The Development of China and Mexico

Introduction

 China and Mexico are both examples of modern countries that are ranked as first world together with the USA and countries such as Russia and Japan. The two countries have pursued policies that have led to their economic development raising their GDP by a great margin and brought a lot of reprieve t their citizens. As we shall see, the infrastructural advantages of these policies are way too big. The two countries are used as a bench mark by several states on which they can base their future development too.

The two countries’ strategies for development can be compared. Although similar in several aspects, certain differences can be singled out. The development of China and Mexico has been helped by strategic plans of development. Such include the 5 year plans for China and the 17 point development program for Mexico.

China and Development

 China development has been a milestone of achievement. This has come in handy at a time when the population of China is overwhelmingly big. Without these strategies, it would have been rather difficult to achieve any reasonable growth by the China government.

The 5 year plans have been reasonably helpful to China. The current 12^th 5 year plan is very much in place at the moment. The tourism sector has been revolutionized a great deal. The level of tourists coming into China every year has increased owing to an improved access to transport facilities that are better as well as wild animals that tourists come in to watch. China has relied heavily on this sector to finance its heavy budget which is way past a trillion marks (Lee, 2006).

The 5 year plan strategy has also helped improve the financial sector in China. The rate of borrowing has been reduced so that small and middle sized enterprises can borrow easily from the pool. This has brought about their growth and made their growth sustainable over the years. The plan has also revolutionized the banking sector with the deposit base at the central bank being reduced. This has invited investors to start up banks within China. This in turn has brought development to China with poverty levels being reduced.

The education sector has also been improved. This has been accompanied by the promotion of talent amongst citizens of China. This has increased people’s dependence on themselves and created employment opportunities making people of China not to rely too heavily on government and the private sector for employment opportunities.

The west program of development has also played a big role in making China’s development reasonable and sustainable. The program has remarkably helped boost economic reliance as well as reduction of foreign debts by the Chins government. This has been a policy where government efforts of development have become concerted and channelled towards western areas more than the eastern areas so as to ensure these areas do not lag behind development wise (Scott, 1920).

The west program has opened up the west East Gas Pipeline. This is a pipeline that has seen transportation of gas between these two regions possible. The gas pipeline has opened up employment opportunities of workers on it and has as well been instrumental in the promotion of small scale enterprises and traditional industries. These include food industries and welding industries. This has reduced the backlog of citizens who have to rely on government for employment opportunities and as such has helped improve the standards of living a great deal.

The program has also made education compulsory and has as well made tuition fees exempt in western areas. This has helped increase the number of citizens that are educated and who can offer useful service to the government and the private sector. It has also increased creativity of citizens making them aware that they can come up with enterprises of their own without having to rely on employment opportunities from other individuals (John, 2008).

The grazing land in China has been returned to grassland. This is land that can be used for sustainable keeping of cattle. This land initially was lying idle to be used by people who went to the field grazing their cattle. Dairy farming has been modernized in these areas to suit the needs of the people and to help them market their milk to companies which offer competitive prices for the milk.

The Qinghai Tibet railway line was constructed so as to open up the western areas. The railway line has opened up opportunities for trade and thus become a source of employment to the citizens of China.

Infrastructure has been improved in the process. This refers to the transport sector in which roads have been constructed to transport goods and people from place to place. The energy sector has also received major backing in the process. Hydro power plants have been constructed to serve electricity generation.  The power generated has proved useful in households and industries within Chins in a very great way. Foreign investment has also been one of the reasons why China is far development wise (Milo, 2010). China has been involved in business in other countries. The people of China have offered a lot of support to other countries through exportation of such services as engineering. They construct infrastructure in these countries boosting the level of growth in these countries significantly. China citizens have also been on the lead in starting businesses in other countries. These businesses bring money to the government of China through taxes. They also bring development by providing employment opportunities to citizen’s of China.

The government of China is also committed to ecological protection. Various laws have been enacted to support this move. Protection of the environment has made China develop since the environment forms a very important base for any development. The China environmental law of 2007 is such one initiative. This law came in place and has brought about environment health measures. Pollution has been made illegal such that persons caught bringing pollution is supposed to be prosecuted. Disposal of wastes should also be done in the proper manner. Other laws regarding to the environment have also been passed ( Zhang, 2005). These laws have brought about a forestation measures. This means increasing the forest cover which improves on water catchments areas and helps to attract rain in China. This has further improved agricultural activities such as farming and keeping of dairy cattle.

Industrial policies in China have also brought about the improvement in the industrial sector. Traditional industries have also been improved on. These industries have offered employment opportunities to majorities of people within China. This has helped reduced the levels of poverty within China. As such the government is able to concentrate its efforts on such other issues as infrastructural development.

The Ship building industry has been emphasized by the industrial policies in China. This industry has helped to bring transport changes in China since people and goods can be transported at ease from one country to another via water transport. This industry has also provided gainful employment opportunities to a majority of citizens.

The automobiles industry has also received a lot of emphasis from the government of China. This is the industry that involves motor vehicle manufacture and assembly. China exports a lot of these to other countries. Other machinery is also included here.

The iron and steel industry has also undergone successful growth. This is the industry that serves a wide network of industries such as construction by providing the materials required in these industries.

Non ferrous metals are also being processed within China. Such include the use of aluminium which is used in the manufacture of such things as kitchen utensils.

