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by: Miss Sigurd Dicki

EconomicDevelopment ECON342

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This 31 page Class Notes was uploaded by Miss Sigurd Dicki on Wednesday September 23, 2015. The Class Notes belongs to ECON342 at Drexel University taught by StephenMullin in Fall. Since its upload, it has received 27 views. For similar materials see /class/212536/econ342-drexel-university in Economcs at Drexel University.


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Date Created: 09/23/15
Zhanteng Zhang ECON 342 Sec 001 Term Project Economic Development Journal for China Content Week 1 2 Basic Country Information Week 3 GovernmentFree market Week 4 5 Population Poverty amp Inequality health and education Week 12 Basic Country information Brief History Dynastic Period 1900s1 China is the oldest continuous major world civilization with records dating back about 3500 years Successive dynasties developed a system of bureaucratic control that gave the agrarianbased Chinese an advantage over neighboring nomadic and hill cultures Chinese civilization was further strengthened by the development of a Confucian state ideology and a common written language that bridged the gaps among the country s many local languages and dialects Whenever China was conquered by nomadic tribes as it was by the Mongols in the 13th century the conquerors sooner or later adopted the ways of the quothigherquot Chinese civilization and staffed the bureaucracy with Chinese The last dynasty was established in 1644 when the Manchus overthrew the native Ming dynasty and established the Qing Ch ing dynasty with Beijing as its capital At great expense in blood and treasure the Manchus over the next half century gained control of many border areas including Xinjiang Yunnan Tibet Mongolia and Taiwan The success of the early Qing period was based on the combination of Manchu martial prowess and traditional Chinese bureaucratic skills During the 19th century Qing control weakened and prosperity diminished China suffered massive social strife economic stagnation explosive population growth and Western penetration and in uence The Taiping and Nian rebellions along with a Russiansupported Muslim separatist movement in Xinjiang drained Chinese resources and almost toppled the dynasty Britain s desire to continue its illegal opium trade with China collided with imperial edicts prohibiting the addictive drug and the First Opium War erupted in 1840 China lost the war subsequently Britain and other Western powers including the United States forcibly occupied quotconcessionsquot and gained special commercial privileges Hong Kong was ceded to Britain in 1842 under the Treaty of Nanking and in 1898 when the Opium Wars nally ended Britain executed a 99year lease of the New Territories signi cantly expanding the size of the Hong Kong colony As time went on the Western powers wielding superior military technology gained more economic and political privileges Reformist Chinese of cials argued for the adoption of Western technology to strengthen the dynasty and counter Western advances but the Qing court played down both the Western threat and the bene ts of Western technology The People39s Republic of China In Beijing on October 1 1949 Mao Zedong proclaimed the founding of the People s Republic of China PRC The new government assumed control of a people exhausted by two generations of war and social con ict and an economy ravaged by high in ation and disrupted transportation links A new political and economic order modeled on the Soviet example was quickly installed In the early 1950s China undertook a massive economic and social reconstruction program The new leaders gained popular support by curbing in ation restoring the economy and rebuilding many wardamaged industrial plants The CCP s authority reached into almost every aspect of Chinese life Party control was assured by large politically loyal security and military forces a government apparatus responsive to party direction and the placement of party members into leadership positions in labor women s and other mass organizations Nowadays China is one of the world s fastest growth countries Due to its long history and unique culture everything in China now is seemed much more popular in worldwide than ever before For example Chinese food silk the Great Panda and all other things are now very welcomed by almost every country in Europe and America And there are still a lot of amazing things waiting to be accepted by world people Country General Information Chinese Name EPK AEXWEJ English Name The People39s Republic of ChinaPRC Abbreviation China lJ El Continental Asia WM Capital Beijingdt Main Cities Shanghai Beijing Shenzhen Guangzhou Hongkong Classi cation Lowermiddleincome economies 996 to 3945 National Day Oct 1st Of cial Language Chinese mandarin plus many local dialects Currency Chinese RM39B Time Zone EST 8 Population July 2010 est 1330141295 Rank 1st Population growth rate 2010 est 0494 Rank 156th See the following part for more information Total area 9596961 sq km about 37 million sq mi Climate Tropical in south to subarctic in north GDP 2009 4814 trillion exchange mtebased Per capita GDP 2009 3678 exchange ratebased GDP real growth rate 2009 87 See the following part for more detailed information Infant mortality rate1651 deaths1000 live births Life expectancy7451 years overall 7254 years for males 7677 years for females Litemcyn 93 Trade Exports 20091194 trillion Chinese population growth diagram GDPGDP per capital growth diagram Year GDP per Total GDPbIIIon dollar growth rate capltadoar growth rate 1980 30345 78 309 65 1981 2869 52 289 39 1982 28129 91 279 75 1983 3018 109 295 93 1984 30976 152 299 137 1985 30702 135 292 119 1986 29759 88 279 72 1987 32397 116 299 98 1988 40415 113 367 95 1989 45131 41 403 25 1990 39028 38 344 23 1991 40917 92 356 77 1992 48822 142 419 128 1993 61322 14 520 127 1994 55922 131 469 118 1995 72798 109 604 97 1996 85608 10 703 89 1997 95265 93 774 82 1998 101946 78 821 68 1999 108328 76 865 67 2000 119847 84 949 76 2001 132482 83 1042 75 2002 145382 91 1135 84 2003 164097 10 1274 93 2004 193164 101 1490 94 2005 225762 113 1732 107 2006 271350 127 2070 12 2007 349566 142 