Download china 2 economy - Mercer Island School District

POLITICAL ECONOMY AND
DEVELOPMENT
BASIC
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10 % growth/year for 30 years starting in 1981
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the second largest economy after US
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purchasing power parity (PPP) = adjusts for price differences between countries
THE MAOIST ECONOMY
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CCP came into power in 1949
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allowed privatization - for gaining support and for the growth of economy
State Socialism = government owns and controls most of the economic resources
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for economic development
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Command economy-the economic activity is driven by government planning and
commands rather than market forces
THE MAOIST ECONOMY CONT.
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Five-Year Plan of 1953-1957
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government controlled the production and distribution of goods and services
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impressive results, but also created inequalities
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Two following movements tried to be less bureaucratic and more egalitarian
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Great Leap Forward - steel made by peasants
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Cultural Revolution - revolutionary committees replaced former system
AFTER MAO: CHINA GOES TO
MARKET
"It doesn't matter whether a cat is white or
black, as long as it catches mice"
-Deng XiaoPing
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Under Deng, capitalist-style free-market
were introduced.
REFORMS UNDER DENG
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Prices determined by market forces
State no longer dictated how to make and what to make
Privatization encouraged
State Owned Enterprises went down
Authority for making economic decisions went from government to factories
Individuals were encouraged to make money for themselves
CHINA GOES TO MARKET CONT.
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Consumer Revolution
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1970s - people shop for consumer goods made by state-owned factories
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Now, there are many high quality products, foreign and domestic stores
Socialist Market Economy
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economy - both socialism and capitalism
REMAKING THE CHINESE
COUNTRYSIDE
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Land reform (1949) leads to collective farms (1950s)
Household Responsibility System
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Abolished collective farming
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Land overseen by contracted families
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Increased agricultural production
2008 CCP new land reform law
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Stimulate agricultural production
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Raise rural incomes
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Stop corruption
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Contracts for land
REMAKING THE CHINESE
COUNTRYSIDE CONT.
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Rural Industrial and Commercial Revolution
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Agriculture decollectivized
o Township and Village Enterprises (TVEs)
o Rural factories run by local gov.
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Low labor costs = increase in workers = fast growing = foreign investment
SOCIETY AND ECONOMY
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Market reform and Globalization
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Chinese people are more open
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Caused an increase in social problems
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Different social welfare system
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Maoist economy
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Government ensured employment
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Certain standard of living
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Basic benefits
Corruption
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Bribes - rule of law is weaker than personal connections (guanxi)
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Severe punishments to counteract corruption
SOCIETY AND ECONOMY CONT.
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Economic growth = disparities in wealth
Disparities in gender equalities
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70% of women illiterate
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Women workers first to be laid off
Pollution = sustainable development
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men dominate rural economic life
balances economic growth and environment concerns
Citizen associations are limited in their ability to place concerns