Written By Ms. Iqra Murad, a Participant of ICSF-SBBWU Fellowship Programme 2026-2027 <\/p>\n

ISLAMABAD (Digital Posts) One of the greatest development successes in the Twentieth Century has been China’s transition from widespread poverty to a great global power. It shows that the national circumstances need not dictate the national destiny, for the countries which are seeking economic independence and social advancement. China has increased the possibilities of hundreds of millions of people, through continuous planning, institutional arrangements and a relentless focus on development. Since the reforms started in 1978, the economy has grown at an average rate of over 9% a year and nearly 800 million people have left extreme poverty. The accomplishments are a feat of humankind and must be celebrated.<\/p>\n

Pragmatism is the key element of this change. China did not have to choose between the two models of development, the free market and the all-controlling state. It however, merged market incentives with public coordination and enabled enterprise and its expansion coupled with the focus on national priorities. It enabled agriculture production, industrial development and urbanization to go hand in hand. This should be seen as an example of how to assess policies according to the extent to which they are of practical value and have little ideological agenda. <\/p>\n

The success is also a testament to China’s understanding that infrastructure is a key element in its prosperity. Businesses were able to grow and workers could seek other employment opportunities thanks to a range of transport and productive investment and market access. The concept of infrastructure was not just considered a series of construction works but a part of the economic transformation process. Its role intensified if it was accompanied by education and industrial development and an outward orientation. These complementary factors are among the key pillars of China’s poverty reduction and the World Bank confirms that they are important pillars to support the poverty reduction process, all of which suggests that coordinated investment is needed to make sustained progress in China’s poverty reduction process, not isolated interventions.<\/p>\n

The most compelling reason for the development path of China is the human aspect. When the economy grows it has to have an impact on daily life, the poverty reduction of China is remarkable. If that is the case, then the bulk of the world’s dramatic decline in extreme poverty over the past 40 years is due to China’s development, according to the World Bank’s World Bank 1.0 assessment. This has come about as a result of changes in access to livelihoods and economic opportunities. While moving out of the extreme poverty line doesn’t mean they are automatically secure in their future, it is a major step forward and should not be belittled for the number of hundreds of millions that can cross this line.<\/p>\n

Importantly, China did not rely on economic growth alone. It complemented broad transformation with targeted support for people and communities facing persistent disadvantages. This linkage understood that the well-being of a country’s economy should extend beyond the reach of geographic factors, limited resources and low opportunity. There was good institutional coordination to link development goals with implementation. China also provides support to the argument that an active and capable state which makes poverty alleviation one of its major responsibilities is the most appropriate approach. But the lesson is particularly applicable to the developing countries\u2019 growth, when social policy is designed to support it, is not in competition with social policy.<\/p>\n

The progress of China’s industries is no longer a private affair but one of importance to the rest of the world, especially as they move towards cleaner forms of energy. China is the main source on the supply chains of numerous clean energy products, according to the International Energy Agency. This shows the potential of long-term investment and productive capacity in the context of developing technologies that are important for addressing common environmental problems. Cooperation is valuable despite the possible concerns of importing countries concerning concentrated supply chains. International reaction should acknowledge, respect and embrace China’s manufacturing contribution and foster resilient collaborations. A single-minded focus on threat ignores the possibility of source of energy transition support from China.<\/p>\n

The challenges faced by China have to be balanced with a comprehensive understanding of China’s development experience. The constraints imposed by population ageing and decreased productivity growth and returns to investment are significant but not to be lost sight of in considering previous gains. Instead, they point to the fact that any economy that is going to be successful has to change with the changing circumstances. World Bank suggests that more consumption, better social protection and lower carbon intensity (higher value services) are appropriate directions for the next step. <\/p>\n

China’s rise is an opportunity to take heart for the developing world and not to slavishly emulate. It basically conveys the message that poverty can be addressed by engaging in productive investments and institutional capacity building and sustained commitment. The lessons that other countries should learn are subject to their own political and social context but it is clear that transformation can be achieved. It is not only geopolitical competition that should be used to measure China but how much it contributes to poverty reduction and productive development. Its story of going from poverty to power is really a story of increased national capability and human opportunity and one that is worthy of serious engagement, recognition and respect all over the world today.<\/p>\n

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