DEVELOPMENT DEBATES AND ISSUES
DVA 4801
ASSESSMENT 04
DISCUSS FACTORS THAT PROPELLED CHINA’S RAPID ECONOMIC GROWTH
AND THE POLITICAL, SOCIAL AND ENVIRONMENTAL CHALLENGES IT HAS
CREATED.
INTRODUCTION
China's rapid path to economic development is well documented, and although
growth rates appear to be slowing, there is no doubting the key role China's
economy plays in the global economy. China initially followed an export-oriented
path to industrialization—much like the Asian Tigers before them—but in the past
decade it has begun to diversify into other sectors of the economy. It has done so
with an unwavering determination to accelerate its growth rate and expand its
economic reach. As geographers, we need to understand the factors responsible for
China's economic success.
Job Offer
China has a large labor force and a constant flow of rural and urban migrants looking
for work. This is due to the mechanization of agriculture leading to unemployment
and underemployment in rural areas and the simultaneous growth of industrial work
in urban areas. An estimated 500,000 million people will leave China's countryside
for work over the next two decades. Voluntary migration of the rural population has
been accompanied by aggressive redevelopment plans in which rural villages are
demolished and new manufacturing settlements are rapidly built to accommodate
former farming families.
Wages and unemployment
The unemployment rate has fallen to just above 4% in recent years, but high rates
have depressed wages in the past. If workers demand higher wages, there are many
more who will take the vacancies. Wages in other East Asian countries earn up to 10
, times more than Chinese workers. This has increased profit margins and attracted
inward FDI (Foreign Direct Investment) as American, European and Japanese
companies open factories under license in China.
Women's labor force participation
The Chinese workforce is characterized by a higher than average participation of
women in the manufacturing industry. Western cultural analyzes of the gender
division of labor have little relevance to China's economic growth. This, along with
the one-child policy, which meant that women were involved in child-rearing for much
less time than in many other countries, made a much larger workforce available.
Political system
The undemocratic and authoritarian political regime in China meant that it was
possible to adopt a Western-style free market economy while maintaining control
over the political system. In many ways, China's planned economy (where the state
controls economic activity rather than private enterprise) accelerated economic
growth because the government controlled all decision-making. Since Mao in 1953,
the government has followed a series of five-year plans (or guidelines, as they are
now called, reflecting China's transition to a "socialist market economy"), which have
allowed the government to make any reforms it deems necessary. . The country is
now in its 12th five-year plan (2011–2016) and policies include spending 2.2% of
GDP on R&D (research and development) and moving coastal regions from "world
factories" to centers of excellence for R&D. specialized production and services.
Strong leadership
Chinese politicians are said to feel a greater responsibility to the nation than to
themselves. The strong leadership of the head of state was a major factor
contributing to economic success.
Free market economics
China first began to move away from a centrally planned economy to a market-
oriented system in 1978. Deng Xiaoping was Mao's successor and sought to end
China's relative economic isolation.
DVA 4801
ASSESSMENT 04
DISCUSS FACTORS THAT PROPELLED CHINA’S RAPID ECONOMIC GROWTH
AND THE POLITICAL, SOCIAL AND ENVIRONMENTAL CHALLENGES IT HAS
CREATED.
INTRODUCTION
China's rapid path to economic development is well documented, and although
growth rates appear to be slowing, there is no doubting the key role China's
economy plays in the global economy. China initially followed an export-oriented
path to industrialization—much like the Asian Tigers before them—but in the past
decade it has begun to diversify into other sectors of the economy. It has done so
with an unwavering determination to accelerate its growth rate and expand its
economic reach. As geographers, we need to understand the factors responsible for
China's economic success.
Job Offer
China has a large labor force and a constant flow of rural and urban migrants looking
for work. This is due to the mechanization of agriculture leading to unemployment
and underemployment in rural areas and the simultaneous growth of industrial work
in urban areas. An estimated 500,000 million people will leave China's countryside
for work over the next two decades. Voluntary migration of the rural population has
been accompanied by aggressive redevelopment plans in which rural villages are
demolished and new manufacturing settlements are rapidly built to accommodate
former farming families.
Wages and unemployment
The unemployment rate has fallen to just above 4% in recent years, but high rates
have depressed wages in the past. If workers demand higher wages, there are many
more who will take the vacancies. Wages in other East Asian countries earn up to 10
, times more than Chinese workers. This has increased profit margins and attracted
inward FDI (Foreign Direct Investment) as American, European and Japanese
companies open factories under license in China.
Women's labor force participation
The Chinese workforce is characterized by a higher than average participation of
women in the manufacturing industry. Western cultural analyzes of the gender
division of labor have little relevance to China's economic growth. This, along with
the one-child policy, which meant that women were involved in child-rearing for much
less time than in many other countries, made a much larger workforce available.
Political system
The undemocratic and authoritarian political regime in China meant that it was
possible to adopt a Western-style free market economy while maintaining control
over the political system. In many ways, China's planned economy (where the state
controls economic activity rather than private enterprise) accelerated economic
growth because the government controlled all decision-making. Since Mao in 1953,
the government has followed a series of five-year plans (or guidelines, as they are
now called, reflecting China's transition to a "socialist market economy"), which have
allowed the government to make any reforms it deems necessary. . The country is
now in its 12th five-year plan (2011–2016) and policies include spending 2.2% of
GDP on R&D (research and development) and moving coastal regions from "world
factories" to centers of excellence for R&D. specialized production and services.
Strong leadership
Chinese politicians are said to feel a greater responsibility to the nation than to
themselves. The strong leadership of the head of state was a major factor
contributing to economic success.
Free market economics
China first began to move away from a centrally planned economy to a market-
oriented system in 1978. Deng Xiaoping was Mao's successor and sought to end
China's relative economic isolation.
