Louis Kuijs: Political Economy of Structural Adjustment (3/7)

The video discusses China's economic growth, focusing on structural adjustments and imbalances. It highlights the need for rebalancing towards consumption and services, as outlined in China's 12th 5-year plan. The speaker explores potential economic scenarios and political economy challenges, emphasizing the importance of policy decisions in shaping China's future. The international discourse on China's rebalancing and associated risks are also examined.

What is the traditional pattern of growth in the Chinese economy?

• Led by tourism and hospitality

• Led by industry and investment

• Led by agriculture and services

• Led by technology and innovation

What has been a major consequence of the investment and industry-led growth pattern in China?

• Decline in household income share

• Decreased urban-rural inequality

• Increased rural employment

• Rise in agricultural output

What are the two main objectives of China's 12th 5-year plan?

• Increasing exports and reducing imports

• Rebalancing towards consumption and moving up the manufacturing value chain

• Focusing on agriculture and reducing industrial output

• Enhancing tourism and cultural exchange

Which factor is unlikely to be the dominant driving force in China's rebalancing?

• Capital account liberalization

• Financial market opening

• Industrial policy reforms

• Exchange rate adjustments

What is a potential risk mentioned in the conclusion regarding China's rebalancing?

• Excessive focus on agriculture

• Very little rebalancing from the current growth pattern

• Rapid urbanization without infrastructure

• Over-reliance on foreign investments