China is one of the countries that has worked hard in escaping the poverty mark. According to Professor Ang, the poverty trap involves the general belief that to have economic growth, there is a need to have the rule of law, modern court, and institutions. On the other hand, these institutions are built after economic growth. The reason that is attributed to China's poverty rates was its large size that made legislation and development difficult. She highlighted the methods china used to develop and generate wealth, including sourcing for investors, having the central government support the local government, utilizing available resources or raw materials, and methods developing countries can employ to pursue the same.
To escape the poverty trap, China began using different strategies that included actively involving citizens in welcoming investors, and some would make money from the commission earned. China was highly adaptive and entrepreneurial; the government created an adaptive environment in bureaucracy. The bureaucracy allowed local governments to bring in local solutions. The government made an adaptive environment that enabled the local government to take their first step of harnessing the weak backward institutions. The environment is also essential as it helps people love their work by being motivated in large plantations. The speaker believes that having such an environment may have significantly contributed to the success of the country. China began by using the available resources or raw materials. Similarly, China has an entrepreneurial system that enables development as many businesses establish in china and process the available raw materials hence adding value.
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China needs to challenge assumptions instead of replicating to ensure economic growth. Also, there is a need to identify what is both right and left by watching a match. Likewise, rich countries should have an obligation to low income countries. Diversity is also a key to having a positive attitude that will encourage good habits. For countries that are developing, Professor Ang suggested that they be diverse instead of saying how nations fail to measure things and believe in impossibilities. She also outlines that developed countries have a crucial role in helping developing countries grow economically. The leaders should ensure that they help facilitate benchmarking.
On the other hand, developed countries should experiment with effective methods to help with growth and development. Just like china, different approaches will work depending on a country's location and size. For instance, China made development a personal agenda and ensure that each person benefits. Moreover, location is vital, as demonstrated by China who began growth in the coastal regions that could import or had industries.
In conclusion, countries should understand the long term process that development takes to get results. An economy's prosperity and growth can take decades to actualize, but it is possible with the actual vision and patience. Additionally, countries have different and unique resources that can be improvised to ensure success. For instance, instead of importing, countries can materialize on the raw materials produced to add value and export generating income for the country. Approaching investors is also a major challenge that requires a high level of creativity. China demonstrated this by ensuring most investors were part of the civil servant network, allowing transparency and reducing corruption, as said by professor Ang.
References
"How China escaped the poverty trap": Dr. Yuen Yuen Ang . (n.d.). SoundCloud. https://soundcloud.com/user-845572280/how-china-escaped-the-poverty-trap-dr-yuen-yuen
