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China Is an Example of the East Asian Capitalist Developmental State - Essay Example

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This discussion China Is an Example of the East Asian Capitalist Developmental State talks that the economic boom in China elevated the nation to become a major world producer with its output accounting for 15% of the total production of the world. …
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China Is an Example of the East Asian Capitalist Developmental State
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China Is an Example of the East Asian Capitalist Developmental State

Download file to see previous pages... This essay declares that to begin with the Chinese capitalist developmental state policy makers do not trust the markets to self-regulate themselves thus the government will intervene when need to set the direction in a desired manner through the implementation of industry policies or adjustment of interest and exchange rates. The Chinese government has avoided the extensive welfare programs that are rampant in Western economies (Jensen and Weston, 2006). Rather, the firms develop a bond with their employees through engaging them and motivating them as well as increasing their value within a firm.
This paper makes a conclusion that the economic situation in Chinese capitalist developmental state tends to favour industry over the service sector as well as investment activities over local consumption to drive its growth. In a nutshell, China is a capitalist economy that has taken a different approach to solving the inherent issues in a bid to spur its economic growth. With the numerous challenges and economic risks that are facing Western economies it is evident that soon with the threat of China being a global economic giant they are going to resort to restrictions as a technique to mitigate financial risks. It is worth noting that China is indeed a capitalist developmental state since all its economic policies are formulated with a close guard and control by the state. The state can arbitrary intervene to solve any economic situation that it deems to be crucial to the overall benefit of China as a nation. ...Download file to see next pagesRead More
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