政策 policy

Continuing on the previous “business-oriented” post on Wodeshudian (Nine islands 九州), a further element of globalization.

When your economy starts being linked with others enough to develop a trade imbalance (be it surplus or deficit) that affects your local choices, you enter the domain of politics- and policy; at least, that’s my view.

I know that some theory-oriented specialists a.k.a. economists assume that political (and policy) choices should be made based on a nice theoretical cause-effect model, but both in business and politics you take notice of what is around you, but then take care of what makes sense that you can take care of, not of everything under the sun.

My Chinese language learning path includes both a study of the business and the culture, and therefore last week I picked up a book on the economic development of China and India (I posted my review on LibraryThing.com/catalog/aleph123, my profile; Belcet – Valli (eds) “Potenze economiche emergenti. Cina e India a confronto”).

If you remove commentary and bias from the authors that isn’t supported by the data that they share with the readers, it is quite informative- and a worthwhile update on other information contained in older books (have a look at the review for few more links).

Anyway, as my posts are in English, I had a look around for further material to support my thesis, and I had a preliminary run through a couple of documents (and few more):
“China’s Approach to Economic Development and Industrial Policy” by Eswar Prasad, 2011-06-15
and
“The rise of industrial policy in China, 1978-2012” by Sebastian Heilmann and Lea Shih

I could write a summary of those articles, but, if you are interested, I think that, probably, it makes more sense to let you read the articles- certainly, a more authoritative source.

If you are interested but unwilling to read few hundred pages… maybe a couple of paragraphs should be enough to entice you to read at least the first article:
“China’s twelfth five-year plan could represent a watershed in the country’s pattern of economic development. The broad objective of the plan is to reorient growth to make it more balanced and sustainable from different perspectives–economic, social and environmental. The challenge for the government is to break down the opposition of interest groups that prefer the status quo and to implement reforms needed to attain the plan’s objectives.

The longer-term objective of the plan is to reorient growth to make it more balanced and sustainable from different perspectives–economic, social and environmental. It will be a major challenge to put in place the reforms needed to rebalance the growth model and shift away from capital-intensive production, reduce the reliance on exports, generate more employment and allow more of the benefits of growth to filter down to the average household.”

Maybe something worth sharing few thoughts about at a later stage…

For the time being… have a nice week!

PS Please read the introduction to understand how to use this website 🙂

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