...Urban-rural Rising Income Inequality in China As a developing country, China is trying to develop its economy and solving the threat of poverty since the economic reform. As a well-known economist Arthur Lewis said that "development must be inegalitarian because it does not start in every part of the economy at the same time" in 1954 (Lewis, 1954). It is also true for China. The income inequality issue between poor and rich increased faster, which has a negative impact as China tries to become a more stable society. The gap between rich and poor is caused by complex factors. This paper is intended to discover and explain the issue of income inequality through urban-rural gap, and also give some suggestions according to today’s situation. Historical Analysis In pre-reform, China is very poor and has about 90% rural population (Knight et al., 2004). At that time, Gini coefficient measure income distribution is 0.280 (0 means perfect equality, and 1 means extreme inequality) (Naughton, 2007, p.217), which shows that Chinese people has almost equal income across the whole republic. Although it is good to show China is “one of the most equal countries in the world”(Naughton, 2007, p.217), the truth is that everyone is equally poor at the same time. In order to decline poverty and connect the new republic to the world, the Chinese leader Deng Xiaoping institute market reform and said “let some people get rich first”(The economist, 2001). Since then, China has maintained rapid growth...
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...m / l o c a t e / e c m o d Foreign direct investment and China's regional income inequality☆ Kang Yu a, Xian Xin b,c, Ping Guo a, Xiaoyun Liu d,⁎ a School of Economics and Management, Zhejiang Forestry University, Zhejiang, 311300, PR China Center for Rural Development Policy, China Agricultural University, Beijing, 100083, PR China c College of Economics and Management, China Agricultural University, Beijing, 100083, PR China d College of Humanities and Development Studies, China Agricultural University, Beijing, 100083, PR China b a r t i c l e i n f o a b s t r a c t China's widening regional income inequality coupled with its pronounced regional disparity in foreign direct investment stock since 1990 has claimed the attention of many scholars. While some researchers confirm regional disparity in China's foreign direct investment, others attribute the widening regional income inequality to this regional disparity. This paper thus assesses the impacts of China's stock of foreign direct investment on its regional income inequality using simultaneous equation model and the Shapley value regression-based decomposition approach. Our results suggest that China's stock of foreign direct investment has accounted for merely 2% of its regional income inequality. Furthermore, the contribution ratio of per capita foreign direct investment stock to China's regional income inequality has relatively been on a steady decline since 2002. The decomposition results also reveal...
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...Inequality between rich and poor Asia is the most populous continent in the world. Asia's total population is about 4.3 billion, accounting for 63% of the world's total population. And the countries, which own the population up to 100 million are almost in Asia. However, the economic development imbalance is appearing in different countries in Asia now. It is very hard to say which country in Asia is developed country and which is developing or backward country. But there is no doubt that Japan is the developed country in Asia in most people’s minds. Although China is one of the largest economy countries in the world, it is still a developing country. And it is a truth that the phenomenon of inequality between rich countries and poor countries is obviously appearing between different countries. This picture shows the daily life of Indian people. And this is the picture of Japan. From these two pictures, we can clearly feel the inequality between rich countries and poor countries in Asia. I’m Xiaoqian and I come from China, which owns the second-largest economy in the world, just after that of the United States, but the GDP is still rising fast. And it is said that China will become the world's largest economic power by 2030. However, we cannot overlook the real phenomenon of the inequality between the rich and poor, which exists in China today. The gap between rich and poor is very huge in China now. Firstly, we can focus on the inequality between different areas...
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...Name Professor Course Date Inequality in China Over the past few years, China’s economy has been booming and, therefore, lifting millions of its citizens above the poverty line. Consequently, China’s GDP has increased, implying widening of the gap between the rich and the poor. According to Aljazeera, in 2010 China recorded a very high Gini coefficient of 0.61 (Duggan, “Income inequality on the rise in China”) The Gini coefficient shows income distribution in a country, and hence inequality levels. This means that the inequality in China is very high as the Gini coefficient of one represents total inequality while zero Gini coefficients represents perfect equality. In large cities such as Shanghai, inequality is evidenced by the presence of extremely rich citizens and beggars with plastic cups sitting on the streets. The Chinese government needs to implement a taxation policy that accommodates all its citizens from the richest to the poorest. The problem of Income inequality can be solved by reducing the tax rates for low wage earners and increasing the rates for high income earners (Xiang, “Narrowing Gap between Rich and Poor”). There has been a close correlation between human rights and productivity. Many economic analysts argue that when China was poor there was relative equality in the country. While this argument may be true, human rights depend on the economic structure and cultural structure that surround the people. Economic structure defines the behavioral freedom...
