Economic Liberalization Of China 's Fiscal System

Although, China is a great economical world power today, it is not due to The Great Leap Forward. The Great Leap Forward was a giant step backward and is considered the worst famine in human history with an “estimated 30 million people perished between 1959 and 1962”. The overwhelming desire to industrialize backfired, but became the beginning of human rights abuse caused by harsh labor conditions. In order to fund industrial programs, “the Party would use profits from the agricultural sector, therefore the first priority was to increase agricultural output. That in turn, meant full-fledged mechanization.” To achieve full-fledged mechanization, thousands of male peasants were transferred to industrial work. They left the farm work for the women and the children. For example, in 1958 “the [Henan] province allocated 1.604 billion yuan to construction projects” and Wu Zhipu, the Chinese Communist Party governor of Henan, “crowed that ‘by the end of August, the province will have built or expanded 378,000 factories and mines of all kinds,’” which proved to be true when “workers employed in the province’s state-owned enterprises more than doubled in number from 1957.” These workers were not only starved due to the mass starvation, but ridiculed with harsh government policies. “Anyone who aroused the wrath of a leader could be

Gary Becker’s and Kevin Murphy’s “The Upside of Income Inequality” analyzes the correlation between overall economic development, the importance of education and the effects it has on increasing income inequality. Becker’s and Murphy’s article presents a study taken in China that shows the increase in income inequality raising at similar rates as economic growth. This ultimately leads to a decrease in the amount of people facing poverty and better living conditions for the poor. During China’s rapid rate of economic development “inequality rose, [but] the number of Chinese who live in poverty fell from 260 million in 1978 to 42 million in 1998. Despite the widening gap in incomes, rapid economic development dramatically improved the lives of China’s poor” (Becker and Murphy 581). The authors also state that income inequality is in fact a natural result of economic development because it “raised the standard of living for both the rich and the poor” (Becker and Murphy 582). Education also effects the average earnings of Americans. The importance of receiving an education has

Deng Xiaoping began market-orientated reforms and opened the economy. The incomes of the poorer residents of china are on the increase, however the wealthier residents are still getting wealthier and much faster. Income inequality has risen at a faster pace than that of the United States according to the Gini coefficient. The income inequality is rapidly growing and is still at a very high level.

This document shows how living conditions and independence did not improve for landowners. Landowners only lost their land and homes. It wasn’t fair how low classes were able to make more money when landowners couldn’t have better living conditions. Document 9 by an unknown person who was an economist made a line graph for people interested in China’s GDP to see how China’s GDP was at that time. This line graph shows how the quality of people’s life wasn’t improving because there wasn’t any jobs for them. The economy was very weak since there wasn’t enough jobs. Factories didn’t improve either they stayed the same because of the value of the materials. People couldn’t afford things because since there wasn’t jobs they didn’t have enough money to be able to buy things. The Communist China notes talks about the Great Leap Forward. The Great Leap Forward began from 1958 and ended in 1960. During 1959 through 1961 about 50 million people died of starvation. Mao forced people to work and it

Despite extensive criticism, proponents of the measure feel that it has improved life in China. The policy, implemented in 1979, “was created by the Chinese government to alleviate social, economic and environmental problems in China” (Cabrera). Supporters of the policy claim that is has been successful. One measurement of a country’s success is its financial growth and China has seen an improvement in that respect. “With that rapid GDP growth, has come better nutrition, rising levels of education, longer life expectancies, and higher living standards for the vast majority of Chinese people.” (Azubel 2). Unfortunately, that financial growth has had little impact on the isolated farms and villages.

Hung’s stated goals are as follows. First, he aims to outline the historical origins of the capitalist boom in China as well as the conditions which predicated said boom. He also names four conceptions against history to explore the global effects of China’s capitalist boom and the limit of that boom. Firstly, he seeks to challenge the notion that China is challenging the United States neoliberal order. Secondly, he examines the belief that the increasing incomes of poor Chinese citizens helps to reverse worldwide income polarization. Thirdly, he analyzes the claim that China’s rise is challenging Western dominion over the world, and is radically altering the world order. Lastly, he plans to evaluate the assertion that China has been emerging as the most powerful driver of growth since the global financial crisis. He plans to devote a single chapter to the refutation of each of these views and explanations of why they overstate the importance of China, in addition to several introductory chapters describing China’s rise. He aims to prove with this work that China is no different than the other major capitalist powers, that its boom is dependent on the global neoliberal order, that its boom contributes to rampant inequality, and, in sum, that China is just a foundation of the capitalist status quo.

