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The following article was published in our article directory on November 22, 2010.
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Article Category: Business
Author Name: Amanda xzh
It should be emphasized that, in the analysis, when a country's economic growth, we must clearly understand what is really the common law, what is truly exceptional circumstances, it is very important. If not into a "middle income trap", we can hardly escape a basic law of economic development, that is, when a country's per capita GDP more than middle-income after a certain level, which is based on purchasing power parity of about $ 13,500 later, its economic growth speed is bound to slow down. In fact, Japan in 1971, China Taiwan in 1988, South Korea, after 1992, their economic growth rate is more than 8% from the previous fall to 7%. Interestingly, they are about $ 13,500 in per capita income level that the economy started to slow down the growth rate.
To understand China's current stage of development of the economy, there is an informal reference to the time that is hosting the Olympic Games. Japan, Tokyo Olympic Games held in 1964 South Korea held in Seoul Olympics in 1988, while China was held in 2008 Beijing Olympic Games. Coincidentally, these three countries host the Olympic Games, the respective GDP per capita income in purchasing power parity terms in 8000 U.S. dollars from top to bottom. And, whether from China's current industrial structure, living in terms of feeling, etc, or from the direct causes of economic growth, namely, high input, high savings, high export dependence on the demographic dividend point of view, China and the Century 60's in Japan, South Korea is very similar to the 80's.
Japan's economic growth slowed in the Olympic Games seven years later, South Korea after four years. Of course, I do not want this information to predict when China's growth rate slowed down, do not agree that China's economic growth rate of the decline point soon, it must be emphasized that the basic law of economic development in all countries are applicable. In other words, you can see the future, China will face a slowdown in economic growth.
Therefore, China must develop a good response, one important aspect is the adjustment of economic growth and transformation. This issue 90 years from the last century, began the discussion, however, was not China's stage of development to non-transfer non, non-change is not the time. But, now or soon, the problem becomes urgent pressure of reality, and this time, China will face a real challenge.
In the habit of long-term high economic growth, we must be fully prepared to accept the slowdown in economic growth, because this is a sign of mature economies. Because mature demographic dividend will disappear, return on capital will decline, and this is the level of economic growth to middle-income rate of decline after the root causes. Moreover, we must recognize that in the past 30 years, China's average annual GDP growth of 9% of the nature itself is a catch. Because the starting point is very low, they can use the existing international technology and production methods to achieve sustained high growth, which is the so-called "advantages."
However, as adults can not ask the age of 20 and 15-year-olds have the same long tall speed, as an economy began to mature, we have to gradually adapt to a new growth mode, to accept a new concept of life Although this is not easy.
Measures to cope with slowing economic growth is another important aspect is to continue to adhere to the reform and opening. After the financial crisis, China's relative position is increased. However, I feel that if this benefit so that we can not evaluate themselves calmly, then we can hardly be determined and motivated to promote deeper reform, it is difficult to correspond to the economic growth will slow to come challenges.
Economic development over the past 30 years, the main experience, is to continuously reduce government intervention, the market allocation of resources to play a role. Changes in the pattern of economic development in the future, more needs to further reduce government intervention, let the market play a bigger role. If the achievements because we have forgotten the main theme of this that the problems we now face is no longer the immature system transformation, but only the adjustment of the existing system, even as some of the wrong "lessons learned" The denial of this theme, we will pay a heavy price.
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