Chinese Work Ethic

[Idilinaa]

The 1980s is when they started opening up the market but the 70s is when they started burning bridges with the Soviets and building bridges with the west /japan

China did not become a full part of the global economic system until 2001 when they entered the WTO

China after the 2000s was an economic superpower that rivaled America

It was really in the 2000s when China’s economy exploded, with annual GDP growth around 10%. The turning point was opening its markets, joining the WTO, and securing permanent normal trade relations with the U.S. in 2000, which unlocked massive foreign investment.


You can see the major difference starting from that moment:

And then Boom!!

This triggered what became known as the ‘China Shock,’ when Chinese exports flooded Western and especially U.S. markets. It wiped out an estimated 2 million American jobs, devastating U.S. manufacturing. The effects are still felt today , you can see the legacy of it in U.S. politics and even in Trump’s rhetoric:

The ‘China shock’ of trade in the 2000s reverberates in US politics and economics – and warns of the dangers for fossil fuel workers

Large-scale job losses in the US due to trade with China will lead to enduring demographic and political aftershocks without the implementation of policies that promote widespread job growth.

theconversation.com

https://www.cato.org/publications/china-shock#introduction

 

[The truth seeker]

It was really in the 2000s when China’s economy exploded, with annual GDP growth around 10%. The turning point was opening its markets, joining the WTO, and securing permanent normal trade relations with the U.S. in 2000, which unlocked massive foreign investment.


You can see the major difference starting from that moment:
View attachment 371206
View attachment 371207
View attachment 371208

And then Boom!!
View attachment 371209

This triggered what became known as the ‘China Shock,’ when Chinese exports flooded Western and especially U.S. markets. It wiped out an estimated 2 million American jobs, devastating U.S. manufacturing. The effects are still felt today , you can see the legacy of it in U.S. politics and even in Trump’s rhetoric:

The ‘China shock’ of trade in the 2000s reverberates in US politics and economics – and warns of the dangers for fossil fuel workers

Large-scale job losses in the US due to trade with China will lead to enduring demographic and political aftershocks without the implementation of policies that promote widespread job growth.

theconversation.com

https://www.cato.org/publications/china-shock#introduction

Every American election since 1992 expect for 2020 has gone to the anti establishment candidate


Go Watch 1992 presidential debates and the 2016 debates clintion and Trump are giving the same populist energy



American manufacturing and the rust belt was killed by incompetent politicians China is just a scapegoat

No, trade with China did not kill the U.S. economy

A new comprehensive review finds the negative effects of trade with China have been significantly exaggerated.

reason.com

 

[Testo 21]

Child labour

 

[Barkhadle1520]

The 1980s is when they started opening up the market but the 70s is when they started burning bridges with the Soviets and building bridges with the west /japan

China did not become a full part of the global economic system until 2001 when they entered the WTO

China after the 2000s was an economic superpower that rivaled America

Wish Siad wasnt a retard, the west was where the money was

 

[Idilinaa]

Every American election since 1992 expect for 2020 has gone to the anti establishment candidate


Go Watch 1992 presidential debates and the 2016 debates clintion and Trump are giving the same populist energy



American manufacturing and the rust belt was killed by incompetent politicians China is just a scapegoat

No, trade with China did not kill the U.S. economy

A new comprehensive review finds the negative effects of trade with China have been significantly exaggerated.

reason.com

This actually makes a lot of sense. If you think about it, Korea and Japan’s manufacturing didn’t disappear after China’s entry into the WTO. Both became service and consumer based economies, much like the U.S. Japan retained its heavy industries (cars, electronics, machinery), while Korea’s chaebols (Samsung, Hyundai, LG) held on to high-value manufacturing even as services grew to make up the larger share of GDP. Same with US high value manufacturing (aerospace, semiconductors, pharmaceuticals) survived globalization.

What actually happened is the change in global supply chains: low to mid-value manufacturing shifted to China while Korea, Japan, Europe and the U.S. moved up the value chain or leaned further into services.

We’re now seeing the same pattern with China itself moving into high value manufacturing (EVs, semiconductors, advanced batteries), while low to mid value production shifts to India, Vietnam, or Mexico. What China hasn’t yet fully developed, though, is the consumer-spending and services side of the economy.

You have to become a consuming nation to be a rich country, not just producing.

 

[Idilinaa]

Wish Siad wasnt a retard, the west was where the money was

He was actually pretty pragmatic. By the 1980s, his administration had caught onto the same trends as China by strengthening trade ties with the U.S., decontrolling markets, privatizing industries, removing export monopolies, and trying to attract foreign investment. To some extent, it worked: incomes rose, agricultural production improved through market integration and liberalization, and there was a surge of business activity as the private sector expanded. Consumer goods flooded the market.

