China’s contribution to the net reduction in poverty is equal to 100% of the world’s total

26th November 2013 Socialist Action 0

The following article by John Ross evaluates China’s contribution to the reduction of human poverty. It previously appeared at Socialist Economic Bulletin.

In 2010 Professor Danny Quah, of the London School of Economics, noted: ‘In the last 3 decades, China alone has lifted more people out of extreme poverty than the rest of the world combined. Indeed, China’s ($1/day) poverty reduction of 627 million from 1981 to 2005 exceeds the total global economy’s decline in its extremely poor from 1.9 billion to 1.4 billion over the same period.’ The aim of this article is to analyse the situation taking data published three years after Quah’s analysis; look at the trends not only of extreme poverty, which the World Bank calculates using expenditure of $1.25 a day or less; examine a slightly wider poverty definition ($2 a day expenditure), and compare the trends in other regions of the world economy.

The US economic slowdown is much greater than China’s

9th August 2013 Socialist Action 0

Discussion about the trends in the world economy emerging from the 2008 financial crisis is dominated by the relative growth rates of the US and China – the world’s two largest economies.

The media discussion has been focusing on concerns about China’s slowdown and its global impact, while the US is portrayed a recovering well. In fact both major economies are slowing in the context of continued global economic weakness, but the US is slowing much more than China.

The following article, by John Ross, looks at these facts in detail and points out that the key question is not ‘why is China slowing?’, but why has the US slowed much more dramatically than China in the last year?

Map by: Burmesedays

US ratchets up tension on Korean peninsular

6th April 2013 Socialist Action 0

By Jane West

The bellicose response by the US and others to the latest developments in North Korea is in no way a proportional response to any real threat from the small East Asian state, but an excuse for quite other military objectives.

The US used its known language of war – ‘a real and clear danger’ – to announce its decision to extend its advanced missile defence system to the Pacific island of Guam. As no one in their right mind believes that North Korea has the capacity to hit the US – or virtually anywhere very far from its own borders – with a nuclear-armed missile, this step has other purposes. The country in the US’s binoculars is not North Korea but rising China, and the Guam move is a further step in its announced ‘pivot’ to Asia aimed at militarily encircling China.

The failure of neo-liberalism

4th February 2013 Socialist Action 0

The following article by John Ross sets out the disastrous effects on countries following neo-liberal economic policies – including in Latin America, Europe, and the US. It also analyses the errors in economic theory of neo-liberalism. Its influences also damaged China’s economy in the first half of 2012, but following China’s government boosting state led investment from mid-2012, China’s growth has accelerated again.

© Global Times

China’s economy speeds up

22nd January 2013 Socialist Action 0

The following article by John Ross analyses the economic policies underpinning the slowdown and then the accelerated growth of China’s economy in 2012. Since the article was published on china.org.cn on 1 January, the release of new economic data confirms the article. They show that China’s GDP expanded by 7.9 per cent year on year in the fourth quarter of 2012, accelerating from 7.4 per cent in the third quarter, and resulting in 2012 full-year growth of 7.8 per cent.

China’s economy in 2012 was “a tale of two halves”: In the first six months slowdown, even a feeling of developing crisis; in the second half recovery and accelerating growth. The story therefore had a happy ending. But it is worth noting what went wrong in the first half, and how it was corrected in the second, as this contains lessons for the future.