China and India: Rapid Economic Essay

Pages: 5 (1435 words)  ·  Bibliography Sources: ≈ 4  ·  File: .docx  ·  Level: Master's  ·  Topic: Economics

SAMPLE EXCERPT . . .
Without its birth control policies -- each couple is allowed one child, with penalties assessed for families that have two or more children -- the authors project that instead of the 1.27 billion people (United Nations), China would have more like 1.6 billion people (Tyers, 593). What the slow-down in births means in the future is a reduction of the labor force. And even though India "is also aging," India's most popular age groups "…are very young, and as these groups age, they raise the labor force participation rate and the crude birth rate" (Tyers, 599). Hence, during the time China's labor force will not show a great deal of growth, India's labor force is expected to rise by half, the authors explain.

That said, a review of the rise of China's gross domestic product (GDP) is undeniably remarkable by most economic standards. An article in the Journal of Chinese Economic and Business Studies (Zhang, et al., 2009) offers the fact that over the period 1978 to 2007, China's GDP increased from $214.2 billion (U.S. Dollars) in 1978 to $3,400.4 billion in 2007. The average annual growth rate of GDP rose 9.9% during that same time frame; the world's average growth rate in that same window of time was 3.3% (Zhang, 127). In fact, recently China passed Japan as the number two biggest economic power in the world.

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How did this happen? Zhang reports that part of the success story for China is its phenomenal growth in international trade; indeed, trade has increased in ways more impressive than its GDP growth -- from $10.9 billion in 1978 to $955.8 billion in 2007 (Zhang, 127). The opening up of China's economy to the global marketplace has also been a reason why China has made such huge strides in the growth of its economy, the authors continue.

Essay on China & India: Rapid Economic Assignment

This fast economic growth and its "active participation in economic globalization have immensely improved" China's economy and in doing so has provided a great boost to living standards in China (Zhang, 128). In fact more than 400 million citizens in China have been "lifted above the poverty line of one dollar a day" and Zhang (128) reports that having 400 million people achieve a living that is above the poverty line represents "75% of the total world poverty lift" over the past 30 years.

Taking a quick look at the GDP growth for China over the past 20 years, a reader sees that in 1987 the growth rate in China was 11.60%; in 1997 it dropped slightly (but was still very impressive at 9.30%), and in 2007 the GDP growth was at 11.40% (Zhang, 128).

When did the explosive growth rate really begin? It was more than twenty years ago, the authors explain. In fact the authors assert it began shortly after the "disastrous ten years of the 'cultural revolution.'" The first period was based on agricultural reform (1978-1984); the second phase of China's awesome economic growth (1984-1989) was spawned by the reforms that included moving economic emphasis from "rural to urban areas," and moving from a mainly agricultural emphasis to an industrial sector (Zhang, 130). The third phase (1992-2001) involved the multi-dimensional development and encouragement of private sectors and "foreign-invested sectors"; also -- importantly -- in this phase, the building of a "modern capital-market system" was key, as well as "relaxing foreign exchange control" and instituting a modern financial foundation for China's version of social security for the elderly (Zhang, 131). The fourth phase that helps explain how China became such an economic powerhouse in the global market is when it joined the World Trade Organization (WTO) in 2001. The approach was to move away from "piecemeal reforms" to a solid establishment of several reforms: construction of an economic system that had legal backing; passing "more than a hundred economic laws" and regulations (as promised to the WTO); beefing up existing laws; and increasing the transparency of China's government administration procedures (Zhang, 132).

Bibliography

Mallick, Hrushikesh, and Mahalik, Mantu Kumar, 2008, 'Constructing the Economy: The Role of Construction Sector in India's Growth', Journal of Real Estate Finance and Economics, vol. 40, 368-384.

Sen, Kunal. 2009, 'What a long, strange trip it's been: reflections on the causes of India's growth… [END OF PREVIEW] . . . READ MORE

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"China and India: Rapid Economic."  Essaytown.com.  November 18, 2011.  Accessed March 30, 2020.
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