Assessing economic performance

Introduction

In the recent past, the Republic of China has emerged as a World power that can rival the USA in almost every aspect of business. Most believe that there is no gaping difference between the two anymore. In this study, I intend to study a few economic indicators in order to determine if there really is no gap any more.

The USA analysis

According to the CIA World Factbook (2011), GDP per capita in the USA has been dropping the last three years with the current figure standing at $47400. In terms of technology, the USA is still the leader in the development of basic science and technology. The US is also the leader in turning the basic science and technology into useable technology. However, the figures for technological standing have dropped to 72 %( Georgia Tech, 2007). The growth rate in the USA stands at slightly over 8%.  Finally, the USA has a democratic government that is in office because the majority has voted it.

China analysis

            A study of data from the CIA World Factbook (2011) reveals that the GDP per capita has been rising for the last three years with the current figures standing at $7400. There have been some positive gains in the technological front with China clocking 82 %( Georgia Tech, 2007). This puts China in a very good position to control the industry in the near future. The real GDP growth rate in China has been rising with it hitting double figures at 10.06 last year (CIA World Factbook, 2011). The China Republic has a communist government, which in some quarters has been deemed dictatorial.

Summary

The major difference between the two countries in the way they are governed. While the USA advocates for a democratic form of governance, the Chinese are communists. Second, an analysis of the two economies reveals that the two economies are moving in the opposite direction. While China is growing, the US is shrinking.

Conclusion

            A close analysis of the data and other indicators, it is quite evident that China is in a better position to progress economically in the future. According to a study by the IMF, China will overtake the USA as the economic superpower by the year 2016. In another study by the Georgia Technology institute, revealed that China is on track to usurping the title of technological superpower from the USA. The figures for China have been rising for the last 15 years rapidly while those of the US have either stagnated or dropped in the same period.

References

CIA World Factbook (2010). China. Retrieved from      https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html#

CIA World Factbook(2010).U.S.A. Retrieved from         https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

Georgia Tech (July 17, 2007). Technology indicators: Move over U.S. – China to be        new driver of World’s economy and innovation. Retrieved from            http://www.tpac.gatech.edu/sites/default/files/doc/hti2007newsrelease_final.pdf