NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
Emerging Markets and Regions Paper I should start by saying that in late 1978 the Chinese leadership began moving the economy from a sluggish, Soviet-style centrally planned economy to a more market-oriented system, which it currently possesses. Whereas the system operates within a political framework of strict Communist control, the economic influence of non-state organizations and individual citizens has been steadily increasing and currently play a major role in the regional integration processes in the East Asian region. One must not forget that the Chinese authorities switched to a system of household and village responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprises in services and light manufacturing, and opened the economy to increased foreign trade and investment and as a resulted witnessed dramatic economic growth in the country for the past several years (Selden, 23). The numeric result has been a quadrupling of GDP since 1978. I should also note that, in 2003, with its 1. 3 billion people but a GDP of just $ 5, 000 per capita, China stood as the second-largest economy in the world after the US (measured on a purchasing power parity basis).
Agriculture and industry have posted major gains, especially in coastal areas near Hong Kong and opposite Taiwan, where foreign investment has helped spur output of both domestic and export goods. One should not forget that the leadership, however, often has experienced - as a result of its hybrid Chinese communist market system - the worst results of socialism (bureaucracy and lassitude) and of capitalism (windfall gains and growing income disparities). China thus has periodically backtracked, re tightening central controls at intervals (Keister, 141). The government has struggled to: (a) Collect revenues due from provinces, businesses, and individuals which oftentimes would result in severe penalties for some Chinese entrepreneurs; (b) Reduce corruption and other economic crimes. China managed to reduce the number of crimes by 60 % from year 1992 till 2002, which is higher than the results achieved by the developed European nations. (c) Keep afloat the large state-owned enterprises, many of which had been shielded from competition by subsidies and had been losing the ability to pay full wages and pensions. (d) Make drastic improvements in technology. In the year 2003, Chinese managed to do what the Soviets and Americans did about 50 years ago, i.
e. to launch the first man-operated satellite (Selden, 25). I will also add here that from 80 to 120 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-paying jobs. Popular resistance, changes in central policy, and loss of authority by rural cadres have weakened China's population control program, which is essential to maintaining long-term growth in living standards.
Another long-term threat to growth which is certainly worth mentioning in this essay, is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. China continues to lose arable land because of erosion and economic development. Beijing says it will intensify efforts to stimulate growth through spending on infrastructure - such as water control and power grids - and poverty relief and through rural tax reform aimed at eliminating arbitrary local levies on farmers (Keister, 143). In conclusion I would like to note that accession to the World Trade Organization helps strengthen China's ability to maintain strong growth rates but at the same time puts additional pressure on the hybrid system of strong political controls and growing market influences.
China has benefited from a huge expansion in computer internet use. Foreign investment remains a strong element in China's remarkable economic growth. Bibliography: Selden, Mark, The Political Economy of Chinese Development (Political Economy of Socialism), Prentice Hall, 2002. Keister, Lisa, Chinese Business Groups: The Structure and Impact of Interim Relations During Economic Development, McGraw Hill, 2001. Griffin, Keith, Institutional Reform and Economic Development in the Chinese Countryside, Penguin books, 2000.
Free research essays on topics related to: foreign investment, economic growth, economic development, long term, political economy
Research essay sample on Political Economy Foreign Investment
