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Human and Cultural Contexts

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How the Chinese Economy Works
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Abstract

At the beginning of the twenty-first century, China’s population has risen above 1.3 billion, accounting for more than 20 percent of the global total; it is nine times higher that of Japan, five times that of the USA, and three times that of the entire European Union. The dynamic mechanism of population growth has been substantially influenced by China’s population policies. When the PRC was founded in 1949, the population of mainland China was about 450 million. Since then China has experienced two major peaks of population growth. From 1949 to 1958, when the Great Leap Forward movement was launched, the birth rate was as high as 3 to 4 percent while, in contrast, the death rate decreased significantly. This dramatic growth in population was largely encouraged by the government in line with Mao Zedong’s thought “the more population, the easier are the things to be done.” China’s population began to grow rapidly once again after the famine period (1959–61), during which many people died from starvation.1 The birth rate peaked at 4.3 percent in 1963 and then decreased gradually but still stood at more than 2 percent until the early 1970s when the government realized the importance of population control (see Figure 3.1).

Birth, death and natural growth rates

Zigong asked what was needed for government. Confucius said, “Sufficient food, excellent armaments, and people’s trust in the government.” Zigong asked, “Suppose you were forced to get rid of one of the three, which one would you get rid of first?” “Armaments,” said Confucius. Zigong went on asking, “Which one would you get rid of if you were to get rid of one of the remaining two?” Confucius answered, “The food. Although man will die of hunger without food, man has been destined to die since time immemorial. But if people lose their trust in the government then the state has lost its basis.”

Analects of Confucius (12: 7)

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© 2009 Rongxing Guo

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Rongxing, G. (2009). Human and Cultural Contexts. In: How the Chinese Economy Works. Palgrave Macmillan, London. https://doi.org/10.1057/9780230245686_3

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