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...nations. While these measures have traditionally focused on social and economic data, recent trends have extended to address other features. One important aspect in this regard is the underlying societal gender discrimination and the diverse outcome for males and females. This is commonly referred to as gender inequality. According to Dorius and Firebaugh (2010), gender inequality is where one gender possesses an excessively large proportion of valued items, such as political influence, wages or good health. Although every region of the world has developed policies and laws to tackle gender inequality, Asia-Pacific has countries with varying social and economic circumstances. This essay will examine gender inequality in two Asia-Pacific states, namely China and Singapore. The essay will consider employment and family-based gender inequality in each nation and assess the similarities and differences between them. Gender inequality has major impacts on nations, in particular on the Asia-Pacific zone. Francisco (2007) delineates various forms of inequality, namely mortality, natality, basic facility, special opportunity, professional, ownership and household forms of inequality. In this field, Jutting, Morrison, Dayton- Johnson and Drechsler (2008) argue that gender equality is vital to promote economic growth, wealth creation and poverty reduction. As an illustration, the Asia-Pacific region foregoes approximately 2-4 percent of GDP per year due to low female workforce participation...
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...China and India: The Pattern of Recent Growth and Governance in a Comparative Political Economy Perspective By Pranab Bardhan The two largest countries of the world with ancient agrarian civilizations, with many centuries of dominance in the world economy in the past and recently with impressive economic growth performance, draw obvious comparison. Over the last more than sixty years the two neighboring countries having adopted sharply divergent political and economic systems also provide a point of reference in any study of comparative systems. In this short essay we shall first briefly describe their patterns of economic growth primarily in the last three decades and their implications for the massive poverty and inequality in the two countries, and then move on to discuss the nature of governance both in public and private spheres, which shape those patterns. In 1820 the two countries contributed about half of world income (measured in 1990 prices), in 1950 they contributed less than 10 per cent (the preceding century in the case of China and nearly two centuries in the case of India included rather unpleasant encounters with the international powers), and the very rough projection is that in 2025 the two countries will contribute about one-third of world income (China much more than India). In the 1870’s as well as the 1970’s per capita income in comparable prices was somewhat higher in India, but since then China has shot far ahead. Even accounting for...
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...The rapid growth of Chinas economy over the past four decades has been greeted with largely unquestioned assumptions that increasing affluence would lead to a happier, wealthier more equitable society. Have the benefits of Chinas economy growth been distributed equitably and what are the social implications of this modernization process? Despite its remarkable economic growth which has been consistently high for a prolonged period of time, it has been unable to distribute the benefits of this growth to the wider masses in the country. This report looks to examine how China’s incredible economic growth and its rise as a global power has been manifested for the people of China. Part One frames this issue through popular measures such as the gini-coefficient and considers its trend. Part Two is centered on an analysis of the consumption density function curve and its shift to reflect a higher proportion of consumption by the wealthy. It is argued that this mode of analysis is superior to nationally aggregated figures as it establishes a relationship between population shifts and consumption levels. Part Three explores the theoretical underpinnings of growth-pursuant poverty reduction, namely the ‘trickle-down effect’. Attention is given to the concept of the trickle down and its intersection with Chinese domestic policy. Part Four highlights the notable divide between urban, rural, coastal and inland regards for growth and development and considers both the reasoning and implications...
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...Michael Francis 1 Mr. Griffith English 10 9/6/15 Social Justice and Gender Inequality What is social justice? In my words, I would define it as an equal and fair distribution of respect, opportunity, and power within a society. But how can we apply that to this quote? "I raise my voice not so that I can shout, but so that those without a voice can be heard."(Malala Yousafzai). In the case of this quote, it relates more to the problem of gender inequality. In many parts of the world today, many women face the same overarching problem of gender inequality. In the book, Leftover Women: The Resurgence of Gender Inequality in China. It talks of a woman around the age 26 awaiting her family in China, after earning her PhD in a prestigious U.S University. When she had called her mother back home in China to tell her of the good news, her mother's first response was to say, "don't tell too many people at home. That wouldn’t be a good idea.” "…she now had to face a terrible choice: of returning to China and the stigmatized status of the “leftover woman,” or of staying in the U.S, distanced from close family and friends, and without any guarantee of professional stability.” In China, once a women turns the age 27 they are seen as too accomplished to make desirable wives and too old to bear healthy children. In the Article, World Report 2015: Saudi Arabia, It lists many of the rules concerning what women can and can't do. In it, it's said that women were forbidden...
