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Inclusive Business and Impact Investing
The first and highest rated scoop.it blog on sustainable and inclusive business and impact investing. The curations are mine.
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Rescooped by W. Robert de Jongh from Geography Education
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The End of Cheap China

The End of Cheap China | Inclusive Business and Impact Investing | Scoop.it
TRAVEL by ferry from Hong Kong to Shenzhen, in one of the regions that makes China the workshop of the world, and an enormous billboard greets you: “Time is Money, Efficiency is Life”.

 

China’s economic growth has been explosive. Many people predicting the economic future have used current growth percentages and trajectories to extrapolate into the future. The question that we should ask is: how long can China continue to grow at this current pace? Many signs are pointing to the difficulty that China will have in sustaining these levels of growth. The era of China being the world’s go-to source for cheap manufacturing is dependent on current geographic variables, variables that the economic growth is altering.

 

Manufacturing prices are rising, especially in the coastal provinces where factories have usually been agglomerated (also known as Special Economic Zones --SEZs). The more success that China has in manufacturing, land prices will go up, environmental and safety standards will increase. Collectively, this will mean that labor costs for the factories will also be increasing as Chinese workers are not only producing but also becoming consumers of manufactured goods with an increased standard of living. This is changing the spatial patterns of employment in China and will impact Chinese manufacturing’s global influence. Sarah Bednarz recommends this article as “a needed update on the new international division of labor (NIDL).”  For more on the topic, see Shaun Rein's book, "The End of Cheap China: Economic and Cultural Trends that will Disrupt the World."


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Roland Trudeau Jr.'s comment, July 29, 2012 10:48 AM
As these laws increase and so does the economy it would seem more work will be pushed out of China. Perhaps in the future China will not be the go-to place for cheep labor. That is excellent news for all those effected by these horrible conditions, but given the loss of jobs with the rise of standards, they may not be so happy.
Jacob Crowell's curator insight, December 15, 2014 1:30 PM

I think this is a very important article. All our estimates on China's growth assume that they will continue to operate the same as they grow more and more. We can see that when economies grow, the standards of living rise,, wages rise, the middle class grows and the cost of production will rise. In the late 19th and early 20th century the United States had cheap labor and was one of the worlds leading producer of goods, but as workers clamored for more money, better working conditions and social programs our cost of producing rose to a point where it was cheaper to outsource labor. With China growing, other countries are more attractive to business looking to protect their bottom line.

Jason Schneider's curator insight, April 2, 9:43 PM

The most popular nations of China and the strongest economies of China appears to be on the edge of the east side of China such as Shanghai, Fujian, Guangzhou and Liaoning. I believe that their economic growth has something to do with the fact that these counties are off the coast of East China sea so when you have tourists of immigrants from the east side of China, most likely, they will visit these counties that are in the far east of China. Overall, China is a powerful country but they focus more urbanization on the far east of China because it's closer to the water and that's where you'll find tourists and immigrants. Also, manufacturing factories, especially in the far east are extremely wealthy which allows higher wages to workers and it lures more people to work in China which strengthens peoples desires to go to or live in China.

Rescooped by W. Robert de Jongh from Geography Education
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Does democracy stifle economic growth?

TED Talks Economist Yasheng Huang compares China to India, and asks how China's authoritarian rule contributed to its astonishing economic growth -- leading to a big question: Is democracy actually holding India back?

 

This compelling TedTalk explores the links between economic development and governmental style, oversight and influence.  While the speaker mainly discusses politics and economics in the context of China and India, Pakistan, Russia, North and South Korea are all mentioned.      


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Matt Mallinson's comment, November 21, 2012 11:11 AM
Democracy can stifle economic growth. War will definitely stifle economic growth. North Korea doesn't look like they're going to stop fighting South Korea, if only they would combine their lands, they would probably be a much better nation as one.
Jacob Crowell's curator insight, December 15, 2014 2:17 PM

For Americans the idea that democracy can be anything but sunshine and rainbows is a hard pill to swallow. There is evidence that supports the contrary. Although democracy has the moral high ground, authoritative governments can grow at a faster rate because it does not have to address resistance where democracy fosters debate and dissent. In India, millions of people will not agree on everything and therefore progress can be slow going.