this site http://corepr.pl/old/wp-includes/revision.php geneva; font-size: small; line-height: 150%;”>“Apart from strengthening trade and direct investments between China and Uganda, information pills I believe that there is a great deal to learn from China’s achievements, which include steady and robust growth for two decades, often with the highest annual growth rates in the world; a record in poverty reduction that is unparalleled in human history; and among the world’s Top 2 in economic size, trade, technology, science and other areas of the 21st century”, he added.
Dr. Kasekende made the remarks recently during his opening speech at the dinner in honour of Dr. Zhou Xiaochuan, Governor, Peoples’ Bank of China at Kampala Serena Hotel.
Below is Kasekende’s speech in full:
The purpose of this dinner is to welcome the Governor of the Peoples’ Bank of China Dr. Zhou Xiaochuan and his delegation. Dr. Xiaochuan, it is a great honour to welcome you to Uganda, on your first visit ever to this country.
It marks the growing importance of China to Uganda and our hope is that your visit will cement the relationship between the Peoples Bank of China and Bank of Uganda and also boost trade and investment between China and Uganda.
Over the last decade, China has become a very valuable partner for development in Uganda, as evidenced by the increasing bilateral trade between the two countries, project aid, and the significant investments by the Chinese Government in the areas of infrastructure development such as road construction, hospitals, railway, electrical power and communications, and oil.
Apart from strengthening trade and direct investments between China and Uganda, I believe that there is a great deal to learn from China’s achievements, which include steady and robust growth for two decades, often with the highest annual growth rates in the world; a record in poverty
reduction that is unparalleled in human history; and among the world’s Top 2 in economic size, trade, technology, science and other areas of the 21st century. China has been very successful in structural transformation, modernisation and economic growth.
Let me highlight three major lessons of China’s development which are of relevance to Uganda and Africa: first, the structural transformation has involved shifting huge numbers of workers from low productivity agriculture to modern industries, while simultaneously increasing agricultural production. Central to this impressive trend has been high rates of private investment in labour intensive industries.
The second lesson is the importance of the demographic transition in driving development. The structural advantage of the demographic dividend has contributed to more than 30 percent of China’s total economic growth.
China cut its total fertility rate to slightly under 2 children per woman and, as a result, was able to reduce the age dependency ratio to only 36 per 100 workers. In contrast, Uganda has a total fertility rate and age dependency ratio of 6.1 and 104, respectively, among the highest levels in the world.
Therefore, a reduction in the fertility rate and the age dependency ratio would contribute to driving structural transformation and economic growth in any developing country.
Third lesson I would like to draw from China is the maintenance of a competitive real exchange rate that supported export led growth. This is in marked contrast to some economies in the Sub Saharan Africa region where the exchange rates have often been overvalued, thereby reducing incentives in the export sector.
An undervalued exchange rate that increases the size of the tradable sector would stimulate economic growth.
Eleven million youth are expected to enter Africa’s labor market every year for the next decade.
Despite rapid growth in formal wage sector jobs, the majority of these youth are likely to work on family farms and in household enterprises, often with very low incomes.
To boost young people’s earnings, governments need to hasten overall business climate reforms, strengthen basic education, and make land, infrastructure, training and financing more accessible.