2652 136 2008 452183 96 3414 91 2009 498473 91 3744 86 HDI Value A composite index measures average achievement in three basic dimensions of human developmentia long and healthy life knowledge and a decent standard of living For details on how the index is calculated see the abstract table from 2010 Human Development Report Source Calculated based on data from UNDESA 2009d Barro and Lee 2010 UNESCO Institute for Statistics 2010b World Bank 2010b and lMF2010a H DI Rank Country 1980 1990 2000 2005 2006 2007 2008 2009 2010 1 NLWay 0788 0838 0906 0932 0934 0937 0937 0937 0938 2 Australia 0791 0819 0914 0925 0928 0931 0933 0935 0937 3 New Zealand 0786 0813 0865 0896 0898 0903 0903 0904 0907 4 United States 0810 0857 0893 0895 0897 0899 0900 0899 0902 5 Ireland 0720 0768 0855 0886 0891 0896 0896 0894 0895 6 Liechtenstein 0875 0882 0884 0888 0889 0891 7 Netherlands 0779 0822 0868 0877 0882 0886 0888 0888 0890 8 Canada 0789 0845 0867 0880 0883 0885 0886 0886 0888 9 Sweden 0773 0804 0889 0883 0885 0885 0885 0884 0885 10 Germanx 0782 0878 0881 0883 0885 0883 0885 89 M 0368 0460 0567 0616 0627 0639 0648 0655 0663 90 El Salvador 0456 0511 0606 0635 0653 0653 0655 0659 Week 3 GovernmentFree market Government structure since 1 970 O The National People s Congress 5 f i f The NPC is defined in the 1982 Constitution as quotthe highest organ of state powerquot without being identified as it was in the 1975 state constitution as quotunder the leadership ofthe Communist Party of Chinaquot In addition the Constitution states that quotall power in the People39s Republic of China belongs to the peoplequot Although the preamble makes clear that the nation operates quotunder the leadership of the Communist Party of China and the guidance of MarxismLeninism and Mao Zedong Thoughtquot the trend has been to enhance the role ofthe NPC The major functions of the NPC are to 1 amend the state constitution and enact laws 2 supervise the enforcement of the state constitution and the law 3 elect the president and the vice president ofthe republic 4 decide on the choice of premier ofthe State Council upon nomination by the president 5 elect the major officials of government 6 elect the chairman and other members of the state Central Military Commission 7 elect the president of the Supreme People39s Court and the procuratorgeneral ofthe Supreme People39s Procuratorate 8 examine and approve the national economic plan the state budget and the final state accounts 9 decide on questions of war and peace and 10 approve the establishment of special administrative regions and the quotsystems to be instituted therequot The 3000 members ofthe NPC meet once a year and serve 5year terms Delegates are elected by the people39s congresses at the provincial level as well as by the People39s Liberation Army Provincial delegations meet before each NPC session to discuss agenda items Because of the infrequent meetings the NPC functions through a permanent body the Standing Committee whose members it elects The Standing Committee39s powers were enhanced in 1987 when it was given the ability to quotenact and amend laws with the exception ofthose which should be enacted by the NPCquot thus giving this body legislative powers The Standing Committee presides over sessions ofthe NPC and determines the agenda the routing of legislation and nominations for offices The NPC also has six permanent committees one each for minorities law finance foreign affairs and overseas Chinese and one for education science culture and health The State Central Military Commission The 1982 State Constitution established the state Central Military Commission as the key governmental body charged with quotdirecting the armed forces The Standing Committee of the NPC Et i When the NPC is not in session its Standing Committee assumes legislative responsibilities until the next time the entire Congress convenes The Supreme People s Court L E 2 The Supreme People s Procurutorute 339 E f The State CouneiHE a The State Council executes laws and supervises the government bureaucracy and thus carries out the administrative functions of the Chinese government The Premier heads the Council and is assisted by the VicePremiers and the ministers and chairmen ofthe commissions Subordinate to the State Council are ministries commissions and direct of ces which constitute the State Council39s principal policymaking and supervisory of ces There are several other organizations related tothe State Council as the following picture shows Organs Campos g the state can E4 Comm Fnrel Mans Personnel Natmnal Dwain mam and Refnrm Commission A E z Fuhr gecunly cnmnn ssinn of Science Techno and industry fm Mammal Defense A a I g s ans Commission a as Ek ii 3 Elm Railways SlatePDpulatmn an rm PlanningACammlsslan i533 Science andTechnnlogy ag F31 ADE g A Labor and Dcial Security State Security 5 an and Admimstxztmn Cnmmissmn tn u i l a kgag s Land and Resgurms Sugemg mn Ea ma a National Deiense Wauv Resamces SW3 7kW ll Oliver Peuple s Bank nfChma m National A on E 1 MEET Luca euple s Congresses 39 39Ek 39ft f The state institutions below the national level are the local people39s congressesthe NPC39s local counterpartswhose functions and powers were exercised by their standing committees at and above the county level when the congresses were not in session Freedom of citizensDemocratic Rule Freedom Index Personal Freedom Ranked 102nd Chinese citizens are on average satisfied with their autonomy in selecting a life path but few feel that they can freely express themselves China falls within the bottom 10 on the variable measuring civil liberties which measures freedom of expression belief and association and personal autonomy However 77 are satisfied with the amount of freedom they have in their lives which is 41 st for this variable Perceived tolerance of immigrants and racial and ethnic minorities is very low in China with a 2009 survey revealing that just under 39 and 46 of people respectively felt that their local area would be good place for such minorities to live These values place China 101 st and 99th respectively Democratic Rule In its practice of ruling the country over the past five decades and more the CPC has developed a series of important theories on and established an