Economic Development Stages & China's Impact

A country with a lower per capita income than advanced economies like the US, Japan, and Western Europe.

The process of transitioning from lower to higher levels of economic activity, industrialization, and improved living standards.

The idea that developing countries face a cycle of poverty and stagnation, making it difficult to escape their situation.

The mistaken belief that developing countries are doomed to perpetual food shortages due to high population growth.

A common, but outdated view that agricultural and mining exports only hinder developing countries' economic progress.

The assumption that developing countries are economically exploited by advanced economies, resulting in capital outflow (loss of money).

A statement that is generally false or not supported by evidence, often based on stereotypes or misconceptions.

The process of systematically studying a specific country or region to analyze its economic trends, challenges, and strategies.

The flow of resources from former colonies to their colonizers, primarily during the first half of the 20th century.

The transfer of capital from developed countries to developing countries, predominantly during the latter half of the 20th century.

The potential for rapid population growth to negatively impact economic development.

The possibility of low population density hindering economic growth in certain circumstances.

The potential for rapid population growth to stimulate economic development and technological advancements.

The size of a country's land area, population, and income.

A country's past experiences, including its colonial history, that shape its current condition.

The availability and quality of natural resources and human capital, including skilled labor and education levels.

The relative prominence of government-owned businesses versus private companies in a country's economy.

The structure of industries within a country, including their size, diversity, and technological advancement.

A country's size can bring advantages like diverse resources, large markets, and reduced reliance on foreign imports. However, it also presents challenges in managing administration, uniting the population, and addressing regional disparities.

Many developing countries share a history of being colonies, often under European rule. This colonial legacy influences their current economic, social, and cultural institutions.

The availability of natural resources, such as land, minerals, and raw materials, along with the skills and education of its people, significantly influence a country's potential for economic growth.

Most developing countries have a mix of public (government-owned) and private (citizen-owned) businesses. The balance between these sectors affects economic policies and priorities.

The presence of a large public sector, like in some South Asian and African countries, leads to greater emphasis on government-led investments and projects. In contrast, economies with a strong private sector, like in Latin America and Southeast Asia, focus more on incentivizing private businesses.

Latin America and Southeast Asian nations generally have larger private sectors compared to South Asian and African countries. This difference in the role of the private sector shapes economic policies and strategies.

India's vast population (over 1 billion people) creates both opportunities and challenges for economic growth. With a large workforce, India has potential for a strong domestic market. However, it also faces issues related to poverty, infrastructure development, and providing resources for its large population.

Singapore, despite its small size, shows that a strategic location and a focus on education and technology can drive significant economic growth. Its high GDP per capita reflects a thriving economy.

An economic strategy where a country focuses on producing goods and services for export, aiming to increase its competitiveness and integrate into the global market.

An economic strategy where a country prioritizes domestic production to reduce reliance on imports, often to protect infant industries.

A country's ability to produce goods and services efficiently and competitively compared to other countries.

An economic concept referring to low tariffs and few restrictions on international trade, allowing free market forces to operate.

A government policy that encourages the development and growth of small businesses.

The process of creating a competitive market environment by reducing monopolies and promoting fair competition.

A country's policy of emphasizing private ownership of assets and resources.

Taxes imposed on imported goods to protect domestic industries.

Developing countries often prioritize immediate consumption over investment due to limited resources, hindering economic progress.

Promoting entrepreneurship, fostering innovation, and imitating successful technologies are crucial for economic growth and development in countries.

Property rights, low taxes, and predictable regulations are essential for entrepreneurship to thrive.

Imitating successful technologies from more advanced nations can accelerate economic development.

Industrialization, while attracting workers to cities, can cause unemployment. Enhancing agricultural productivity is often more capital-efficient and benefits a larger workforce.

A market-oriented policy emphasizes private ownership, free markets, and minimal government intervention.

Government plays a role in supporting entrepreneurship through education, training, and specific investments like agricultural extension services.

The government can directly invest in infrastructure like railroads and utilities to stimulate development.

In the 1950s, China's individual farms were consolidated into large communes, eliminating private ownership and establishing collective agriculture.

During the 1960s and 1970s, China prioritized industrial growth through massive investments in infrastructure and workforce development.

By 1978, a significant portion of Chinese industrial production was controlled by state-owned enterprises, which aimed to meet planned output targets.

Starting in 1979, China introduced economic reforms to revitalize its economy and create a more market-oriented approach.

To encourage farming efficiency and provide income opportunities, the government allowed farmers to sell a part of their crops freely.

Special economic zones along China's coast were established to draw foreign investment, boost exports, and import advanced technologies.

The first four special economic zones, established in 1980, were in Shenzhen, Zhuhai, Shantou, and Xiamen.

Subsequent reform phases aimed to decentralize economic decision-making, especially in the trading sector, transferring more power to local levels.