Building materials are also processed within China. These include cement, cement and other materials. These have ended up promoting in great way the construction industry which is vital in the economy (Scott, 1920).

Petrochemicals are also manufactured. These are chemicals that are used in the automobile industry in oiling and propulsion of machines. These chemical industries have provided jobs to so many citizens of China. The light industry is also affected by the industrial policies. The industry has grown tremendously with the inclusion of industrial policies and laws enacted regarding them. Textiles have also been promoted by the introduction of various enactments regarding industries. Such include taxation measures that seek to protect traditional industries. The response by these industries has been very positive since they are encouraged by tax reductions to start up. A lot of job employment opportunities have been created as a result.

Administrative strategies in China have also been very helpful to the country. Such strategies include management of economic and financial outcomes. The government engages very qualified individuals for management of financial projects within China. These projects have proved very productive to the country.

Mexico’s Development

Mexico unlike China is relatively less populous. The projects of growth within Mexico therefore were easier to meet since the government of Mexico did not have much of a responsibility taking care of as big a population as that of China. Fewer facilities of infrastructure therefore are present to take care of this population.

The tourism sector has been revolutionized a great deal. The level of tourists coming into Merxico every year has increased owing to an improved access to transport facilities that are better as well as wild animals that tourists come in to watch. China has relied heavily on this sector to finance. Mexico is the leading state in the whole of Latin America in terms of visiting tourists. A lot of money comes into Mexico and which comes from foreign exchange. The amount helps in sustaining growth and financing of budget. Compared to China therefore, the number of tourists visiting Mexico is way higher thus the government of Mexico has relied more on the tourism sector to finance its budget than China has  (Berger, 2006).

The government of Mexico passed the Mexico economic development program in 1983. This program placed the production, manufacture and distribution of Oil under its care. PEMEX is government controlled and was charged with the responsibility of ensuring oil was well managed. The government did this to ensure that revenue generation from oil was increased so as to be able to finance part of its budget. By controlling this oil sector, the government also was able to control prices such that consumers did not feel exploited in any way. The government of Mexico also nationalized the railway as well as banking systems in Mexico. This now means they were owned by the government. By so doing the government was trying to ensure the facilities improved so as to efficiently serve the people and raise funds for the government.

Mexico joined GATT in 1986. The effects of this were many. These included the removal of tax trade barriers and reduction of tariffs. These opened up trade such that goods could now be easily moved from one place to another without restrictions. This further created job opportunities for a majority of Mexicans who did not have to rely on formal employment from the government and the private sector. This further improved the standards of living among the Mexicans.

Low carbon development. This was the initiative by the government to promote low carbon industries so as to avoid pollution of the environment. Carbon content is dangerous since it is the cause of acid rain which corrodes buildings and spoils agricultural products.  The National development plan of 2007-2012.  This plan aims at directing the affairs of the government, ensuring cost efficiency and bringing greater effects. Cost efficiency ensures that the government does not spend in wasteful projects that will waste public resources. Instead this money should be spent in projects that are beneficial to the state and the people of Mexico.

The North American Free Trade Agreement NAFTA) was ratified in 1992. It was implemented in 1994. The aim of this was to increase the market consumers as well as the output. Industrial and agricultural goods were exempted from imposition of tariffs ( Zhang, 2005). This was supposed to be extended to a 15 year time frame. The effect of this was to make agricultural and industrial products affordable to the common man. This helped to counter the level of poverty of the people of Mexico. The government was also able to counter the level of crime among the citizens of Mexico.

The government of Mexico has also engaged in providing trade exemptions to new enterprises. This move has helped in boosting enterprise business in Mexico so that more people have started businesses and thus been in gainful self-employment.

The Modern Mexican Economic Policy. This is a policy that aims towards modernising Mexico so that it keeps up with current trends. These are trends in infrastructure and technology. This has made the infrastructure to be such modern as to increase efficiency and economise on spending of resources.

The government has also been engaging in the settlement of 50,000 families from northern region to the southern region. This move has helped in reducing the poverty levels and thus increases the GDP of Mexico.  The government of Mexico has also engaged in expansionist programs.  This has been through the expansionist economic policy. This has enhanced foreign borrowing to fund a majority of its programs.

The 17 point development program created 3 million jobs. This helped to reduce the poverty level and make people self-reliant. The austerity program in Mexico reduced the budget deficit from 17.9% in 1983 to 8.5% in 1983. This was a move by the government to increase taxes on certain commodities so as to raise income for the government. The government of Mexico has also initiated moves to avoid cases of tax evasion. This has helped to raise more revenue for the government.

Reduction of inflation has also been a move by the government (Berger, 2006). This has been a move to reduce the prices of most products so that they are controlled from going galloping. Mexico has also engaged in Free Trade Agreements with Venezuela and Colombia. These have opened up trade between these states. It has also engaged with several other Central American states to engage in free trade. These ensure that there are no restrictions on trade dealings.

Conclusion

Both Mexico and China therefore have a development record that is big. The governments of these states are committed to ensuring that the future generation is taken care of. They have tried as much as possible to reduce the debt levels that the states owe. They have also reduced poverty levels by increasing employment opportunities to citizens living in the countries. This way, the level of growth of the countries has greatly increased.

We cannot rush to say that either of the two countries is more successful than the other. There are a lot of factors to consider before we go into such a conclusive decision. The financials of Mexico are more developed than those of Mexico for instance but then we look at the infrastructural development, China is way ahead of Mexico.