institutional system of democratic rule and is actively exploring new ways and new methods of democratic rule The sense of democracy among the CPC members has been continuously enhanced and notable progress has been made to improve the democratic work style of Party officials at all levels Democratic rule means that the CPC sticks to the principle of ruling the country for the people and relying on the people in its rule guarantees that the people are the masters ofthe state upholds and improves the people39s democratic dictatorship and the democratic centralism of the Party and the state and promotes people39s democracy by enhancing innerParty democracy In September 2004 the Decision ofthe CPC Central Committee on the Enhancement of the Party39s Governance Capability was adopted at the Fourth Plenum ofthe 16th CPC Central Committee The document made democratic rule scientific rule and rule in accordance with the law the three basic pillars of the Party in ruling the country thus marking a new stage in strengthening the building of the Party39s capability of democratic rule and enhancing the level of its democratic rule 1 Reforming and Improving the Leadership System and Working Mechanism 2 Developing InnerParty Democracy 3 Expanding Democracy in Cadre and Personnel Work 4 Tightening Restraints and Supervision over Use of Power Chinese Market Economy under Government Control since 1970 Since 1949 the government under socialist political and economic system has been responsible for planning and managing national economy In the early 1950s the foreign trade system was monopolized by the state Nearly all the domestic enterprises were stateowned and the government had set the prices for key commodities controlled the level and general distribution of investment funds determined output targets for major enterprises and branches allocated energy resources set wage levels and employment targets operated the wholesale and retail networks and steered the nancial policy and banking system In the countryside from the mid1950s the government established cropping patterns set the level of prices and xed output targets for all major crops Since 1978 when economic reforms were instituted the government role in the economy has lessened to a great degree Industrial output by state enterprises slowly declined although a few strategic industries such as the aerospace industry have today remained predominantly stateowned While the role of the government in managing the economy has been reduced and the role of both private enterprise and market forces increased the government maintains a major role in the urban economy With its policies on such issues as agricultural procurement the government also retains a major in uence on rural sector performance The State Constitution of 1982 speci ed that the state is to guide the country s economic development by making broad decisions on economic priorities and policies and that the State Council which exercises executive control was to direct its subordinate bodies in preparing and implementing the national economic plan and the state budget A major portion of the government system bureaucracy is devoted to managing the economy in a topdown chain of command with all but a few of the more than 100 ministries commissions administrations bureaus academies and corporations under the State Council are concerned with economic matters Vast changes were made in relaxing the state control of the agricultural sector from the late 1970s The structural mechanisms for implementing state objectivesithe people s communes and their subordinate teams and brigadesihave been either entirely eliminated or greatly diminished Farm incentives have been boosted both by price increases for statepurchased agricultural products and it was permitted to sell excess production on a free market There was more room in the choice of what crops to grow and peasants are allowed to contract for land that they will work rather than simply working most of the land collectively The system of procurement quotas xed in the form of contracts has been being phased out although the state can still buy farm products and control surpluses in order to affect market conditions Currently each signi cant economic sector is supervised by one or more of these organizations which includes the People s Bank of China National Development and Reform Commission Ministry of Finance and the ministries of agriculture coal industry commerce communications education light industry metallurgical industry petroleum industry railways textile industry and water resources and electric power Several aspects of the economy are administered by specialized departments under the State Council including the National Bureau of Statistics Civil Aviation Administration of China and the tourism bureau Each of the economic organizations under the State Council directs the units under its jurisdiction through subordinate of ces at the provincial and local levels Total economic enterprise in China is apportioned along lines of directive planning mandatory indicative planning indirect implementation of central directives and those left to market forces In the early 1980s during the initial reforms enterprises began to have increasing discretion over the quantities of inputs purchased the sources of inputs the variety of products manufactured and the production process Operational supervision over economic projects has devolved primarily to provincial municipal and county governments The majority of stateowned industrial enterprises which were managed at the provincial level or below were partially regulated by a combination of speci c allocations and indirect controls but they also produced goods outside the plan for sale in the market Important scarce resourcesifor example engineers or nished steelimay have been assigned to this kind of unit in exact numbers Less critical assignments of personnel and materials would have been authorized in a general way by the plan but with procurement arrangements left up to the enterprise management In addition enterprises themselves are gaining increased independence in a range of activity While strategically important industry and services and most of largescale construction have remained