Deborah 测试三-Report.doc

Table of Contents1.0 Executive Summary12.0 Introduction13.0 Causes of Poverty and Unemployment in China23.1 The Economic System23.2 The Population Factor.23.3 Economic Structure34.0 Can “Economic Structure” Best Explain Poverty and Unemployment35.0 Conclusion56.0 Reference61.0 Executive SummaryThe main purpose of this report is to analyze the causes of poverty and unemployment all over the world, especially in China. Poverty and unemployment are caused by complex factors, and economic system, population, and economic structure are typical ones, based on Chinese conditions. Economic structure can explain the issues in some certain circumstances, but its not enough. We should combine poverty and unemployment problems with our nations history, social tradition, politics and specific situation. Only that way one can formulate practical policies and regulations in order to promote employment and to truly eliminate poverty.2.0 IntroductionThe issue of poverty and unemployment has become a hot spot since the global financial crisis in 2008, which caused a large scale of laid-off employees. Nevertheless, scholars have been paying close attention to those issues on their theoretical and realistic implications for a long time. On the whole, they attribute poverty and high unemployment to various factors, such as economic structure, labor quality, maturity of labor market, and etc. As for China, the unique history and condition decide the unique causes of poverty and unemployment. This essay will firstly discuss the causes of poverty and unemployment in China. Following this, it will analyze if economic structure can well explain these issues. Finally, it will give a general conclusion of the factors involved in the issues and put forward practical suggestions.3.0 Causes of Poverty and Unemployment in ChinaAccording to the actual situation and present studies, poverty and unemployment happened in China basis on the following causes.3.1 The Economic SystemWhen planned economic transferring into market economic, resources adjusted and disposed mainly through the invisible hand. During the transitional period in 1990s, in order to improve productivity and enterprise efficiency, a huge amount of inefficient workers lost their jobs (Linda Y., 2010). In fierce market competition, bad management enterprises will fail and kicked out of the market eventually, and poverty comes along. Even the effort to expand employment remains a lot of institutional obstacles. In spite of the free labor force fluxion, the household registration system which plays an important role in China, relates to the salary, social security and even the education of children, not only increase the cost of fluxion, and leads to the lack of stable employment. 3.2 The Population Factor.China is a developing country with the largest population in the world. What is more, China is still at a stage that labor force continues to increase sharply. A recent research shows that cities and towns provide almost one million new workers every year, and the growth speed of work population will reach about 1.3% in 2015 (White, Michael J. & Inku Subedi, 2010). However, Chinese government cannot afford so many positions for them, and unemployment therefore occurs. It is so great pressure that the government has to create more and more job opportunities and alleviate the growing employment pressure in a comprehensive, harmonious and sustainable way.3.3 Economic StructureDuring the reform and opening up period lasting for almost 30 years in China, economic development shows a stage variation. On one side, as the surplus labor transfer from rural areas to urban areas, they compete with employees of cities with low wages. On the other side, with the development of new high-technology, the idea that to improve productivity by putting massive human resources and materials has been shattered by the brand-new economic system. In addition, the upgrade of the industrial structure is inconsistent with the promotion of labor force quality. In more specific terms, the employment percentage of the primary industry has dropped markedly, while the employment percentages of the secondary and tertiary industries have risen rapidly. However, due to its high-technology property, the secondary and tertiary industries cannot accept employees who are older, poorly educated and skilled.One of the best examples about the influence of economic structure is the big change after Chinas joining of WTO. WTO has a significant influence on our employment scale and structure. In general, labor-intensive industry and service industry are increasing, while the position of monopoly industry and agriculture decreased. It is predicted that the working population of agriculture would decrease by 3.8% annually, mechanical watch industry would lose 2.5% people, and auto industry would lose 14.5% people (Abel A., Bruno S. & Sergi, 2007). That is to say, more than one million working opportunities will go only in these three industries every year. And since the attacking from WTO centers on the weak industries of China, the pressure of unemployment will be much greater.4.0 Can “Economic Structure” Best Explain Poverty and UnemploymentTo work out the problem, lets first take a brief look at the definition of “economic structure”.Economic structure refers to the construction and composition of national economy (John V., Oskar M., Ariel R. and Harold K., 2007). It is a complex conception. There are various factors influence the formation of a nations economic structure, but the most important ones are the demand of the final products and technology level of the society. To assess whether the economic structure of a nation is reasonable or not, we should consider if the structure corresponds to its condition, if the nation may make full use of its human resources, materials and wealth, and if the economic structure may promote economic development and increase productivity of the nation. As we analyzed above, a nations industrial structure ties in closely with the issue of poverty and unemployment. The adjustment of economic construction, the financial institutional transition, the transformation of economic growth way, and imbalance of supply and demand in labor market, which are major contents of irrational economic structure, all result in unemployment and the coming poverty. But the theory of economic structure is no longer enough for us to have a fully realization of the issues. We have to admit that something exist except for economical causes, like the reason of history, social tradition, politics and policies, the understanding of citizens, and etc. It applies when we narrow it down to China. The actual conditions of China, including its large population, economic reforming history, and peoples premature understanding of high-technology industries, make the causes and solutions toward the issues complicated and different from western countries. Hence, only by looking at the problem from divergent aspects, can we have a comprehensive understanding of it.ConclusionTo sum up, I think poverty and unemployment are caused by complex factors, and economic system, population, and economic structure are typical ones, based on Chinese conditions. Economic structure can explain the iss