1. China
a. In 1800 China had over one-third of the world’s population, and a per capita level of
consumption perhaps as high as 2/3 of Western developed economies. At the end of the next
(19th) century per capita income was around 1/7 of western countries, which by that time
included Japan. What happened to China?
b. In the twentieth century dynastic rule ended and following a period of “warlordism” two
conflicts emerged: in 1927 a clash between Chinese nationalists and communists which was not
resolved until 1949; and a growing threat of subjection by Japan which resulted in war and
occupation until 1945. Discuss and evaluate the economic policies implemented by Mao Sedong
until his death in 1976.
c. After a brief period of political turmoil, Deng Xiaoping – an early comrade of Mao – took over
as Communist Party Chairman in 1978, and began shortly thereafter to move towards a “social
market economy”. What were the main policies resulting from this major re-orientation, and
assess how well it has achieved these goals? What are the principal issues facing the regime
going forward?
2. Compare and analyze the reasons why the Chinese experience over the last two centuries
has been so different from that of Japan. What do you think will happen to the countries in the
next half-century?

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