Strategies: Top-down, Government directed, Urbanization,
Industrialization, Export-oriented, Resources input, Special Economic Zone,
Privatization, high investment/savings, education, taxation on trade
Pros:
- Central planning makes decision making faster and more coherent
- Economic sources from agriculture-dominated to diversified with focus on industry - high value added products and services
- Infrastructure construction
- Relatively cheap labor force
- Better education system than India makes the future generation more knowledgeable and productive
Cons:
- Current dependence on other economies given its trade imbalance
- Inequality between coastal area and inner area
- Overcapacity in downstream of value chain - lack of innovation
- Investment inefficiency - restricted foreign capital inflow
- Ethics reputation
- Rise of the middle class that will eventually seek for political reform and more freedom - future uncertainty
0 Comments