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... Since 1978, China has seen a sustainable rapid growth in its economy. China’s real GDP has already surpassed 7 trillion US dollars in 2011 in current dollars, and it has replaced Japan as the world’s second largest economy. People in China also have significant improvements in their standards of living and material life. However, my findings contradict the notion that an increase in income and standard of living will gain people happiness. My major findings show that income inequality and other major social problems, such as lack of religious belief and faith, political problems, and family burden have contributed to the decline of happiness among Chinese people. Other negative feelings emerging with the rapid economic growth, such as greed, interpersonal distrust and less compassion show adverse effects on Chinese happiness. I conclude the research by suggesting possible future researches for further studies. 1. Introduction After the Cultural Revolution ended in 1978, China launched a comprehensive reformation in its state controlled economy under the new leadership, Mr. Deng Xiaoping. Since then, China has gradually opened its door to the world and begun its transition into a market economy. (Chai, 1997) Over the past thirty years, China had the most enduring and rapid economic growth in the human history. According to the Federal Reserve Bank of Saint Louis, China’s average GDP growth is nearly 10 percent for the past 30 year. (FRED, 2013) In urban China, the average disposable...
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...however it is the opposite in China. In other words, half of the Chinese population are men. It is believed that the motive behind gender inequality between Chinese males and females is due to their one-child policy . Chinese leader Deng Xiaoping has established the one-child policy in 1979 as a solution to limit China’s population growth. Although it was implemented as a ``temporary measure, `` the one-child policy still exists twenty-five years later. Luckily, in the era of 21st century, in North America, for example, there is no such policy that entails gender discrimination since both males and females have similar rights as well as privileges. However, even in the 21st century, China is still struggling with its enormous gap that exists between genders because males are more valued than women. Therefore, women are not expected to place in a inferior place as opposed to men and this is why Chinese families seek to have more boys first than girls. The aim of this paper will be to prove the gender inequality within the Chinese inequality, from different perspectives, Sociological, psychological and economical studies. Sociological Chinese gender discrimination persists everywhere, especially in the labour market since some women are being segregated in various occupational categories. Sex segregation refers to the chances of entering a certain occupation or industry for people of different gender. Consequently, the degree of inequality in units outside the system such...
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...A Case Study Analysis of Foxconn: Perspective of a manufacturing sweatshop in China Boyao Zhang R/W Grad VI University of Delaware English Language Institute May 29th, 2016 A Case Study Analysis of Foxconn: Perspective of a manufacturing sweatshop in China An irreversible trend of economic globalization presents opportunities and challenges in China. Overall, foreign direct investment (FDI) and open trade, two major elements of commercial globalization, have played a crucial role in the international business market in the last thirty years (Lessmann, 2013). To avoid shortcomings, numerous developed countries have established their manufacturing industries in developing countries. Due to the advantages of lower labor cost and abundant resources, China has become the first choice of international manufacturing processing enterprises; therefore, as far as China's economy is concerned, the manufacturing processing industry is a vital element of national income and a crucial part of China's economic structure (Chan, 2013). Nevertheless, although it is indisputable that FDI and open trade have positive effects on the Chinese economy and the development of technology, in recent years, Chinese economic and environmental issues are undeniably caused by economic globalization. (Chen & Ge, 2010; Lessmann, 2013). Foxconn, a representative company of manufacturing industry in China, is a beneficiary and victim of FDI and open trade (Guo, 2012). This case analyzes the labor...
