China’s social institutions will face social deviance, social capital crisis as Beijing steps up economic growth
China’s economy is likely to grow at 7.8% this year, its fastest pace in nearly a decade, as growth in social capital, a key indicator of economic success, picks up, according to the World Bank.
But as China continues to ramp up economic activity, a widening social divide in the country could undermine the nation’s economic future.
In the past few years, China’s government has tightened its grip on social institutions and political stability has become increasingly difficult for the country’s growing middle class and working class, according the International Monetary Fund.
As a result, the country is now facing an economic slowdown and social unrest, according a World Bank report released Tuesday.
China is the world’s largest consumer of energy, and many of the countrys biggest companies have made investments in solar power, wind energy and biofuels.
China’s economy grew at a 7.7% annualized rate in 2017, a slow pace compared with the 5.6% growth recorded in 2016 and the 6.1% rate recorded in 2015, according data from the National Bureau of Statistics.
The rate of growth slowed to 7.1%, or about a quarter of the 5% rate in 2020.
China is now the world leader in the construction of wind turbines, the first country to do so since the 1970s, the report said.
China also leads in solar energy and is expanding its use of biofuel production.
China has a large network of social institutions that has seen rapid growth since the Communist Party took power in 1949.
Social capital is a key predictor of economic growth, as well as economic development, according World Bank economist Zhang Yan, who has advised the government since 2012.
In addition to social stability, social institutions are important to helping people live in harmony and contribute to economic growth.
In a study released in April, the International Finance Corporation found that social capital accounts for 15% of the GDP and a growing share of Chinese national income.
In recent years, social spending by the middle class has increased, but a growing middle-class divide has also created problems for the social fabric of the nation, Zhang said.
Social institutions have helped people build social capital and contribute socially, but it’s also become harder to build economic capital, Zhang added.
The government’s plan to boost social capital in China is part of efforts to combat social instability and build the country into a more prosperous and stable society.
According to the government, China will aim to increase social capital by developing social welfare institutions, which will allow people to share their wealth and improve the quality of their lives, while increasing social mobility through new forms of cooperation, communication and education.
The social reform efforts are expected to take up to five years to complete, according state media.
In 2020, the central government will make the decision on what kind of reforms to implement.
“In the longer run, the government will need to make sure social capital is sustained,” said Yan.
The growth in China’s economic growth is a big boost to social capital.
China’s growth in 2016 was the fastest since the 1990s, according To Xinhua News Agency, a state-run media agency.
But in 2017 China’s GDP grew only 2.5%, a slow rate of improvement, according The Washington Post.
The countrys economy is now estimated to have contracted by 6.3% for the year.
While the world economy is expected to grow 6.5% this season, China is still likely to lag behind the rest of the world in terms of economic output.
China will still lead the world, but the world is likely still to be a little bit behind, Zhang told Reuters in an interview.