Friday, July 10, 2015

China Economy and Education

Greetings from Australian Centre on China in the World at the Australian National University in Canberra, where the "China’s Domestic Transformation in a Global Context" (Ligang Song, Ross Garnaut, Cai Fang and Lauren Johnston) was launched. There is a day long annual China Update. ANU has also been holding meetings with Chinese scholars on the use of on-line courses. Professor Garnaut attributed China's rapid economic growth to changes in labor market policy and in priorities. He noted that adjustments in China and the their effect on the world economy have only just started. 

I searched the report to see what it had to say about education in China, as I teach students from China at ANU and am on my way to two conferences with Chinese educators next week.

The report notes that the "China’s new model of economic growth"included "better use of resources in education, especially in rural areas, to increase
opportunities for all citizens in an expanding modern economy" (
Song, Garnaut, Fang & Johnston, p. 4, 2015). The report goes on to say:
"... upgrading of the industrial structure associated with the new model of growth requires increasingly educated and experienced labour. Current rural education standards and incentives for migrants to accumulate and apply skills in urban employment may not make this more sophisticated labour available to expanding urban industries."
(Song, Garnaut, Fang & Johnston, p. 5, 2015)
The report notes this could result in  structural unemployment and "... could be a potential source of social instability ...".

The report then says:
"The focus on increased investment in education within the new model of growth combines with the large decline in the school-age population to introduce prospects for greatly improved labour quality ...".
(Song, Garnaut, Fang & Johnston, p. 26, 2015)
"Success in maintaining and lifting productivity growth requires heavy investment in education and training."
(Song, Garnaut, Fang & Johnston, p. 26, 2015)
 "... improving educational levels is an important way to promote consumption." (Song, Garnaut, Fang & Johnston, p. 99, 2015)
"... granting migrants full residency rights, such as access to education, health care and social security, is not only an important task and challenge of urbanisation, but also appears to be an intrinsic requirement for China’s economic development. " (Song, Garnaut, Fang & Johnston, p. 108, 2015)
At question time Professor Garnaut was asked about how to measure innovation in China. So I looked for "Innovation" in the report, although it seems to be about innovation in investment policies, not producing new products:
 "In 2014, similar schemes were established between Singapore-based banks and firms in China’s Suzhou Industrial Park, in Jiangsu Province, and Tianjin Eco-City, as part of a broader range of initiatives between the Chinese and Singaporean governments to develop these two innovation-oriented initiatives." (Song, Garnaut, Fang & Johnston, p. 284, 2015)

Table of Contents 

First page
Cover page
Title page
Imprint and copyright information
1. Domestic Transformation in the Global Context
Part I: Domestic transformation and structural change
2. The New Model of Growth and the Global Resources Economy
3. A Compelling Case for Chinese Monetary Easing
4. Consequences of China’s Opening to Foreign Banks
5. Destination Consumption
6. National Energy Market Integration
7. China’s Gas Market Liberalisation
8. China’s Electricity Sector
Part II: China’s participation in global integration
9. Financial Integration and Global Interdependence
10. Capital Account Liberalisation in China
11. The Offshore Renminbi Market and Renminbi Internationalisation
12. China’s Manufacturing Performance and Industrial Competitiveness Upgrading
13. China Becomes a Capital Exporter
14. The Impact of Coastal FDI on Inland Economic Growth in China
15. China’s Trade Negotiation Strategies
16. Boom to Cusp
17. The Trend of China’s Foreign Investment Legal System
"The phrase ‘New Normal’ captures the ongoing shift in the pattern and drivers of China’s economic growth. China’s new growth rate is both slower and imposing difficult structural change. These new economic conditions are challenging yet offer opportunities for China and its economic partners. Reforms must be deepened but also make growth more inclusive and environmentally sustainable, over this decade and beyond.

This year’s Update offers both global context and domestic insight into this challenging new phase of China’s domestic economic transformation. How are policymakers elevating migrant workers concurrent with increasing consumption? Is China’s government spending enough on education and R&D to ensure it can achieve its aspirations to ascend the global manufacturing value chain and avoid the middle-income trap? Are energy market reforms reducing or increasing the price of gas and electricity in China? What are the consequences of China’s financial reforms and expanding Renminbi trading for foreign banks? What does China’s new growth model mean for the international resources economy and for Africa? Do SOEs face market conditions and are they dominating China’s fast-rising outbound investment? What is China’s strategy for navigating fragmented international trade policy negotiations?"

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