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Sunforged General

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These 3 five year plans together likely make up the most successful economic program in human history. At the start of the Tenth five year plan in 2001, Chinese GDP (PPP) was 5 trillion USD, by the end of the Twelfth five year plan in 2015 Chinese GDP (PPP) had nearly quadrupled to 19 trillion USD, and also surpassed the US economy to take the spot as top economy in PPP terms.

Can anyone think of any country ever showing such economic growth in human history, to nearly quadruple your economy in 14/15 years? Also what do you think were the causes of this incredible Chinese success? The Chinese had many five year plans prior to these, but none nearly as successful as the Tenth, Eleventh and Twelfth.
 
I would say Japan's post-war economic miracle was comparable, or even greater economic success story than China's. Greater because it propelled Japan from a country bombed into rubble to rich country status and has kept them there. South Korea and Taiwan had similar jumps between mid 60s and early 80s from poor to rich countries, while the jury is still out on whether China will reach rich country status or gets stuck as middle income one.

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Chinese growth looks more impressive because it's such a huge country, but their growth rate isn't unprecedented when you look at other economic miracles.
 
The Netherlands to becoming the foremost maritime and economic power has been called the "Dutch Miracle". The Dutch Golden Age was a period in the history of the Netherlands roughly spanning throughout the 17th century. Perhaps the most significant cause for the Dutch to become the leading economic and financial power was the birth of corporate finances, but also cheap sources of energy - like the wind powered sawmill which enabled building the Dutch Merchant Fleet and the ships of the Dutch East India Company more cost-effectively. Also Amsterdam's leading position as a trade center was affected the Dutch having a trading monopoly with Japan - until 1854 the trade with the Dutch was Japan's only window to the western world. However, the Dutch had the highest per capita income in the world from about 1600 to 1720.

This era is also related with the Tulip Mania - the futures markets appeared in the Netherlands and in the modern world for the first time in history. Among the most notable futures markets was the tulip market. Some of the tulip bulbs gave a birth to a very beautiful tulip flower - the color varieties was affected with a virus and guessing right the fashion color raised interest among the investors. During its highest peak of the mania the most expensive bulbs were priced at 4 200 florins - a skilled craftsman could earn 150 florins yearly. The hysteria, fever, madness, mania and the exponential growth in tulip bulb prices came back dramatically to intrinsic values only in three months as many losing money and assets in the first recorded economic bubble in the world. On the prosperity of the Dutch Republic the mania and the aftermath didn't affect.
 
Can anyone think of any country ever showing such economic growth in human history, to nearly quadruple your economy in 14/15 years?
Germany more than quadrupled it in less time.
 
No, from 1933-1943 the German economy almost tripled, mostly thanks to the absorbed French economy. And By late 1945 the German economy was smaller than in 1933.
Wirtschaftswunder.
 
Marshal plan. Also, I don't have access to my gdp charts right now but later I'll double check, but I'm pretty sure the German economy didn't quadruple, I'm sure there was impressive growth, just not of biblical proportions that quadrupling would entail.
Ah ok so you are right again with everything you said, as always.
 
Marshal plan. Also, I don't have access to my gdp charts right now but later I'll double check, but I'm pretty sure the German economy didn't quadruple, I'm sure there was impressive growth, just not of biblical proportions that quadrupling would entail.

The Marshall plan alone cannot explain it. The UK got waaay more on a per capita basis and an absolute basis, and did not manage to get the same result as Germany. Ditto, to a lesser extent, for France.
 
Wirtschaftswunder.

In small part, it benefited from the Marshal Plan.

In large part, it is a direct result of the recovery of funds hidden by Bormann's policy of Flight Capital.

Flight Capital is the process of transferring money offshore for a variety of reasons. In this case, anticipating a possible loss of the war, Bormann actively moves RHSA funds offshore for later recovery and instructs companies aligned with the Nazi agenda to do likewise.

According to the U.S. Treasury, Bormann set up 750 shell companies starting just after the Wannsee Conference and ending before the fall of Berlin specifically for this purpose. In 1943, the Roman Catholic Church establishes the most corrupt banking institution in the world - I.O.R., aka Vatican Bank - to handle aggressive 'contributions' to the Faith during the war effort. And Swiss bankers are not ones to ask from whence your deposit comes. NSDAP/AO and the Roman Catholic Church has prepared fertile grounds and friendly governments across Europe and South America prepared for a possible Nazi expansion and/or Diaspora depending on how the war went. Hitler's Pope, Pius XII, has long established friendship with Franco and Opus Dei in Spain, Peron in Argentina, and Hitler reported to Eugenio Pacelli when he served as Papal Nuncio in Munich and Hitler was working as an informer for the army (according to the recollections of Pacelli's housekeeper).

When the German army's 6-week gambit into Russia hit a brick wall named Zhukov - the Nazi's game changed and became a series of conditional 'what ifs'. The army was left to hold the fronts and advance if possible while the madman in charge screamed 'no retreat!'. The Party accelerated RSHA's mandate to suck the cash out of Europe. And the SS juiced their Pogrom to a nightmarish and industrial scale during which Eichmann kept the trains running on time by speaking in Hebrew and talking the Rebbes into walking their people onto the trains themselves.

