China Deng Xioaping changed China’s economy by making it market-oriented. Thirty years ago, the government controlled China’s economy. The reform that had the greatest positive impact on the growth of the Chinese economy was the opening of foreign trade and investment. The Chinese are not isolated anymore, they are now globally involved. Today, the Chinese government faces several problems including job growth, corruption, economic crimes, and environmental damage. The challenge that should be the government’s top priority is the job growth factor. The economy cannot prosper if there is no job growth and development. China has been able to balance the leading economy in the world while still having a communist government because the government, even though it is communist, they have a market oriented economy. This means they are not strictly communist.

China’s has been able to create the fastest growing economy in the 21 st century due to their ability to modernize. They have adapted a “Three-Step Development Strategy.” The strategy includes: to double the 1980 GNP and ensure that the people have enough food and clothing, to quadruple the 1980 GNP, and to increase per-capita GNP to the level of the medium-developed countries. Once the three-step strategy is completed China will be completely modernized. China however has a Communist government, except when it comes to the economy. The economy is market-oriented, this means some is run by the people and the government only controls a portion, much like the United States. This had led to a balance between communism and a market economy, causing the entire nation to prosper.

North Korea I would rate the success of the North Korean government as a two, this is nearly the worst. Their government controls all activities including the economy. This causes large scale problems such as food shortages, bankruptcy, and even malnutrition. The national community fears the military from North Korea. The nation has a history of military aggression along with the addition of nuclear weapons. The North Korean economy is so disastrous because of government control. The government spends money on military while leaving the economy to suffer. The government’s decision have destroyed the agricultural output because of the farming methods they use, collective farming is among the policies. Comparison The most important difference between North Korea and China is the fact that China’s government does not control EVERYTHING. They control some areas of the economy and leave the rest to the people, much like the US. To fix the North Korean economy, I would completely flip the government, change the entire nation into a Republic or Democracy rather than a Communist gov.

Text Message 1: This entire year has been difficult, I can’t do, say, or even think of anything against our leader. I’ve been forced to follow all his rules and regulations and I’m sick and tired of them. I plan on sneaking out of North Korea, I’ll text you if I make it across the DMZ. Text Message 2: Life in the capital of North Korea isn’t quite what I expected. I thought life would be better but it turns out, everything is the same. Pyongyang is really only a showcase city that is run entirely by our leader, Kim Jong-Il. He hasn’t really done much for our nation in recent years, my family is getting sick because of malnutrition. Please help. Text Message 3: I think my family is going to be executed, me included. This might be the last time I’ll be able to communicate with you in any way. You see, last week I tried to escape into China but got caught by one of the North Korean guards. They have sent me to prison along with the rest of my family. I really wish I hadn’t tried to escape but its too late now. Ohh wait, I think the guard is coming, bye…

Statue of Kim Jong-Il Severe malnutrition in North Korea DMZ

Questions How does the article affect E/SE Asian economic development? The article states how the Asian economy is part of an economic bubble. An economic bubble is a trade in high volumes at prices that are considerably at variance with intrinsic values. “Bubbles” caused the Great Depression because of the Stock Market Crash. Similar occurrences could happen to Asia. How does the article affect your life or the US economy? The economic bubble in Asia could affect my life with inflation of prices. Tulloch states, “I have an old- fashioned belief that if you print money, at some stage people suddenly ask what it’s really worth.” eyweek.com/ne ws-and- charts/economic s/china-wont- take-over-the- world-yet aspx