...An Ongoing Governance Reform Can be Expected to be Sustainable Growth in EU Does EU need a reform of governance for sustainable growth? Euro-zone’s financial crisis was started from PIIGS economy’s a bad fiscal health. Recently, that led to IMF and EU did the swift enactment of 7,500 million euro bailout package, but Euro-zone is still in default now. The default could be effect to East Europe. Additionally, Euro is getting lose currency value in the world, so many people wonder that EU’s sustainability. What are reasons of EU’s sustainable crisis? First, EU nation have lax fiscal management. It caused fiscal deficits. Second, Major EU countries’ a possibility of insolvency are getting increase, so economist expressed major EU countries’ problem could be effect to Whole EU. Third, EU is using a single currency, Euro. It caused PIIGS’s balance of current account deficit. Lastly, EU’s crisis or risk management system is insufficient, so they couldn’t respond the crisis well. An important thing is that the basement of these problems is a weak of EU governance. They look a unified union, but not at all. Therefore, they couldn’t control each country well. EU will be stabilized in a long term, but they need to make a solution for some treats. EU needs a great deal of improvement in various sectors, such as unemployment, inflation, fragmented power, especially, governance. EU will use a bailout package, and financial cut-back, thus they could be recover this crisis. However...
Words: 809 - Pages: 4
...globalisation on economic development, with reference to an economy other than Australia. Globalisation refers to the integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity. China's economy has become substantially globalised since their economic reform in the late 1970s, and has thus experienced exponential economic growth and some economic development, which has aided their transformation from a developing to emerging economy. Evidence of globalisation in China can be seen in their international and trade-based financial flows, their ever-improving state of technology and communication and their increased level of alignment...
Words: 895 - Pages: 4
...Jordan December 11, 2011 Final research paper Introduction China has become one of world's most promising economic power. Since 1979 Chinese market has a great and quickly growth. Enter the twenty-first century, the Chinese economy has maintained steady growth. Although less than expected, but China's GDP growth still reached 9.1% in Q3 2011. "China's gross domestic product expanded at the slowest pace in nearly two years in the third quarter. GDP growth moderated to 9.1 percent in the third quarter from 9.5 percent in the second quarter. On a seasonally adjusted quarter-on-quarter basis, GDP rose 2.3 percent following a revised 2.4 percent gain the second quarter". (www.TradingEconomics.com) This situation shows China's economic growth is still high. Why China has this success, because China has many advantages. For example, low cost labor and a huge mark. China's economic advantages China's main advantage is the production capacity and low cost labor. The main reason is China's huge population, and the rich natural resources. Today China has become the famous factory of the world. China's cheap labor and huge market has attracted a lot of foreign investment. These investments have brought to China a lot of money, but also provides science and technology and management experience. First, Chinese low cost labor. This is China's primary advantages, most Chinese factories are located in the eastern region, mainly due to convenient transportation and a good industrial base...
Words: 1900 - Pages: 8
...China’s Economic and Financial Development (Preliminary draft– not to be quoted 9/8/05) Gregory C. Chow To understand China’s economic reform and development since 1978 one may conveniently divide the topic into its domestic and international aspects even though the two are closely related. It is the purpose of this essay to examine the international aspects as China has taken part in the process of world economic globalization, a salient feature of world history today. The Chinese leader Deng Xiaoping who initiated and directed economic reform from a planned to a market economy understood the importance of globalization and adopted what he called an “open-door policy” as an essential part of the reform program. The term globalization refers to the crossing of national boundaries. It means the flow of goods, capital, information/technology and people across national borders. China practiced globalization in the Han dynasty (206BC-220AD) when trade took place between the Han Chinese and neighboring people in the North-west through the Silk Route. During the Tang dynasty (618-901) trade flourished and the Silk Route expanded as Chinese traded with the Romans. However, in the Qing Dynasty and in the period of the PRC up to Deng Xiaoping’s open-door policy China tried to close its doors and resisted globalization. I will survey the accomplishments of globalization for China’s economic development...
