consistently.

The development experience of China is very incredible because China has used new technology in such an efficient manner that country economy condition developed continuously such as increase in GDP growth rate and also achievement of sustainability position (Zeng, 2010). The major factor behind the actual development of China is industrialization because adoption of decentralized approach leads to the development of the market for manufacturing companies who produces consumable products at a low cost. This development and growth of the economy lead to encouragement of localized entrepreneurship as well as helped in achieving comparative advantage.

This above graph clearly stated that the reasons behind the increase in GDP growth rate are three different elements that added value to the economy development such as agriculture, services and industry. In other words, industry and services added value more in development of GDP growth rate. But in oppose to it, Bloom, et al. (2010) also stated that in present economic condition of China is unstable because company is facing slowdown phase and that leads to influence over the growth and development of the economy.

In early 1980’s, China GDP growth rate increased with the support of community party that are producing home-based agricultural and implemented market-based economic policies. At the same time, it is also found that in period of 1989, China’s GDP growth rate faced challenge with the decline phase because country was unable to produce and market the innovative product in the worldwide competitive market. In this regards to this, Lin (2011) also depicted that the experience of China is quite impressive as it is found very relevant in many other countries also such as Sub-Saharan Africa.

The institutional theory also states that there are various challenges on which different economies react differently such as factors like social, environmental and political are creating influence over the country. The growth of China gets developed rapidly because it effectively captured the market of other countries like India where it exports its products for meeting the customer’s requirement for an innovative product. At the same time, foreign direct investment is also a factor that provided huge support to the economy in growing and developing the economy condition by developing effective policy and procedure which attract foreign investors directly.

Kennedy, et al. (2012) also elaborated that defining China is very challenging task because this county has faced an experience an astonishing transformation in its changing economic and geopolitical experience. In today’s global economy, Chins has achieved its second position in world’s largest economy and planning or focusing to overtake the US position in next coming future decades. During growth analysis of China, it is also found by Li (2018) that China growth rate is not rapidly growing from last few decades due to which GDP growth rate of economy has also grew slowed as unexpected from last 25years.

But, on the other hand, it is also found that major increase in the growth of China is because of government policies and strategies as well as government focus on agricultural development even though economy faced slow down but then also economy mange to develop its economy rapidly which other countries can only think or dream of. The growth and development experience was incredible for China because country leadership’s focused on research and development strategy which played an important role for China to transform their economy into service based economy. Simply, China relied on placing an innovation products and services as a plan to target the customers and develop its economy over the next five years.

In oppose to this, McMillan and Rodrik (2011) also stated clearly that poverty is a main or greatest challenging factor for all countries as same for China also. In China, now also there are few numbers of people who are extremely living in poverty condition in comparison to other countries such as India, Nigeria & so on. At the same time, China is one of the largest trading economy which trades with other countries in order to sell their innovative products and services. The Chinese government has developed such effective policies which open market for the foreign investors as well as for Chinese companies to expand their business in other countries efficiently and effectively. Therefore, it can be summarized that China economic success is remarkable because country focused on developing their agricultural and trading business relation with other countries like India to a large extent.

Growth and development experience of sub-Saharan Africa since 1980

The growth of sub-Saharan Africa is a big challenge for the economy and government because Africa was continuously facing the economy crisis and that lead to development of more challenges for industry to develop their business effectively. This economic crisis will lead to impact the industries at large as their business operations will be effected and it will also affect their business growth. These challenges will affect the performance of many business enterprises which will bring many negative consequences for the country. During the study, it is also identified that in initial periods, economy condition of Sub-Saharan Africa got flattered to a large extent in terms of decline in per capita income, fall in GDP growth rate (Moradi, 2010). In today’s 21st century, Sub-Saharan Africa has become one of the fastest and largest growing economies in all over the world. Sub-Saharan Africa contributes to around 12% of the world’s total population but on the other hand its GDP is around just 2%.

The development experience of Sub-Saharan Africa is very varied and cyclical because there were different changes and reforms developed by government affected the performance of the economy. In 1980’s, country faced ineffective development because of poor policy development and response, external threats, in effective strategies and rapid social transformation. In addition, the national diversity of economy can be experienced by analyzing the GDP growth rate and financial development of the country by overcoming the financial crisis efficiently (Sahoo et al. 2010). These all factors led the country to face various different challenges that gave rise to ineffective development and some of the financial crises. There was also a radical change in the Africa’s development policies because of the changes in growth and human development disaster. Liberalization and privatization measures also aimed at combing into the international markets and also on the other hand it led to attract the private investments which had replaced the public ownership which was the only notably support for the infant industries.  It became very difficult for the country to reduce poverty through redistribution when the country knew that the level of incomes was not effective. The growth and development experience found to be threat for the country because of reduction in vulnerability due to strengthening power of fiscal and external buffers (Al-Mulali and Sab, 2012). The results of the liberalization and the structural adjustment also lead to have an immense impact on the manufacturing industries. Due to lateness of independence along with the onset of economic slowdown lead to the decrease in the import substitution in most of the SSA.

