ECONOMICS FOR CHINA IMPORT BUSINESS
MR. Daniel Bennett
How Asia Works
There are three interventions in the east that have shocked the world.
It is a defining characteristic of all the Asian tigers – the speed of their transition.
The becoming of a phenomenal global superpower, able to mobilise billions out of poverty, providing the rest of the globe quality imports at extraordinary prices.
Go into any pound shop, discount German convenience store, you will see something phenomenal. ‘The Boss’ Francis Marra knows about the growth in this sector.
Pound shops and discounters are everywhere. Year after year prolific rollout programmes nationwide. If that Jacob Rees Mogg fella, (Simmons) hadn’t come along, seeking to turn people posh in areas of deprivation throughout the nation, prior to any plans of regeneration. For instance, the Harpenden general manager and his affluent bunch of Tory heartlanders. If this general fool hadn’t done this, the boss and I would have dominated this space.
Setting up trading deals with China, buying during the period when Guangdong was as advanced as Hong Kong, yet much, much cheaper wage costs. We could have used all the real estate to regenerate as a discounter, with formidable positioning as the pioneer discount food retailer. Around, long before Aldi, Lidl, or any pound for pound shop. Many retailers still use the model of importing through a wholesaler based in Britain or the EU who actually have direct links to China and do all the B2B communications. This is not cost-effective creating many middlemen in the process.
- The most overlooked, yet critically important – Maximising the output from Agricultural, which employs the vast majority of people in poor countries. Successful Asian states have shown the way to do this is to restructure agriculture as highly labour-intensive household farming – a slightly larger-scale form of gardening. This makes use of all labour in a poor economy and pushes up yields and outputs to the highest possible levels, albeit on the basis of tiny gains per person employed. The overall result is an initial productive surplus that primes demands for goods and services.
- The second intervention is manufacturing. To direct investment and entrepreneurs towards manufacturing. This is because manufacturing industry makes the most effective use of the limited productive skills of the workforce of a developing economy, as workers begin to migrate out of agriculture. Relatively unskilled labourers create value in factories by working with machines that can easily be purchased from the world market as imports, using the global innovation to manufacture at low cost. In addition, in east Asia successful governments pioneered new ways to promote accelerated technological upgrading in manufacturing through subsidies that were conditioned on export performance. This combination of subsidy and ‘export discipline’ took the pace of industrialisation to a level never seen before.
- Finally, interventions in the financial sector to focus capital on intensive, small scale agriculture and on manufacturing development provide the third key to accelerated economic transformation. The states role is to keep money targeted at a development strategy that produces the fastest possible technological learning, and hence the promise of high future profits, rather than on short-term returns and individual consumption. This tends to pit the state against many businessmen, and also against consumers, who have shorter strategic horizons.