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281. Development Strategy, Viability, and Economic Institutions: The Case of China

Author:
Mingxing Liu, Pengfei Zhang, Shiyuan Pan, and Justin Yifu Lin
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explores the politically determined development objectives and the intrinsic logic of government intervention policies in east developed countries. It is argued that the distorted institutional structure in China and in many least developed countries, after the Second World War, can be largely explained by government adoption of inappropriate development strategies. Motivated by nation building, most least-developed countries, including the socialist countries, adopted a comparative advantage defying strategy to accelerate the growth of capital-intensive, advanced sectors in their countries. In the paper we also statistically measure the evolution of government development strategies and the economic institutions in China from 1950s to 1980s to show the co-existence and coevolution of government adoption of comparative advantage defying strategy and the trinity system.
Topic:
Development, Economics, and Government
Political Geography:
China and Asia

282. Economic Development Strategy, Openness and Rural Poverty: A Framework and China's Experiences

Author:
Justin Yifu Lin and Peilin Liu
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper argues that both openness and poverty in a country are endogenously determined by the country's long-term economic development strategy. Development strategies can be broadly divided into two mutually exclusive groups: (i) the comparative advantage-defying (CAD) strategy, which attempts to encourage firms to deviate from the economy's existing comparative advantages in their entry into an industry or choice of technology; and (ii) the comparative advantage-following (CAF) strategy, which attempts to facilitate the firms' entry into an industry or choice of technology according to the economy's existing comparative advantages.
Topic:
Development, Economics, and Poverty
Political Geography:
China and Asia

283. International Finance and the Developing World: The Next Twenty Years

Author:
Tony Addison
Publication Date:
02-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Much has changed in international finance in the twenty years since UNU-WIDER was founded. This paper identifies five broad contours of what we might expect in the next twenty years: the flow of capital from ageing societies to the more youthful economies of the South; the growth in the financial services industry in emerging economies and the consequences for their capital flows; the current strength in emerging market debt, and whether this represents a change in fundamentals or merely the effect of low global interest rates; the impact of globalization in goods markets in lowering inflation expectations, and therefore global bond yields; and the implications of the adjustment in global imbalances between Asia (in particular China) and the United States for emerging bond markets as a whole. The paper ends by noting the paradox that today we see ever larger amounts of capital flowing across the globe in search of superior investment returns, and yet the financing needs of the poorer countries are still largely unmet.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
United States, China, and Asia

284. Mobilizing Talent for Global Development

Author:
Andrs Solimano
Publication Date:
08-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
The generation of new ideas and their application for productive uses is an important engine for growth and development. This is an area in which developing countries usually lag behind developed countries and is where development gaps are more evident. Behind the generation of ideas, innovations, and new technologies there is 'human talent': an inner capacity of individuals to develop ideas and objects, some of them with a high economic value. The 'human factor' is critical to the success or failure of many endeavours. Several countries, particularly China and India, followed by Russia, Poland, and some Latin American countries, are becoming an important source of talented people with PhDs and degrees in science, engineering, and other areas that can lead to change in the international patterns of comparative advantages and reduce development gaps. Part of the new talent formed in developing countries goes to live and work to developed countries, typically the USA, UK, and other OECD nations. At the same time multinational corporations are outsourcing several of their productive and service activities, including research and development, to developing countries (China and India are main destinations) to take advantage of the (less expensive) talent being developed there. Today, therefore, we see a double movement of talent and capital around the globe: on the one hand talent from developing countries is moving north seeking better opportunities where people are equipped with more capital, technologies, and effective organizations. On the hand capital from the north pursues talent in the south; a process largely led by multinational corporations.
Topic:
Development, Economics, Human Welfare, and Migration
Political Geography:
United States, China, United Kingdom, and India

285. Judicial Reform in China: Lessons from Shanghai

Author:
Veron Mei-Ying Hung
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The George W. Bush administration in September 2002 laid out in the “National Security Strategy of the United States” its strategy toward China: “We welcome the emergence of a strong, peaceful, and prosperous China.” During a trip to Asia in March 2005, Secretary of State Condoleezza Rice adopted a similar phrase to welcome “the rise of a confident, peaceful, and prosperous China.”
Topic:
International Relations, Development, and Government
Political Geography:
United States, China, Shanghai, and Asia

286. The Rise of China with Special Reference to Arms Supplies

Author:
Peter Brookes, Bruno Tertrais, and Alexei D. Voskressenski
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Like the rest of the world, Europe has been fascinated by the emergence of China for a long time, and there has been an official relationship between the EU and the People's Republic of China for 30 years now. This relationship was upgraded in 1998. It now takes the form of a China-EU summit every year, the latest having taken place in December 2004. The EU became China's main trading partner in 2004, with trade between the two parties soaring to €160 billion.
Topic:
Arms Control and Proliferation and Development
Political Geography:
China, Europe, and Asia

287. The United States, China, and India: A Story of Leaders, Partners, and Clients

Author:
Zia Mian
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
Foreign Policy In Focus
Abstract:
The past few months have seen important developments in relations between the United States and India. Much of the commentary has focused resolutely and rightly on the wisdom and possible consequences of the new agreements on military and nuclear policy and programs. But these recent agreements need also to be seen in the light of the more than 50 years of U.S. efforts to have India become a part of American political, strategic, and economic plans for Asia. What becomes clear is how difficult this proved to be over the years. It begs the question why Indian leaders have finally started to fall in step so easily in the past few years.
Topic:
Development
Political Geography:
United States, China, America, India, and Asia

288. U.S.-China Relations — Opportunities, Risks, and the Taiwan Issue

Author:
Thomas J. Bickford
Publication Date:
08-2005
Content Type:
Policy Brief
Institution:
Foreign Policy In Focus
Abstract:
China is primarily interested in concentrating on trade and economic development and therefore wants an international environment conducive to continued economic growth. Even with recent defense budget increases, China's ability to project power beyond its borders will be extremely limited for a long time to come. There is a real risk of conflict between the United States and China over Taiwan, and U.S. policy needs to be aimed at avoiding such a conflict.
Topic:
International Relations, Security, and Development
Political Geography:
United States, China, and Taiwan

289. China's Governance in Transition

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China's economic reforms over the past two decades have brought remarkable growth, the development of a vibrant private sector and significant reform of the state-owned sector. Private businesses now represent some 57% of GDP, and productivity in the state-owned sector has improved significantly. However, a number of problems threaten to undermine prospects for sustainable growth. These notably include social tensions, partly due to increasing inequality within society and massive migration to the cities, but also linked to corruption, insufficient public services and rising unemployment as millions of workers have been laid off in the reform of the state-owned sector, while agriculture still displays huge structural under-employment.
Topic:
Development, Economics, and Government
Political Geography:
China and Asia

290. Economic Survey of China, 2005

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China's economic growth has averaged 9½% per cent over the past two decades. The rapid pace of economic change is likely to be sustained for some time. These gains have contributed not only to higher personal incomes, but also to a significant reduction in poverty. At the same time, the economy has become substantially integrated with the world economy. A large part of these gains have come through profound shifts in government policies. Reforms have allowed market prices and private investors to play a significant role in production and trade.
Topic:
Development, Economics, and Emerging Markets
Political Geography:
China and Asia