Words: 7415 - Pages: 30
... In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.( Cited from: en.wikipedia.org, 15 April 2011) .As inflation is a problem for many reasons ,the main one is that once it takes hold ,it is unpredictable. Unpredictable inflation is a problem because it redistributes income and wealth, and diverts resources from productive activities to inflation forecasting. At its worse, inflation becomes hyperinflation, many workers are paid twice a day because money loses its value so quickly. (Elements of Economics, p60-61). It is well known that inflationary pressures are mounting globally and has caused many difficult issues in China .Controlling inflation is a big economic issue in China and it is also a hard nut for China to crack. To measure inflation rate, we are interested in the Consumer Price Index (CPI), which measures the average of the prices paid by urban consumers for a “fixed” basket of consumer goods and services. As we can see in table 1, most regions in China need to control serious inflation because the growth rate of CPI is over 5%. Serious inflation has pushed prices much...
Words: 1268 - Pages: 6
...Corruption and China’s Economic Reform in the Early 21st Century by Gregory C. Chow, Princeton University CEPS Working Paper No. 116 October 2005 Acknowledgement: I would like to thank Steven Kou of Columbia University and Yan Shen of Peking University for helpful comments and the Center for Economic Policy Studies at Princeton University for financial support in the preparation of this paper. Abstract Past economic reform of the state sector in China consisted mainly of privatization, of agriculture and of small and medium-size state enterprises, leaving large state enterprises in the control of the state. Current reform consists of making state-owned enterprises and banks more efficient and functioning like private enterprises, and gradual privatization of some large state enterprises. Bureaucrats managing state assets and the selling of assets take advantage of such power to benefit themselves, including embezzlement of public funds and taking bribes from citizens needing their help, as can be found in state enterprises, state-owned commercial banks and in government projects. Reducing the size of the government sector is a basic solution to the corruption problem in China while attention should be paid in the privatization process which can involve corruption. Outline 1. Introduction 2. Review of Past Reform Measures and Current Problems 3. Enterprise Reform Hindered by Bureaucratic Behavior 4. Reform of Banking and Financial System Hindered by Corruption ...
Words: 8792 - Pages: 36
...The Barrier to China sustainable economic growth: Pollution Problem China, the world’s second largest single-country economy, has achieved economic growth over the past 30 years, however, growing the GDP at any cost has created many environmental problems. China’s facing severe pollution and environmental degradation for many reasons such as rapid industrialization, reliance on coal as an energy source and manufacturing industry. One of the environment problems for China is pollution. The current air pollution has become a threat to Chinese people health. 33 shocking photographs were posted on social media under the caption ‘Pollution in China is out of control’ catching world’s attention. This problem has thus become serious problem which call for rethinking of government policies. The Chinese Prime Minister, Li Keqiang, also responded to this problem declaring war against pollution and fighting it with the same determination China battled poverty. From my point of view, it’s the big challenge for China to improve the environment quality while achieving rapid economic growth therefore I think one of the greatest barriers to sustainable economic growth for China is the pollution problem. The impact of China's economic development on the environment has become increasingly serious, China has been facing a growing imbalance between economic achievements and the quality of the environment. At present with economic growing, China's energy consumption and environmental...
Words: 721 - Pages: 3
...KAIST, College of Business Chinese Financial Market (FIN681) Term paper China’s New Normal Economics & Declining Growth Rate 1. Backgrounds of Chinese New Normal Economy Policy At the opening of the annual National People’s Congress (NPC), Chinese premier Li Keqiang officially announced that the growth target for China in 2015 will be of “approximately 7 per cent”, considerably lower than in the past. The announcement came as no surprise as it had been anticipated in a speech by Mr Li in Davos in February stating that the country had “entered the stage of the new normal, shifting from high speed to medium-to-high speed”. The new growth target set by Beijing is now lower than last year’s 7.5 per cent, and more than 2 percentage points lower than in the past two decades. The government’s ambitions therefore align with the recent slowdown experienced by the Chinese economy since the beginning of the financial crisis in 2008. After the first two years of Xi Jinping’s term, the Chinese economy grew by 7.4 per cent ‘only’ in 2014 – the lowest rate since 1990 – low enough to convince Chinese policy makers to shift to a new policy stance, as they realize previous growth targets are no longer sustainable. The shift to a lower but more sustainable growth target came soon after the International Monetary Fund (IMF) warned last year that a series of danger signs suggested that China would probably face a hard landing in the absence of crucial reforms. More specifically...
