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It however remains to be termed as a growing economy since its per capita income is still low compared to the other developed economies and its market reforms are still not complete. Many challenges have as well resulted from its rapid economic growth and these include urbanization, high levels of inequality, external imbalance and challenges on the sustainability of the environment. It is also faced with internal labor migration and demographic challenges, which are associated to a high population of an aging population. It therefore requires policy adjustments to see sustainability in growth of China (The World Bank Para 6).
The economy of china has attained a significant change over the decades and this was marked by its beginning of economic reforms that took place in 1978. Before these reforms, China had a command economy. This form of economy is also referred to a centrally planned economy whereby all or the major output from economic activities were controlled by the state. The state was responsible for setting the goals of production for the firms, allocated resources throughout the economy and set the operating prices. The individual firms of the households were in the 1950s were joined collectively into communes. In support of industrialization, the government undertook investment in human and physical capital in 1960s and 1970s. Three quarters of the entire industrial production at this time was from enterprises that were owned or controlled by the state and at this time, private businesses and foreign investment firms, which are the multinational companies, were barred. The government at this time had an aim of making the economy of china to be self -sufficient. The government policies held at this time held the economy of China into a state of economic stagnation and inefficiency.
Companies, firms and the employees lacked incentives for working hard and improving
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China Economic Growth Since 1949 Impressive economic achievements of the PRC are second largest in the world. Republic of china is the fastest growing economy having consistent growth rates of around 10% over the past 30 years. China is largest exporter and 2nd largest importer worldwide.
The level of economic development is usually observed in different areas or segments that include business productivity and employment among others. In this similar concern, it is mainly considered to improve human welfare activities and most significantly to minimize the significant problem of poverty.
The main focus of the organization is on the macroeconomic policies of the country and also helps in correcting discrepancies in the balance of payment of the country. The support provided by IMF through the issue of Special Drawing Rights to the member nations have helped in achieving economic development of countries through the maintenance of stability in the economy.
According to the paper China’s economic reforms started in the late 70’s and 80s with the focus on collectivizing the country’s agricultural activities. Chinese leader during this period attempted to transfer the heart of agriculture from traditional farming to household activities. These reforms extended to price liberalization, in a more gradual way. It became followed by fiscal decentralization.
China’s economy is highly developed than that one of India. While India is the 11th biggest economy in terms of the various exchange rates (Chow, 2001). China takes the number two position passing Japan (Runckel, 2002). In comparison of the estimated $1.3123 trillion Gross Domestic Product of India, China posses an average GDP of close to $4909.28 billion (Chow, 2001).
Initially, the private production of iron was strictly restricted by the government, and it was some time before these restrictions were lifted and only after a petition from a prominent government official. The production of other useful metals such as silver, bronze and tin also increased and in order to cater for the demand, the mining of these metals was increased massively.
This paper primarily focuses on comparison of various major economic factors, that characterizes development patterns in China and the United States. These economic factors identified for comparison include labor force, household income, poverty line, unemployment, currency exchange rates, GDP per capita, exports, GDP, imports and others.
A decade ago, the current account surplus of the country was at 2% of the Gross domestic Product while the reserves in foreign exchange were at 14% of the same or 166 billion dollars. In the year 2010, the current account surplus of the country was above 5% of GDP,
Japan is considered to be among the greatest economic miracles of the twentieth century and this is mainly because of the fact that despite its defeat in the Second World War, it was able, within a few decades to recover both politically and economically into the developed country it is today.
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