under directive planning the market economy has gained rapidly in scale every year as it subsumes more and more sectors Overall the Chinese industrial system contains a complex mixture of relationships The State Council generally administers relatively strict control over resources deemed to be of vital concern for the performance and health of the entire economy Less vital aspects of the economy have been transferred to lower levels for detailed decisions and management Furthermore the need to coordinate entities that are in different organizational hierarchies generally causes a great deal of informal bargaining and consensus building Consumer spending has been subject to a limited degree of direct government in uence but is primarily determined by the basic market forces of income levels and commodity prices Before the reform period key goods were rationed when they were in short supply but by the mid1980s availability had increased to the point that rationing was discontinued for everything except grain which could also be purchased in the free markets Collectively owned units and the agricultural sector were regulated primarily by indirect instruments Each collective unit was quotresponsible for its own pro t and lossquot and the prices of its inputs and products provided the major production incentives Foreign trade is supervised by the Ministry of Commerce customs and the Bank of China the foreign exchange arm of the Chinese banking system which controls access to the foreign currency required for imports Ever since restrictions on foreign trade were reduced there have been broad opportunities for individual enterprises to engage in exchanges with foreign rms without much intervention from official agencies Though private sector companies still dominate small and medium sized businesses the government still plays a large part in the bigger industries The fact that government accounts for a third of the GDP shows this Foreign owned companies hold signi cant stakes The public sector is mainly made up of State Owned Enterprises SOE s Week 475 Population Inequality amp poverty educa on and health Population 1 Expecleipopulazimxyrnwzh rate andforecostsforpopulation growth by never1mm research journal 4705 andZOSOIbawd on chum Net smmh 7199 7258 Net grcwth Aye distribuu on o chnenzpopuiauon China 2a1u FEMALE 2 MALE 20100 01020 Papulatxan lt1quot millxans Internatxanal Data Base Smart 5 Census Bureau a Tomlfertih39zy mm a 4 mm stage af demographic transiu on 139 C F mm M m w L cumsm mum m amatter uf a few decades chma39s pupulahun Wm start m shnnk Tutal fauhtyrate changes 39nm znus m zmn are gaphed as u Tota fertmty rate Percent Change 1 79 154 4 China s birth rate and death rate since 1980 Death rate Birth rate Natural growth rate per 39000 per year per 000 per per 39000 per year year 1985 2104 6 78 14 26 1986 2243 6 86 15 57 1987 2333 6 72 16 61 1988 2237 6 64 15 73 1989 2158 6 54 15 04 1990 2106 6 67 14 39 1991 1968 6 70 12 98 1992 1824 6 64 11 60 1993 1809 6 64 11 45 1994 1770 6 49 11 21 1995 1712 6 57 10 55 1996 1698 6 56 10 42 1997 1657 6 51 10 06 1998 1603 6 50 9 53 1999 1464 6 46 8 18 2000 1403 6 45 7 58 2001 1338 6 43 6 95 2002 1286 6 41 6 45 2003 1241 6 40 6 01 2004 1229 6 42 5 87 2005 1240 6 51 5 89 2006 1209 6 81 5 28 5 Are you a population optimistic 0r pessimistic WHY I m a relatively population pessimistic Despite the huge economic growth rate now in China the per capita GDP is still relative low High population growth will make the high growth rate has relative small effects on individuals And based on my 18year life experience there are a lot of infrastructures and public services needs to be ful lled Currently basic health center schools and other important social facilitates are only good in big cities such as Shanghai Beijing Guangzhou and etc The rural areas are still very poor and don t have enough chance to have access to these social facilitates Hence have a better control of population growth can have a positive effect on Chinese individual income 6 What government quotpopulation policies have been implemented since 1970 Have they been successful and define successful The introduction of quotOnechild Policy since 1979 has achieved a national wide success in controlling of population growth and has a lot positive effects on almost every parts of Chinese society including improvement of health care increased saving rates and economic growth After the introduction of the onechild policy the fertility rate in China fell from over three births per woman in 1980 already a sharp reduction from more than five births per woman in the early 1970s to approximately 18 births in 2008 The Chinese government estimates that it had three to four hundred million fewer people in 2008 with the onechild policy than it would have had otherwise Chinese authorities thus consider the policy as a great success in helping to implement China39s current economic growth The reduction in the fertility rate and thus population growth has reduced the severity of problems that come with overpopulation like epidemics slums overwhelmed social services such as health education law enforcement and strain on the ecosystem from abuse of fertile land and production of high volumes of waste Even with the onechild policy in place China still has one million more births than deaths every five weeks 7 Dependency ratio andforecasted numberfor 2025 I All uplhill from here a v his155 depen den 2 r ati u E d art ft 32qu population aged jE quot Ch lJ r51 n FORECAST l39EI 5D ED Dll 3910 2Cquot 3C 20 5 Source quot urid Pallatuvrl Pr5ampxt quot United Hat Poverty amp Inequality 1 Extent Ofpoverty and Change since 1970 Since the start of farreaching economic reforms in the late 1970s growth has fueled a remarkable increase in per capita income and a decline in the poverty rate from 64 at the beginning of reform to 16 in 2004 At the same time however new disparities have increased Income inequality has risen propelled by the ruralurban income gap and by the growing disparity between highly educated urban professionals and the urban working class There have also been increases in the inequality of health and education outcomes Exact statistics are disputed as there have been reports of China underestimating