China
Something that's been done before a lot as well. The People's Republic of China, a post about their economic progress, how it came about, it's future, and the results. As I've said before, I'm not an economist, so this is pretty much just my really basic understanding of how it has worked.
~ How
The People's Republic currently operates under a system called a "Socialist Market Economy" or "State Capitalism". Government owned enterprises make up a large amount of their economy, but operate in the general market. The Government also has a large amount of control/monopoly in some areas, such as Petrochemicals, Shipping, Communications, Arms Manufacturing, Aviation, typical stuff vital to the economy. There have been substantial privatization, however, this has not proceeded as quickly or has been rolled back in the last half a dozen years. This ignores a massive variety of different programs and factors in their economy, but then, heh, isn't like anybody is going to read this anyway so might as well as just post it.
China has had the major benefit of cheap, and plentiful labor, as well as a large number of nations willing to buy their products. Although internal consumption plays a major role, with dramatically increased growth here, exports to foreign nations are large. Cheap labor, one of the greatest assets China has, is a result of their massive population (1.3 billion), which provides a pool of laborers to move to the cities from the country-side. Vast increases in productivity in the agricultural sector continues to keep their pool available.
I missed a lot of stuff. But as I said, this is mostly for my personal consumption
Now~
China continues to grow quite rapidly, if somewhat slower due to the global economic downturn. They have very large credit reserves, and still have plenty of people in their labor force. Although there are plenty of weaknesses in their economy (Banking and finance for example are major issues) for now their economy is booming. They managed to avoid the worst of the early recession with their economic stimulus package, which apparently was actually far larger than the equivalent US stimulus package as a percentage of GDP.
Future~
Now we delve very briefly into a hypothetical idea of what is going to happen to China. No doubt it will be inaccurate. But interesting.
One of China's major problems is demographics. Whether one views laws like the "One Child Policy" as good, or bad, there is no denying that it has resulted in a smaller youth population than there would be without it. As a result, the Chinese Labor force will start to shrink in time, once the population migration from the villages and the countryside is complete. Like the US baby boomer retirement, this will be very troubling for China's long term prospects. Although the One Child Policy is ending, or at least being significantly relaxed, it would be probable to assume that birth rates in the People's Republic will not regain previous levels.
Other areas of problems would be a potential shortage of oil in the long term. However, China has taken steps to correct this with growing relations with African and Middle East countries, to gain resources. They also are conducting ambitious programs to increase renewable energy production, and in fact may grow to dominate this market.
Maybe I will add on new stuff as I feel bored. Anyway. Might as well as post this.
~ How
The People's Republic currently operates under a system called a "Socialist Market Economy" or "State Capitalism". Government owned enterprises make up a large amount of their economy, but operate in the general market. The Government also has a large amount of control/monopoly in some areas, such as Petrochemicals, Shipping, Communications, Arms Manufacturing, Aviation, typical stuff vital to the economy. There have been substantial privatization, however, this has not proceeded as quickly or has been rolled back in the last half a dozen years. This ignores a massive variety of different programs and factors in their economy, but then, heh, isn't like anybody is going to read this anyway so might as well as just post it.
China has had the major benefit of cheap, and plentiful labor, as well as a large number of nations willing to buy their products. Although internal consumption plays a major role, with dramatically increased growth here, exports to foreign nations are large. Cheap labor, one of the greatest assets China has, is a result of their massive population (1.3 billion), which provides a pool of laborers to move to the cities from the country-side. Vast increases in productivity in the agricultural sector continues to keep their pool available.
I missed a lot of stuff. But as I said, this is mostly for my personal consumption
Now~
China continues to grow quite rapidly, if somewhat slower due to the global economic downturn. They have very large credit reserves, and still have plenty of people in their labor force. Although there are plenty of weaknesses in their economy (Banking and finance for example are major issues) for now their economy is booming. They managed to avoid the worst of the early recession with their economic stimulus package, which apparently was actually far larger than the equivalent US stimulus package as a percentage of GDP.
Future~
Now we delve very briefly into a hypothetical idea of what is going to happen to China. No doubt it will be inaccurate. But interesting.
One of China's major problems is demographics. Whether one views laws like the "One Child Policy" as good, or bad, there is no denying that it has resulted in a smaller youth population than there would be without it. As a result, the Chinese Labor force will start to shrink in time, once the population migration from the villages and the countryside is complete. Like the US baby boomer retirement, this will be very troubling for China's long term prospects. Although the One Child Policy is ending, or at least being significantly relaxed, it would be probable to assume that birth rates in the People's Republic will not regain previous levels.
Other areas of problems would be a potential shortage of oil in the long term. However, China has taken steps to correct this with growing relations with African and Middle East countries, to gain resources. They also are conducting ambitious programs to increase renewable energy production, and in fact may grow to dominate this market.
Maybe I will add on new stuff as I feel bored. Anyway. Might as well as post this.
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