According to the scientists, developing of the economic is related with the increase in the inflation-adjusted market value of the goods and services produced by an economy over time that produce satisfaction of the basic necessities of the people. In this context, the economic progresses in China during last 35 years have been a good improve in the living standard of the Chinese society. But, this forward movement with the vast population always looks a difficult route.
In an appropriate way, Andrew Berg and Jonathan Ostry (2011) of the International Monetary Fund said:”inequality in wealth and income is negatively correlated with subsequent economic growth”. Likewise, economists Dierk Herzer and Sebastian Vollmer found that increased income inequality reduces economic growth, but growth itself also increases income inequality in the long run. In this sense, in the words of the Secretary General of the United Nations Ban Ki-Moon: “While economic growth is necessary, it is not sufficient for progress on reducing poverty”.
Reminding the condition of China in the 80’s, the cheap labor allowed to international companies to established factories in China with several facilities, and the foreign investment was one important factor that helped the economic in China. However, also the environmental problems started, and others social problems, and may be these consequences were expected.
Eric Hanushek and Dennis Kimko introduced measures of mathematics and science skills from international assessments into growth analysis. They found that quality of human capital was very significantly related to economic growth. This approach has been extended by a variety of authors, and the evidence indicates that economic growth is very closely related to the cognitive skills of the population. And in this aspect China increased the international exchange of person and knowledge with different countries around the world. We can check the increase of scientific papers abroad from Chinese experts.
Also, Electricity consumption and economic growth are strongly correlated. Per capita electric consumption correlates almost perfectly with economic development. MIT Professor Robert Solow concluded that technological progress has accounted for 80 percent of the long-term rise in U.S. per capita income, with increased investment in capital explaining only the remaining 20 percent. In the case of China, we know the high increase electricity demand because of infrastructure built like Three Georges Dam.
Another major cause of economic growth is the introduction of new products and services and the improvement of existing products. New products create demand, which is necessary to offset the decline in employment that occurs through labor saving technology. Around the world is known the new wave of Chinese products.
When you look at China Economic Growth along the time, they have improved in many aspects we can consider that is important to growing; however, they economic is growing too fast; but, apparently the people does not. They have bad wealth distribution, so there are several questions around economic growth and inequality to them.
A lot of people speculate about the statistical data in China that is not precise or nonexistent. It is not easy to corroborate the data for most people who want to study China, so in the way to suppose the data is accuracy that can show to everybody the success of China policy to improve economic; recently, some events happened that questioning the policy on the end.
One of the examples that represent the situation in China was the Wenzhou trail collision in Southeast China. After two weeks of opening operation of High Speed Rail in China, which it is the largest Railway System around the world, the first accident happened where several people were killed and injured. The authorities after some time in the justice trail, they admitted the management training of personal was deficient, so we though the China society doesn’t grow like the economic speed way.
Recently, the municipality of Tianjin in China had two massive explosions that have killed more than hundreds people and several hundreds were injured. The accident has taken place in the warehouse with hazardous and flammable chemicals. One of the big questions is about Safety Rules by Chinese government to prevent accidents and city planning.
There were nearby apartment complex closed to the warehouse, most of them are belongings to the employee of some logistic companies, and they demand compensation for the damaged caused by the explosions. The owners of apartment knew the risk to live beside of warehouse? what about the risk airborne pollution?
No country have made economic improve without positive stimulus of intelligent government, in addition the important role made by the individuals initiative were also magnificent. The proper contribution of each is a challenge, but everybody knows the growing is due to both. This experience of economic of Chinese people is unique, and it is important to study for learning.