Bormann referred to I.G. Farben's Hermann Schmitz as the master of financial camouflage and was Gehaimrat to Bormann and the Party in what we now call Money Laundering. Schmitz was an early party member and a True Believer. Max Ilgner's N.W.7. within I.G. Farben was already providing Nazi Germany with details of all foreign countries war making capability and was a leader in industrial espionage in Western countries. (my favorite is Standard Oil sold Schmitz Tetraethyl Lead in bulk through shell companies in neutral countries, and a contract for TetraEthyl Lead was handed to a refinery owned by an I.G. Farben shell company who had the contract from the U.S. Government. The Nazis were handed what it would have taken them years to research and amass on their own)

With several hundred overseas locations, a superior internal banking facility, established ties and a common border to the Swiss banking infrastructure, and an established infrastructure fully capable of waging cladestine operations in far away lands; how it was done is not so hard to imagine. I.G. Farben is not the only beneficiary of this policy, but they are the ones who paved the way for the rest to follow. When the Nazis walked the Ratlines to safety, the money was there waiting for them.

During the mid-fifties the West was looking at an increasingly hostile Stalin (at least according to Reinhard Gehlen, and when did he ever lie - I mean tell the truth?) and were eager to get Germany back on her feet as a buffer state. Therefore, eyes were turned from Germany and South America for the 'greater good' and the money flowed back into Germany. Stroessner shuts down Paraguay as an inviolable homeland for the refugees and openly flies the Swastika in the German Embassy. And the myth of the Wirtshaftswunder was born. Thereafter, the Nazis hiding openly in South America simply became legend rather than an open fact unless some blind Jew who sees more than most drops a dime on someone like Eichmann.

I am still appalled, some crimes cannot be forgiven. And the ritual murder of the Hasidism and their Rebbes stands at the top of the list.

Regardless. Not exactly the same thing.
 
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Regarding the OP:

Of the top of my head Japan, South Korea, Singapore and Hong Kong went through similar growth spurts in terms of productivity during the second half of the 20th Century. It comes from going through multiple industrial revolutions in a row instead of having to wait for the development of the underlying technologies (as those had already been developed elsewhere).

Carch-up effects are actually quite easy to explain in economics. The harder question is why so many countries fail to achieve them.
 
UK is probably the most successful industralization in history since they managed to do it first and that is quite huge since everyone else could simply copy them. Sure it took maybe from 1300-1800 so 500+ years but at that time who knew how to industrialize.

Also medieval UK and some other countries have been estimated to have had high GDP per capita in PPP than perhaps the poorest countries have today which is impressive given that the technological gap between 1300-2000 is probably larger than stone age to 1300.

In absolute term the world gdp per capita increased more during 1960-2020 than the rest of human history combined so economically we may have made more progress during the last 60 years than the rest of human history which is rather crazy.

In terms of technology people have claimed that we may have made more progress during the 20 first years of 21th century than whole 20th century due to the exponential growth of technology.
 
UK is probably the most successful industralization in history since they managed to do it first and that is quite huge since everyone else could simply copy them. Sure it took maybe from 1300-1800 so 500+ years but at that time who knew how to industrialize.

Also medieval UK and some other countries have been estimated to have had high GDP per capita in PPP than perhaps the poorest countries have today which is impressive given that the technological gap between 1300-2000 is probably larger than stone age to 1300.

In absolute term the world gdp per capita increased more during 1960-2020 than the rest of human history combined so economically we may have made more progress during the last 60 years than the rest of human history which is rather crazy.

In terms of technology people have claimed that we may have made more progress during the 20 first years of 21th century than whole 20th century due to the exponential growth of technology.

You spelled Netherlands/United Provinces wrong.
 
You spelled Netherlands/United Provinces wrong.
Well I have seen estimate that put 1600s Neatherlands at higher PPP per capita than North Korea have today so technology don't mean much if the country is poorly managed.

I would say Japan's post-war economic miracle was comparable, or even greater economic success story than China's. Greater because it propelled Japan from a country bombed into rubble to rich country status and has kept them there. South Korea and Taiwan had similar jumps between mid 60s and early 80s from poor to rich countries, while the jury is still out on whether China will reach rich country status or gets stuck as middle income one.
It don't matter in the long run given that everyone will eventually be rich compared to the past and the richer a country become the less income start to matters.
 
It don't matter in the long run given that everyone will eventually be rich compared to the past and the richer a country become the less income start to matters.

Which is why everyone in the world is happy, well-off, and there are no social issues in wealthy countries.
 
Which is why everyone in the world is happy, well-off, and there are no social issues in wealthy countries.
Compared to the past, it is much better today and that trend seems to continue. Sure there are issues but much less so compared to a few decades ago.

For example according to the world bank the PPP per capita valued in 2011 dollars have gone from like 9000$ in 1990 to 16000$ in 2018 which is a massive increase and only in a short amount of time. Also according to the world bank poverty have gone down from 42.1% of the world population in 1981 down to 10% in 2015.
 
Carch-up effects are actually quite easy to explain in economics. The harder question is why so many countries fail to achieve them.
Society and political factors, countries that can quickly adopt to new technology tend to have a well educated workforce and a society that allow for economical investment meanwhile the ones that are really poor have very little to offer for outsiders to invest in. It would probably be easier to turn for example 1600s UK into an industrial nation than some of the poorest countries today into industrial nations.