Globalisation is the breaking down of barriers between countries to form a global community, increasing international impacts on all aspects of life and economic activities. China, being the fastest growing economy in the world for the past two decades, has maintained an average rate of growth in real GDP of 10% per annum. In 1949, after Mao Tse Tung’s force defeated the Nationalists in the civil war, China attempted to modernise agriculture and industry, which failed to raise national output, resulting in the widespread poverty in China. After Mao Tse Tung’s death in 1978, Deng Xiao Ping, his successor, implemented a wide range of radical economic reforms in order to improve China’s economic performance by minimising the gap between china and high income countries. These reforms led to China’s integration into the global economy, which promoted growth and development.
From 1927-1929 harvests fell, simultaneously affecting the wider economy. The government needed to sell grain abroad so they could receive the foreign currency necessary for resources needed for industrialisation. Collectivisation was therefore introduced to increase efficiency and introduce mechanisation. This added urgency to a need to increase output meant that high targets were set which were met with incentives and also punishments, pushing the economy towards its maximum potential making the essential contribution to the transformation of the Russian economy. By 1940, 99% of land was collectivised.
Subsequently, Argentina became one of the world 10th wealthiest nations based on rapid expansion of agriculture and foreign investment in infrastructure. In 1992 president Menem imposed peso-dollar parity to decrease the hyperinflation, adopt far-reaching market-based policies and dismantling a web of protectionist trade and business regulations, and implement an ambitious privatization program. These reforms contributed to significant increases in investment and growth with stable prices through most of the 1990s. Unfortunately, extensive corruption in the administrations of President Menem and President Fernando De la Rua (elected in 1999) shook confidence and destabilized the recovery. Also, while convertibility crushed inflation, its permanence damaged Argentina's export competitiveness and created chronic deficits in the current account of the balance of payments, which were financed by massive borrowing.
Also recession increases spare capacity and unemployment rises as businesses cut back and reduce stocks. During slump, there is a prolonged period of declining GDP which leads to very weak consumer spending and business investment falls. We will have to be careful when the economy is in recession as it is easy for businesses to fail, and also there is rapid rising unemployment. Also during a recession we will be in fierce competition and competitors will be pushing for the lowest prices. When the economy is in recovery things are beginning to get better, therefore Marks and Spencer will begin to get more sales revenue as consumers begin to increase spending and therefore we at Marks and Spencer will be more confident.
Document 1 [Ye Chunji] gives a quote about how Chunji has noticed the social gap and how the upper class is becoming increasingly unsatisfied and greedy; whereas document 3 [Wang Xijue]tells more of the economic social gap between the two main classes and explains how the economy is aiding the social gap through the harvest. In document 7 [He Qiaoyuan] another Ming court official talks about how China makes goods that are worth maybe 100 silver coins but sells them for triple that amount. All three of these documents also contribute to the fact that the Ming dynasty played a major role in the global trade of silver. During this time the economic impact of silver in Spain can be seen in Documents 2 and 6. Document 2 [Tomas de Mercado] shows that the ballast stones used in the ships on the outgoing trip were replaced by silver during their return trips; while document 6 [Antonio Vazquez de Espinos] claims that from 1545 to 1624 a total of approximately 326,000,000 silver coins were taken out of the mines in Potosi.
To what extent did Witte achieve economic modernisation in Russia? Sergei Witte was introduced as the Tsars financial minister at a time when Russia was in a state of social and economic backwardness. Witte successfully achieved economic modernisation in Russia to a certain extent. Witte’s policies lead to a ‘Great Spurt’ in economic modernisation as they increased the number of factories and led to vast improvements in infrastructure such as railways. However his policies were still very limiting as they did not address the backwardness of agriculture and caused frequent famines, leading to the deaths of hundreds of thousands of people; keeping Russia economically and socially far behind the great European powers.
However, it was the effects of the Great Depression in Germany that brought the Nazi Party to its first real nationwide importance. The rise in unemployment in 1929–30 provided millions of jobless and unsatisfied voters whom the Nazi Party exploited to its advantage. From 1929 to 1932 the party vastly increased its membership and voting strength; its vote in elections to the Reichstag increased from 800,000 votes in 1928 to about 14,000,000 votes in July 193. By then, big businesses had begun to finance the Nazi party because of tax increases and communists. The effects of the great depression caused mostly by Wall Street crash and therefore the American investors urgently needed the return of money they had lent to businesses.
Between 1920 and 1929, the disposable income of the population rose 9%, while the top 1% enjoyed a massive 75% increase. (global research, 2011) This disparity caused a mismatch between demand and supply, and thus there was an oversupply of goods, as the middle and lower class weren’t able to afford more, and the upper class were satisfied by spending a relatively small proportions of their income. The economy and peoples confidence in it became strongly reliant on three major things: luxury goods, credit sales and investment. At the same time the stock market was at it all time high with the prices of stock rising 40% between May 1928 and September 1929. This encouraged many people to invest their saving in the stock and motivated banks to loan money to their clients, so they could buy stocks on margin.
After Nassar’s death, the succeeding Egyptian presidents vigorously pursued foreign trade and industry greatly increasing the Gross Domestic Product (GDP). [Data supports this jump in economy bearing in mind in 1962 Egypt had a GDP of 4.00 US Billion dollars reaching an all time high of 257.29 US Billion dollars in 2012] (Trading Economics website, n.d.). Unfortunately, even with the large increase in GDP, Egypt still had economic problems and its people rebelled. The majority of Egyptians were unemployed. Food prices coupled with a decrease in foreign investments and tourism sent people to the streets to rebel against the ruling party, hoping to change their future.
How successful was collectivisation Stalin aimed to improve Russia through Collectivisation, by uniting all farms as one to produce grain for exports and food for the cities. I believe overall he essentially accomplished his goal even though there were severe consequences. Relating to the economic, social and political factors I will elaborate my point of view. Firstly, Stalin economic goal was to gain money by collectivisation to provide resources for industrialisation. This was achieved, between 1928 and 1935 the amount of grain procured more than doubled.