What really derailed this trajectory was external and regional pressure. Mengistu and Israel lobbied on Ethiopia’s behalf to discourage the U.S. and the West from supporting Somalia. At the same time, Mengistu’s displacement of Ogadenis and Ethiopian Muslims into Somalia forced the Somali government to go into a budget deficit and then to cover the deficit they had to print money. This triggered inflation, and soon afterward Somalia had to borrow and accept IMF/World Bank structural adjustments (came with austerity measures: cutting subsidies, reducing government spending) which continue to devalue the currency and create hardships.

As a result, the initial rise in private sector activity and incomes was undermined by rising inflation and debt pressures. However, many Somalis were able to keep afloat, as investments, higher wages, and private sector growth roughly kept pace with the rising prices up to a certain point.

 

[Barkhadle1520]

He was actually pretty pragmatic. By the 1980s, his administration had caught onto the same trends as China by strengthening trade ties with the U.S., decontrolling markets, privatizing industries, removing export monopolies, and trying to attract foreign investment. To some extent, it worked: incomes rose, agricultural production improved through market integration and liberalization, and there was a surge of business activity as the private sector expanded. Consumer goods flooded the market.

What really derailed this trajectory was external and regional pressure. Mengistu and Israel lobbied on Ethiopia’s behalf to discourage the U.S. and the West from supporting Somalia. At the same time, Mengistu’s displacement of Ogadenis and Ethiopian Muslims into Somalia forced the Somali government to go into a budget deficit and then to cover the deficit they had to print money. This triggered inflation, and soon afterward Somalia had to borrow and accept IMF/World Bank structural adjustments (came with austerity measures: cutting subsidies, reducing government spending) which continue to devalue the currency and create hardships.

As a result, the initial rise in private sector activity and incomes was undermined by rising inflation and debt pressures. However, many Somalis were able to keep afloat, as investments, higher wages, and private sector growth roughly kept pace with the rising prices up to certain point.

It was too late by the 80s, thats the whole point genius

 

[Idilinaa]

It was too late by the 80s, thats the whole point genius

Because America, UK, Israel etc backed Ethiopia who had expansionist ambitions they were forced to align with the Soviet bloc to counter it. So there wasn't much room for western alignment to match it in 1970s.

If we are talking about market liberalization in Somalia, it wasn’t a matter of being too late, it follows a trajectory. In the 1970s, the state first built the foundational institutions and industries under centralized control, brought in the capital in to the economy to kick start things. This pattern is consistent with the developmental path of many now developed countries.

For example, Japan initially relied heavily on state direction and control before gradually transferring industries to the private sector: Spoke about this before

When i see videos like that they border on historical mythology because they are devoid of any economic or structural analysis. It's more for entertainment i guess than being educational.

A better video is this one. Japan was still stuck in the middle ages during the early-to mid 1800s and was pretty feudal. Until the Meji revolution which abolished the medieval feudal structure and tried to modernize it.

Reforms that made Japan a modern state:

- Set up large industrial state enterprises in key sectors.

- Modern educational system , universal education was promoted leading to a more skilled and knowledgeable workforce capable of supporting industrial growth.

- Infrastructure development, roads, ports, electricity, communication lines

- Legal institutional and reforms to support economic and industrial development.

- Selective Westernization: Japan actively studied and adopted Western technologies, administrative practices, and industrial techniques. Japanese officials and scholars were sent abroad to learn from Western countries, and foreign experts were invited to Japan to help establish modern industries and educational systems.

- State capital was initially gained from agriculture, taxation , banking credits and postal saving schemes, becuase they didn't lack substantial capital they mainly used foreign loans to finance infrastructure projects such as ports, railroads and telegraph lines.

- They sold off state owned enterprises to private entrepreneurs after developing them into profitable ventures, which made the government recoup their loans and initial investments and kept the money inside their economy.

 

[Idilinaa]

Somalis have built an entire domestic construction industry from the ground up with complete supply chains producing cement, concrete, tiles, building aggregates, batching, pvc manufacturing etc.

This video goes through every step of that process, even showing their line up of Somali Engineers, Technical team and Laborers and caps it off by showing how building roads is their job
View attachment 371179

Somali construction companies like Buruj and Hadiid etc on the other hand are world class. They win international awards and lead the continent. It's because they are community and private sector driven so they strive hard to ensure quality.

Buruuj: Modernizing Somalia’s Infrastructure - Five Magazine

As usual, the economic infrastructure of any country has a positive or negative effect on the economic growth of that country. Buruj Construction Company which was established in 2009 has focused on taking a leading role in developing the economic infrastructure of Somalia that has been severely...

fivemagazine.so

Buruj even has the leading Technical School in East Africa where they shurn out dozens of Somali technicians every year: And Hadiid Industries has an innovation center.

Even outside Somalia, like in Kenya, Somali engineers are praised for their excellence and use of high quality modern building materials. Whilst they criticize Kikuyu constructions as being subpar in comparison:

Quality work in action: