China’s Development Trajectory

1. China’s Development Trajectory Sara Hsu

2. The “China Model” “China Model” Colonialism and Communism Planned economy Mao’s death

3. Reform History • 1978 through 1989 • Third Plenum • Household Responsibility System • Decentralization • State Owned Enterprises • Tiananmen Square

4. Reform History • 1992 to 2001 • Deng’s Southern Tour in 1992 • Elimination of dual-track system • Privatization • Trade decentralization • Foreign direct investment • Banking reform

5. Reform History • 2001 to Present • WTO entry • Scaling up in export value chain • Minimum wage changes • Impact of the Great Recession

6. Political Economy of Reform Political barriers to reform Dominance of the Party

7. Data and Pattern of Growth

11. China’s Sector Value Added (%)

12. Bottom Line China’s gradualist approach to reform helped the country closely guide the economy toward successful developments and avoid domestic political conflict Rural, urban, trade and financial sector reforms were all components of planning.

13. Did You Know? China’s latest Twelfth Plan has sought to increase production in all three sectors-agriculture, manufacturing, and services. The plan attempts to equalize standard of living among rural residents, rural migrants, and urban residents.

14. Fin Questions?