Managing the Middle-Income Transition: Challenges Facing the People's Republic of China
The growth model of the People's Republic of China (PRC) has been based on high investment and exports, a low-cost advantage, and government interventions. This model has successfully transformed the country from a low-income to an upper-middle-income economy. However, the model has generated contradictions that could undermine future growth. Making the transition to high income requires greater reliance on efficiency, productivity, innovation, and market competition. This book examines the challenges faced by the PRC in sustaining robust growth and offers policy options for making a successful transition to high income while avoiding the middle-income trap. Chapters focus on all aspects of the PRC's economy, including: the growth model, the role of government, industrial upgrading, the financial sector, fiscal management, human capital, the services sector, urbanization, labor market transitions, aging and the pension system, income inequality, managing external economic relations, and water scarcity. Policy analysts, researchers, academics, and students interested in the growth and development prospects of the PRC will find this book invaluable, as will practitioners and policy makers in government, international agencies, multilateral development banks, think tanks, and research institutes.