A Final Project: The Economic Framework, Macroeconimics (Term Paper Sample)

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The economic framework of a state or a nation is an area of much focus by the economists in particularly, but generally but also for all stakeholders of a country. Macroeconomics, which is the term that related to the economics of state, examines how the economic systems, fiscal systems, and the trade policies, unemployment status among other issues that help in shedding the light to the economy of a country. The Chinese and Russian economies reflect a wide range of similarities as well as a lot of differences that attract observations. The different reforms as well undertaken by the two states indicate that these two states are big economic powerhouses. Moreover, according to studies done in the recent years, these states are among the mighty and great in economic terms economic bases that have undergone a lot of reforms (REZA).
The two different countries have differing economic systems applying to them and their nominal GDP, are almost at the same level. In business trade, the two countries are indicating a passionate emergence thus are increasing their edge in the economies of the world. The reforms they are putting in place are making them become the most prosperous in the economic circles. The different long term goals and short goals as well are reflective of the different economic conceptions (Enkhtur et al).
Key among the differences in the two economies is the fact that the two states have been able to transform their economies into becoming market economies, rather than having a planned economy. In this case, Chinese and Russian economy are now dependent on market trends to conceive and achieve economic milestones, rather than economy being legislated or directly under governmental control. Having been socialist economies before, where the economy is controlled to favor the masses, the two countries have transformed to a situation where the market forces determine the behavior of the economy. The difference in the manner in which the economic system has changed from a planned economy to a market economy portrays china as maintaining its socialist state even as it changes from the planned to market economy (Enkhtur et al). However, the Russian transformation is both in the sense that it has changed to a market-controlled economy and at the same time changing in policies from being socialist to being capitalist.
Russian means of transformation from the planned economy is also observed to take the shock therapy thus, privatizing most of the previously government owned businesses. As a result, in the long run, the business is taken the shape of the private ownership. China, on the other hand, has taken a gradual approach to the reforms, entailing a step by step reformation to its different sectors of the economy and regional economic status (Riskin). As a result, we observe policy implementation that is taking place in china as starting on the east coast as it slowly by slowly approaches the west coast (REZA). The two different approaches had significant impacts to the economic stability of the two economies. For the case of Russia, it caused an impulsive effect on that the economy ended slowing down growth and seemed not to produce the ideal result expected. However, the positive impact was the complete overhaul of the system, thus a good foundation for future economic wellness. On the other hand, Russian system faces the challenge of handling an aging infrastructure that needs modernization ( REZA).
The GDP analysis of the two countries entails a study of the GDP trends of each of them, their per capita income, and the components of the GDP of those two countries, and their relevant weight as well as gross national product of the said country. The trends in the gross domestic product of china indicate that the Chinese GDP has increasingly risen over the years, with a sharp rise in 2000. The GDP of china between the 1960 and the 1980s indicate an almost stagnating position it took for those years. The rate at which the per capita GDP increased was very low and it ranged between 0 and less than several hundred US dollars, thus indicating a possibility to a little or almost insignificant growth by that time(Enkhtur et al). There is a possibility that the economy really struggled at the time as indicated by data. There was no observed increase or motivation in the market that posed a possible future economic giant. However, over the years, the Chinese economy increased its status, with an increase in the GDP from the barely a hundred US dollars to about 2000 us dollars by the time the new millennium approached (Enkhtur et al). This further propitiated a future of a sharp economic growth indicated by a steep and increasingly faster economic growth rate, such that by the time it got to 2010, the Chinese nominal GDP ranked within the top ten worldwide. This is an indication that the trend taken by the Chinese GDP is that of immense growth, especially in the 2000s. The overall Chinese GDP currently stands at 10.4 trillion. Whereas the per capita GDP is at US dollars, 7,925. This is an indication of an immensely high per capita GDP and nominal GDP for a country of china’s state (Foundation).
Russian GDP, on the other hand, has experienced swings of accelerating, stable and reducing GDP, these economic upheavals are indicated by the behavior that has been taken by the analytical components of the GDP. the perc pita GDP of Russia stood at about 4ooo US dollars, between the year 1990s and early 2000s, before a major swing that posed a reduction in its GDP to about a US dollars 1000 by the time the of the start of the year 2000. It is then observed that the GDP begins to rise steadily with a small increase in the subsequent years as compared to the previous ones. Thus, the trends in the Russian GDP can be considered to assume an almost unpredictable change in the increase and reduction in the per capita GDP for every year (Foundation). For some years, there seems to be an almost constant GDP as compared to the previous, whereas for others, there is a change either with a reduction or an increase. Notably, the Russian GDP can be considered to be lately on the verge of reduction as observed in the trends. It currently stands at a GDP of US dollars 1.33 trillion and a per capita GDP of US dollars 9057. This indicates that the Chinese economy is growing faster than the Russian, and thus a higher gross domestic product as compared to Russia. Russia however still boasts the economic prowess since it has a higher per capita GDP than its counterpart china. The Chinese per capita GDP by the year 2010 stood at US dollars 4478.49, as compared to US dollars 306.92, for the year 1980. Thus, the difference in the two statuses of GDP increases a significant rise for the country. It's projected GDP per capita for the year 2020 is at us dollars 11,456.70. Thus, it is clearly indicated that a possible increase in the GDP per capita is imminent (Enkhtur et al).
Generally, china’s GDP has changed from US dollars 302.94 billion in the 80s to a projected 16,144 billion dollars by 2020. On the other hand, Russian GDP per capita specifics indicate that in 1990, it was at 614.47 and has steadily risen to 11,382 dollars in 2010. The projected per capita GDP per 2020 is 10,462 dollars, thus can be considered to be slightly compared to the Chinese GDP per capita. The GDP is likewise projected to be 1,530.61 billion dollars by 2020. The significance of this trend is to indicate the rate at which the two emergent economies and furthermore show that the Chinese economy seems to be growing faster than the Russian economy (Enkhtur et al).
The Chinese economic systems have changed over the years to suit the changing world economic patterns, as discussed earlier. Perhaps, notably, this has affected the way in which the economy has behaved since 1980 to the present day trends that are observed. Between the 1940s and the end of the 70s, the economic reforms in China were taking root and this can be considered to have been the conceptualization of the idea of business reforms. The system reforms entailed radical changes that ultimately shook the Chinese economic state. This particularly came as a result of the foresight of the new communist leadership who took over after the war. For example, the first five-year plan of between 1953 and 1957 introduced the industrial revolution and increased socialization. Organizational restructuring and economic strategizing lead to a great leap forward that caused improved growth. Such processes of reforms among others indicated a transformation in the economic system of the Chinese republic (Riskin).
The embryonic period of reforms led to a time of evaluating and establishing the goals of these reforms. The system reforms further projected to the future goals and their place in the days to come. Then, the socialist market economic systems were established between 1993 and 2002. The process of establishing of the socialist economic systems propelled a growth in the people’s centered economy that aimed at meeting the needs of its citizens as being core to its economy. In the start of the new millennium, the socialist market economy system had taken ground and was perfectly established thus its effectiveness caused a shoot in the economic status of the country (REZA). Thus, the Chinese economic system ranged majorly between the start of the 1950s and present. The economic system that is in place currently was established within this time and is majorly based on a socialist kind of economy that focuses on a market-based forces of demand and supply yet emphasizing public ownership as the trunk of the entire system (Foundation). However, the current market economy is a successor of the preceding planned economy and the idea behind this system was that it ensured the common prospe...