Problems ahead

van Zyl, Johann
March 2005
Finance Week;3/28/2005, p58
The article presents a study of the economic development in China. Though China's average gross domestic product (GDP) growth of 8%/year since 1978 has gripped the world's imagination, it also brought the country its fair share of problems. The growing income gap between the urban and rural populations is the greatest problem. The Chinese government is aware of the growing discrepancy and launched a campaign in 2000 to increase private and public spending in the poorest western provinces. The study also points to the possibility of a sharp increase in unemployment as unproductive state organizations close down.


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