Globalization: Then and Now

1
(No Transcript)
2
Globalization Then and Now

3
Sleeping Giant No More

• "Let China sleep, for when she wakes the world
• will shake.
• -- Napoleon Bonaparte (1805)

4
World Output 1820-1950

• Country 1820 1950
• --------------------------------------------------
  ----------------------------
• China 30 5
• India 16 4
• European Big Four 17 19
• USA 2 27

5
Chinese Economy

• Pre-Reform Years

• Post-Mao Chinese Reforms

• Pre-1949 Traditional Agrarian Economy with
  Limited Industry
• 1949-1957 Following the Soviet Model of Command
  Economy
• 1958-1960 The Great Leap Forward Movement
• 1961-1964 Post-GLF Economic Adjustment
• 1965-1976 The Cultural Revolution and
  Self-Reliance

• 1978-1984 Rural Reforms
• 1985-1989 Urban Reforms
• 1992-1999 Market Reforms
• 2001-- WTO-Led Reforms

6
Rise, Fall and Reemergence of China
7
Worlds Largest Economies

• https//www.cia.gov/library/publications/the-world
  -factbook/geos/ch.html

8
Key Components of Chinas Development Strategies

• Special Economic Zones
• A Special Economic Zone (SEZ) is a geographical
  region that has economic and other laws that are
  more free-market-oriented than a country's
  typical or national laws. 
• In China, founded by Deng Xiaoping in the early
  80s.
• Export-led and FDI-driven
• A foreign direct investment (FDI) is a
  controlling ownership in a business enterprise in
  one country by an entity based in another
  country.
• Manufacturing-centered
• State as the visible hand
• Heavy investment by the state in infrastructure
  and agriculture
• High national and individual saving rate

9
Socialist (Communist) with Chinese Characteristics

• Socialism with Chinese characteristics is the
  official ideology of the CCP based
  upon socialism. This ideology supports the
  creation of a socialist market economy dominated
  by the public sector since China is in the
  primary stage of socialism. The Chinese
  government maintains that it has not
  abandoned Marxism and argues that socialism is
  compatible with these economic policies.
• In current Chinese Communist thinking, China is
  in the primary stage of socialisma view which
  explains the Chinese government's flexible
  economic policies to develop into an
  industrialized nation.
• Deng Xiaoping, the architect of the Chinese
  economic reforms, did not believe that the market
  economy was synonymous with capitalism or that
  planning was synonymous with socialism
• "What is socialism and what is Marxism? We were
  not quite clear about this in the past. Marxism
  attaches utmost importance to developing the
  productive forces. We have said that socialism is
  the primary stage of communism and that at the
  advanced stage the principle of from each
  according to his ability and to each according to
  his needs will be applied. This calls for highly
  developed productive forces and an overwhelming
  abundance of material wealth. Therefore, the
  fundamental task for the socialist stage is to
  develop the productive forces. The superiority of
  the socialist system is demonstrated, in the
  final analysis, by faster and greater development
  of those forces than under the capitalist system.
  As they develop, the people's material and
  cultural life will constantly improve. One of our
  shortcomings after the founding of the People's
  Republic was that we didn't pay enough attention
  to developing the productive forces. Socialism
  means eliminating poverty. Pauperism is not
  socialism, still less communism.
• DENG XIAOPING
• Socialism and communism are alike in that both
  are systems of production for use based on public
  ownership of the means of production and
  centralized planning. Socialism grows directly
  out of capitalism it is the first form of the
  new society. Communism is a further development
  or "higher stage" of socialism.

10

11

12

13
Top 10 Economies in the World2005