Economic Development in China - Essay Example

China is an ancient civilization with a long tradition of dynastic rule and strong leaders. China has been ruled by the Communist Party of China (CCP) since 1949, an avowedly socialist form of government that established the People’s Republic of China, and initially viewed capitalism through a skeptic’s lens. As a socialist party with communist leanings, successive Chinese governments undertook disastrous social and economic initiatives including Five Year Plans, the failed Great Leap Forward, and the violent Cultural Revolution.  Despite some recent challenges, Chinese agriculture has witnessed important growth over the past thirty years and this has been propelled by a variety of forces. With a population of more than 1.3 billion, China remains a largely rural country with 43% of its labor force employed in agriculture with another 25% in industry and 32% in the service sector.  Accordingly, decollectivization of the agricultural sector, public investment in the industry, and market reforms have all played a role in stimulating this development. Human capital has been utilized by the authorities in Beijing through direct investment in the agricultural sector as well as through institutional changes aimed at developing this sector. By emphasizing the natural resources which China has been endowed with and employing technology appropriated through an opening up of the economy, the Chinese government is currently employing market liberalization to aid in the development of this industry, among others. China’s latest “New Rural Campaign” is the latest manifestation of this development, accounting for strong macroeconomic growth and sustainable agricultural development (The Economist, 2008; Jia & Fock, 1-11).