Felicitations to my many Chinese friends on the 70th Anniversary of the People's Republic of China.
Over 10 years ago JP Morgan labeled China the most successful economic development in the history of the world. I agree. Hundreds of millions of people have been brought out of poverty by the freer market policies of the Chinese government and the hard work of the Chinese people.
This chart on the increase in average per capita China GDP speaks volumes:
This 70th Anniversary is a day for the whole world to rejoice in the knowledge that poverty can be reversed through the application of enlightened pro-market economic policies coupled with sheer hard work and determination of an entire population in less than 30 years.
The Chinese economic miracle did not happen by accident.
It started with Chairman Mao unifying China and then Deng Xiaoping adopting fundamental market changes in one of the most brilliant and successful political re-inventions ever implemented.
After Deng opened the door, the natural business and trading acumen of the Chinese people was unleashed in a torrent of hard work and determination.
Like a modern day Marco Polo, I was allowed to observe history in the making from the inside out, and even had a cameo role.
It was my privilege to be asked to help modernize China's central bank and assist in the design of its financial system. Then I was honored to help modernize one of the great state owned enterprises and sit on the Board of Directors of another. After that I worked with dozens of China's largest companies and governmental entities in various capacities to help modernize them through the introduction of market oriented principals. If that were not enough for any one person, I was appointed Adjunct Professor of Finance at Tsinghua University where I taught classes on global finance. So I speak from first hand experience.
In the process of China's development opportunities for foreign companies were opened inside of that huge new market. Millions of jobs were created overseas due to the development of China. Some re-adjustments are underway, but one should not lose sight of the bigger picture.
Moreover, linking China’s economic well being to the economy of the US created mutual interests that made war less likely.
And now that China is more wealthy, funds and hardware are being deployed to improve the environment and create a sustainable future for China and the rest of the world.
Of course, there are bound to be frictions when over 20% of the world's population is being brought out of poverty, but the necessary re-adjustments are underway, and those challenges are not for today's discussion.
No, today is a day for the entire world to rejoice and congratulate the Chinese people on their many successes which are based on hard work and thoughtful free market policies almost flawlessly implemented.
So, let us use this 70th Anniversary to re-double our commitment to make the world a better place for all people by learning from China's experiences on how China reduced hunger and homelessness. Every country must follow its own path, but we can all find inspiration in China's achievement.
On this 70th Anniversary we applaud the hard work and achievement of the Chinese people! To my many, many Chinese friends I say, thank you for the memories and allowing me to be a small part of your incredible journey.