CHINA’S RESPONSE TO THE GLOBAL FINANCIAL CRISIS: EXAMINING THE INCENTIVES BEHIND CHINA'S STIMULUS PACKAGE
Herron, Clement W.
Glosny, Michael A.
Barma, Naazneen H.
MetadataShow full item record
This thesis examines the incentives behind China’s decision to implement its aggressive $585 billion economic stimulus package in response to the global financial crisis, or GFC. The thesis assesses the explanatory power of economic, social, and political causal factors to explain China’s decision. The main finding of this thesis combines all three factors to demonstrate that China’s stimulus package was most likely implemented because the Chinese Communist Party (CCP) perceived that it was necessary to protect its regime. The economic argument demonstrates how China’s government had to resort to an investment-led stimulus plan to generate economic growth through domestic demand after the GFC severely damaged China’s export sector. The social argument establishes how tens of millions of people left unemployed by the GFC felt marginalized by the government due to the country’s inequitable economic growth, which was perceived to have primarily benefitted the regime. This increased the potential for social instability, which would have been directed at the CCP. Lastly, the political argument determines how the regime was under significant political pressure to meet domestic and international expectations to sustain economic growth throughout the GFC. These findings underscore how the CCP prioritizes regime survival over long-term economic development.
RightsThis publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
Showing items related by title, author, creator and subject.
Pisani, Kate (Monterey, CA; Naval Postgraduate School, 2019-12);As its closest challenger and greatest strategic rival, China poses a significant threat to the national security and global supremacy of the United States. The United States must exploit vulnerabilities across all elements ...
Knott, Gregory J. (Monterey, California: Naval Postgraduate School, 2013-12);Chinas economic reforms revealed the Chinese Communist Partys search for a new basis for political legitimacy and authority. The PRCs contemporary political bargain is best characterized as a tenuous balance between economic ...
Baylouny, Anne Marie (2008);Jordan’s seemingly successful economic and political reforms have been used to advertise the American vision of societal transformation in the Middle East. The imposition of neo-liberal economic policies removed a key ...