the poverty rate Some rise in inequality was expected as China introduced a market system but inequality may have been exacerbated by a number of policies Restrictions on ruralurban migration have limited opportunities for the poorer rural population The inability to sell or mortgage rural land has further reduced opportunities China has a decentralized fiscal system that relies on local government to fund health and education The result has been that poor villages cannot afford good services and poor households cannot afford the high costs of basic services The large trade surplus that China has built up in recent years is a further problem because it stimulates an urban industrial sector that no longer creates many new jobs while restricting the government39s ability to increase spending to improve services and address disparities The government has recently shifted its policy to encourage migration fund education and health for poor areas and poor households and rebalance the economy away from investment and exports toward domestic consumption and public services to help reduce social disparities 2 Gini Coefficient and extent afinequality Attached is the summary of Gini Coefficient in China from 1978 to 2008 The first column is year The second column is the coefficient number for rural citizens while the third column is the number for urban citizens And the last column is the number for all the national citizens Gini Coefficient for 2009 and 2010 is already over 05 That means nowadays in China the extent of inequality has already been high And the trend of this number is expecting to continuing grows hence now China s government is seeking new ways to solve this problem 13 g ZQWEE m g 7 39 quotquot 39239 1973 02124 016 1979 02407 816 1930 02406 015 1931 02417 015 1932 024176 0715 1933 02439 016 1934 02267 019 1935 03042 019 1936 03045 020 1937 03026 023 1933 itigagigii quot23 1939 03099 023 1990 03872 8 24 1991 03134 025 1992 03292 027 44 4 1993 03210 030 Wquot 1994 03415 023 1995 03229 023 1996 03235 029 1997 03369 030 1993 03361 0295 1999 4 4 4 2 2 c 3 3 3 2000 2 w c 2001 2002 2003 2004 2005 22 2886 U 496 2007 0 5EE 2003 A A A A 0 469 3 Government programs to reduce poverty in past 20 years How successful China has maintained a high growth rate for more than 30 years since the beginning of economic reform in 1978 and this sustained growth has generated a huge increase in average living standards China had many characteristics in common with the rest of developing Asia 25 years ago large population low per capita income and resource scarcity on a per capita basis In the 15 years from 1990 2005 China averaged per capita growth of 87 The whole reform program is often referred to in brief as the quotopen door policyquot This highlights that a key component of Chinese reform has been trade liberalization and opening up to foreign direct investment but not opening the capital account more generally to portfolio flows China improved its human capital opened up to foreign trade and investment and created a better investment climate for the private sector Afterjoining the WTO China s average tariffs have dropped below 10 and to around 5 for manufactured imports It initially welcomed foreign investment into quotspecial economic zonesquot but it is important to note that some of these were very large amounting to urban areas of 20 million people or more The positive impact of foreign investment in these locations led to a more general opening up of the economy to foreign investment with the result that China has become the largest recipient of direct investment flows in recent years The opening up measures has been accompanied by improvements in the investment climate Particularly in the coastal areas have cities developed their investment climates In these cities the private sector accounts for 90 or more of manufacturing assets and production In 2005 average pretax rate of return for domestic private firms was the same as that for foreign invested firms Local governments in coastal cities have lowered loss of output due to unreliable power supply to 10 and customs clearance time for imports has been lowered in Chinese cities to 32 days China s sustained growth fueled historically unprecedented poverty reduction The World Bank uses a poverty line based on household real consumption including consumption of ownproduced crops and other goods set at 1 per day measured at Purchasing Power Parity In most lowincome countries this amount is sufficient to guarantee each person about 2000 calories of nutrition per day plus other basic necessities In 2007 this line corresponds to about 900 RMB per year Based on household surveys the poverty rate in China in 1981 was 64 of the population This rate declined to 10 in 2004 indicating that about 500 million people have climbed out of poverty during this period This poverty reduction has occurred in waves The shift to the household responsibility system propelled a large increase in agricultural output and poverty was cut in half over the short period from 1981 to 1987 From 1987 to 1993 poverty reduction stagnated then resumed again From 1996 to 2001 there was once more relatively little poverty reduction Since China joined the WTO in 2001 however poverty reduction resumed at a very rapid rate and poverty was cut by a third in just three years Health 1 HALE number Rank Member State Po ulation Males Females 1 Japan 745 719 772 2 Australia 732 708 755 3 France 731 693 769 4 Sweden 730 712 749 5 Spain 728 698 757 6 Italy 727 700 754 7 Greece 725 705 746 8 Switzerland 725 695 755 9 Monaco 724 685 763 10 Andorra 723 693 752 81 North Korea 623 599 647 82 China 623 612 633 83 Latvia 622 571 672 2 Key Statisticsfor China Life expectancy at birth years male Life expectancy at birth years female Mortality rates per 1000 male female HIVAIDS Adult prevalence rate People living with HIVAIDS Deaths Children under five underweight for age Children under five underheight for age Children under five BMI for age 7254 years 7677 years 1584 deaths 1727 deaths 01 700000 39000 3 Government Policies to improve health What are they how successful The medical and health sector concerns health of hundreds of millions of people and well being of millions of households