Words: 2531 - Pages: 11
...fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. The country's per capita GDP (PPP) was $7,544 (International Monetary Fund, 94th in the world) in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. As China's economic importance has grown, so has attention to the structure and health of that economy. China’s population can be divided into roughly 3 parts: farmers (about 700-800 million), rural migrants (150-250 million) and urban residents (250-350 million). Demographically and politically, China’s rural sector is the most important. The Chinese Communist Party owes its initial success to rural residents; Mao Zedong depended heavily on soldiers from rural areas in his battles against both the Chinese Nationalists (Kuomintang) and invading Japanese soldiers. Biggest Challenges to China’s economy Since 1978 the Chinese economy has maintained economic growth at an average of nearly 8%. By western standards this is remarkable. The UK, by contrast, has grown at an average rate of 2.5%. However, despite the impressive figures there are many serious economic problems resulting from economic growth. 1. Pollution/ Environmental Degradation/ Corruption/ Massive internal migration/ bureaucracy The growth rate combined with a population of over 1 billion...
Words: 3286 - Pages: 14
...Name Professor’s / Tutor’s Name The Course Number 1 November 2015 Chinese Sex Ratio Imbalance issue 1.0 Introduction According to (Wallace, 415), Chinese economic growth and performance are facing increasing challenges such as contraction of the workforce and slow economic growth. These challenges have been attributed to complications resulting from increasing sex ratio at birth. China has been worst hit by high business cycles such as economic downturn due to the gender imbalance. The complications of gender imbalance have led to severe economic and social problems (Nazareth, 118). The consequences of sex inequality have also resulted in increasing proportion of the low skilled male population. It is estimated that this proportion of low-skilled men could be as high 1:4 by the year 2030.Economists have outlined that reducing sex ratio imbalance might take several decades to bore fruits (Wallace, 321). However, the positive impacts of the reduced population of small unskilled male crime and disaffection could overcome the losses accrued from the higher population and decreased savings (Golley, Jane & Rodney, 197). As per the UN population statistics, China sex ratio got to 120 in the period between 2005 and 2010 compared to an average sex world rate of 107.These statistics made China to a gender imbalance with a high number of women population. This action has been coined as “missing women”. “Missing women” have continued to increase worldwide as the proportion of...
Words: 1518 - Pages: 7
...CHINA’S MIDDLE CLASS GROWTH Talking about China is talk about an ancient country with a long tradition that has maintained through the centuries, China has a rich history, long lived tradition, firm beliefs and always has been a really big country with everything to succeed, the resources, the knowledge and the people, for every country the people is the most important factor to take into consideration, and China has the biggest population in the world, that is because before of 1850 China had a long time of prosperity and peace and due to that the population grew, then the people wanted more goods and the emperors didn’t want to open the commerce to foreign countries and they had big walls to international commerce because the emperors believed that foreign people were barbarians and they had it all inside of china and they didn’t need anything of foreigners, but the Chinese products like the silk, porcelain and tea leaves were high solicited in Europe and England decided to enter to the Chinese commerce, but how to do that in such adverse situations, well they decided to use a non-honorable way to get into, and that is why they introduced the opium to china to make them desire a product that they didn’t had, and the population became addict to the opium, and that released two wars in which China lose and due to that Hong Kong became a free commerce center according to an a agreement with the English and then one civil war took part in the history and was the biggest of...
