Economic reform of china

Yvonne Kramers, student no. 15

The Business Management in China

Evaluation of the economic reforms in China since 1978 Teacher: Zhang Feng
Part 4: The Business Management in China Question 4: Evaluation of the economic reforms in China since 1978

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Yvonne Kramers, student no. 15

Index Introduction Chapter 1: The economic history of The Netherlands (since 1945) Chapter 2: Theinfluence of the financial crisis in The Netherlands Chapter 3: The economic reform in China (since 1978) Chapter 4: The influence of the financial crisis in China Sources Afterword Acknowledgement

Part 4: The Business Management in China Question 4: Evaluation of the economic reforms in China since 1978

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Yvonne Kramers, student no. 15

Introduction I've chosen this topic, because I thinkthat it is good to look at reforms during this financially uncertain time. China has been working to reform its economy since 1978 and has to keep on reforming to make sure that the current financial climate doesn't undo the work that has been done so far. In The Netherlands and the rest of Europe, the financial crisis is also of a big influence, even for the people in their daily lives. In thisessay, I've written about the economic reforms that China has done, but as well about the economic history in The Netherlands, to make a comparison between the economic history of two very different countries. I think that it is interesting to see how a capitalist country such as The Netherlands and a communist country such as China have developed and also to find out the differences between thesedevelopments. I hope that you will read my essay with pleasure. Kind regards, Yvonne Kramers

Part 4: The Business Management in China Question 4: Evaluation of the economic reforms in China since 1978

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Yvonne Kramers, student no. 15

Chapter 1: The economic History of The Netherlands (since 1945) World War II – 1960's. After the second World War ended in 1945, a new era started forThe Netherlands. The first decade was mainly about rebuilding the country, in both the literal meaning as in an economical way. The war has cost the country a lot of resources, which was because of the German occupation. By the 1950's, most of the damage was undone. There are three factors which contributed the most to this successful rebuilding: the government policy, the efforts of the populationand the Marshall help programme The government decided to take drastic measures, in order to prevent massive unemployment amongst the population. In exchange, the government expected a good collaboration between the employers and the workers. Also, the government established the Social-Economic Counsel, which was an organisation in which the government, the employers and the workers coulddeliberate. This counsel would later become one of the most important advising organisations for the government. The wages were kept low, so that it was possible to make investments which would generate more work. However, this wouldn't have worked out the same if it wasn't for the Marshall help programme. In the 20 years after 1953, The Netherlands would change dramatically. The purchasing power of thepopulation would quadruple. In 1952, the balance of payments (BOP) would have its first surplus since before the war. The Netherlands also were one of the six countries that started the European Union, and a big natural gas field was found. All these factors contributed in the growing of the wealth in the country. A big economic change was that the focus was shifted from the industrial sector tothe service sector. Also, the productivity became more important, which lead to better efficiency. In the 1960's, the controlled wages policy couldn't be maintained any longer. This lead to an explosive increase of wages. This lead to tension between the employers and the workers. There were more conflicts and changes during this decade. For example, several protesting movements were started,...