The Rise of China: Understanding its Economic Growth
Since 1987’s Economic Reform
Francia, Niña Luz V.
Julio, Hilarie Claire L.
A. China’s emerging economy for the past 30 years
During the 1800's, China was economically and politically dominant in the world. However, it was during 1850 when China's economy started to decline and Britain took the economic lead. China's economic and political power weakened. It maintained a centrally planned or commonly known as a command economy wherein the state controls and directs most of the economic output. It was the state that made production goals, controlled prices and allocated resources throughout the state. This then resulted to a rapid industrialization during the 1950s. To cope up with the situation, the national government invested in physical and human capital in the 1960s and 1970s. However, this had a bad effect on the economy because private enterprises and foreign-invested firms almost vanished, since it no longer had a role in the economy because most of the target outputs were produced by state owned enterprises (SOE). B. Common misconceptions about China’s economy
Due to China’s population shoot up, common misconceptions about how China’s is still suffering economic crisis in the present are brought about, just because China is known as the most overpopulated country in the world. Engardio (2007) mentioned in on of his texts that the threats of China’s constant population growth do not lie on lack of shelter, nor hunger. It lie on inadequate living conditions when its citizens are uncovered with appropriate lifestyle, it follows that they are unable to avail of health care. Possible answers to this dilemma is to either really just accommodate a certain number of health care applicants, or to widen the coverage of it, which he personally think is unattainable (Engario, 2007). A controversial censure back in the 1950s and 1960s during Mao Zedong’s regime was population control. Health care developments had the death rate of the Chinese declined, but on the other hand, the birth rate unrelentingly inclined despite the fact that contraception and birth control was highly promoted. More and more birth control methods were introduced upon the Chinese most especially in the 1970s since a classic term “population explosion” was coined upon them causing this change of phase in China’s demographic transition. The enactment of birth control methods were successful causing a substantial decline to China’s birth rate from 33.43 million in 1970 to 18.21 million by 1980. The implementation of the "one child" policy in the early 1980s coincided with the coming of age of the "baby boom" generation, so the birth rate slipped back up to 23.33 million in 1987 before subsiding steadily to reach 16.03 million by 1998, pulling the natural growth rate (birth rate minus death rate) down from 16.61 million to 9.53 million over the same period (China Statistical Yearbook; National Bureau of Statistics, 2011). Despite the simultaneous struggles China was experiencing, it was still able to overcome its glitches in their economy, leading to the sustenance of its citizens brought about by their population explosion problems. II. History
During the regime of Mao Zedong, poverty in China was very evident. The Chinese people had suffered enough due to the failed attempts of economic central planning of the government. There existed shortage of consumer goods, followed by the lack of its variety as well as its poor quality. At least five major events occurred that lead to a conclusion from the Chinese government to uphold a vast economic reform. First is the death of Chinese Communist Party’s chairman, Mao Zedong in September 1977 who was in office since 1945. His reign for 27 years has been tough especially after his unsuccessful “Great Leap Forward” and “Cultural Revolution” have exhausted a heavy cost to China. Losing the...