• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Notes on the economic transformation of China.

Extracts from this document...

Introduction

CHINA CASE STUDY GDP: US$5.8 trillion (2nd largest eco PPP) Govt. Policies for eco growth + development 1978 Deng Xiaoping: ‘socialism with Chinese Characteristics’: BEFORE: 1. Central planning, govt. allocating resourcesï open mkt eco 2. Initially: rapid industrialisation, improvements in life expectancy + literacy rates 3. Later: great Chinese famine in ‘Great Leap Forward’ in early 60s ECO GROWTH: (gradual move towards more open mkt eco) 1. Dual Track Reform Approach (in ag sector) Existing features of co-exist with product mkts. BEFORE: 1. Govt. specified quantity produced + price paid for ag produce 2. Ag producers set certain quota of output purchased by govt. at fixed price AFTER: 1. Producers sell at mkt prices any output above the quota 2. New mkt based incentives for farmer to earn additional Y Decollectivisation/Household Responsibility System: farmers make own production decisions + sell surplus output in free mkts once state quota met Highly successful when applied to other industries. Chinese eco outgrew central planning as production above quota dwarfed size of govt. plan. 1993 – central planning become obsolete + mkt main instrument for distributing + allocating eco resources. 1. X ↑ 15% annually. 0.8% 1978 ï 8% share of world X now 2. TVE output ↑ 25% p.a 1. Coastal Development Strategy/Open Door Policy Allow China’s coastal regions to participate in global eco. BEFORE: 1. Interior development through industrialisation of China’s inland cities AFTER: 1. ...read more.

Middle

Gini Coefficient b/w 0.41 -0.47 2. Driven by urban/rural divide 3. Hukou household registration historically disadvantaged opp available to rural pop 4. Those previously promised life time welfare support from gov. now left to support themselves ? often with few skills/access to meaningful employment opp 5. Under president Hu Jintao govt. ?Harmonious Society? development vision ? incorporates provision of social welfare e.g. healthcare, affordable housing in pursuit of humanistic society 6. Minimising public dissatisfaction 30% pop: 87% Y, Urban: 3x more per capita Y ECO DEVELOPMENT: 1. 12th fifth year plan 5 year plans devised to allow govt. to strategically plan + allocate resources across eco. Nowadays, used to present policy vision for short-medium term. MARCH 2011 ? ?higher quality growth? 1. Achieving annal GDP growth rate ~7% 2. Inflation at 4% 3. Increasing min. wages 4. Increase retail sales of consumer goods by 16% Reduce Carbon intensity of GDP by 3.5% INVESTMENT & TNCs 1. Greenfield Investment 1. New I expenditure to increase the productive capacity of eco e.g. building new factories + development of manufacturing industries 1. Most of China?s FDI consist of the above, where it has a comparative adv. (US FDI ? generated more by takeovers of existing enterprises) 2. Strong growth in FDI inflow driven by TNC?s GI to take advantage of relatively cheap costs of production, tax benefits + minimal regulatory oversight 3. ...read more.

Conclusion

Banned logging domestic timber since 1999 2. Passed environmental impact assessment in 2003 3. Increased spending on environmental protection from 0.8% GDP ï 1.3 % GDP under the country’s 10th ‘5 yr plan’ running from 01-05 4. Signed + ratified several int. environmental agreements: 1. Antarctic-environmental Protocol 2. Montreal Protocol (minimising ozone layer depletion) 3. London Convention (preventing marine pollution by dumping) 4. Kyoto Protocol (greenhouse gas emissions + climate change) (however, china has no bound targets) 1. 2007- national climate change policy 1. Increased proportion of electricity generation from renewable energy sources + nuclear power rather than solely relying on coal 1. World Bank lent China $1.64 B for environmental projects 1. Aim to effectively use infrastructure while conserving biodiversity + forests, reducing land pollution + improving sustainability of water supply 1. China spent US$34.6 B to obtain renewable resources for its production facilities in 2009 1. Invested more than any other country in clean tech. LOBALISATION -forefront in embracing globalisation - emerged from recent financial crisis quickly + strongly - Policy initiatives resulted in dramatically ↑ trade, I + financial flows ï boost in s.o.l. - chinese eco still faces major challenges to sustain eco success - Under close global scrutiny, Chinese govt. has taken steps to address major problems of environmental degradation + pollution, as well as, inequality b/w regions - if govt. is successful in providing remedies for these growing problems, china will be on fast track to becoming world’s leading eco within next few decades ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. CRITICALLY EVALUATE THE THEORIES OF ABSOLUTE ADVANTAGE (ADAM SMITH MODEL) AND COMPARATIVE ADVANTAGE (DAVID ...

    Transport costs have decreased significantly facing innovation processes and a growth of the efficiency of modes and infrastructures. As a result, the transferability of commodities has improved. Integration processes such as the emergence of economic blocks and the decrease of tariffs at a global scale, promoted trade.

  2. Distribution of Income and Wealth HSC Notes

    * The table above shows that the 35-44 age bracket earns the highest mean income per week at $1124. Meanwhile the 15-19 earn the lowest at $278/week followed by those ages 10-14 at $657/week. * The table suggests that income levels are low in the earlier years of working life, since people have less experience and education.

  1. Economic Growth HSC Notes

    o Government policies are not starting to realise the damage that can/has been done by higher economic growth rates. This has caused them to aim to achieve growth rates that are not too high so it doesn't cause any environmental damage - ecologically sustainable development.

  2. Describe how TNCs influence the location of manufacturing industry.

    The local and regional economy can be regenerated by spin-offs, for example the growth of component suppliers and links with the global economy are developed. Sometimes, a cluster of TNCs is attracted to a particular location. They might supply each other with components or might wish to tap into a pool of skilled labour.

  1. Compare and contrast the levels of economic development in the regions of Europe and ...

    A continent such as Europe has a high percentage of its people in the secondary and tertiary sector, suggesting that they are more of a well developed continent, especially in contrast to Africa. Europe and Africa go back a long time to the days off colonisation.

  2. Comprehensive Anatomy of China

    Virtually no vegetation exists in this area due to the desert terrain that is marked with sand and rocks; thus the Chinese term for this land is gobi, or stony desert. There are considerable supplies of coal reserves in this region, not to mention its reserves of rare-earth elements, which account for 80 percent of the world's total resources.

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    time-to-time in the US Supreme Court and the European Court of Justice. And this is for the best: unless the views of a wide cross-section of the WTO membership are heard, including developing and smaller members, policy may be driven in crucial areas by those large and powerful members able to commit significant legal resources to dispute settlement cases.

  2. Unemployment HSC Notes

    turns into long term structural unemployment. Known as Hysteresis (whereby the unemployment in the current period results in the persistence of unemployment in future periods as unemployed people can lose their skills, job contracts and motivation to work) o New members to workforce will not develop labour skills if they are unable to obtain jobs soon

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work