Economic development

Question 1

Formation of economic developement

Answer 1

• if economic develoment continues, citizens don’t question the government, allows CCP to stay in power
• introduced at the 2003 11th National Party Congress
• aims to quadruple 2000 GDP by 2020 (at 17th NPC, 2007)

Question 2

Policies for economic development

Answer 2

• joining WTO in 2002 (growth has averaged 10% since 2000)
• dropping average trade tarrifs from 56% in 1982 to 11% in 2009

Question 3

Issues with economic development

Answer 3

Environment

• acid rain, caused by emmissions of sulphur dioxide during coal production, falls in 30% of the country
• 750,000 premature deaths are caused by pollution
• 70% of China’s 1.8 million annual cancer deaths are caused by pollution
• per capita CO2 emissions have gone up from 2.7 (metric tonnes) in 2003 to 5.4 in 2008

One Child Policy

• introduced in 1979
• 1983, 14 million forces abortions, 21 million sterilasations
• aging population: 70% of elderly depend on children financially
• estimated 31% over 60 by 2050

Inequality

• Urban to rural income gap up from 2.57: 1 in 1978 to 3:33:1 in 2007
• 45% of wealth in the hands of 10% of population

Corruption

• costs $86 billion p/a
• estimated 180,000 officials fled country, taking $120 billion with them

Question 4

Outcomes of economic development

Answer 4

• GDP per capita up from $949 in 2000 to $6071 in 2012
• food prices up 18.2% in 2007 alone
• Gross Domestic Product (the figure for 2011 was approximately $7.3 trillion) also makes it the second largest in the world,
• Gini index up from 0.28 in late 1970s to 0.48 in 2007; is now above 0.5 (0.47 being the “red line”)
• IMF on June 17 lowered its growth forecast for China by 0.25% and said it ahd become too reliant on foreign investment, had an “unprecedently urgent” need to reform; if it doesn’t growth will fall to 4% by 2018