Culture and Economic Development in China
China has had one of the top economic growth rates in the world over the past twenty five years. Huge capital influxes and low-priced refugee labour have fired financial development, creating China the world’s workshop. Manufacturing innovation in China presented the transformation of China from being a mediocre economy to world’s second largest economy within a matter of few decades. Chinese economic policy favours patenting by the MNCs which had led China to become one of the most popular countries for MNCs for application of patents although the patents from the Chinese firms have been very less in proportion. Chinese economic policy encourages the production of goods by the production facilities of the foreign companies at very low cost and hence gets cost advantage while exporting to the western countries.
The above mentioned economic development has been made possible with the help of rich and conducive culture of the country which favours collectivism rather than individualism. People of China work together for the betterment of their families, business groups and at a larger level, for their country. They do not put their individual success before their country’s success and hence many people have sacrificed their assets and homes for the development projects started by the government.
Confucian principles place a great value on learning. This, in turn, endorses the growth of human resources and progresses the superiority of labour with the elevation of abilities, competence and work information; teaching escalates labour flexibility to endorse division of labour and to reinforce labour force contribution rates; technical and practical information is augmented to endorse creation; businesspersons gain more aptitude for organization and distribution of manufacture aspects, and people develop more receptive to economic variation.
The culture of China believes in having small business associations and these associations are run by the members without any concrete legal paperwork. In Chin, people regard relations more than legal contracts and hence any individual who is not part of these associations, find it hard to break into the business world of the China. China has actually organized its economic development in a much efficient manner as result of trust and reliance of Guanxi which are the informal business networks even in the wake of the economic reforms. China is a republic that has characteristic radical, official, and cultural features, and it is known that such influences can give rise to varied modes of economic association.
Thus it can be summarised that Chinese culture has played an instrumental role in bringing Chinese economy to the forefront of the globe and made it possible for the initiatives taken by the government to materialise in a most positive manner. Kin solidarity and trust plays an important role in China’s advancement in the economic world and Reform economies, such as China, strive with informal institutions because informal norms are much more impervious to deliberate designing and take time to change.
Each culture has its own exclusive optimistic or undesirable constituents, but the optimistic ones cannot mechanically make better financial presentation in the nonappearance of other essential circumstances like sound financial strategies, operative organizations, positive world financial circumstances, and party-political constancy. In other words, only in a conducive monetary and governmental situation can culture activate financial growth. This opinion might clarify why China made extraordinary financial accomplishments during the past decades of financial reorganization.

References

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