thus it is a major livelihood issue The Chinese government has always attached great importance to the development of health sector emphasizing the protection of people39s health and safety Governments at all levels and all departments concerned especially health workers and professionals of medical and health system have adhered to the policy of quotto focus on rural areas to prioritize prevention to emphasize equally traditional Chinese medicine and western medicine to rely on science technology and education to mobilize the whole society in order to serve people39s health and the socialist modernization drive quot has vigorously developed China39s medical and health services to protect public health and safety meet the growing medical and health demand of the general public and improve health conditions of the whole nation Since new China was founded 60 years ago especially since the reform and opening up China39s medical and health sector has made remarkable achievements medical and health service system covering urban and rural areas has basically taken shape disease prevention and control capacity has gradually improved health insurance coverage has been expanding health science and technology has improved rapidly At present people39s health conditions significantly improved and key health indicators of the residents are in the forefront of the developing countries Following are major policies till now have adapted Effectively control major diseases and continuously improve health of urban and rural residents In six decades through great efforts of the patriotic public health campaign national immunization programs major disease prevention and control policys the major infectious diseases threatening people s health have been kept under effective control Morbidity of type AampB national statutory infectious diseases has dropped from 20000 per 100000 in 1949 to 26801 per 100000 in 2008 China has successfully eradicated smallpox and filariasis achieved the poliofree goal eliminated iodine deficiency disorder in general and effectively controlled leprosy schistosomiasis malaria which have been serious threats to people39s health Control of TB HIVAle hepatitis B has made significant progress Prevelence of endemic diseases has been effectively contained and the outcome of prevention and treatment is steadfast Prevention and control of chronic noncommunicable diseases has gained with remarkable results Continuously strengthen health system and improve access to services After 60 years of construction and development China39s medical and health services have made considerable progress By the end of 2008 China has 278000 health institutions and another 613000 village clinics health system covering urban and rural residents has been basically established the total number of hospital beds nationwide is 4036 million hospital beds per 1000 population is 283 number of health personnel nationwide amount to 6169 million rural doctors and health workers amount to 938000 million number of health professionals per 1000 population is 38 III The basic medical insurance system has been improved continuously and medical insurance level for urbanrural residents has been raised The urban and rural medical assistance system has been initially established The rural medical aid covers the entire rural population in counties districts while 65 of counties districts have seen pilot projects of urban medical assistance in place Commercial health insurance industry is flourishing At present various types of insurance systems cover more than 11 billion urban and rural residents a multilevel medical insurance system framework is taking shape providing a protective shield for the vast number of urban and rural residents from medical risks IV IV The legalization process in health has gone through indepth development which continues to protect people s health rights V V The reform on deepening medical and health care system was officially launched and efforts have been made to achieve universal access to basic medical and health services for all The overall goal for deepening medical and health system reform is to establish basic medical and health care system covering urban and rural residents and provide safe effective convenient and affordable medical and health services to the people By 2011 the basic medical insurance system will cover all urban and rural residents the essential drugs system will be initially established urban and rural primary health care system will be further improved the basic public health services will be universally accessible the pilot reform projects of public hospitals will achieve breakthroughs and the accessibility of basic medical and health services markedly increased 4 Epidemiological transition Causes of death Urban Malignant tumor Cerebrovascular diseases Heart diseases Respiratory diseases Injury and toxicosis Digestive diseases Pulmonary tuberculosis Infectious diseases a Subtotal Rural Malignant tumor Cerebrovascular diseases Heart diseases Respiratory diseases Injury and toxicosis Digestive diseases Total 1957 73 75 79 462 1963 86 69 67 120 68 410 1975 188 216 195 108 49 756 175 135 1980 196 234 229 90 50 799 147 171 258 120 53 749 1985 203 210 234 91 58 796 152 156 255 123 72 758 1990 219 208 158 158 69 812 175 162 108 248 107 800 1995 219 222 153 157 69 820 173 167 262 113 811 5quot structure of health care industry China till now has spend around 99 of GDP on Health Care For most of the 20th century China was a communist society But in 1978 the government introduced marketbased economic reforms aimed at liberalizing the economy These changes included the creation of open markets for farmers to sell their crops the creation of pricing systems bank reforms and an embrace of foreign direct investment These reforms along with many others have produced some spectacular economic results but by the 1980s they also demolished China s traditional health care system which had been in place for some thirty years The nowdefunct cooperative medical system CMS was a threetiered framework centered on rural communities the population of which has long constituted the majority of Chinese According to Gregory Chow a noted Princeton economist and China expert the firsttier