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...examine the relationship between globalisation, inequality and poverty. The term globalisation refers to the process by which the world has become more connected through advancements in technology, transport and communications and resultantly become integrated in many areas of life. For the purposes of this essay, one will be discussing the relationship between primarily economic globalisation, poverty and inequality in what many have referred to as the ‘third wave’ of globalisation, which has been prominent since the 1980s. Advocates of economic globalisation, understood as “the widening, deepening, and speeding up of worldwide interconnectedness” (McGrew in Ravenhill, 2005: 275) suggest that economic advancement through globalisation is a by-product of well-functioning markets; that countries should specialise in line with their comparative advantage; and that countries should practice free trade as a guiding principle. (Wade, 2004a: 184) Still today there exists huge economic inequality both within and between countries, and mass poverty is an issue which is still high on the agenda of world leaders across the globe. Yet data from the World Bank has shown that the number of people living in extreme poverty, of which it classifies as those living on less than $1 per day in Purchasing Power Parity (PPP) has fallen in the last two decades for the first time in 120 years. (Wade, 2004a: 163) The relationship between globalisation, inequality and poverty thus seems to be one which is...
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...Group Members No. | Name | Id | 1. | MD. Jakir Hossain Kiron | 1321558 | 2. | Kamrul Islam | 1320013 | 3. | MD. Ahsan Kabir | 1320848 | 4. | Mohammad Mazbahul Islam | 1320417 | 5. | MD. Tareq Islam | 1220229 | | | | Letter of Transmittal April 03, 2015 Mehadi Mansur Lecturer, School of Business Independent University, Bangladesh. Bashundhara, Dhaka-1212 Subject: Submission of Report. Dear Sir, It is indeed our pleasure to submit the report titled ‘Impact of Globalization on Developing Countries Income Distribution’to you for your kind appraisal.During information collection, we got support by many other sources and we also got huge amount of support from you when we prepared the report. The experiences we have gathered will be very helpful in our professional life. We believe, this report will be quite interesting and fulfill your expectation. We have tried to give our best efforts to prepare a comprehensive report. We will be grateful if you accept our report and your kind consideration will be highly appreciated. Sincerely Yours, Group Members of "Group No: 03" Acknowledgement This report would not have been possible without the dedication and contribution of all the researchers of our group members. In IUB we studied the subject “International Business” as a part of our course. We went through the textbook, according to the syllabus. Hence, we are grateful to our course instructor Mr.Mehadi Mansur for describing...
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...societies well being. Sustainability is a concept that has an enormous impact on the world as a whole so it is principle to understand what is being done in different countries concerning this concept. Briefly we will discuss sustainability in foreign countries. First we will discuss China and there advances in sustainability. China is a country that is constantly growing. China is also one of the fastest growing economies in the world. One major area that China has made great strides in is human population. This of course has happen because of china’s one child policy. The one child policy, started in 1979, basically says that every couple can only give birth to one child. Although this is considered a success there are other areas where china lacks. According to Ethan Gothman, The 2005 Environmental Sustainability Index (ESI), which ranks countries based on such measures as health, governance, technology, and international cooperation, places China 133rd out of 146 countries. The ESI predicts the likelihood that a country will be able to preserve valuable environmental resources effectively over the period of several decades (Gothman). China has also made some innovation is transportation. In 2006 China began to restore bicycle lanes that had been shut down to make room for cars. Beijing has begun a program to encourage public transport, lower fares, and begin a Bus Rapid Transit system. The Bus Rapid Transit system is a high-speed bus with a...
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...Colin Gaughan (x00110326) “Globalisation is a powerful worldwide force that has brought significant benefits to many peoples. Its benefits, however, have not been universally distributed.” This statement was made by John and George Steiner in 2005. They said this when globalisation was beginning to happen at a rapid pace. Globalisation allows countries worldwide to trade with each other on an economic or political front. This has had many benefits for a lot of people around the world. In my essay, I will discuss the many benefits that globalisation has brought to people. My research has enabled me to analyse this statement to great effect. Firstly, I will give a brief description of the history of globalisation. I will then discuss the many benefits globalisation has had on people worldwide. Then, I will discuss the universal distribution of globalisation. Finally, I will give a coherent conclusion to the points that I have made in my essay. Globalisation, although a relatively new term, has been occurring for many years but it has really began to occur on a much greater scale in recent times. As said by (Ross, 2003) , “globalisation began with a technological breakthrough.” This says a lot about the power that technology has. It is commonly known that technology has been a major player in many changes in the world in recent times, and it is no different with globalisation as it came about as a result of the “world's first microprocessor.” This may not sound like it could...
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