Economic Growth In China's Case Study

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With reference to an economy other than Australia, explain the influence of globalisation on environmental sustainability and assess the strategies used to promote economic growth and development in this economy

Economic growth in China’s case refers to the increased use of productive resources such as land, labour, capital and entrepreneurship as a result of improved technology, population and labour force growth can be measure in real Gross Domestic Product(GDP) per capita. On the other hand Economic development refers to the process of structural change required in an economy for economic growth to happen, can be measured in Gross National Product(GNP) per capita. The Chinese Economy has implemented many strategies to accelerate economic
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Mao Tse Tung's seeked to modernise agriculture and industry in the ‘Great Leap Forward’. The policy was ineffective in raising national output resulting widespread famine and poverty. Between 1959 and 1961, food production declined as a result of crop and industrial shortfalls. A famine arose causing millions of deaths. The loss of privately run sectors affected China significantly. Just under two decades later the Communist party was ambitious to adopt capitalist methods and reforms in order to stimulate economic growth. The Chinese Economy becoming more capitalist has resulted in sustained increases in per capita income, enhancement in living standards and cut in poverty in China. Agriculture reform in 1978-1994 discontinued the commune system of agriculture known as de-collectivisation and replaced it with the Household Responsibility System. This supported households to draw their own production decisions and sell surplus output in free market once the state quota was met. The positive effects of this change led to efficient increases in food production and surplus income was invested in private run town and village enterprises(TVEs) responsible for light manufacturing of industrial goods helping raise the Chinese industry’s output. This new system is effective in the industrialization of China. China’s GDP value was 191.2 billion USD in 1980 when the reform was introduced and GDP value rose to 360.9 billion USD in 1990. The negative effect of a Production quota is that it provokes significant losses to producers. In 1980 an ‘open door policy’ was initiated towards overseas trade and investment, with Special Economic Zones (SEZs) established in South and East coast province of China. The newly established SEZs attracted foreign investment by Multinational

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