What this lesson teaches
I can judge which factors did most to transform the economies of Japan and China over time.
Syllabus 9174, Paper 1, Theme II, Learning Outcomes. evaluate the factors that contributed to the economic transformation of Japan and China over time
Make a guess
China grew about 9 to 10 per cent a year from 1978 to 2000. Do you think one factor explains this?
- No, Soviet aid and loans explain most of the growth.
- Yes, foreign investment explains it.
- No, market reforms led the 1980s and the open door the 1990s.
Show the answer
No, market reforms led the 1980s and the open door the 1990s.
The state shaped both phases. The weaknesses of Mao's economy explain why fast catch-up was possible.
Market reforms drove the 1980s, the open door drove the 1990s, and the state shaped both.
China grew by about 9 to 10 per cent a year from 1978 to 2000. By China's official measure, rural poverty fell from about 250 million people to about 30 million.
The problems of the Maoist economy explain why reform began and why fast catch-up growth was possible.
Market reforms, especially in farming, drove the first wave of growth in the 1980s. The open door drove export growth, especially in the 1990s.
State intervention shaped the whole process. Its gradual, experimental approach avoided the economic collapse that followed the fall of the Soviet Union.
International developments made the open door possible and supplied investors, especially from Hong Kong and Taiwan.
Growth had costs. Inequality between coast and interior and between town and country rose sharply. Corruption spread, and state workers lost their security.
- Growth
- About 9 to 10 per cent a year, 1978-2000.
- Poverty
- Rural poor fell from about 250 million to about 30 million (official figures).
- Costs
- Inequality, corruption, layoffs.
Worked example: Building an argument
Which factor was most important?
- Criterion: which factor decided how the others worked?
- Case for market reforms: they released the energy for growth.
- Case for the open door: it made China an export power.
- Case for the state: it chose, tested and paced every reform.
Watch out for this
One factor explains China's growth from 1978 to 2000.
The balance shifted. Rural reform mattered most at first, the open door in the 1990s, and the state throughout.
Check your understanding
Which factor drove the first wave of growth in the early 1980s?
- The Southern Tour
- WTO membership
- Rural market reforms
Show the answer
Rural market reforms
Right. Farm output and incomes rose fast.