What+is+China's+present+stage+of+economic+development?+-+Vivien+Ho

Source: China.org.cn, http://www.china.org.cn/opinion/2011-04/21/content_22409564_2.htm Date found: March 14, 2011 Date written: April 21, 2011
 * Article:** What is China's present stage of economic development?

This article attempts to identify the present stage of China's economic development by using economic indicators drawn up by economic statistics. The importance of being able to identify China's stage of economic development is because it is a good prediction of what can be expected from its economy for the future and to compare China to different countries. This article praises the GDP per capita statistic over the GDP statistic in order to compare the welfare and standards of living of citizens in different countries (specifically China and other countries). The number of China's GDP per capita as of April 21, 2011 has reached the same number as Japan's in 1966 or South Korea's in 1986. By comparing the GDP per capita the article states the resemblance of the economy of South Korea and Japan of the years 1986 and 1966 respectively to China's economy right now in terms of which sectors are current flourishing such as heavy industry, steel and shipbuilding, and domestically competitive motor cars. Although China's GDP is almost the GDP of US and may surpass the US GDP if 2019 according to IMF predictions, the country will not be necessarily more developed.
 * Summary:**

Macroeconomics -The part of economics concerned with the study of an economy as a whole and economy wide issues such as unemployment, inflation and growth. Sustainable Development: -Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Market -A place where products are traded or exchanged. Gross Domestic Product (G.D.P.) - The total value of all goods and services produced within in an economy of a country in a year. Gross Domestic Product per capita (GDP per capita) - The total value of all goods and services produced within an economy of a country in a year divided by the total population. Economic Growth - Steady growth in the productive capacity of the economy. Economic Development - Economic development is the increase in the standard of living in a nation's population with sustained growth. Human Development Index - A composite index that measures a country's human development in three basic aspects of human development: GDP per capita, literacy rates, and life expectancy at birth.
 * Vocabulary:**

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This article is correct to doubt the GDP statistic to be used as an accurate indicator of a country's economic development. GDP per capita is indeed a better economic indicator of economic development because it averages the economic productivity output per person. Two countries with the same GDP may have a gap in population sizes. (For example, if a country had 1 person population and the other had 1,000. The GDP of 10$ would have to be distributed to 1,000 rather than to just 1 person). GDP per capita is not a completely accurate indicator due to the invisible income distribution gaps that may exist because GDP per capita is an average of all the population in a country and each person produces different amounts of economic output.GDP per capita may be an accurate indicator of the economy's state in comparison with those of other countries in different years as seen in this article between South Korea, China, and Japan but the people's standard of living is not as accurately assessed. In other words, economic growth that is assessed by GDP does not directly correlate to economic development. Industries in sectors that are flourishing increase the GDP with both negative and positive output because the nature of thse products are not distinguished or identified. The products of the economy may not enable sustainable growth so GDP per capita may not reflect what is expected of this country in future years because it does not consider sustainable development. In fact it discourages sustainable development by depleting natural resources in favor of producing more output. A better indicator to compare the economic development of China and other countries would be with the Human Development Index which takes into account three statistics: GDP per capita, literacy rates and life expectancy at birth rates. This is an index the UNDP uses to compare standards of living in different countries.
 * Evaluation:**