Question 5 (25 marks) (a) Critically evaluate the following statement and give your own analysis and assessment: "China's continued industrialization and urbanization over the next 10 years will require a lot of minerals, energy and other resources. Hence China will need to invest substantially in resource rich developing countries like Africa, Southeast Asia and Latin America. This will result in similar colonial relationship between these countries and the western countries in the past. Consequently, China's progress does not benefit them and it might even be detrimental to their future development and prosperity." (12.5 marks) (b) One of the key policy concerns in financial sector reform is to make sure that savings are allocated to the best investment projects and hence improve overall capital efficiency and productivity. What do you think are some of the policy changes in the financial sector that can help to achieve this objective? (12.5 marks)