Dr. Hao Jingfang works for the China Development Research Foundation which helps advance and promote economic development and social progress. She conducts research with an emphasis on rural poverty and presents recommendations to the government. Dr. Hao has witnessed and learned about China’s development over the last century, such as the Cultural Revolution-the birth of communist ideals- and capitalism. China transformed their system and has been ascending economically for the last several decades. Dr. Hao Jingfang had also witnessed its side effects: the excellent ever increasing gross domestic product(GDP) and the not so good effects of increased poverty. Another one of the of the not so spectacular side effects are how the wealth,

In light of the economic changes that had occurred from the Maoist period (1949-1976) to the post-Maoist period (1978-2011) of China, the system of economic distribution of China under Mao Zedong’s and Deng Xiaoping’s leadership created a notable contrast of the standards of living for Chinese citizens. Mao Zedong’s establishment of collectively owned lands and state entitlement in the 1950s to 1970s put an end to private ownership and created a system whereby the earnings of Chinese citizens were paid per capita basis, reducing income differences. Upon the death of Mao Zedong and his system, Deng Xiaoping’s establishment of the privatization of lands and economic liberalization under his “Four Modernizations” reform goal created a system

In Figure 2, we observe an overall increase in the Municipal Debt from 1997 to 2013. Making a parallel between state and local debt, the state debt shows a steady trend, while the local debt shows a significant increment during this period of time.

This can be illustrated that in 1979 the Chinese government had brought about several new programs designed to stimulate the economy. During the same period of time that rapid Chinese economic growth took place there was a positive correlation with economic growth and wealth inequality rose as well. Currently, China has one of the highest wealth disparities on the

As the People’s Republic of China moved away from the policies of the Great Leap Forward and Cultural Revolution and moved toward economic reform by integrating into the global economy, there were several effects felt by Chinese society at large. Reform policies of Deng Xiaoping helped China adopt a new type of economy with effects felt by all assets of society. Participation was largely shaped by these new policies of capitalism and industrialization, as it moved away from the Maoist socialist state. Effects included migration to the cities and the rise of the migrant worker. Even with the changes, several media sources convey criticisms of this contemporary Chinese development, namely in how the lower class people of China have been negatively

From an economic standpoint for instance, China is the third largest economy of the globe, with a gross domestic product of nearly $8 trillion; France is the ninth largest economy, with a total national output of $2.1 trillion. Both countries revealed a maintained growth trend. What is however interesting is that despite being located on a position inferior to that of China, the French individuals live well above the standards of the Chinese people. To exemplify, while the income per capita of French is of $33,000, the income per capita in China is of only $6,000; the income per capita at a global level is of $10,000, meaning that the Chinese make less money not only in comparison to France, but to most of the world. This is best explained by the massive population in China.

The article, published by The Business Times on 11 January 2010, reported that China’s government will continue to spend the full amount of its full stimulus in 2010 despite the fact that government has ordered banks to control lending and implemented monetary policy to prevent over investment earlier.

In addition to local actors as determinates, Donaldson argues that characteristics of the provinces may have also played a role in the divergent path of each. Given the historical legacy of Guizhou compared to Yunnan, the former being a more migrant based society with the later having millennia long ties to the land, may have had something to do with the changes. The most distinctive, he believes are the respective financial resources of each province, with Yunnan having a 50% larger budget at the beginning of the reform era than Guizhou. This makes pursuing economic development polices with high financial costs easier as compared to poverty reduction programs that Guizhou took on.

Zakaria writes, “They know that to introduce capitalism into China requires much more than economic changes, so they have allowed significant reforms of the administrative and legal systems as well” (81). Although Zakaria argues that China must reform its political system, he says a quick transition to a liberal democracy can lead to chaos, because of the large size of the country and the small size of its middle class. Other reasons, and probably more realistic reasons for China’s slow progression towards a democratic state is that the leaders want to clasp to its stronghold on the political system.