Section 1: Competitiveness-
● China’s Global Ranking on Competitiveness 2010 - China ranks 27th in the Global Competitiveness Report, which was an increase from 29th place last year
● China moved up two places to No. 27 in rankings of the Global Competitiveness Report 2010-2011 published by the World Economic Forum (WEF). "China has been rising and rising in recent years," said Jennifer Blanke, chief economist of the WEF, to China Daily newspaper.
● Jennifer said the gap between China and other BRIC nations (Brazil, Russia, India and China) is also increasing, making China more competitive than other developed nations.
● The national government has substantial control because it is highly centralized.
● Sub-national government officials are appointed from above, and the appointment and promotion of sub-national government officials serve as powerful instruments for the national government to induce regional officials to follow the central government’s policies.
● Regional economies (provinces, municipalities, and counties) are relatively self-contained, and sub-national governments have overall responsibility for initiating and coordinating reforms, providing public services, and making and enforcing laws within their jurisdictions. This feature qualitatively differentiates the Chinese economy from a typical centrally-planned economy.
● In China, sub-national governments have influence or even direct control rights over a substantial amount of resources, such as land, firms, financial resources, energy, raw materials, and others.
● Sub-national governments are major players in the bulk of the Chinese economy.
● Under the supervision of the central government, they initiate, negotiate, implement, divert and resist reforms, policies, rules and laws.
● They drive, influence or hamper regional/national economic development, macroeconomic conditions, environmental conservation or degradation, social stability, etc.
● China’s reform trajectories have been shaped by centrally-controlled regional decentralization.
● Governance Structure induces great results and great problems
● Moreover, sub-national governments have become more important in all regional affairs, including land allocation, business development, infrastructure construction, fiscal matters, lawmaking and law enforcement.
Financial market sophistication:
● (Refer to image below) Note that an RCA in excess of one suggests that a country is competitive in world markets, i.e. that its share of world exports has been increasing.
● China is close to 2 in the 1980 to 1995 period.
● China’s exports grew at a rate that was several times the global average growth during 2000-2002.
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- Submitted On 29 Jun, 2015 06:07:22