China.2006.spring.2

China.2006.spring.2 - China Political Economy and...

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Unformatted text preview: China Political Economy and Development Economic miracle Now 4th largest economy in world? In PPP terms, it is the 2nd largest in world. 1980-2000, income/per-person increased 15 fold. 200 million lifted from absolute poverty 1949: Maoist era Initial stabilization of economy after decades of rebellion, invasion, civil war... A command economy model More `egalitarian' than the soviet model. Great Leap Forward/ Cultural Revolution Sought initial industrialization At end of Mao era Chinese were "healthier and more literate" than previously but relatively little change in standard of living. 1978: Deng Xiao Ping Pragmatism. "It doesn't matter whether a cat is white or black, as long as it catches mice." Profit motive introduced. Supply and demand. Fastest growing economy in the world "Socialist market economy" Central planning still exists Countryside: 700 million people 1949- CCP launches land reform. Gave land to poor. 1950s- peasants moved to collective farms. Great Leap Forward: people's communes 1980s: household responsibility system: farmland contracted out to families- take responsibility.. TVE's Township and village enterprises. Owned and run by local governments and private entrepreneurs Loss of valuable farmland Can China feed itself? Need to import grain recently Economic reform and politics. Can reform continue? Debate in upper echelons of government. Deng/ Jiang/ Hu Decentralization Social changes- Huge Entrepreneurs Educated Tech-saavy Foreign travelled Poor and downtrodden Plethora of new and emerging groups Society and Economy A more diverse and open society. Increase in crime, drug use, other social problems Protests over environmental problems Loss of land End of iron rice bowl? Cradle to grave support from government. Unemployment now estimated to be around 20%. China's "rust belt" `The floating population' 120 million Corruption Personal connections: guanxi Growth on inequality Hu trying to appeal to the poor Gender inequality In rural areas, only men can sign contracts. Men dominate rural economy. World's highest rate of suicide among women in rural areas. China has more men than women- leads to problems. Urban women are first to be laid-off.. Environmental catastrophe Coal is highly polluting. Soil erosion, loss of land, deforestation, toxic waste pollution. Horrible pollution of rivers. Water shortage. Government desperately wants sustainable development but have they unleashed forces beyond their control? The unleashing of the forces has lead them to want sustainable development? China and International Political Economy Deng Xiao PIng Two pillars: a) market-oriented reform of domestic economy. b) Internationalization of the economy Foreign trade 1978: $20 billion 2002: $620 billion US: now biggest market for Chinese goods. FDI World's largest absorber of FDI 400+ of world's top 500 corporations are in China. Special Economic Zones (SEZ's) Shenzen Trade imbalances Massive accumulation of foreign reserves 2001: PRC joins WTO China: awakening giant. Average living standards make it part of 3rd world. Authoritarian/Totalitarian "communist" leadership make it part of the outcasts of global politics. Natural and human resource base/rapidly growing economy-approaching superpower status/might China Member of Security Council (veto power. Member of WTO/ Nuclear power Accumulating massive US reserves of bonds. Building alliances in Africa. Road in Bunyore. Ringroad around Addis Ababa.... Language being taught in schools in America, including Benjamin??? BUT: Have great sustainability issues: Socially Economically Environmentally Politically ...
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This note was uploaded on 10/29/2008 for the course CPO 2001 taught by Professor Kraus during the Spring '08 term at University of Florida.

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