There is no denying that Mao's policies shaped a nation and formed the foundation of modern-day China. However, the number of lives, dreams, and aspirations that were lost as he brought his will down upon the people can never be recovered. Modern China cannot be understood without studying this period of history. We think too small, like the frog at the bottom of the well.
These changes make it possible for families to have two children if only one parent comes from a one child family. Originally both parents had to be only children for them to be permitted to have two children. There were also other exceptions to the rule including ethnic minorities and some rural families who were allowed to have a second child if their first was a girl.
In some areas, richer families were able to bypass the law if they paid a fine for each subsequent child after their first born. Industry sectors across the board saw rising share prices as investors showed their confidence in the proposed softening of the One Child Policy regulations.
The Chinese government hopes that by allowing families to have more children it will lead to a more consumer-driven society as parents face pressure from both children. It has been shown, through research into Chinese families with twins that families with two or more children feel they have a more secure future.
Two child families are more secure because there is less pressure from dependants. Currently Chinese families tend to follow the four, two, one model, or one child, two parents and four grandparents. This puts a lot of financial burden on the child to look after the previous generations.
The proposed policy reforms will change the current system to a more balanced four, two, two model so two children will share the financial burden, thus reducing it. However, the relaxation of the One Child Policy is likely to create more problems than it solves, especially in the short term, as there will be an increase in young as well as elderly dependants, for the working-age population to care for.
The number of pension-age people in China is predicted to reach million by while the workforce is expected to shrink massively over the next 20 years so that there will be approximately 1.
Whilst some believe it will be successful, others think that it will have little or no effect, as many families are already permitted two children under current laws. Other countries in the world that have seen increased urbanisation have also experienced a drop in birth-rate to coincide with this change.
The Chinese government has been taking measures to alleviate some of the problems caused by the new policy. For example, to relieve the pressure that a baby boom would cause on the country the Chinese government has said that the reforms will be rolled out gradually, area by area rather than everywhere at the same time.
This means that schools, hospitals and other infrastructure will have time to prepare for an increase in demand. The Chinese government will also have to develop strategies to minimise the possible negative effects the changes to the One Child Policy may have on the economy and will need to continue to invest heavily in pensions and services for the elderly.
However, in years time, when the children of the new policy enter the workforce; the Chinese economy will start to feel the beneficial effects of the policy change as the ratio of retirees to working-age people will become more balanced and there will be less pressure on the workforce involved in caring for the elderly.
The increased consumerism created by having more children will also benefit the economy and push China to attain its goal of transitioning from a manufacturing and export market to a more consumer-driven market in the future.NBER Program(s):International Trade and Investment We analyze the impact of China's growth on the exports of other Asian countries.
Our innovation is to distinguish the increase in China's demand for imports from its increased penetration of export markets.
Apr 14, · China bashing is popular, but China's importance to the U.S. economy and the world's cannot be understated. Chinese economic policy became an important driver to growth in when the U.S.
and. China Global Impact is an associated organisation of the 48 Group Club, managed by Stephen Perry, Chairman. China’s economic slowdown would impact different regions of the world in different ways depending on their exposure. In countries dependent on commodity exports, like Australia, Brazil, Canada, and Indonesia, the slowdown could have a negative impact on their GDP growth as demand slows.
Changes to the One Child Policy and the Effects on the Chinese Economy Posted On Jul 15, One of the biggest headlines to come from the recent Third . Policymakers all over the world are now anxious about the likely impact of the continued and prolonged Chinese economic slowdown.
In , the Chinese economy grew by percent, its worst rate since This is considered to be the result of China’s effort to curb shadow banking and to enforce.