Strategies Utilized by China to Achieve Economic Development

A proposal on Strategies Utilized by China to Achieve Economic Development
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A proposal on Strategies Utilized by China to Achieve Economic Development
Introduction
China is considered to the fastest developing country since the1980s. It is estimated that it experienced an average of 10% economic growth per year between 1978 and 2005. The growth domestic product of the country reached 14.2 trillion in 2018. Because of this rapid economic growth, china has been a country of interest many developing and industrialized nations that wish to replicate its strategies.
China underwent transformation is attributed to a series reforms in its governance, economic structure and the country’s key resources and critical infrastructure. These changes came alongside high levels of urbanization and industrialization that impacted on its economic development and all the aspects of Chinese culture.
Statement of the problem
Since 1978, china has been experiencing the highest levels of economic growth compared to any country. Due to this rapid and exponential growth of the Chinese economy, many developing countries aspire to embrace the Chinese economic model and strategies in order to attain economic growth and development. However, most of them do not where to start because the exact strategies utilized by the Chinese not very clear.
Research Objectives
1 To determine the strategies employed by Chinese government to achieve exponential growth since 1978.
2 To identify the exact economic readjustments and reformations in the critical infrastructure that China while reforming its economy.
Research Questions
* What are the strategies have been employed by Chinese government since 1978 to achieve exponential economic growth?
* What are the economic readjustments and reformations in critical infrastructure that China underwent while reforming its economy?
Literature Review
The Chinese economy has been experiencing an exponential growth over the past decades. After attaining independence in 1949, the country did not go through any considerable economic development. Most of its citizens were still in poverty. There had ineffective critical infrastructure which caused a slow growth in the economy. However, in 1978 the country underwent major reforms that changed the country’s history of economic of development. The changes also transformed how the economy of the country is being to the present.
On 22nd December of 1978, the Chinese party leaders of National Party Congress met at the 11the central committee to discuss the economic situation of the country. They decided to come up with a program that would to a gradual but critical transformation in the economic system of china ADDIN EN.CITE Maxwell201624(Maxwell & McFarlane, 2016)24246Maxwell, NevilleMcFarlane, BruceChina's changed road to development2016Elsevier1483150151(Maxwell & McFarlane, 2016). In addition they came into a conclusion that the Maoist fashion of centralized economic planning had failed to help China in achieving any significant economic development and has caused the country to only remain behind the western industrialized nations like the United States but also lag below the economies of the new industrial powers of the east, for instance Japan and Singapore. Besides, the Chinese official also realized the initial economic model forced the citizens of the country to survive under limited supply of food, poor housing conditions and work under the inefficient service sector while their neighbors like Hong Kong and Japan were rivaling the European nations in industrialization and modern technology ADDIN EN.CITE Wang201725(Y. Wang, 2017)25256Wang, YanlaiChina's Economic Development and Democratization2017Routledge1351952137(Y. Wang, 2017). The fundamental reason for proposing a transformational program was to abolish communism in China and to reduce the power of government in economic planning and control without eliminating it. The transformational process was gradual and incremental in nature. New economic models and strategies were first experimentally implemented in in a few areas in the country, after which they receive national application if they prove to be successful.
The Chinese economic transformational program of 1978 was followed by a period of readjustment which ran from 1979 to 1981. During this period the economy of China experienced major imbalances that were being corrected as identified. During this period, the country abandoned Hua Guofeng’s plan that was supposed to end after ten years. The primary objective of the process of readjustment was to rapidly increase Ch...