The Chongqing Model and the Future of China Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Since the opening of the world economy in 1979, but especially after the accession to the WTO in 2001, China's economy grew at a rate of about 10% per year due to foreign direct investment and export promotion. After the financial crisis, which began in 2008 and depressed demand in the United States and Europe, China's growth began to slow, and the vulnerability of the economy came to light. It became clear to many of China's strategy of growth that China has received from 1978 to the present was unstable and that the country needs a new strategy to address the regional disparities in the country, to stimulate domestic demand and create growth less vulnerable to the global reduction in demand. Precisely at this time, between 2007 and 2012, the provincial municipality of Chongqing in the mountainous south-west China has become the fastest growing city in China, GDP growth averaged more than 15%. Chongqing is the result of growth in a set of economic and social policy, which was called "Chongqing model," bundle controversial reforms that promised to public and private sector growth benefits more equitably shared by all citizens. However, critics have found the model of political unreliability and more dependent on debt of public enterprises and managed investments. When the city was a great leader publicly dismissed after a sensational scandal, murder, and the new leaders in the region, China's new leaders did was to weigh on "Chongqing model". Will this signal a new path to prosperity after joining the WTO, China? "Hide
by Meg Rithmire Source: Harvard Business School 36 pages. Publication Date: December 5, 2012. Prod. #: 713028-PDF-ENG