Political Economy of Chinese Development †MyAssignmenthelp.com

Question: Discuss about the Political Economy of Chinese Development. Answer: Introduction: This report is meant to analyse the economic performance of both the countries depending upon the comparison of factors like growth rate, employment, standard of living and from various other perspective. China is the second largest economy around the world, which has GDP value of 14.23 trillion next to US. Country is based on the service sector, which contributed 51.6% of the GDP (Pothen and Schymura 2015). On the other hand Australia ranks 13 according to the GDP rank and it possesses GDP value of 1.390 trillion. Most of the GDP of the country comes from service sector, which highlights that the economy is a developed one. Considering the figure 1, it can be seen that China has been growing at a rapid rate during the last five years. Upward sloping line of Chinese GDP highlights that its GDP has been growing and on the other hand Australian GDP is dropping since 2014. Comparing them it can be seen that both the country has vast difference in terms of GDP. GDP per capita is one of the economic tools that aid to differentiate between the economic performances of two countries. GDP per capita of Australia is much higher than China; however, it has been falling since 2013 (Selden 2016). On the other hand, there has been slight rise in GDP per capita for china due to rise in governments intervention. It has been observed that China is one of the fastest growing economies in the world and on the other hand Australia has been trying to stabilise its economy since post Global Financial crisis. From figure 3, it can be seen that Australia has higher growth rate compared to china, though overall growth of china has been higher than china. Highlights the trend of the GDP growth. Considering the line diagram it can be stated that chinas economy has been going to face higher growth due to present governmental reformation plan. Australia on the other hand is facing lower growth rate due to lack of skilled labour. China has the highest labour force, whose value is as high as 803.6 million according to estimation of 2017. On the other hand Australia has only 12.7 million labours. Considering the unemployment it can be seen that china has lower unemployment rate, which is only 3.97%. Australia on the other hand has much higher unemployment rate (Hawthorne 2016). It is as high as 5.4%. Service sector and mining industry in both the countries provides most of the employment, and the wage rate is much higher in Australia (Hua et al. 2016). Standard of living comparison of two countries: According to the latest statistics, HDI of Australia is .939 and when it comes to china, then it is .738 (Hua et al. 2016). Thus it can be stated that Australian enjoys a higher standard of living compared to Chinese population. GINI coefficient of Australia is 0.303 and china scores 0.490 (Wiedmann et al. 2015). Higher Gini for China highlights that income distribution is uneven for china compared to Australia that hampers the standard of living. China is one of the nations that considers environmental factor for economic development seriously. It produces 7.55 metric tons of carbon annually and when it come Australia, then it produces 16.35 metric tons. This vast difference in carbon emission highlights the environmental standard of the economy and their respective dependence on the capital intensive production (Hua et al. 2016). Considering the economic growth of both the countries and distribution of wealth figure, it can be seen that china has higher inequality compared to Australia. However, economic growth in china has been higher than Australia (Xie anf Zhou 2014). Governments role comparison: Government in china is highly interventionist in nature and it prefers to control the economic performance of the nation. On the other hand Australia has much liberal governmental policy, which has aided it to become where it is now (Xiao et al. 2014). Chinese government provide free education to primary level and, when it comes to Australia it has 20% higher literacy rate compared to china (Ehrich et al. 2016). Female education is higher in Australia compared to china; however skill development program is available in higher number in china. Chinese government still believes in protectionist program to enhance ability of higher production of domestic firms, where Australian government rather than minimum wage rate legislation does not prefer to intervene in market (Hua et al. 2016). Reference: Ehrich, J., Howard, S.J., Mu, C. and Bokosmaty, S., 2016. A comparison of Chinese and Australian university students' attitudes towards plagiarism.Studies in Higher Education,41(2), pp.231-246. Hawthorne, L., 2016. Labour market outcomes for migrant professionals: Canada and Australia compared. Hua, Y., Oliphant, M. and Hu, E.J., 2016. Development of renewable energy in Australia and China: A comparison of policies and status.Renewable Energy,85, pp.1044-1051. Pothen, F. and Schymura, M., 2015. Bigger cakes with fewer ingredients? A comparison of material use of the world economy.Ecological economics,109, pp.109-121. Selden, M., 2016.The political economy of Chinese development. Routledge. Wiedmann, T.O., Schandl, H., Lenzen, M., Moran, D., Suh, S., West, J. and Kanemoto, K., 2015. The material footprint of nations.Proceedings of the National Academy of Sciences,112(20), pp.6271-6276. Xiao, L.D., Wang, J., He, G.P., De Bellis, A., Verbeeck, J. and Kyriazopoulos, H., 2014. Family caregiver challenges in dementia care in Australia and China: a critical perspective.BMC geriatrics,14(1), p.6. Xie, Y. and Zhou, X., 2014. Income inequality in todays China.Proceedings of the National Academy of Sciences,111(19), pp.6928-6933.