This paper focuses on the development of China’s Economy. It discusses the transformations that China experienced to move forward and become the world’s fastest growing economy. China’s development occurred mainly because they began to focus on manufacturing and exporting. Growth also occurred due to borrowing technology and the skilled and cheap labor force.
A Development Miracle China
China, officially know as The Peoples Republic of China, is the world’s most populous country with a population of over 1.3 billion people. The capital of China is Beijing and the president is Hua Jinato. China currently has the world’s fastest developing economy, and it is estimated that from 1978 to 2008 China has grown at a constant rate of approximately 9% a year. In the year 2008, GDP per capita was five times the amount than it was in the year 1978. The People’s Republic of China is also responsible for the most dramatic reduction in poverty, from 53% in the year 1981 to 8% in 2001; about 400 million fewer people are living in extreme poverty(TODARO 2012). This growth miracle has occurred due to the transformation into a market-oriented economy and also as a result of improving their technology.
There have been many speculations as to how China has developed at such a rapid rate and also many conclusions. The case of China is one that is very interesting as there is no particular school of thought or specific development policy that is responsible for rapid growth but rather a combination. China is a very good example of how policies that implement trade, markets and globalization are highly beneficial as manufactured exports are China’s primary area of focus. Since the 1980’s when china began its transformation into a market-oriented economy it was a very poor country with a per capita income of US $182 and a trade dependence ratio of 11.2 %; since then China has mad a dramatic transformation. China now has a per capita GDP of US...