In respective to institutional theory, it is clearly stated that there are large numbers of factors that generally contributes to Sub-Saharan Africa country. This contribution of factors leads to no effective experience in terms of growth and development in today’s emerging market competition in comparison to China. In 1980’s, African economy went for some major changes and establish the market institutions that helped the country to focus more towards the growth and development of the economy. Every country is responsible to show a due concern towards its growth and economy development as it will help the country to boost its GDP rate and also will help the country to become economically feasible in the market. The country is also responsible towards providing its public with the sufficient resources so that they can enhance their standard of living and this will help to increase the GDP and the economic condition of the country as a whole. On the other hand, Akinlo and Egbetunde (2010) also explained that the successful changes in structured form or in form opportunities in the economy clearly show the experience as well as implication related to future growth and development.

The other contribution factors to Sub-Saharan Africa growth lead to increase in government actions that help in making better decision for business growth by mitigating the political conflicts and providing support for developing relation with other countries and sectors (Goetz, 2015). The experience of the country Sub-Saharan Africa was very cyclical because in earlier period, country faced crisis then it developed and attained sustainable growth but from last two decades country again started falling in their growth level. In 1980s, African government undertook steps for developing effective and stabilized economic reforms and structured programs with the support of the International Monetary Fund (IMF), World Bank and other institutional supports (Voss, 2016). In 1989, the World Bank was left with no other option in admitting that the overall Africans are as poor as they were used to be 30 years back. It was also seen that between the period 1980 and 1987, the per capita real incomes in sub-Saharan Africa fell by a quarter.

Contrast growth and development of China and Sub-Saharan Africa since 1980

There is a difference in growth and development experience of China and sub-Saharan Africa in terms of economic development or financial development or in GDP growth rate. Before 1980s, country was performing inefficiently which somewhere affecting the growth and resulting into the economy crisis. According to today’s scenario of 21st century, the economic condition of both the country is somewhere stable in terms of financial or growth rate (Hassan et al. 2011). But from last few years, the growth of both China and Sub-Saharan Africa has faced challenges related to fall in GDP growth rate in comparison to growth of other countries.

In the research study of Amendolagine et al. (2013), it is clearly stated that economic growth and development is only achieved by the increase in GDP growth rate and increase in productivity through more labor and capital. The major contrast in the growth and development of both the countries is a technology. Fosu (2015) also stated that the major factor of production that hinder the growth and development of business or economy is technology because technology is something which can help in achieving opportunities or destroy the growth level in some uncertain situation. The contrasting experiences in China and African countries is explaining the importance of difference in institutional and policy environments that are getting affected by the individual behavior in respect of adopting new technologies which raises the land and labor productivity.

While contrasting the performance of both the countries, it is also identified that both the countries faced ups and down in different phases of time period. The growth and development in both the countries is also found because of increase in demand and attract towards foreign direct investment due to globalization (Njoupouognigni, 2010). But in comparison to Sub-Saharan Africa, China is enjoyed its experience of growth and development because China used new technology efficiently in order to target large market and also to develop economic condition of the economy. In comparison to Sub-Saharan Africa, Chinese companies are producing more innovative products which attracts the investors to do foreign direct investment in the economy as this lead to development of economy financially and in stability form (Kivyiro and Arminen, 2014).

Foreign direct investment is major important part for every organization because this investment brings development in the standard of the living, economy development. The experience of Sub-Saharan Africa is found poor in comparison to China because there are several factors that affected directly or indirectly to the development of economy such as institutions, ethnic diversity and geography (Kimle, 2014). The slowdown in China and its rebalanced growth also affected the business and relation with the other countries and this also created impact on the Sub-Saharan Africa because China and Africa shares a trading relation with each other.

While contrasting, it is also found that GDP growth rate is not only element which helps in measuring the actual sustainability growth because GDP help in measuring the development of an economy. The contrast between China and Sub-Saharan Africa in context to experience of growth and development is wide because China is best trading economy which also developed its relation with sub-Saharan Africa (Storeygard, 2016). In context to poverty, the development in the standard of living has increased in China and this shows a great experience whereas economic growth of Sub-Saharan Africa also enjoyed experience with the reduction in poverty with the development of strategies by the government from last few decades. This growth and experience also lead to development in per capita income of individuals as well as improvement in living standards are also observed. These contrast between the experiences that China experienced reduction in poverty earlier since 1980s in comparison to Sub-Saharan Africa where African country experienced poverty reduction from many decades (Fosu, 2015). Thus, it can also be stated clearly that China is experienced more growth and development in comparison to Sub-Saharan Africa.


The above study can be concluded by stating that since 1980, global economy condition has changed to a large extent in terms of change in inflation rate, globalization and many more. Both the countries have faced some challenges in their past decades in order to achieve high growth rate and development of economy in terms of industry and trade. This study help in developing understanding towards the countries experiences towards growth and development of their economy. Moreover, contrasting the experiences helped in identifying that factor of production, technology of factor are major reasons that affected the growth and development of both the countries in a positive and negative manner. The present economy situation, both countries growth and development level is getting slow down due to eternal threats and developing challenges. Therefore, this study can be summarized in an efficient manner that China and Sub-Saharan Africa are more focused towards development of economy in terms of financial and non-financial matters.


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