Words: 2054 - Pages: 9
...CHAPTER ONE INTRODUCTION China’s emergence on the world scene is one of the most important and challenging developments of the 21st century. Its remarkable growth since the early 1980s has the potential to greatly expand the global economy, and with it, global wealth, more than any other nation in history. China’s more proactive global engagement and the modernization of its military have already greatly altered the economic and political balance of power in East and Southeast Asia and has added yet another actor to the world scene. Several scholars recently have speculated that China and India will emerge as two great superpowers as the twenty-first century progresses. China’s uninterrupted economic growth of about ten percent GDP per year since the late 1970s is unprecedented and there are few signs that the world’s fastest growing economy will taper off any time soon. Real per capita output in 2005 was nine times that of 1978, which is when real economic reform began. Depending on how one calculates and interprets economic data, by 2007 China had become the third or fourth largest economy in the world. While economic growth is most notable in the large cities along China’s east coast like Shanghai and Beijing, virtually everybody across China is much better off now than in 1978. Rapid economic growth has brought vast improvements in the quality of life throughout China over the past three decades. Life expectancy rose to 71 years by 2000, the last time China...
Words: 2848 - Pages: 12
...The Economic Impact of the One-Child Policy in China John F. Rodis EMBA International Economics Professor Jim Stodder October 15, 2014 The Economic Impact of the Single-Child Policy in China Thesis Statement: The single-child policy implemented in China more than thirty years ago to slow the rate of population growth, not only had a marginal effect on the growth of the population, but also had the unintended consequence of a long-lasting negative impact on the Chinese economy. Abstract: The Chinese government imposed a single-child policy 34 years ago in response to a rapidly increasing population that was determined to be unsustainable. Last November, the government ended the policy. A careful review of the literature regarding the efficacy of the policy as well as examination of other factors that could have affected population growth was conducted. The result of this review confirmed that the policy—in and of itself--had only a marginal impact on the growth of the Chinese population. However, the policy resulted in a significant change in the demographics of the Chinese population, with the result of China having a significantly older population than many developed nations, but one that aged at a much faster rate. However, unlike these developed nations, neither the Chinese people nor their government is adequately prepared for this rapidly aged population. As a consequence, there will be significant long-lasting negative consequences on the Chinese economy,...
Words: 3480 - Pages: 14
...threats from probable changes in the environment (Mullins 2002) by analyzing the Political and legal conditions, Economic conditions, social and cultural conditions, technological conditions and environment related issues. In the following we will execute a PESTLE Analysis on the E-Commerce sector of the Chinese market. And as proposed by Neil Botten (2008, p.39) that there are no pure factors because these factors are interlinked. Political and legal analysis Political factors include government regulations and legal issues and define both formal and informal rules under which firm must operate. And it is claimed that the political force is probably the most turbulent force in the environment (Fahey & Narayanan 1986). In the past one decade, the Chinese government attaches great importance and focus to the development of e-commerce in the most populous country, for example, on issuing the Summaries of the Middle/Long Term Science and Technology Development Plans of China and the Development of Information Industry Plans in the Eleventh Five-year and Long Plan in 2020 Years in The Ministry of Information Industry, the “application of e-commerce platform technology” has been listed as a key point (Li 2010, p.260). In term of the legal system, the Chinese legal framework for e-commerce is still in its nascent stage and has already experienced several problems. China has limited experience with drafting e- commerce legislation for issues such as transactional security, intellectual...
Words: 1452 - Pages: 6
...Introduction In modern economic society, while the global countries economic become more and more integrated, each member country focuses on the financial developments and economic growth, so that they can occupy one position in the modern competitive economic environment. Financial development involve lots of factors, including producing information about possible investments and allocating capital; monitoring the firm performance and corporate governance; trading, diversification, and management of risk; mobilization and pooling of savings; and easing the exchange of goods and service. Usually the financial development level is primarily determined by the local institutional quality, the extent of government police, geographic elements, native income level and cultural tradition. These factors formed the economic environment in which the banks and other financial firms to make decision for investment project and exogenous financing, furthermore, the customers decide whether consumption or saving, moreover, the financial intermediaries finance the fund in which approach from savers to borrowers. The well financial system can perfect the effect of information, enforcement and transaction cost on the saving rate, investment decision and technological innovation, and steady state growth rate. Financial market channel the fund to investment opportunities to get the profit, so if the financial system cannot work well, the economic growth also more or less affected. The essay mainly...
Words: 3225 - Pages: 13
