Wednesday, 29 June 2011

What caused China's rapid industrialisation?


In 1978 China began economic reforms to create a greater and self sufficient economy. From 1978 to 2006,  China's real GDP or Gross Domestic Product grew at an average rate of 9.7%. This came from rapid industrialisation, which was caused for a few reasons. Firstly, because China enforced a idea of a centrally planned economy. Because the economy was centrally planned, nearly all of the country's economic output was directly controlled by the state. However, this changed after the economic reforms in 1978, and there were significant gains in production by enterprises and privately own businesses. The rapid industrialisation was helped by being funded by local governments and foreign investors, despite the state still accounting for 46% of China's industrial output.

Sources:

http://forum.pakistanidefence.com/index.php?showtopic=93669    

http://en.wikipedia.org/wiki/Industry_of_the_People%27s_Republic_of_China                                                                                                         

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