China as the most attractive country for FDI.
* The Chinese is one of the oldest civilization - extends backwards in history in an unbroken chain over nearly four thousand years.
* It used to be one of the top powers for centuries, even though it was separated from the world
China under Mao Zedong
* 1949 - announced establishment of People’s Republic of China.
* Same principle as in USSR: take away from richer, give it to the poorer. Hence wealthier landlords were forced to give away their land to poorer peasants.
* By 1958 private ownership was entirely abolished and all the land was state-owned.
* Mao saw grain and steel production as the key pillars of economic development. He forecast that within 15 years of the start of the Great Leap, China's steel production would surpass that of the UK.
The Great Leap
* Shift of labour force from agriculture to industrial sector accompanied by poor weather conditions and harsh treatment by governmental authorities led to severe famine.
* Number of deaths during that period is roughly 42 million people (latest estimate)
* During the Great Leap, the Chinese economy initially grew. Iron production increased 45% in 1958 and a combined 30% over the next two years, but plummeted in 1961, and did not reach the previous 1958 level until 1964
* led to the greatest destruction of real estate in human history, outstripping any of the bombing campaigns from World War II.Approximately 30 to 40 per cent of all houses were turned to rubble
* Chinese economy during the cultural revolution directed by Mao completely destroyed economy reaching the level of 2% of the world GDP.
Date: 2015-01-11; view: 690