Role of political system in promoting economic growth, the Case of Essay

Role of political system in promoting economic growth, the Case of China - Essay Example Lack of political will to perform increasing significant economic restructuring has resulted to prolonged dependence on public investment. State regulation and various enterprises ownership has hindered productivity and sector of finance is majorly the critical control of the state via manipulation of credit and subsidies, (Midlarsky, 1997, p.90). Chinese experience The Chinese experience in the last 30 years or more is increasingly illusive. Deng Peng reforms in the earlier years were strictly restricted to entirely certain economic initiative freedom when certain private ownership, such as sector of agriculture, was realized and economy of the market was introduced, (Simha, 1999, p.87). Moreover, in some aspects, the government of China has maintained its authoritarian policy and critical restrictions to politics, culture, social, and religious liberty. It is clear that increase in the Chinese economy in the past has been significant. Ten to twelve percent growth per year liberated some 3-4 hundred million Chinese populations from devastating poverty. It is true that democracy, in the Chinese case, was not a requirement for the growth in the economy. In this regard, experts agree that China does not fit in a democratic nation category, although it is a rapidly developing and nation of the globe and in second phase of industrial revolution, (Lijphart, 1999, p.56). Thus, the claim that democracy is the key reason for growth in economy does not hold more water, because a combination of factors rather than the Chinese political state that fueled economic growth of China. Therefore, people can believe that China is planned economic nation although, in the real sense, though limited, regional powers have inadequate democracy. China is a prominent global...This essay presents a comprehensive analysis of the economic development of Chinese economy in recent decades. It is shown in the paper, that China achieved high levels of economic growth without being considered a democratic nation by economists, China is a prominent global exporter that would show the prosperity of China because it indicate to its revolution of industry, and this is because China has various cheap labor pools, extensive land scopes that can full accommodate manufacturing. Similarly, China has, in large scale, a prolonged border sea that promotes exporting activities. These factors and many other factors give a crucial indication to the main idea of extensive economic growth that is exclusive of political reasoning. Additionally, the economic growth in china naturally existed in Chinese land even before the democratic government system. Therefore, it could be assumed that the Chinese political system has enabled that government to guide its population to work sectors where growth of economy is more evident and thus allowing maximum efficiency of labor. Experts agree that democracy hinder growth in economy in third world nations because it generally leads in economic decision-making diffusion across the population that resultantly exposes local enterprises to extensive, increasingly efficient, external competitors. Therefore, many believe that centrally organized economic policy control promotes increased permanent growth and politic climate increasingly better for this is an authoritarian political condition.