In the past three decades China improved the living conditions of its population dramatically and alleviated millions out of poverty. China achieved a tenfold increase in GDP since 1978, became the world’s largest exporter in 2010 and is the second largest economy in the world after the U.S. (cf. Central Intelligence Agency 2013). Overall, China’s rise in the past thirty years has been unprecedented in its scale.
The following essay will address the question of how to explain China’s economic success in the past three decades (2.2) and in doing so, start out with an analysis of its political success (2.1). In a second step, it will be explored if China’s success is sustainable in the long-term (2.3).
Table of Contents
1. Introduction
2. Analysis
2.1 Political Success
2.2 Economic Success
2.3 Question of Sustainability
3. Conclusion
4. Bibliography
Research Objectives and Key Topics
This essay explores the factors contributing to China's remarkable economic growth over the past three decades and critically assesses the long-term sustainability of its political and economic model in light of the "Why Nations Fail" thesis.
- The role of stable political leadership and governance in China's rise.
- The implementation of state capitalism and specific economic reform strategies.
- The "Beijing Consensus" versus the Acemoglu/Robinson theory of extractive institutions.
- The potential for long-term sustainability and the challenge of future innovation.
Excerpt from the Book
2.1 Political Success
To explain China’s economic success, one has to explain and acknowledge the political success of the People’s Republic of China (PRC). Although not democratic, stable and strong political leadership over the past three decades was a prerequisite for the coming economic success. Especially in contrast to the African countries, China had and has an edge in attracting Foreign Direct Investment (FDI) due to its stability.
The death of Mao was a “critical juncture” (Acemoglu/Robinson 2012: 423) and brought the reform-minded Deng Xiaoping into power in 1978, who gradually introduced market capitalism to China. Following that, China got economically partially more inclusive and managed a turnaround to good governance. While carrying out the turnaround, China learned from the experiences of Russia when abandoning the socialist economic model and avoided a big push for market capitalism. In the decades to come, the Communist Party of China (CPC) proved that it is capable of “self-correction”: The party was quite adaptable and introduced local elections and some decentralization of power. The communist leadership also embraced social responsibility for its citizens, namely basic healthcare, education, tax reform opportunities to step up and minimum wage increases. These reforms helped not only to bolster the legitimacy of the CPC but also the economic capabilities of the society.
China showed that democracies are not necessarily better at promoting economic growth, but Martin Jacques pointed out that most Westerners, when judging China, do not understand its rise because they “understand it in Western terms” (Jacques 2010: 02:50).
Summary of Chapters
1. Introduction: Outlines the unprecedented scale of China's economic rise since 1978 and introduces the core questions regarding its past political success and future sustainability.
2. Analysis: Examines how stable political leadership, state-led capitalist reforms, and specific developmental policies have driven growth, while debating whether these institutions are sustainable long-term.
3. Conclusion: Summarizes that China's success stemmed from good governance and gradual market integration, noting that future sustainability depends on the state's ability to continue evolving.
4. Bibliography: Lists the academic and secondary sources used to analyze China’s economic and political development.
Key Keywords
China, Economic Success, State Capitalism, Political Leadership, Beijing Consensus, Acemoglu, Robinson, Sustainable Growth, Reform, Foreign Direct Investment, Governance, Political Stability, Economic Development, Modernization, Innovation
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the drivers behind China's rapid economic development since 1978 and evaluates whether this growth can be sustained under the current authoritarian system.
What are the primary thematic areas covered in the analysis?
The analysis focuses on political stability, the shift toward state capitalism, economic reform strategies, and the debate surrounding the long-term viability of the "Beijing Consensus."
What is the central research question?
The author asks how China's economic success can be explained and if this growth model is sustainable in the long term.
Which scientific approach is utilized?
The paper employs a comparative and qualitative analysis, reacting to the institutional theories proposed by Acemoglu and Robinson in "Why Nations Fail" while incorporating diverse political and economic perspectives.
What is the content of the main body?
The main body is divided into political success (governance and stability), economic success (market reforms and export strategies), and the sustainability question (challenges and future prospects).
Which keywords define this work?
Key terms include state capitalism, political legitimacy, institutional reform, foreign direct investment, and sustainable economic growth.
How does the author interpret the death of Mao in the context of Chinese reform?
The author identifies it as a "critical juncture" that allowed for the rise of Deng Xiaoping and the subsequent introduction of market-oriented, yet state-controlled, economic policies.
Does the author believe China's model is inherently unsustainable?
The author presents an nuanced view: while Acemoglu and Robinson suggest failure is inevitable due to extractive institutions, the author highlights China's capacity for adaptation and "self-correction" as factors that might stabilize the system.
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- Christopher King (Autor), 2013, China’s Success Story, Múnich, GRIN Verlag, https://www.grin.com/document/262781
