Custom essays on Township and Village Enterprises

Response Paper
In actuality, China is apparently one of the most rapidly growing economies in the world. In this respect, it is hardly possible to disagree with the fact that the economic growth of China is determined by internal factors, such as one-child policy and the establishment of Township and Village Enterprises, and external factors, such as foreign direct investments in Chinese economy. At this point, it is quite logical that the three aforementioned factors contributed to the fast economic growth. Obviously, the limitation of the population growth opened larger opportunities for the economic development and allowed many Chinese families to tackle with the problem of poverty. At the same time, the on-child policy helped to maintain a positive demographic situation. However, the positive effect of such policy may be short-run because the one-child policy will raise unsurpassable barriers the Chinese authorities will have to tackle, when the population of the country starts aging. Today, many developed countries have already faced this problem, whereas China would face this problem at an incomparably larger scope because the population of China is consistently larger than in developed countries. Therefore, the one-child policy has substantial drawbacks and it is quite a doubtful factor of the steady economic growth of China.
Another factor, the Township and Village Enterprises is really important and useful for the economic growth of China. However, this factor also has its drawbacks because the Chinese authorities still play the dominant role in the socioeconomic development of China. What is meant here is the fact that the country is controlled by the political elite of the Communist party and the economic liberties can be limited consistently by the ruling political elite. In addition, the strict regulation and control over the economy from the part of the state does not always accelerate economic development. Instead, overregulation and control increase the risk of the ineffective economic development because the authorities can violate principles of the open market economy that threatens to the future development of Chinese economy.
Finally, the third factor, foreign direct investments, has both benefits and drawbacks. On the one hand, it does accelerate the economic development of China. On the other hand, it makes China dependent on the foreign capital and foreign investments. As a result, China is unable to develop adequately its economic policies regardless of the position of foreign investors and situation in international markets.
In addition, the paper ignores the problem of corruption which is one of the major threats to the current and future development of China. Along with the lack of democratic rights and liberties, corruption has a ruinous effect on the national economy. In this regard, China is particularly vulnerable to the problem of corruption which destroys the open market economy principles. At any rate, Chinese economy cannot develop effectively as long as the problem of corruption remains unresolved. In such a situation, it is hardly possible to agree that China can be used as a model for other countries in terms of the three factors mentioned above. In fact, the limitation of the population growth can be disastrous for countries with the aging population, whereas the attraction of foreign direct investments can undermine the position of the domestic capital. Therefore, it is important to stress that Chinese model of development can be used only partially by other countries.