Specialisation

Is specialisation the way to go for an economy?

For the last decade China has had double-digit economic growth percentages. Of course it is no surprise then that it's widely expected that this rate will slow down. What wasn't predicted is that is expected to fall under 7.5% growth, it's growth from last year, so rapidly. However, this slow down in growth asks an important question: is specialising on one product the best way for an economy to grow?

Now in the case of China it is shown that specialisation is the way to go. China has focused on factory work for just over a decade, and until recently, has achieved better levels of economic growth than most of the world. This has led to a vast expansion in the Chinese economy in terms of government investment, with factory work the spine of the economy. This has made China change from a relatively small global economy to one of the world economic powerhouses. Hence, China shows specialisation is a great way to develop an economy.

However, despite predicted economic growth for China the point is shown that eventually the growth begins to slow down. Now although not a current problem for China it could become a long-term problem if China cannot find a way to improve its economy, especially when it has one of the largest populations in the world. China's failure to develop other specialised industries has shown that specialising on one industry can't -provide long-term economic growth.

Overall, specialising in one product is the correct choice to develop an economy, but to achieve sustainable economic growth other industries must be developed whilst the economy is still growing.