The paper 'Policies and Strategies of Growth ' is a perfect example of a Macro and Microeconomics Case Study. Each nation around the world is faced with particular challenges that affect its growth. The circumstances that are prevalent in a particular nation have the potential of affecting its growth. Some circumstances such as poverty and insecurity have negative impacts on the growth and development of a nation. The policies and strategies of a nation in most cases are developed in order to address the prevailing circumstances. This has led to the question of whether the circumstance prevalent to a nation should determine its policies and strategies of growth.
The growth and development of a nation are important in ensuring that the livelihoods of the people are improved. The quality of life is dependent on the ability of the people to solve the economic problems facing them. The productivity of a country is also an important aspect that determines the competitiveness of the economy. Some countries such as China have been able to experience a high economic growth rate. This is despite the high prevalence of poverty after independence (Oi, 2015: 230).
The unemployment rate in the country was also high in the mid-twentieth century. However, the country was able to experience economic growth after the development of some economic policies. The circumstances that were prevalent in the mid-twentieth century are no longer a threat to the current economy. Currently, the country is faced with new challenges that influence its policies as well as economic growth. The paper thus discusses the growth of China in support of the statement that the context and circumstance prevalent should determine the policies and strategies of growth. Discussion In the 1970s China is one of the countries that had the highest poverty prevalence in the rural areas are well as the urban areas.
About 600 million people at the time were living in poverty. This prevailing circumstance had a negative impact on the growth and development of the country. About 85% of the people in China were living under the poverty line in the 1970s (Lin & Yu, 2015: 93). The levels of income inequality in the country were quite high as a result of the high poverty prevalence.
The incidences of extreme hunger were high in China at the time which contributed to other social problems. There were a high number of deaths as a result of malnutrition. The government faced a lot of challenges in terms of providing basic services to the people. However, based on this prevailing circumstance, the government developed growth strategies and policies that were specifically aimed at addressing the issue of poverty. A well developed and designed poverty reduction program was developed by the government in the 1980s.
This was based on a careful study of the situation and the development of a proposal to deal with the high levels of poverty. The main strategy involved eradicating poverty at the village level. About 148,000 villages were targeted during the program (Lin & Yu, 2015: 93). This strategy was aimed at ensuring that the local people can earn a better income. The government development funds were also allocated for the purposes of eradicating poverty in the country.
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