RETHINKING THE BEIJING CONSENSUS Essay Example

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    1
  • Words:
    316

Introduction

A significant issue in Shanghai consensus is its powerful rejection of key role of private entrepreneurship in economic growth. For many years entrepreneurship has been lacking in Shanghai. This paper therefore looks at why entrepreneurship lacks in shanghai.

Why entrepreneurship lacks in Shanghai

In Shanghai, there has been a strong rejection of entrepreneurship in economic development. Most people in China particularly in Shanghai believed that private entrepreneurship does not contribute to economic growth. This made Chinese to have little confidence on entrepreneurship and with time it was hardly practiced. Entrepreneurship lacks in Shanghai because China happened to grow economically without involvement of sizable private ownership. Most private entrepreneurs in China had unusual ownership and set up for corporate governance. This therefore made Individuals from this nation to find it hard to involve entrepreneurship in economic development.

Entrepreneurship lacks in Shanghai since China did not simply liberalize and open up for entrepreneurship but rather it liberalized through grafting of a market above plan track. This was made easier through relying on town village enterprises rather than private enterprises. This move discouraged private enterprises, thus making entrepreneurship to lack in Shanghai. Entrepreneurship also lacks in Shanghai due to the fact that China since 1980s has been concentrating mostly on developing public enterprises rather than private enterprises. Public owned enterprises do not always perform well and thus cannot promote entrepreneurship. Owning a property privately motivates entrepreneurs to invest and to take risks.

Conclusion

From the discussion, it is clear that there has been inadequate entrepreneurship in Shanghai due to several reasons. There is a strong rejection of entrepreneurship in Shanghai. Most people in Shanghai had little confidence on private entrepreneurship, thus making them to hardly practice it. China liberalized its economy through grafting of a market above plan track rather than through entrepreneurship.

References

Huang, Y. Rethinking the Beijing Consensus. Asia Policy, Number 11, January 11, 2011., 1-26.