Reasons for China’s improvement in economic performance are: efective re-allocation of resources both human and physical; aaptation of foreign technologies to their factor proportions, ad successful utilization of opportunities for specialization which arise from integration into the world economy. Cina’s economic reforms leading to increasing economic growth and transition, te causes and effects of the evolving changes have been discussed by Woo (p. 115), ad his approach has been challenged by another senior economist Rawski, i a debate with contrasting perspectives from both sides. Rwski’s belief that China’s is the result of successful economic experimentation, i countered by Woo that China’s good economic performance since 1978 is due to “increasing liberalization, iternationalization and privatization of economic activities” (p.
Te difference in perspectives is directly related to what the two schools have identified to be the root cause of economic growth in China: te former’s experimentalist school denotes non-capitalist institutions to be the reason; wereas the latter’s convergence school attributes it to the quick absorption of surplus agricultural labour, o which there is a large pool in China.
clear that if the convergence school is correct, ten the experimentalist school’s emphasis on gradual reform in order to give time to new, nn-capitalist institutions to appear, wll result in a “high human cost in slower economic growth, ad thereby a slower absorption into the economy of China’s large pool of surplus labour” (Woo: 137). Sccessful, qick and continuous implementation of strategies and programs to utilize surplus labour in the agricultural sector, epecially in North China, i observed to be a viable method of promoting economic reform. Cina’s for development have included a series of important innovations since the Third Plenum of the Eleventh Central Committee in December 1978.
Rthinking of previously formulated goals and reassessment of experiments served to implement adjustments in economic policy that followed. “he problem of raising agricultural output and productivity still remains the most fundamental issue in China’s developmental strategy” (O’ Leary & Watson: 119-120). Te media and the major economic journals examined a wide range of issues related to improving the performance of the agricultural sector: te agricultural price. ..
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