of the CMS consisted of llparttime and salaried barefoot doctors in health clinics who provided preventive and primary care Despite being farmers who received only minimal medical training these barefoot doctors were the Chinese equivalent of primary care physicians the point of first contact for patients with medical concerns Barefoot doctors referred patients with relatively serious illnesses to the second tier of care commune health centers staffed byjunior doctors Communes were groups of households organized into labor teams who worked on common projects and pooled their income From this pool each commune set aside funds for specific purposes the llwelfare fu nd provided the funding for CMS Chow estimates that each commune health center had about quot10 to 30 beds and an outpatient clinic serving a population of 10000 to 25000 Although these centers offered a more formal system of care than the barefoot doctors commune centers weren t equipped for serious illnesses Such cases were sent to llcou nty hospitals staffed with senior doctors the third tier of care Since it was so reliant on the commune system to operate CMS fell apart in the early 1980s when market reforms extinguished communes With the elimination of China s social structure decentralization became the name of the game across the economy including health care By the 1990s says Chow llhealth care became the responsibility of the local governments a problem given that llin poor regions local government did not have the financial resources from taxation to supply adequate healthcare Almost overnight the Chinese health care system vanished leaving some 900 million Chinese without a safety net Indeed over the years the rates of health coverage amongst rural Chinese who today still make up about twothirds of the nation s population plummeted In 1997 the World Bank estimated that a mere 10 percent of China s farmers had community based health coverage down from a high of 85 percent in 1975 Even today less than onethird of the total Chinese population can feel secure that it has a place to go for care The dissolution of CMS also meant the elimination of China s barefoot doctors and thus the snuffing out of primary care Lacking a system in which to work most of the barefoot doctors llfound it more profitable to work fulltime in farming or to set up private practices outside the system Many village doctors who wanted to remain in medicine hightailed for urban centers where wealthier citizens could afford their services which were now provided on a forprofit feeforservice schedule This disappearance of rural doctors occurred just as standards of living began rising As farmers grew richer they demanded better care but since supply was increasingly limited the price of health care increased Today the few doctors who have remained in villages now operate independently They have little oversight no stable compensation and no real infrastructure for service delivery all of which they had under CMS The health care they once provided as a public good is now a commercial endeavor and doctors often make their money by peddling black market drugs and costly treatments to patients whether they need them or not 1 Education Current educationa conditions in China Education in the People39s Republic of China is a staterun system of public education run by the Ministry of Education All citizens must attend school for at least nine years The government provides primary education for six years starting at age six or seven followed by six years of secondary education for ages 12 to 18 Some provinces may have five years of primary school but four years for middle school There are three years of middle school and three years of high school The Ministry of Education reported a 99 percent attendance rate for primary school and an 80 percent rate for both primary and middle schools In 1985 the government abolished tax funded higher education requiring university applicants to compete for scholarships based on academic ability In the early 1980s the government allowed the establishment of the first private schools China has had a major expansion in education increasing the number of undergraduates and people who hold doctoral degrees fivefold in 10 years In 2003 China supported 1552 institutions of higher learning colleges and universities and their 725000 professors and 11 million students There are over 100 National Key Universities including Beijing University and Tsinghua University By 1980 achievement was once again accepted as the basis for admission and promotion in education This fundamental change reflected the critical role of scientific and technical knowledge and professional skills in the Four Modernizations Also political activism was no longer regarded as an important measure of individual performance and even the development of commonly approved political attitudes and political background was secondary to achievement Education policy promoted expanded enrollments with the longterm objective of achieving universal primary and secondary education This policy contrasted with the previous one which touted increased enrollments for egalitarian reasons In 1985 the commitment to modernization was reinforced by plans for nineyear compulsory education and for providing good quality higher education Deng Xiaoping39s farranging educational reform policy which involved all levels of the education system aimed to narrow the gap between China and other developing countries Modernizing education was critical to modernizing China Devolution of educational management from the central to the local level was the means chosen to improve the education system Centralized authority was not abandoned however as evidenced by the creation of the State Education Commission Academically the goals of reform were to enhance and universalize elementary and junior middle school education to increase the number of schools and qualified teachers and to develop vocational and technical education A uniform standard for curricula textbooks examinations and teacher qualifications especially at the middleschool level was established and considerable autonomy and variations in and among the autonomous regions provinces and special municipalities were allowed