27 Jan 2015
The Foundation for International Development Study and Research (Ferdi); Authors: Justin Yifu Lin and Yan Wang
Conventional economic theories seem to be inadequate in explaining the diverse and multipolar world we live in. Having lost confidence in the Washington consensus, developing countries are increasingly looking East for development experiences and ideas: what worked, why and how. This paper examines China’s role in development cooperation from the angle of structural transformation as a major driver of growth and job creation. Being a bit ahead in the structural transformation process, China can contribute ideas, tacit knowledge, implementation capacity, opportunities as well as finances. Based on a joint learning model, developing countries choose partners based on their respective comparative advantages, instruments of interaction and degree of complementarity.