Can China Be Trapped?

To be considered a member of the bottom billion is by no means a sought-after title. Bad governance, internal conflict, improper use of natural resources, and being landlocked and surrounded by unstable neighbors all plague nations that fall into the bottom billion as is written by Paul Collier in his book The_Bottom_Billion: Why the Poorest Countries are Failing and What Can Be Done About It.

Conflict trap
A bottom billion nation will almost certainly face continuing cycles of conflict; civil wars in particular. As a result of this constant fighting, an economic downturn takes its toll, and not long after a major conflict, the country is highly likely to relapse. Consequently, the country continues the cycle of war followed by economic collapse. Luckily, China does not fall into this trap. In fact, China has the second largest economy in the world behind the United States and is the world's fastest growing economy. The reason: China is the world's largest exporter and second largest importer of goods. As China becomes increasingly industrialized, enterprises are being reformed. This is solidifying China's hold on the world economy.

Natural Resource trap
As Collier claims, countries that fall into the bottom billion in regards to natural resources possess massive oil, mineral, and chemical wealth, but do not have the governance in order to prosper from their own resources. As a result, these nations often fall prey to poverty. China on the other hand, seems to be in the exact opposite situation. China has very few natural resources of their own, but the government is well equipped to exploit resources from other nations (Africa in particular), making large profits and obtaining resources for their own use. China does not fall into the bottom billion when it comes to natural resources. They cannot extract many natural resources from within the country, but China has certainly conquered their underlying problem with precision and skill by exploiting resources from other countries. China skillfully manages their resources by implementing the strict One-Child Policy. The concept behind this law is to control China's growing population by limiting the number of children per family to the first born. However, this law has had many negative effects, especially on the mental and physical health of women. Abortion and female infanticide rates have skyrocketed, even though pregnancy complications are becoming less common. The graph above shows China's continued rise in population, despite the implementation of the One-Child Policy. So what price are Chinese women paying and what are they getting in return? A few extra gallons of gas for their car at the expense of terminating the life of a child? Is the gain worth the loss?

Landlocked with Bad Neighbors trap
China certainly does not fall into this trap because China is not landlocked. In fact, the entire eastern coast of China borders the Pacific Ocean and is home to some of the busiest ports and trading routes in the world. Collier states that "countries with coastline trade with the world, while landlocked countries only trade with their neighbors."China's access to global trading networks and strong relations with trading partners makes the Chinese economy the fastest growing and certainly one of the healthiest economies in the world.

Bad Governance in a Small Country

Small countries discourage investors, and poor governance can destroy the economy. While some may argue that China's Communist government might not be the best political system for overseeing more than 1.3 billion people, it certainly hasn't hindered economic growth by any means. Therefore, China does not fit into the trap of bad governance in a small country.

The map to the left shows China's provinces and countries with similar GDPs.