Professional Documents
Culture Documents
PRESENTED BY:
Wajahat Ahmad 000456230 Saloni Madhok 000699549 Niraj Chandnani 000699023 Arun Prasanth Bacthavatsalam 000666629 Cem Sadikoglu 000698493
CONTENTS:
Introduction and History (Waji) Development Strategy&Economic Reform(Niraj) Economic Performance (Arun) Barriers to Development (Cem) Opinion of New Strategies (Saloni)
INTRODUCTION:
Known
as Peoples Republic of
China
Population
1.3 Billion
Location;
East Asia
QUESTION:
Why is China Famous??
ST 21
CENTURY:
HISTORY
Longest History Technological Inventions (Paper, Iron casting etc.) Making the world aware of its economic potential strategies Dynastic China ( 3 Pillars Imperial System, Collapse of the last Dynasty)
HISTORY CONT.
CHINA 1978
Most Advanced Economy (wealth avg.) Economic Reform 1970s-1980s (decollectivization of agriculture, foreign investment, entreprenuers) Privatization and contracting out, lifting price controls etc. Economy recovering at 9.5% a year until 2010
Leonid Brezhnevs death Economic growth stagnated Failed attempt of recovery for Economy Mikhail Gorbachev Drop in Price of OIL Consequent lack of foreign exchange reserves
Rural Reforms
Instructions to peasants for producing fixed quantities of agricultural products Dual price system was introduced Innovation of the Household Responsibility system Relaxed restrictions on interprovincial trade in agri products
Increase in agricultural output between 1978- 1984 Grain yield at a rate of 5.7% Rise in the production of Pork, Beef and Mutton by 80% Growth in rural incomes and savings Increased demand of consumer goods leading to development of Town and Village Enterprises Employment to 129 million people
Licensing of local firms by FTCs (Foreign Trade Corporation) Reduction on import tariffs Liberalization of Foreign Direct Investment Designation of Special Economic Zones Foreign Currency
Growth of firms with Foreign trade rights up to 10,000 by mid 1990s Exemption of central plan, labor regulations and many taxes to enterprises operating in SEZs
Decline in monopoly
Increased corruption opportunities resulting in making china one of the most corrupt countries in the world
INSTITUTIONAL REFORM
Currency reform
ECONOMIC PERFORMANCE:
Presented by: Jackie Chan
ECONOMIC PERFORMANCE Economic liberalization has boosted exports which rose 19 percent a year during 1981-94 Strong export growth , in turns appears to have fueled productivity growth in domestic industries
Encourage growth of rural enterprises and not focusing exclusively on the urban industries Moved millions of workers off farms and into factories without creating an urban crisis Leads to giving employment to many people
IMPORTANCE OF EXPORTS
WHAT IS FDI ?
FDI
foreign investment refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor FDI is a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization.
Economic liberalization
International markets
Chinese economy
BARRIERS TO DEVELOPMENT:
Presented by: Chow Yun Fat
SOE Reform
Unemployment The Financial Sector Provincial-Center and Province-Province Tensions Political Liberalization and Human Rights Economic Integration The Environment
Soe Reform
The financial performance of SOEs was breaking down. Excessive investments in fixed assets, Very low rates of returns Low sales-to-production ratio
Solution: Grasping the big ones and letting go of the small ones
Unemployment The population in China was growing, Approximately 14million people per year. Need to create jobs. Loosened political control. Seeking job from city to city.
Economic Integration
Chinas WTO entry problems, Increasing trading-partners concerns Developed country vs. Developing country Deficit Surplus problems with U.S.
ENVIRONMENT
The Environment Urbanization, construction, fast growing economy, Pollution in both water air 20% part in overall deaths Deforestation Losing farmlands
NEW STRATEGIES:
Presented By: Gong Li
Proper usage of Non Renewable Energy Resources. If done they can contribute 10% to total needs. Concurrent improvement in the energy system should be parallel to the development in economy of China. Shifting from smoke generating sources towards the cleaner energy carriers like hydrogen, which is produced with out oil and fuel cells. Properly distribute the energy resources through out the nation.
In its policies toward the United States and other powers In its policies toward military modernization
In its policies toward territorial claims In its policies toward international regimes
REFERENCES
Report: China: Facing the 21st Century (Robert E. Kennedy Documentary: The Tank Man (about Tiananmen square protests of 1989 in Beijing China). Thakur, M., Burton, G. E. & Srivastava, B. N. International Management: Concepts and Cases. (Tata McGraw-Hill, 1997. p.404-405). http://www.nationsencyclopedia.com/World-Leaders-2003/China-RISE-TO-POWER.html
http://www.eeas.europa.eu/china/csp/07_13_en.pdf
http://www.rand.org/pubs/research_briefs/RB61/index1.html http://info.worldbank.org/etools/docs/library/108303/ChinaDevStrat.pdf
http://en.wikipedia.org/wiki/Sino-Soviet_split
http://en.wikipedia.org/wiki/Chinese_economic_reform http://news.bbc.co.uk/1/hi/world/europe/1112551.stm http://news.bbc.co.uk/onthisday/hi/dates/stories/february/25/newsid_2703000/2703581.stm
Questions?