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China
Annette Lee
Quick Overview:
Gross Domestic Product
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1970 GDP Per capita: $111.82
2014 GDP per capita: $12,900 (#113)
GDP Growth: 7.4% (#14)
China
East Asia & Pacific
Indonesia
Developing
Countries
Thailand
Quick Overview:
Governmental Institution
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Government: Communist
• One Party System: Chinese Communist Party
Trade: Closed
• Sachs- Warner Criteria
• Average Tariff rates of 40% of trade
• Nontariff barriers covering 40% of trade
• A black market exchange rate of at least
20% lower than the official exchange rate
• Yuen
• A state monopoly on major exports
• A socialist economic system
Trade Policies of
China
People’ Bank of China maintained a “managed
floating” exchange rate that takes a basket of
currencies as reference.
• Promotes exchange rate
Manufactured focused
Where does China Rank?
Where does China Rank?
Where does China Rank?
Bhagwati:
Democracy at Bay?
“Globalization leads to prosperity and prosperity
in turn leads to democratization of politics with
the rise of the middle class”
“Economic prosperity, engineered through
globalization as also the fostering of economic
freedoms and associated use of markets rather
than central planning, will promote democracy.”
Bhagwati:
Democracy at Bay?
Middle Class (households with annual incomes
ranging from $6,000 to 25,000):
In 1995: 0%
2009: Second largest middle class in absolute
terms
12%
Forecasted by 2030: 70%
Bhagwati:
Democracy at Bay?
Literacy Rate in 2014:
95.1%
Literacy Rate in 1990:
78%
Russia:
Gorbachev
Glasnost
Perestroika
China
State Capacity
Growing economy
• High investment in infrastructures: High Speed
Rail network
• State’s ubiquity: most competitive companies
are state-owned
Communist Party
Civil Society under the control of the
Communist Party
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Over 500,000 NGOs registered
with the government
Legitimate Government
Harvard’s Kennedy School of Government:
• 80% to 90% of Chinese people were relatively
or extremely satisfied with the central
government
• 91% thought the handling of the economy
was good
Moving towards a
Democracy?
Panyu Migrant Worker’s Service Centre
The number of protest doubled between 2006 and
2010 rising to 180,000 reported “mass incidents”
• Wukan residents held their first secret-ballot
elections in 2012
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What does the future
hold for China?
Xi Jinping
2012: 414,000 disciplined for corruption
201,600 prosecuted for infraction
GOAL: Restructure the economy
Transform the people who make up the state
Bibliography
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CIA World Factbook and can be found at https://www.cia.gov/library/publications/the-worldfactbook/geos/ch.html
Worldbank Global Economic Prospects: http://www.worldbank.org/en/publication/global-economicprospects/data?variable=NYGDPMKTPKDZ&region=EAP
• http://data.worldbank.org/country/china
2004. In Defense of Globalization, Chapter 8: Democracy at Bay?
Romain Wacziarg, Karen Horn Welch, Trade Liberalization and Growth: New Evidence
Francisco Rodriguez, Department of Economics, Wesleyan University Openness and Growth: What Have We Learned? \
Mankiw, N.Gregory The Trilemma of International Finance
Rodrik, Dani One economics, Many Recipes: Globalization, Institutions, and Economic Growth
The Economist The State of the State, So much to do, Too Weak to do it? http://sites.uci.edu/peofgs/files/2015/03/Economist-state-ofstate.pdf
Worldbank: http://siteresources.worldbank.org/EXTABCDE/Resources/7455676-1292528456380/76267911303141641402/7878676-1306699356046/Parallel-Sesssion-6-Homi-Kharas.pdf
World Trade Organization: https://www.wto.org/english/tratop_e/tpr_e/tp400_e.htm
Chinese Civil society: http://www.economist.com/news/china/21600747-spite-political-clampdown-flourishingcivil-society-taking-hold-beneath-glacier
China’s State Legitimacy: http://www.bbc.com/news/magazine-20178655