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Identification and Evaluation of a Specific Obstacle to the Development of China

This paper is intended to identify, explore, and assess the obstacles to the development of China, figure out which problem is the key one, and come up with possible solutions. I will investigate how the central barrier to the development connects to other ones and how I see these relationships. In this essay, I refer to a book A Bottom Billion (2007) by Paul Collier as to a source of information on the state of matter in the modern world’s economics. The article “The Ten Grave Problems Facing China” (2012) by Geremie R Barmé is considered to be another person’s viewpoint on the issue of progress difficulties. I use this particular piece as a comparison to my perspective on the obstacles to China’s development.

Keywords: obstacle to development, economics

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Identification and Evaluation of a Specific Obstacle to the Development of China


China is the most populated country and the state with one of the largest territories in the world. It is becoming if not the dominant, then one of the most influential global economic powers. This country has already surpassed some of the leading states within the economic statuses, and its presence and impact on the world arena is impressive. We know China as a country with the fastest development rate in the history. This Asian country effects most states’ economies drawing a lot of attention of foreign investors to the low labor prices and a large amount of output. It replaces the domestic production of other nations with its own, a cheaper one. China’s rapid economic development impacts the lives of the residents of other countries meaning that they are using the services or products created by the Chinese. Collier (2007) declares, “The growth of global trade has been wonderful for Asia” (p. 87). However, in spite of the outward prosperity, there lay some major difficulties identified and evaluated in the following paragraphs. The problems that have appeared during the last decades and have been existing all the time might even outweigh the achievements. In my opinion, the Chinese “economic miracle”, indeed, is limited by the fact that such a huge number of people does not allow further development at a rapid pace without the proper organization.

The Key Factor

As mentioned above, China is a living place for over 1.3 billion people, who work, rest, get sick, go on vacations, etc. It means that there are very many aspects of the nation’s everyday life that the government needs to consider. This thought, as well as readings and the related information leads me to the idea that the proper and approachable country’s top-level administration is the guaranty of its prosperity. However, it is a well-known fact that China is a socialist-communist state. The ideology of this socioeconomic system is also an acknowledged material, and I would even call it a notorious one. After such considerations, I have come up with a belief that the main obstacles to the development of China are its governing bodies and their political course. The Chinese authorities influence other parties, which all together make the foundation of the country and provide the population’s welfare. Barmé (2012) in his article supposes that the Chinese government faced “…failure to meet public demands for increased democracy”.

Two of the major economic systems are the market and the command economics. The main difference between them is the extent of the freedom of development and self-administration the constituents have. The command economics is built on the centralization and monopolization of the financial processes. The market is based on the proposal and demand principle. The socialist-communist government tends to have a command economics in the state they administer. However, China is a unique combination of both types with their drawbacks and advantages. The main benefits of the Chinese market-command economics are its extensiveness, a big variety of areas, and a broad labor market. However, the socialist-communist administration and the centralism put some limitations on the fast rate of the economic development.

Other Factors

In addition to the main obstacle to the Chinese further development, there are others, which both badly influence the country on their own and suffer from the impact of the improper governing. In his book, Sachs (2005) states that the transition to the modern economic growth involved urbanization. Meanwhile, Barmé (2012) defines such problem in the following way: “The rural-urban gap has increased”. Certainly, I agree with these two ideas since there is an intense countryside-to-town population flow in China, and the authorities cannot satisfy all of the migrants’ needs. I believe that one of the main reasons for this is the philosophy of socialism, which aims at owning the production means commonly. However, such collective possessing does not seem to be possible, because there are always those with more money and those who have some financial difficulties. The greater part of the production is positioned within the cities and towns, which bring money to the budgets and help develop the cities’ infrastructure. Therefore, the gap between the urban and rural areas is increasing. The proper governing could prevent this break from expansion through investing in the countryside and development of the infrastructure there.

Next to the problem of the residents, there exists the issue of the economic system in general. Barmé (2012) formulates it as “No breakthroughs in economic restructuring”. Indeed, time is passing by, and new years bring new elaborations, ideas, and solutions. The government could successfully implement them in the country’s economics with many financial benefits. Unfortunately, this is not the case in China; again, the communist governing system is the obstacle. This socioeconomic doctrine is characterized by conservatism and does not allow a lot of changes. Yes, it is true that this Asian country produces an impressive amount of fabrication, but they have to sacrifice the ergonomic side of the manufacturing as well as the quality. The higher the quality of the products is, the bigger is the financial flow to the budget, which can be used for further development of the country. If the government managed to implement the high-tech technologies with small energy and resources consumption, the Chinese economics could have become much more effective.

Consideration of the Opposite Viewpoint

On the other hand, one can argue the ineffectiveness and unsuitability of the socialist-communist course of China. They refer to the obvious fact that this country produces the largest amount of goods in spite of its political orientation. Well, I see this reasoning both as a correct and a mistaken one. China annually produces fabrication, which is worth billions of dollars. However, I believe that this is true only exceptionally due to a large population of the state and the following high competition to get a job. Such rivalry is a reason for great productivity since people want to stay employed. At the same time, I believe that the political administration at the top level imposes the ideas of the Communism philosophy on the population using many means such as media, printed materials, etc. Such state of mind of people could prevent the economics from developing to a more profitable level. This is why I consider my argument to be a correct one.

Possible Solutions

What could happen if China changed its political course? Althought it might be hard to imagine such alternations due to their huge scale, I do think that the drastic changes could take place. In this case, the government could become more open and democratic allowing new and fresh ideas into the country’s administrating system. There is a number of successful countries, which could be an example of what could happen. Some ex-communist states have rejected this doctrine and selected another one – democratic official course, and thus have successfully increased the effectiveness of their economies. Afterwards, these countries moved forward on the world political arena. The Baltic countries could be a good example. Therefore, I see the further development of China in changing the government’s orientation from the current socialist-communist ideology to a more open and democratic one. Consequently, this could lead to more representation in the official bodies, implementation of the newest both cost- and resources-effective technologies. These alternations could lead to a subsequent increase of the production effectiveness and more state budget income.


China has got a huge potential, which it has already used to some point. The population is huge and the labor is cheap, which allows the companies economize on the salaries and increase the production. However, the development of the Chinese economics is restricted by some factors. I believe that the improper state administration is the key obstacle to China’s economic growth. At the same time, there are other factors, which negatively influence further development of this country. Therefore, I have come up with the suggestion that one of the possible ways to stimulate the progression of this Asian influential state is to change its political course. Current old-fashioned and ineffective communist philosophy has already proved its unproductiveness and should be changed to a modern democratic political path.