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The economic growth of China in the early 1990s averaged 13% per

annual; in fact, China has experienced the worlds highest consistent rate
of economic growth for more than a decade. However, due to this rapid
growth from 1990s, several economists argues that the gap between rich
and poor areas has widened.
First, there is extensive unemployment, underemployment, and inefficient
allocation of resources in the Chinese economy, particularly with respects
to human and capital resources.
During the Great Leap Forward in 1952 to 1978, the gap between the rich
and the poor provinces widened considerably. This happened because the
government at the time invested heavily in heavy industry, and so the
wealth of the industrial provinces of North-East China increased very
sharply. The government centrally planed it to Beijing, Shangnghai, and
Nigxia. Beijing, especially, rised, continuing to cumulate its wealth.
However, the provinces improved must were the coastal provinces, but
industrial bases of north-western China (Manchuria) and western provinces
experienced declines in their per capita income rankings. The relative gap
increased from 1.01 in 1998 to 1.54 in 2008. We can therefore conclude
that the widening of relative income during the market reform period has
been small compared
First, the coastal provinces introduced economic policies as early as 1980s
to start investment and trade. These policies led to rapid integration into
world markets, huge inflows of foreign direct investment and the
development of a modern industrial basis in these provinces. In this way,
the coastal provinces got a head start on economic development
compared with inland provinces, and the inland provinces have never
caught up with that lead.
Better natural conditions in the coastal provinces more arable land,
better conditions to develop infrastructure and better access to the sea
than the inland provicnes enjoy. Coastal locations also better for export
processing industries, which have been developing very rapidly during the
last 20 years, especially as the EPZ opened from 2000s, attracting more
foregin investors, and is in Shenzen.
Since 1982 Chinas SEZs have all been developing at an incredible speed.
Shenzhen itself has been especially successful. In 1992 Shenzhen attracted 14%
($4.3billion) of Chinas total foreign investment. The city is now one of Chinas
main import-export hubs as well as a leading manufacturing base.

(increase chinas gdp by 10%)

Gobi desert (north) south west Himalayas, East - coastline

o Some ethnic or religious groups can become marginalised and struggle

to escape from poverty. This might be because the political leaders are
from a certain ethnic group or tribe and they favour people from that
o Ethnically, China is predominantly Han and it is the Han that dominate
government. Therefore, Han people have often been favoured and
minority groups like the Tibetans in the south west and the Uighurs in
the north west have been marginalised.
o Although the human rights situation remains serious for all those living
within Chinas borders, ethnic minorities such as the Mongols,

Tibetans and Uyghurs face challenges on multiple aspects. Despite the

autonomy system, minorities are bearing the disproportionate costs of
development and are facing attacks on their cultural identities. Their
lands are being exploited for gas and oil, increasingly militarized by
the PRC government, as part of its response against perceived
insurgency threats. Minority languages are largely being phased out of
education in these autonomous regions, and minority individuals are
often blatantly discriminated against in the job market.

Income (and Land)

o High population = cheap labour
o 2.9% unemployment rate = most get some kind of wage
o Geographical placing changes living standards, wages, social benefits
o Living in a rural area reduces benefits/wages as well as gov. attention
o Child labor
Both a cause and effect
Increasing consumerism leads to a higher demand for
cheap labor
Usually, the only people willing to work for so little are
They then drop out of school (or never go), lowering the
percentage of educated population, and are not able to
continue on and get real jobs, thus increasing the
amount of poverty
Children in poverty are typically forced to work in order
to provide extra income to their families, because their
parents are unable to, or simply because they are in
need of more money


Kenyas sugar market is another example of the destruction of an economy as a result

of free trade. Mumias Sugar, responsible for 30% of Kenyan sugar production, closed
down in 2000 due to its struggle for years against the flood of cheap sugar (New
Privatisation). Due to free trade, sugar imported from Saudi Arabia enabled limitless
access with cheap prices derived from dumping - 70 shilling compared to 100 shilling
(New Privatisation). Free trade from Saudi Arabia took away millions of jobs for
Kenyans. Ironically, Saudi Arabia is not a producer of sugar; they exported sugar into
Kenya that they had imported. Thus, this demonstrates the detrimental effects free
trade can bring to a country, creating a domino effect.