Progress Of Chinese Economy - Essay Example

Progress Of Chinese EconomyChina has experienced massive growth ever since the government has changed its agenda towards liberalization of the economy. Poverty has been reduced and human development has improved along with the other indicators which show that China is on the path to progress. However, this growth has clearly come from the private sector therefore support must be given to continue growth while also getting the public sector to join in. Reforms in the financial architecture of the country would certainly help since they would allow the country to have a more flexible exchange rate and revamp the banking sector.

These measures have to be taken since China is not without its own problems which are political, social as well as economic. Sustained growth for decades has certainly put inflationary and other pressures on the economy while the first moves towards a free market have certainly met with success. Further steps would require the government to essentially move out of owning parts of various companies and focusing their attentions on more social issues such as the aging population of the country. It seems that the OECD is suggesting quite clearly to China that future development of the country is going to depend on the nature and the measure of human development experienced by China.

While it is easy to agree with this position of the OECD, it must be kept in mind that the human development in China can be directly linked to the economic development of the country. Therefore, both have to become equally important for the state if sustained development is to be made in either of the two.Works CitedOECD. 2005, Economic Survey of China, 2005. Policy Breif [Online] Available at: http://www.oecd.org/dataoecd/10/25/35294862.pdf