Case Study China

Explanations for China's remarkable growth

- markets, trade & globalization

- strong industrial policy & gradual reforms

- agricultural productivity & rural enterprises

- state-owned enterprises

Regional demonstrations

China benefited from geographical proximity to already developed countries

Technology transfer

leveraged market access by special economic zones to demand technology transfer

agglomeration

the benefits that come when firms and people locate near one another together in cities and industrial cluster

Health and education investments

- emphasis on basic health

- reductions in fertility through ocp

Productivity

capital accumulation an productivity gains helped with China's rapid growth

Reforms

gradually introduced to change to a free-market economy

Why China's methods cannot be replicated by others

- Unique features: size, ethnic homogeneity, location

- Lack of natural resources was an advantage

- Geographic and demographic conditions favourable compared to African countries

- other countries face structural and institutional barriers

Challenges still faced by China

- thin social safety net for bottom 40% of income distribution

- increasing inequality

- severe environmental crises

- food safety concerns

- large export surplus & trade wars

- too much urbanization

- rapidly ageing population