China & australia economy comparison

?Background With the growing and rising economies, located in the southern hemisphere Australia and China are home to billions of citizens. Australia is known to be the sixth largest nation in the world and the only nation to govern an entire continent and its outlying islands. On the other hand, China holds 20% of the world’s population, and populates the most people in the world.

When comparing the growing economies of Australia and China, there are many aspects to consider including; economic growth, employment and unemployment, quality of life, environmental quality, and the role of the government in health care, education and welfare payments in which needs to be taken into consideration. There are many similarities between Australia and China and therefore, comparisons will be made between these two nations in certain aspects. Economic Growth Economic Growth refers to how fast an economy is expanding through its production of goods and services.

The economic region of Asia is seen to be the fastest growing economic region in the world. Australia’s average annual economic growth of 3. 2% over the past three decades is slower than most economies in Asia, but on the other hand faster than most of the advanced economies in the world such as the USA, as shown in figure 1. 2. This is due to the fact that once industrialisation occurs the rate of economic growth increases, and once it has occurred the rate of economic growth slows down. Despite the economy’s size and growth, living standards is not included in the GDP per capita.

GDP per capita is a measure economic growth used to calculate the value of all goods and services produced by a nation in a year divided by the total population, it is the main measure of growth. There has been a constant 7. 7% economic growth over the past 5 years as china progresses from $7800 during 2010 to $9100 during 2012. As shown in figure 1. 1 below, we can see the rapid decline in the Chinese economy from early 1980’s to 1988. This indicates to us that industrialisation occurred during that time.

However we can see that Australia’s economy is in a constant state of fluctuation, never remaining at a constant rate showing that it was affected by the recessions and the downfalls in the economy, with inflation playing a part in this state of flux. With no major fluctuations seen in China’s economy. This indicates to us that china’s economy is more stable than Australia’s fluctuating economy. Figure 1. 2 Comparisons of world economies Employment & Unemployment Unemployment occurs when a person who is actively searching for employment is unable to find work.

Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of the people in the work force. With the current state of both Australia and china’s economies the Unemployment rates remain at a low compared to the rest of the world. Australia remains currently at 5. 9% unemployed (January 2014, According to Australian Bureau of statistics) and china at 4. 1% unemployed (January 2014, According to Australian Bureau of statistics).

Fluctuations can be seen in the unemployment rates of both Australia and china. However both nations experience fluctuating markets over different periods throughout the years. Over the past 3-4 years, Unemployment levels in china and Australia are seen to be constant and increasing overtime. This suggests the two economies are expanding and taking measures to increase employment rates. The increase in employment rates can be seen below in figures 1. 2 and 1. 3. We can see a domino effect appearing here with Australia falling in unemployment a short time after china.

This may have occurred due to a downfall in Australia’s economy causing a breakdown in production lines for goods to export to Australia. Australia currently has a population of 22,620,600 and China holds an outstanding population of over one billion. Australia’s current labour force is composed with 4% agriculture, 26. 6% manufacturing and 69. 4% services. On the other hand China’s labour force is composed of 9. 7% agriculture, 46. 6% manufacturing and 43. 7% services. Economic patterns in Australia marginally differ to China.

With china being one of the world’s Largest exporters of goods it is much stronger than Australia’s manufacturing industry, this can be attributed to the lower cost associated with china’s manufacturing industry. The labour force is differentiated by the distribution in employment sectors in both countries. Quality of life Quality of life is a measure of welfare based on more than just economic output per capita. It includes several factors such as the quality of health care, climate and educational opportunities.

Quality of life is measured by the human development index (HDI), which takes into account income, life expectancy, adult literacy and educational levels. In this aspect, Australia is ranked high up in the HDI rank, currently ranked number two with a HDI of 0. 938. On the other hand china is ranked number 101 with a HDI of 0. 699. A huge gap between China and Australia separates the two countries apart. Taking into account both life expectancy and mean expected years of schooling, Australia is significantly more advanced in areas of schooling and health.

However China & Australia’s HDI have grown over the years. Signs of progression are shown by the increase in HDI. Australia’s HDI shows that Australia started off at a higher point and has continued to maintain that rate as well as having a slight increase, where as china has had a major progression from 1980 till now which indicates there ever-growing economy and development. (Shown in figure 1. 4 and 1. 5 below). Also, in terms of life expectancy, Australia once again ranks higher than China with them having an expectancy of 81. 3 years while China is currently sitting at 73. 3.

While in Australia results are higher due to various factors, which include high levels of health care, intermediate levels of employment, a strong educational system. Environmental Quality Environmental Quality is the impact different aspects of the economy have on the environment, plays a crucial part in economics. It impacts economic decision making, whether development is compatible with the country’s natural environment. There are many environmental issues that face both Australia and China. However these differ in how much they affect the country in accordance to its size and population.

Global warming and climate change are both big issues facing Australia and china in environment quality. Australia’s environment is seen to be poor as an industrialised country. With china’s manufacturing industry ever increasing due to their demand in exports, therefore increasing the burning of fossil fuels for the production of electricity, especially as it holds a large population. As China and Australia are known as industrial countries, they both face the issues of industrial pollution. China being a more industrialized country, more carbon dioxide emissions are produced as a result of mass production.

Pollution or Carbon dioxide emissions can be measured by tonnes per capita. However this can be an inaccurate measure as larger countries such as china with a larger population can have more pollution, which is divided amongst a larger population. This can be seen in figure 1. 6 below. Recent studies have shown water pollution and air temperature show decreasing qualities. The Role of the Government in Health Care, Education & Welfare Payments Both the Australian and Chinese governments have different roles in deciding the future of the nations health care, education and welfare payments.

A way of comparing both countries health system, we see that in Australia it has a well-established system known as the Medicare system which Is Australia’s universal health insurance scheme Introduced in 1984, it objectives are to make healthcare affordable for all Australians to give Australians access to good quality health care services with priority according to the needs of the customer and to provide the best possible quality care, this is in stark contrast compared to China, where they mostly rely on private health care, so this meaning for many of its people this will be hard to gain.

Also another factor is education, both Australia and China provides government funded schooling including primary and secondary system. With universities both nations will offer little help with students paying their fees, later on through the tax system. Meanwhile, Australia also helps its citizens through the Centrelink System providing financial funding to different age groups, such as Social Security, Youth Allowance and also Family Tax Benefits. China also offers a welfare system that benefits its people, but does not provide such advantage that Australia does.

This can be seen in figure 1. 7 below. Figure 1. 7 Subsequently, Australia and China’s economies are somewhat similar in many aspects and different in other aspects. Both China and Australia are showing signs of economic growth and development in the past few years as there is a rise in the GDP per capita as Australia has a GDP per capita of 2. 6%, where as china has a higher rate at 7. 9%. Employment and unemployment levels of both countries seem to remain low at an average of 4. 75% unemployed.

There is a slight rate of fluctuations in both unemployment rates of China and Australia, meaning that the systems both countries have place to maintain a stable economy are sufficient and being justified by these rates of unemployment, even though the re are slight rises in unemployment it outlines a possible financial crisis or drop in the economy, however these rises occur at the same period of time. A big gap can be seen in the HDI rank between China and Australia. This indicates a lower life expectancy, lower literacy and educational levels and lower income in general.

As both China and Australian are known as industrial countries, high levels of industrial pollution are recorded from mass production. However, China and Australia differ in health care systems and are somewhat similar in education. On the other hand, Australia seems to have a better social welfare system providing assistance to those families and individuals in need of financial help in many different circumstances. Bibliography Wikipedia, last modified 23 September 2013, viewed 14 March 2014, http:// en. wikipedia.

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