Econ Research Paper

Yuxi Ding Economic Development in china 3/25/12 The major(ip) Economic Problems During 1949-1978 Period During the root thirty years after the makeup of the Peoples nation of mainland China in 1949 was the distributor point when the Chinese policy-making science explored the Chinese national condition and looked for a mystify that could best contribute to the fast economical growth. The governing body revise the Chinese economic system by eliminating its traditionalistic framework. With the attention of the Soviet Union, the Chinese economy recovered cursorily and gained many a(prenominal) achievements. For example, the economic performance marked a rising huckster rate of the vernacular domestic capital formation; the per capita rude domestic product (gross domestic product) generally grew until the end of the 1970s. agree to the statistics, the per capita GDP was 58 yuan in the fifties and reached 109 yuan in the 1970s (Dwight H.Perkins 135). However, desp ite these gains, the state made round portentous decision-making errors. Two major mistakes during this significant period caused supernumerary economic losses and became obstacles that prevented China from developing efficiently and sustainably. The first error, called the ample Push Industrialization, was a strategic mistake. China prioritized grievous industry by highly investing in it. many a(prenominal) reasons led to this strategy.

As an agricultural country, China in the 1950s lacked a rudimentary industrial base; therefore, the government power saw the development of heavy industry as an effective f ocus to push Chinese industry into a new sta! ge. The deterioration of Chinas international relations also resulted in the development of heavy industry. The outbreak of the Korean War be Chinas safety; Chinas pursuit in the war led to a direct appointment between China and America. Confronted with the menace from the westerly countries and learning from record lessons, China decided to strengthen its phalanx power in order to protect the its safety. Furthermore, the success of the Soviet Union qualify an...If you want to get a extensive essay, order it on our website: OrderCustomPaper.com

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