TO WHAT EXTENT HAS CHINA'S POLITICAL SYSTEM AND SUBSEQUENT ECONOMIC REFORMS FROM 1978 IMPACTED UPON ITS ECONOMIC SUCCESS?By Callum Coombs

WHY THAT QUESTION? Political economy

Appreciation of how politics and economics can interact from AS

Arab uprising/conflict in Syria/UK Budget

Significance?

Positive or negative?

WHY THAT QUESTION? China

High economic growth – why?

Economic inequality – reasons? Rectified?

Different government to UK

Sustainable?

WHY THAT QUESTION? Economic Reforms in 1978

Initial research - transitional phase in government

Impact on economic success?

Effectiveness? Most effective?

Allows advanced models beyond A level to be used/investigated – deepen analysis.

EPQ PROCESS Determinants/factors contributing to China’s growth

Area to investigate its significance in growth of China

Economic measures of success (Methodology)

Political structure influence on growth

Differences to democracy/West

Supervisor – specific focus/quantify further

Mid Map constructed

MIND MAP

SECOND MIND MAP

AIMS Extent to which politics can influence economics

Type of government influences on economy

Which market is most beneficial?

Most significant reform?

Correlation between reforms and economic objectives

Economic measures interaction

Sustainability of reforms

METHODOLOGY:POLITICAL SYSTEM UK – democracy/privately run economy -

capitalist

Only market failure controlled by government

China – communist - centrally controlled economy

1978 – some less centrally controlled markets

Relaxing of regulations

CASE STUDY: AGRICULTURE SECTOR Scarce food supplies - threat of a famine

Market failure

Targeted production/management/expenditure

‘Household responsibility system’

Entrepreneurship – profit and revenue kept by farmers. Regulations relaxed

First introduction of capitalist attitude in the Chinese economy

POVERTY RATIO IN CHINA

Ghosh, J. Poverty Reduction in China and India: Policy Implications of Recent Trends Available at: http://mrzine.monthlyreview.org/2010/ghosh090310p.html [accessed: 23th October 2013]

‘POVERTY LINE’ ACROSS REGIONS

Addison, T. and Niño-Zarazúa, M. Redefining Poverty in China and India: What Does This Mean for the Fight Against Global Poverty? Part I Unu-Wider http://www.wider.unu.edu/publications/newsletter/articles-2012/en_GB/01-2012-Addison-Zarazua/

AGRICULTURE SECTOR OUTPUT

Ghosh, J. Poverty Reduction in China and India: Policy Implications of Recent Trends Available at: http://mrzine.monthlyreview.org/2010/ghosh090310p.html [accessed: 23th October 2013]

AGRICULTURE SECTOR AS PART OF THE CHINESE ECONOMY

BBC News The economy’s long march http://news.bbc.co.uk/1/hi/special_report/1999/09/99/china_50_years_of_communism/453330.stm [accessed: 23th October 2013]

SPECIAL ECONOMIC ZONES Investment/keep more revenue/freedom of

circulation of currency, loans etc. Free from government regulation FDI

The Growing Significance of the Ocean for China's Opening up (2) English People's Daily Online Available online at: http://english.people.com.cn/100668/102793/102809/7646795.html [accessed: 23th October 2013]

INVESTMENT IN CHINA

Yong, P. The China Renminbi (RMB) PAULINE YONG BLOG http://paulineseconomicsforum.blogspot.co.uk/2010/06/china-renminbi-rmb.html [accessed: 23th October 2013]

PRICE LEVEL Government determined price level of

goods/exchange rates The price level to be determined my market

forces Enterprises to plan levels of output and price

setting

China Inflation Rate Historical Chart About Inflation http://www.aboutinflation.com/inflation-rate-historical/china-inflation-rate-historical-chart [accessed: 23th October 2013]

LITERATURE REVIEW:MODELS

Barro, R.J. Economic Growth in a Cross Section of Countries The Quarterly Journal of Economics Available online at: http://www.econ.nyu.edu/user/debraj/Courses/Readings/BarroGrowth.pdf [accessed: 23th October 2013]

MODELS HDI

A long and healthy life: Life expectancy at birth

Education index: Mean years of schooling and Expected years of schooling

A decent standard of living: GNI per capita

Citizen welfare measure

MODELS Producer price indices (PPIs)

This measures average changes in prices received by producers for their output

Relevant for producers

Relevant for my aims – agriculture

CONCLUSION Answering aims

Significant political influence on economy Capitalist market allowed growth – not

without problems SEZs most beneficial reform Reforms sustainable for China’s growth today Economic measures interaction strong

Economic variable Red Amber Green

Agriculture sector

Citizen welfare

Foreign investment

Price level

GDP

GDP GROWTH

Henry, K. China - Basic Backgrounds and Current Issues MarketThoughts.com http://www.marketthoughts.com/z20050130.html [accessed: 23th October 2013]

SUSTAINABILITY

China: Gross Domestic Product (GDP) China Profile http://www.china-profile.com/data/fig_gdp_1a.htm [accessed 23 October 2013]

FURTHER RESEARCH Political economy - 2000’s

Comparison between reform of 1978 and today

Sustainability

Affect of political system in changing growth

Relationship between politics and economics – more influence in 1978 or now?

QUESTION AND ANSWER SESSION