Increased private sector in China

Description

The emergence and growth of the private sector in China has been one of the most profound socioeconomic changes in China since the onset of post-Mao reform.

From the early 1990s, the number of private enterprises increased by 35 per cent annually and there are now over five million. The private sector is the main source of economic growth in China: as of 2007 it contributed 66 per cent of GDP and 71 per cent of tax revenues. It is also the main source of new jobs: between 2002 and 2006, the private sector created almost 44 million urban jobs, whereas employment in state-owned and collective enterprises shrank by nearly 11 million.[1]

Enablers

• Deforestation
  • Brought on by desire for "chopsticks, toothpicks and Ping Pong paddles"
  • Firewood collection
• Increased water scarcity in China
• Wind storms
• Improper land use
  • Over-cultivation and overgrazing ("the tradegy of the common")
• Climate change
  • Increased temperatures, decreased rainfall
  • Fragmented government response

Inhibitors

• Improved agriculture
  • Problem fences to stop overgrazing
• Reforestation
  • The "Green Wall" of China
• Alternatives to wood as a source of fuel

Paradigms

• As the private enterprises have gained increased prominence in the national economy, private entrepreneurs have begun to play an increasingly important role in China’s political life.
• Because of their growing economic and political clout, it has been commonly anticipated that private entrepreneurs will begin to promote political change and eventually a democratic system.

Web Resources

1. "Private companies playing a bigger role", China Daily
2. "Allies of the State: Democratic Support and Regime Support among China’s Private Entrepreneurs", China Quarterly

Revision History

September

2009

Created by Chia Wei Lee