6. Management of globalisation - China Flashcards
What is a management technique for; Uncontrolled development/ rural poverty Economic.
Special Economic Zones [Pearl River Delta, Shanghai, Beijing, Shenzhen] (more free-market orientated economic policies and flexible governmental measures) – more attractive for investment. Shanghai has to give 20% of its income to surrounding rural areas
Evaluate the success of the management methods; special economic zones and Shanghai giving 20% of its income to surrounding rural areas.
Positives
- Opening of the 3 Gorges Dam = jobs
- Friedman’s principle of moving spread effects away from the core (benefits to periphery)
Negatives
- 85% of FDI to the east (favours these regions). The government had to move heavy industry (iron/steel) from the east due to water shortages. Could reduce inequality
What is a management technique for;
Rural – urban migration and rural poverty: 2005 – 204 million Chinese living on less than $1.25 a day (World Bank)
Economic
- Rural development programmes (increased spending in healthcare, education and infrastructure) to increase the standard of living. Guaranteed 40% increase in income (increased revenue so people can afford basic amenities)
- Five-year economic plan – focus on rural development
Evaluate the success of rural development programmes and the five-year economic plan in China.
Positives
- Increased rural incomes by 19.8% in the first 6 months
- Annual growth of 7.5% (2006-10)
- Rural incomes rose by 19.8% in the first 6 months
- People living in absolute poverty reduced to 6 million a year
Negatives
- Gap between urban and rural is 3x more than previously
- Widening of Gini coefficient (0.16 in 1978 – 0.37 in 2007) 0.36 in 2013-14, 0.34 in 2015
What is a management method for rising inflation in China?
Increasing taxation and introducing strong financial controls (e.g. on food prices)
Evaluate the success of increasing taxation and introducing strong financial controls as a management method for rising inflation.
Negatives
- 700 million living in poverty
- Inflation is still high for food products
- Greater pressure on land for industrialisation and urbanisation
What is a management method used in China to combat inequality?
The poorest 20% of households net earn is £412 compared to £9000 for the top 20%
Tourism development spread to other regions (Xian – terracotta army and Tibet – traditional Chinese culture). 72 hour free visa policy adopted in cities
Evaluate the success of the management method of spreading tourism to other regions to combat economic inequality?
Positives
- 82 new airports since 2000 (total is 250) – improved infrastructure
- 7% growth rate to GDP
- World Tourist Association predicts China to be the leading tourist destination by 2020 (8.6% of global share of tourism)
Negatives
- Weak marketing and promotion
- Inflation (food)
What is a management method used in China to combat Environmental Smog (Beijing)?
- New measures to cut emissions & allocated 760 billion yuan to improve the city’s air quality by 2017
- Smog-Free Tower (vents that clear 30,000 m3 an hour)
Evaluate the success of the management techniques; new measures to cut emissions, allocated 760 billion yuan to improve the city’s air quality by 2017 and smog-Free Tower (vents that clear 30,000 m3 an hour) to reduce pollution in Chinese cities.
Negatives
- Premature death of 3 million people a year
- Frequent red pollution alerts
- Lung damage and respiratory illnesses
What is a management method China has emplyed to counteract depleting resources (coal) and pollution?
Enviromental
- Switch to renewable energy – e.g. solar and wind (by 2020 15% of energy will be renewable energy). Joined the WTO in 2001. Cut coal burning. Yearly quotas for local governments and individual polluters. Bigger fines to people violating air pollution standards
- Expansion of the underground and limiting car permits – reduce release of harmful gases
- 2000 – 1.3% of GDP spent on improving the environment
Evaluate the sucess of China’s management methods, swiching to renewable energy, expansion of the undergound and spending 1.3% of GDP on improving enviroment and counteracting depleteing resources?
Positives
- Closing power stations and opening renewable stations (3 Gorges Dam)
- 179 cities since Jan 2014 have been publishing real-time air quality information – provided greater understanding of smog causes à Increased awareness and education
Negatives
- High lung cancer rates in Shanghai (cancer)
- China won’t agree to global Kyoto agreements
- SEPA (State Environmental Protection Administration) have little power (200 employees)
What is a management technique used to control rural urban migration and unlawful migrants in cities in China?
- Hukou (household) registration scheme – you cannot move to the city without a permit
- $11 billion pledged to improve water quality (and Action Plan for Water Pollution Prevention and Control) – tackle water shortages
Evaluate the sucess of the Hukou system the the Action Plan for Water Pollution Prevention and Control, at tackling the control of rural-urban migration along with unlawful migrants in cities.
Positives
- Building satellite towns (independent housing areas – Friedmann), improved transport (longest highway network and high-spreed rail [HSR] system), improved water pollution, mixed social housing developments.
- 200 million workers allowed to work in cities
Negatives
- ‘Floating population’ of 3 million in Shanghai, 4.8 million in Chongqing
- Some migrant workers with no education or rights in cities
What management methods has China used to tackle urbanisation (6% national rate) along with rural – urban disparity?
- Transport improvements
- Social housing
- Rural development programmes
