ECON160 Research Paper Example | Topics and Well Written Essays - 1250 words

ECON160 - Research Paper Example Moreover, free market system promotes fairness in the society by threatening dictatorial rule. Part 1 Free market policies that threaten dictatorial governments Governments around the globe prefer the free market system because of the advantages that arise upon use. Indeed, the system encourages entrepreneurship and healthy competition. In dictatorial States, the system poses threat to governments. According to Cobin (16), free market leads to economic growth and the development of democratic empires. In China, the system has been fundamental in strengthening democracy. The rise in private wealth acquisition in China is attributable to the free market system. For instance, the system promotes democracy in China. Free market system discourages dictatorship in several instances making the system preferable in developed democracies. According to Wehner and Brooks (37), the use of free trade policies limits State’s monopoly. As such, the system denies government the monopoly of ma king trade policies on behalf of the citizens. Governments using the system consult citizens when making trade policies. Wehner and Brooks (24) add that free market system enhances fairness in employments. Moreover, government listens to public opinion when making national budget in free market systems. Dictatorial governments find it hard to embrace the free market system because it encourages citizens to take part in planning. In free markets, the public helps the government in planning for activities that affect trade. For instance, citizens vote when choosing their leaders, yet voting is against the principles of dictatorship. Moreover, people make decisions through consensus in free trade (Kates 7). Citizens prefer the use free trade policies because the policies advocates for fairness in trade. Free market system advocates for the use of monetary policies in restructuring economies. This is only achievable in the presence of democracy. The economy encourages dialogue during pl anning. This makes it difficult for a government to embrace dictatorship (Wehner and Brooks 27). There is a direct connection between economy and politics making governments listen to the views of masses when devising trade policies. A majority of the countries that have adopted free market economic system are not dictatorial. This is an indication that free market system discourages dictatorship. Policies that prohibit the government against setting prices for commodities are helpful in promoting democracy. In free market economies, market forces control the activities of the market. According to Cobin (151), governments intervene only when the country faces crisis. Additionally, a free market encourages the poor to exploit the rich because they control dictatorial governments. When the poor have the capacity to develop, they become a threat to the government. In free markets, people champion their rights through voting; hence, the poor in the country have the capability to elect o ne of their own to a leadership position. 2 China’s economy According to Richard McGregor, China’s economy is both a free market and communist economy. It is a free market because leadership has embraced liberalization of trade. For example, individuals have built their own business empires from trade. In China, the communist party encourages ownership of properties by individuals. The

Economic globalization in China Essay Example | Topics and Well Written Essays - 1250 words

Economic globalization in China - Essay Example The death of Mao Zedong, the father of China’s Cultural Revolution helped them to shift their attention from the ideological warfare and class struggles to the economical development. Moreover the emergence of Deng Xiaoping as the leader of China after Mao gave momentum to the economic development activities. Globalization has brought revolutionary changes in china. China’s GDP was dollar 4.5 trillion in 2000, second only to US whereas the GDP per capita was $ 3600 in 2000. The trading power of China was in the 32nd place in 1978, 15 th in 1989, and 6 th in 2001. China was the world’s fifth largest exporter and 6 th largest importer in 2002. FDI in 2002 was around $ 50 billion. The number of poor has declined from 250 million in 1978 to 30 million in 2000. Population growth has been controlled by controlling the birth rate. The average life expectancy of Chinese people increased from 35 years in 1949 to 71.8 years in 2001 (Gao). Jintao (2005) has mentioned that b y 2020, Chinas GDP might be approximately $4 trillion with a per capita level of around $3,000 (Jintao).This paper briefly explains the revolutionary changes happened in China due to economic globalization. Till the era of Mao Zedong, China was more adamant in their economic policies. They have followed an economic policy strictly in accordance with the Marxist economic views. All the other economic policies implemented in other capitalist countries have been looked suspiciously by China and other socialist countries. China like socialist countries were reluctant in opening their economies to capitalist countries. Most of the trade activities of China were with Soviet Union and other socialist countries. Later after the destruction of Soviet Union China tried to establish trade ties with the third world, still reluctant in establishing any connection with the U.S. and U.K. like capitalist countries. Because of the above policy China escaped from