Breakdown of the makeup of students attending school and government investment The development of primary education in so vast a country as China has been a formidable accomplishment In contrast to the 20 percent enrollment rate before 1949 in 1985 about 96 percent of primary school age children were enrolled in approximately 832300 primary schools This enrollment figure compared favorably with the record figures of the late 1960s and early 1970s when enrollment standards were more egalitarian In 1985 the World Bank estimated that enrollments in primary schools would decrease from 136 million in 1983 to 95 million in the late 1990s and that the decreased enrollment would reduce the number of teachers needed Qualified teachers however would continue to be in demand Secondary education in China has a complicated history In the early 1960s education planners followed a policy called quotwalking on two legsquot which established both regular academic schools and separate technical schools for vocational training The rapid expansion of secondary education during the Cultural Revolution created serious problems because resources were spread too thinly educational quality declined Further this expansion was limited to regular secondary schools technical schools were closed during the Cultural Revolution because they were viewed as an attempt to provide inferior education to children of worker and peasant families In the late 1970s government and party representatives criticized what they termed the quotunitaryquot approach of the 1960s arguing that it ignored the need for two kinds of graduates those with an academic education college preparatory and those with specialized technical education vocational Beginning in 1976 with the renewed emphasis on technical training technical schools reopened and their enrollments increased In the drive to spread vocational and technical education regular secondaryschool enrollments fell By 1986 universal secondary education was part of the nine year compulsory education law that made primary education six years and juniormiddleschool education three years mandatory The desire to consolidate existing schools and to improve the quality of key middle schools was however under the education reform more important than expanding enrollment By the end of 2004 China had 2236 schools of Higher Learning with over 20 million students the gross rate of enrollment in schools of higher learning reached 19 percent Postgraduate education is the fastest growing sector with 241 percent more students recruited and 259 percent more researchers than the year before This enrollment growth indicates that China has entered the stage of popular education The UNESCO world higher education report ofJune 2003 pointed out that the student population of China39s schools of higher learning had doubled in a very short period of time and was the world39s largest Particular attention has been paid to improving systems in recent reforms Many industrial multiversities and specialist colleges have been established strengthening some incomplete subjects and establishing new specialties eg automation nuclear power energy resources oceanography nuclear physics computer science polymer chemistry polymer physics radiochemistry physical chemistry and biophysics A project for creating 100 world class universities began in 1993 which has merged 708 schools of higher learning into 302 universities Merging schools of higher learning has produced farreaching reform of higher education management optimizing of educational resources allocation and further improving teaching quality and school standards More than 30 universities have received help from a special national fund to support their attainment of world elite class Between 1999 and 2003 enrollment in higher education increased from 16 million to 382 million In 2004 the total enrollment in ordinary schools of higher learning was 4473 million 651000 more than in 2003 Schools of higher learning and research institutes enrolled 326000 postgraduate students 57000 more than the previous year In 2010 China is expecting 63 million students to graduate from College or University with 63 likely to enter the work force The contribution to China39s economic construction and social development made by research in the higher education sector is becoming ever more evident By strengthening cooperation among their production teaching and research schools of higher learning are speeding up the process in turning scitech research results into products giving rise to many new and hitech enterprises and important innovations Fortythree national university scitech parks have been started or approved some of which have become important bases for commercializing research Till recently year 2010 the total spending in education is up to 153 which continous to grow in the expecting years WorkCited Background Note China lthttpWWW state paeib n1 290 39 39 39 y Baidu Knows China lthttpbailltebaiducomView 61 891 htmlwtptt3gt China Statistical Yearbook 2010 National Bureau of Statistics of China ISBN 97875037 lthttpenwikipediaorgWikiHistorical GDP of the People s Republic of Chinagt Chinaorgcn lthttpWWW china nro quot 39 quot uuuk l45924htmgt Citizens Freedom Indices 39 r 39 nro rmlntrV Ami 1 VWceCNgt CIA lthttpswwwciagovlilua1y 39 quot 39 39 n ld quot 39 39 39 html How country spend their money lt httpwww 39 39 39 l countriesspendtheirmonevgt International Human Development Indicators ltl1ttn39hdr tat nnrln 39 quot quot html Onechild policy lt http enwikipediaorgwikiOnechild policygt Population sections lt 39 hlno 16 co 39 39 39 797 N3336992gt lt http WWW 39 ountrVchAge lthttpWWW 39 39 quot hinatotal fertility ratehtmlgt Poverty in China lt httpenwilltipediaorgwildPove in Chinagt Quarterly Data National Bureau of Statistics China Taking Note China s Health industry lt httptakingnotetcforg2008O4chinashealthchtmgt The World Bank I 39z39 lt httn39Ndnt vmrldbankorgaboutcountry 39 nnscountrvandIending grougs EastAsiaand Pacificgt The 2010 Legatum Prosperity Index lthttpwwwprosperitvcomcountrvaspxidCHgt lt httpwwwwhointnutgrowti quot quot 39 llntrieswho standardschnpdfgt Yearly Data National Bureau of Statistics China


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