How China Became an Economic Miracle in Less Than 20 Years

China’s staggering rise in the past years or rather half century is one of the most brilliant examples of economic growth.  Especially during the last 20 years China has undergone a remarkable shift from mainly being an agrarian society to an industrial powerhouse. Sharp increases in wages and productivity have been witnessed enabling China to become the second-largest economy of the world.

Initially, China pursued an export-oriented path to industrialization similar to their ancestors. Gradually China started to diversify in other sectors of the economy as well in the past decades. Exhibiting amazing determination to increases growth rates and widen its economic reach, the way China became an economic miracle is well-documented.

Numerous factors played their part in this. Firstly, the China reforms and as long China follows economic and social reforms, it shall keep growing. Privatization of the state-owned enterprises (SOE) has played immensely. 27 million workers from SOEs have gotten employed in the private sectors in the last decade only. China welcomes the outside world with open arms opening up to foreign investments. The central government of China has put in huge amounts of human resources and capital to boost and develop the education and technology.  In the last 20 years, literacy levels of China have risen to 95%.It is a solid stimulant.

Another factor that is the most popular explanation of Chinese economic growth is vast and cheap labor. There is ample supply of workforce with a steady supply of rural-urban migrants seeking jobs. Also, there is a large number of female participation and the Chinese workforce considered by higher than average female workers in the manufacturing industry. Urbanization has proven to be a critical driver of market demand and resulted in huge investments in the infrastructure. It aims to convert at least 45% of the rural population of China into urban residents.

Last but not the least, Chinese leaders and politicians feel a bigger and greater responsibility to the nation than to themselves and such strong leadership from the head been a vital factor to economic success.