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Analyse the impact that globalisation has had on the economic development strategies in an economy other than Australia
Analyse the impact that globalisation has had on the economic development strategies in an economy other than Australia
• In the introduction you would explain what globalisation is
• Then you would relate this back to china
• China has had to change their policies such as its dual economy which is part communist and part capitalist
• This has changed from its closed economy and things have altered internally
• Once they have become more efficient they have moved to the outside world
Globalisation is the increased integration and interdependency of nations to one another’s economies. There have been many failures in trying to ensure the successfulness of China’s market in this increasing global economy. Before Dengs election in 1978, China had tariffs and political censorship. Up until 1978 China was a closed economy. In 1949 under Mao Zedong the communist revolution took control, thus ensuring European economies steered clear of the Chinese market. In the 1950 s the ‘great leap forward’ failed along with communist state farms and industrial policies. The general public of China was asking themselves questions, as they were seeing the outside European world (America) modernising before their eyes. Nobody was interested in investing in China. Profit was getting lost with the small bureaucracy's. This led to the Cultural Revolution.
Since the election of Deng Xiao Ping in 1978 has developed strategies through economic reform to introduce their economy to the global market. This was in order to break down the barriers.
These strategies have changed and modified the traditional Chinese trade rules thus creating a ‘dual economy’ which is part communist and part capitalist. The dual economy ensures that this change into the global market does not move to quickly thus, causing it to collapse.
In 1978 under Dengs rule there was the agricultural reform, which replaced the commune system with household responsibility system. This was in order to make the market more efficient.
1980 open door policy, this saw the development of special economic zones. Trade increased from 105 of GDP in 1978 to 36% in 1996
1992 cuts to tariff and other forms of protection. 1992 it was cut to 32% and in 2000 it was 15%.
1994 taxation reforms
1995 banking law reforms
1999 agreement with the USA
2001 the world trade agreement membership was entered into. This will expand trade, enhance economic reform, attract higher levels of economic development and foster the rule of law.
Since the 1990s economic growth has averaged approximately 10% pa. It is now ranked the 8th largest exporter in the world of manufacturing goods. Globalisation in China has seen development be dependent on special economic zones resulting in dualistic economic and social systems. It has also seen income and social inequality between urban and rural areas